Friday, 23rd June 2017

Energy Ministry simplifies licensing procedures to increase investment

15th June 2017 | 5.328 Views
Jakarta (ANTARA News) - The Energy and Mineral Resources Ministry has simplified licensing procedures in all sectors under its authority as part of efforts to increase investment inflows, Energy and Mineral Resources Minister Ignatius Jonan said.

The ministry realized that not all sectors under its authority can be financed with the state budget, he said in a press conference here on Wednesday.

He said the ministry started the simplification of the licensing procedure in the oil and gas sector by cutting the number of permits from 104 to only six under the ministers regulation No. 29/2017.

"This must be accepted as a change to serve the public. Service is not power but is mandate," he said.

The second sector which underwent the simplification of licensing procedure is the mineral and coal sector in which the ministry issued regulation No. 34/2017 to cut the number of permits from 117 to only six.

The third sector is the electricity sector in which the minister issued regulation No. 12/2016 to delegate the authority to issue 10 permits the one-stop integrated service at the Investment Coordinating Board (BKPM).

Besides simplifying the licensing procedures, the ministry will also expedite and improve licensing services, he said.

In 2016, the realized investment in all sectors under the ministrys authority reached US$27 billion, consisting of US$10 billion in the oil and gas sector, US$8 billion in the mineral and coal sector, US$7 billion in the electricity sector and US$1.6 billion in the new and renewable energy sector.(*)