BPKM has yet to start issuing permits for oil and gas business

Although the Ministry of Energy and Mineral Resources has officially delegated its oil and gas licensing authority to the One Door Integrated Service (PTSP) of the Capital Investment Coordinating Board (BKPM), the newly-established agency has yet to start providing the service due to the lack of a legal basis.

The minister of energy and mineral resources needs to issue a regulation on the delegation of the authority as a legal basis for PTSP to start issuing license for oil and gas business and such a regulation is still in the drafting process, Director General of Oil and Gas IGN Wiratmaja said in a statement on Thursday.

Wiratmaja said the drafting process will take time to complete but he hoped it can be completed ?as soon as possible?

?The process takes time. First, it (the draft regulation) must be reviewed at inter-ministerial team meetings before being submitted to the legal bureau (for final review). And the inter-ministerial team has to meet several times because there are many issues that need to be discussed,? he said.

Minister of Energy and Mineral Resources officially delegated the licensing authority to BKPM?s Chairman Franky Sibarani during a ceremony held during the IPA conference last month.

The PTSP was created in January this year upon the instruction of President Joko Widodo who wanted to simplify the licensing process for business.

Editing by Johannes Simbolon