Sunday, 3 January 2016


Head of the Coordinating Board of Investment Franky Sibarani stated his optimism that delegation of authority for permit issuance for the oil-gas sector and mineral & coal to One Stop Service (PTSP) at BKPM could increase investment in that sector. He referred to his experience in delegation of authority for permit issuance of the electricity sector in 2015 when the number of permit issued doubled against that of 2014. This was press release by BKPM received on Tuesday (18/8).

Reformation in permit issuance procedure in the form of simplification of application procedure for electricity from 49 permits for 923 days to 25 permits in 256 days and certainty of timing for permit issuance at Central PTSP had its positive implication on the number of forwarded applications in that sector. Through Semester I/2015 the number of applicants for basic permit multiplied by nearly 10 times, to the amount of Rp.308.45 trillion against Semester 1/2014 at Rp.28.99 trillion.

Franky was expecting that the positive attainment in that sector could also happen in the oil, gas and mineral sector. He admitted that the condition and challenges in those sector was different from that in the electricity sector but he was sure that ease of Permit application in that sector would serve as incentive to investors.

One of the grievances of foreign investors in Indonesia was complicated permit procedures. It was expected that the simplification of procedure would serve as stimulus, in spite of the problems faced to day by the sector, i.e. low commodity price. In Semester I/2015 investment was Rp.28.67 trillion, a figure that inched down by 1.27% against Semester I/2014 at Rp.29.04 trillion.

The Ministry of Energy and Mineral Resources had delegated authorization of permit issuance of the oil gas and mineral sector to PTSP at BKPM. There were 42 oil gas permit application forwarded in 3 stages, i.e. 10 types of permit per August 2015, 20 permit per September 2015 and 12 permit per October 1 2015. The permit being delegated were among others permit for crude oil processing, permit for natural gas processing, recommendation for export of crude oil and fuel, and permit for LNG storage. Meanwhile permit for mineral and coal delegated numbered 11 permits, among others exploration, permit for mining plus extention of permit. (SS)

Business News - August 21, 2015

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