Oil-and-Gas SKUP Not Required for Tenders

  • The Ministry of Energy and Mineral Resources is emphasizing the fact that Supporting Business Competency Certificates (Surat Kemampuan Usaha Penunjang – “SKUP”) are not required as prerequisite documents in order to participate in tenders, with the exception of oil-and-gas inspection companies. Instead, SKUP are only required in order to measure the competence of oil-and-gas companies and are based on a rating scheme which addresses local content, as used in the production of domestic products.
  • By way of background, the SKUP replaced the previously used Registration Certificate (Surat Keterangan Terdaftar – “SKT”) and this replacement was based on Regulation of the Minister of Energy and Mineral Resources No. 14 of 2018 on Oil-and-Gas Supporting Business Activities (“Regulation 14/2018”). The licensing process for SKUP is relatively shorter than it was for SKT and has been set at three processing days, a significant improvement over the previous processing time of 10 processing days.
  • Ultimately, the elimination of the SKT as a prerequisite document should facilitate small-, medium- and large-scale enterprises as regards direct meetings with Cooperation Contract Contractors (Kontraktor Kontrak Kerja Sama – “K3S”) and is thus expected to simplify the oil-and-gas supporting business chain. (ANT)
  • For more on Regulation 14/2018, see ILB No. 3324.
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  • The Ministry of Energy and Mineral Resources is emphasizing the fact that Supporting Business Competency Certificates (Surat Kemampuan Usaha Penunjang – “SKUP”) are not required as prerequisite documents in order to participate in tenders, with the exception of oil-and-gas inspection companies. Instead, SKUP are only required in order to measure the competence of oil-and-gas companies and are based on a rating scheme which addresses local content, as used in the production of domestic products.
  • By way of background, the SKUP replaced the previously used Registration Certificate (Surat Keterangan Terdaftar – “SKT”) and this replacement was based on Regulation of the Minister of Energy and Mineral Resources No. 14 of 2018 on Oil-and-Gas Supporting Business Activities (“Regulation 14/2018”). The licensing process for SKUP is relatively shorter than it was for SKT and has been set at three processing days, a significant improvement over the previous processing time of 10 processing days.
  • Ultimately, the elimination of the SKT as a prerequisite document should facilitate small-, medium- and large-scale enterprises as regards direct meetings with Cooperation Contract Contractors (Kontraktor Kontrak Kerja Sama – “K3S”) and is thus expected to simplify the oil-and-gas supporting business chain. (ANT)
  • For more on Regulation 14/2018, see ILB No. 3324.
......

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