Minister to revise regulation on oil, gas supporting industries

The Ministry of Energy and Mineral Resources is currently in the process of revising Ministerial Regulation No 27/2008 on oil and gas supporting industry business activities. Among of the key changes include validity of the registration reference letter (or SKT), simplification of classification of the supporting industries, and acceleration in the issuance of the SKT.

Director General of Oil and Gas at the ministry, Ego Syahrial said in a statement on Wednesday that the revision is aimed at simplifying the Ministerial Regulation No 27.

The statement said that the validity period of the SKT will be extended to five years from three years under the current regulation. Issuance of the SKT will be made within five days from 10 days. The SKT reporting period will be trimmed down to six months from 12 months.

The classification of oil and gas construction services will also be changed (to be aligned with the Law on Construction) from initially comprising of construction planning service, construction implementing service, and construction supervisory service into new classification of construction consultancy services business (planning and supervisory), construction work service, and integrated construction work service.

Classification of oil and gas supporting businesses will also be simplified from initially comprising of four levels of supporting services and three levels of supporting industries to comprising only of two levels.

The statement said that another change in the upcoming new regulation is that the government will no longer require recommendation letter from the oil and gas supporting businesses association as businesses are not required to become member of the association.

Under the new regulation, the type of companies will also be divided into only two types: domestic investment company and foreign investment company, in line with the Law No 25 on Investment Coordinating Board (BKPM).

Editing by Reiner Simanjuntak