Investment in energy, mining sectors expected to jump by over 59%

Petromindo|Lucky

The Ministry of Energy and Mineral Resources expected investment in the oil and gas, electricity, mining and renewable sectors to jump by more than 59 percent this year following drastic cut in the number of required permits.

Minister of Energy and Mineral Resources Ignasius Jonan told reporters on Wednesday that investment in the aforementioned sectors is estimated to increase to US$43.6 billion this year from $27 billion last year.

He said that investment in the oil and gas sector this year is projected to reach $23 billion, in electricity $13 billion, mining $6 billion, and renewables about $1.6 billion. Last year, realized investment in the oil and gas sector totaled $9.8 billion, in electricity $8.1 billion, in mining $7.2 billion, and in renewables $1.6 billion.

Jonan, however, added that the investment target may change depending among others on global economic growth.

Jonan said that permitting process at the ministry for investment in the aforementioned sectors has been significantly simplified. He pointed out as example that required permits for investment in the oil and gas sector have been drastically cut down to only six from 104 permits previously. In the mining sector, the required permits have been slashed to six from 38.

Editing by Reiner Simanjuntak