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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