Ministry of ESDM Increases Investment Flexibility

By : Hariyanto And Aldo Bella Putra | Tuesday, February 13 2018 - 20:00 IWST

Kilang LNG (Foto: Ist)
Kilang LNG (Foto: Ist)

INDUSTRY.co.id - Jakarta - The Ministry of Energy and Mineral Resources (ESDM) simplifies 10 regulations to only seven regulations in the oil and gas sector to increase the flexibility of investment, one of which is in the licensing of gas station or fuel oil and gas distributor.

In a press conference at the ESDM Ministry Building Jakarta, Monday (12/2/2018), Plt. Director General of Oil and Gas at the Ministry of Energy and Mineral Resources, Ego Syahrial, said the regulation on the distribution of fuel and LPG was previously set apart in Permen 16/2011 and Permen 26/2009 which then merged in the EMR Plan of Energy Distribution of Fuel, Gas and Liquified Petroleum Gas.

"The example now will be Pertamina dealer, yesterday 'complicated' (troublesome), apply first to Pertamina, then Pertamina make cooperation, selected to send to the Directorate General of Oil and Gas, Directorate General of Oil and Gas can process 14 days agreed or not, now the dealer is not necessary, says Ego.

He explained the filing of gas station and LPG and LPG distribution permits now do not need to pass the approval of the Directorate General of Oil and Gas, but directly to the relevant oil and gas company, in this case Pertamina.

Previously, companies seeking to apply for gas stations or to Pertamina suppliers must also have 31 licensing certificates, but in the new EMR draft this requires only a proper operation agreement.

In addition to distribution, Ego emphasizes reducing regulation by merging and revising Candy, it will also facilitate oil and gas companies who want to build a refinery.

He added three other regulations on Oil and Gas Working Area (WK) of Oil and Gas, namely Energy and Mineral Regulation 35/2008; ESDM Ministerial Regulation 36/2008; and EMR Regulation 05/2012 will be merged into one regulation of EMR's EMD Design on the Supply of Oil and Gas Working Area.

According to him, simplification of this regulation will increase investment, especially in the oil and gas sector, both upstream and downstream sectors. Earlier last week, the Directorate General of Oil and Gas also revoked 11 regulations.

The Ministry of Energy and Mineral Resources (ESDM) on Monday re-simplified the regulation from 51 to 29 regulations, in the oil and gas sub-sector (from 10 to seven regulations), electricity (two to one regulation), minerba (six to one regulation), EBTKE (six into two regulation), and SKK Migas (27 to 18 regulations).

In total there are 22 regulations revoked because they are considered irrelevant and hamper the investment process, including three regulations revoked in the oil and gas sector.

ESDM Minister Ignatius Jonan said the simplification of this regulation to increase the flexibility of investment. The Ministry of Energy and Mineral Resources and Energy and Mineral Resources (SKK Migas) this year have an investment plan of 50 billion US dollars, or double the realization of total investment in the energy and mineral resources sector in 2017, which amounts to about 26 billion US dollars.

"Today, the total number of 22 regulators is revoked, which hopefully can boost big investment because the investment plan included in SKK and the government is about 50 billion USD," said Minister Jonan.

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