Not Relevant Again, ESDM Ministry Revokes 11 Regulation of Oil and Gas Industry

By : Hariyanto And Aldo Bella Putra | Saturday, March 03 2018 - 18:00 IWST

Blok Migas (Foto Eksplorasi.ID)
Blok Migas (Foto Eksplorasi.ID)

INDUSTRY.co.id - Jakarta - The Ministry of Energy and Mineral Resources (ESDM) simplifies regulations and licensing in the ESDM sector and revokes 11 regulations, simplifies seven regulations and revokes 19 licenses and recommendations in the oil and gas industry subsector oil and gas.

"From 5 February 2018 until now, in the oil and gas subsector we have done four stages (simplification) with the results of which, 11 regulations we pull, we also revise the 7 Permen ESDM And we also revoke about 19 licenses and recommendations," explained Executor task (Plt) Director General of Oil and Gas ESDM Ministry Ego Syahrial in Jakarta, Friday (2/3/2018).

Ministry of Energy and Mineral Resources has also issued ESDM Regulation no. 6 of 2018 on Revocation of Regulation of the Minister of Energy and Mineral Resources, Minister of Mines and Energy Regulation, and Decree of the Minister of Energy and Mineral Resources related to Oil and Gas Business Activities, according to the official statement of the ESDM Ministry.

The candy was approved to revoke 11 regulations of oil and gas midwives that are not relevant to the times. In addition, seven candies will also be simplified into six Permens that has been proposed by its EMR sweets design.

In addition, from 29 licenses and 14 recommendations of the oil and gas subsector, 19 items were revoked, 16 licenses and three recommendations. Four licenses and four recommendations are no longer issued by the Directorate General of Oil and Gas. So there are only nine licenses left and only seven recommendations.

Along with the revocation of the regulation, Ego said, now oil and gas supporting business activities no longer require a registered certificate (SKT) of oil and gas supporting businesses. This is a major breakthrough and greatly cuts the bureaucracy.

Control of oil and gas supporting business is done through a letter of business support capability (SKUP) with the right business classification scope and only for core business that is 13 subfields of business only. Previously controlled business classification coverage reached 139 business activities and includes business activities that are not core and actually do not require SKT or SKUP.

"For supporting activities, SKT does not exist anymore, just by SKUP," said Ego Syahrial to media crew.

Another example of the simplification is that the Ministry of Energy and Mineral Resources is no longer issuing recommendations on foreign employment plans (RPTKA) and the permission to hire foreign workers (IMTA). Instead, a team was formed under the coordination of the Ministry of Manpower for the issuance of RPTKA and IMTA.

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