Minerba to transfer mining licenses to BKPM

By Thomas Sembiring

Director General of Mineral and Coal (Minerba) at the Ministry of Energy and Mineral Resources Bambang Gatot Ariyono said that the directorate will eventually transfer its entire licensing authority to the Investment Coordinating Board (BKPM).

?If the licenses have been transferred to the BKPM, Minerba will no longer issue any licenses,? Bambang said on Monday.

He reiterated that the directorate plans to cut down the number of licenses that miners must obtain from his office to only three licenses as part of licensing simplication procedure planned by Minister of Energy and Mineral Resources Sudirman Said.

Sudirman said on Monday that the ministry plans to cut down the number of licenses that mining and energy companies must obtain from the ministry to only 10 from 89 at present. The plan is expected to be realized this year, comprising of only three for mining sector, three for oil and gas sector, three for electricity sector, and one for renewable energy sector.

Bambang said that the three licenses for the mining sector include one for the upstream sector related to exploration activities, one for mining services or supporting industries, and one for the downstream sector.

?The dream is to realize it this year. Minerba will only issue three licenses,? he said, adding that eventually all the licenses at Minerba will be transferred to BKPM.

As has been reported previously, of the 89 licenses at the ministry, 63 have been transferred to BKPM.

Editing by Reiner Simanjuntak