Ministry transfers part of licensing authority to BKPM

The Ministry of Energy and Mineral Resources has transferred authority in the issuance of 10 types of permit in the oil and gas sector to the Investment Coordinating Board (BKPM)?s one-door integrated services unit as per August 1 in a bid to help streamline permitting process to help accelerate investment.

The Directorate General of Oil and Gas at the ministry said in a statement obtained Monday that to facilitate the transfer, the minister on July 31 issued Regulation No 23/2015. The ministry also assigned its staff to BKPM to provide consultancy in the process of issuing permits in the oil and gas sector.

This is part of a total of 42 types of permit in the oil and gas sector to be transferred by the ministry to the BKPM unit. The directorate said that 20 types of permit to be transferred on September 1, and another 10 on October 1.

The directorate said that the ten permits transferred by the ministry to BPKP per August 1 included various recommendation letters such as for import of lubricants by producer, and registration letters for certain construction planning and works, and non-construction activities.

Director General of Oil and Gas IGN Wiratmaja said that other ministries are expected to also transfer part of the permitting authority to the BKPM unit to help streamline permitting procedure.

Editing by Reiner Simanjuntak