Ministry to cut oil and gas licenses to 20

The Ministry of Energy and Mineral Resources will further cut the number of licenses obtainable by oil and gas contractors to 20 by the end of this year.

Minister of Energy and Mineral Resources Sudirman Said said in a statement that by simplifying licensing process, the ministry expected to revive investors? confidence in the country?s upstream sector amid the global economic slowdown.

The ministry has consistently streamlined the licensing process for oil and gas business since the issuance of Presidential Instruction No. 4/2015 to centralize business licensing process at the Investment Coordinating Board (BKPM). Under the presidential instruction, all ministries are called to transfer their license issuing right to BKPM.

in 2011, there were 104 licenses obtainable by oil and gas contractors from the Directorate General of Oil and Gas. In 2012, the number of licenses was cut to 51. In 2015, the number was further cut to 42.

Editing by Johannes Simbolon