JAKARTA (TheInsiderStories) - Indonesian Investment Coordinating Board (BKPM) and Energy and Mineral Resources (EMR) Ministry launched 3 Hours Investment Licensing Service for energy and mineral resources sectors (ESDM3J) to attract new investment. This year, BKPM expecting total investment from this sectors around Rp140 trillion (US$105.24 million) or 20 percent of this year realization’s target of Rp678 trillion.
“Today we launched ESDM3J for storage & logistics sector, processing, general trading and power business entities. This is an effort of the government to simplify the rules on investment in the field of oil, gas and energy,” said Chairman of BKPM Thomas Lembong in his speech at the launched of ESDM3J on Monday.
He added, the one stop service ESDM3J will process nine types of licenses consists of one type of permit to electricity and 9 for oil and gas.
The agency targeting the portion of investment from the energy and mineral resources sector could reached 20 to 50 percent of the total investment in the coming years. Based on BKPM data total investment from this sector recorded Rp490 trillion or 21 percent from total realization during 2012 - 2016.
According to him, total commitment from investors who have registered with the business plan about Rp200 trillion comes from Japan, China, United State (U.S) and Europe. Local players also shown their interest to expand their power sector business.
To grab the commitment, Thomas continues, BKPM has collated the top 100 projects for domestic and foreign investors and most of them interested at electricity, oil and gas projects.
Citing on BKPM data, Energy and Mineral Resources Minister Ignatius Jonan stated, total investment commitments in 2016 of oil and gas Rp276 trillion, electricity and supporting infrastructure and Rp 135 trillion and Rp91 trillion for mining. On his side, Jonan promised to simplify the licensing from dozens to only 20 permit.
“We ask BKPM more pro-active in order to permit of here faster. If this is to be realized within three years of the investment we will be able to rise sharply,” He said.
EMR ministry targeting total investment in energy and mineral resources sectors including through BKPM’s permit could reach Rp568 trillion in this yeas from a year ago Rp347.85 trillion.