Govt, to set up task force to simplify permit in mining, oil sector

By Bambang Atmaja

The government would set up a team, comprising ministers, to reduce the number of permits that must be obtained by investors to do business in the country, including in mining, oil and gas sectors, senior official said here on Wednesday.

"We've just discussed the issue with president. The president has told us to simplify the permit procedure to encourage investors to come to Indonesia. We'll do just that," said upstream authority SKK Migas Chairman Rudi Rubiandini after having a meeting with President Susilo Bambang Yudhoyono at the state palace on Wednesday.

He did not elaborate the planned task force, but he underlined the importance of simplifying the licencing procedure. The licencing procedure to attract investments will also be discussed during the upcoming conference of the Indonesian Petroleum Association (IPA) next week.

In Indonesia, investors must have a number of permits from several ministries in Jakarta, regional administrations, and other necessary permits to start mining exploration or other business activities, he said.

Rudi cited an example in the U.S., where the license is only issued by the state, then the miners can start exploration.

"If we could cut the permits up to only one third of the total currently needed, it will be good," he said.

At the same occasion, Rudi hailed the step taken by the forestry ministry to exempt the coal bed methane (CBM) development from the forest moratorium policy. Previously, food and geothermal projects that often requires to open forestry areas had been exempted from the policy.

Rudi said that the new step will accelerate the development of CBM gas, which is expected to compensate the declining production of oil fuels (BBM).

Editing by Benget Besalicto Tnb.