MEMR cuts down oil and gas permits to four

The Ministry of Energy and Mineral Resources (MEMR) has further simplified licensing for oil and gas business, cutting down the number of permits to four types from 42 types.

Director General of Oil and Gas IGN Wiratmaja said the ministry will coordinate with regional governments over the policy, adding the new policy aims to revitalize investment climate in the country.

Speaking during the 2015 National Natural Gas Stakeholders Workshop early this week, Wiratmaja said the permits totaled 104 types several years ago. Earlier this year, the number was cut to 42 types and now it has been cut to only four types.

He noted however there are still around 300 types of permits that investors need to obtain from other governmental institutions aside from the MEMR.

The MEMR has officially delegated its licensing authority to the National Investment Board (BKPM) in line with Presidential Instruction No.4/2015 to create a unit to provide one-stop licensing service for businesses there. The unit called PTSP closely coordinates with related offices at the MEMR when it comes to technical issues. The MEMR however still handles control and supervision of work safety, certification, and supervision of technical skills.

Editing by Johannes Simbolon