Government to streamline oil, gas permits

The government plans to cut down the number of permits in the oil and gas sector, and create a one stop licensing service in a bid to lure badly needed investment in the sector particularly upstream industry.

Acting Director General of Oil and Gas Naryanto Wagimin said in a statement Wednesday that going forward that licensing procedure in te oil and gas sector will be simpler and integrated. He did not elaborate.

The Oil and Gas Sector Governance Reform Team, however, acknowledged that lengthy licensing process and red tapes have been one of the key factors hampering investment in the upstream oil and gas sector. Investment in the sector requires about 270 different permits from around 13 institutions at the regional and central government levels.

Team Head Faisal Basri said recommendation on the permitting procedure in the oil and gas sector will be issued once the team completed the ongoing assessment, hopefully within four months.

Editing by Reiner Simanjuntak