Govt targets US$43 Billion investment in energy

Photo by MEMR
JAKARTA (TheInsiderStories) – Indonesian government targets the investment in energy sector to reach around US$43 billion inline with the simplification or permits, said one senior official on Wednesday. Minister of Energy and Mineral Resources stated Ignasius Jonan, said the increasing is sustained various simplification of licensing conducted by the Ministry.
The minister explained, targets investment in oil and gas to reach $23 billion, electricity $13 billion, minerals, coal $6 billion, and renewable energy $1.6 billion in this year.
Jonan said, for the oil and gas sector through ministerial decree No. 29 of 2017 has simplified the original license 104 permits to just six licenses. In coal sector with the enactment of Permen ESDM No. 34 Year 2017, businesses only need to go through the six original license must go through 38 licensing.

Four of the new license must be taken care of through the Coordinating Investment Board (BKPM), while the remaining two which is the licensing of technical equipment through the MEMR.

For investing in minerals and coal, the business player or investors only need six permits, compared to previous 38 permits. While electricity sector has no change in its permit award mechanism since 2014 ruled in Permen ESDM No. 25 Year 2014.

According to him, the licensing cuts according in accordance with the Presidential Instruction of the Republic of Indonesia in order to improve the investment climate in the energy sector.

The six licenses are still held by the Ministry of Energy and Mineral Resources, two related to upstream oil and gas permits (general survey permit and utilization of oil and gas data) and four related to downstream oil and gas (processing permits, storage, transportation and trading).

“It is a gradual implementation, and I have spoken to all colleagues in the Directorate General of Oil and Gas, it must be accepted as a change of service to the public,” said Jonan.

Oil and natural gas sub sector since 2015, has delegated 42 licenses to BKPM through ESDM Regulation No. 23/2015. In addition to permits in oil and gas there are still other types of non-licensing such as recommendations, approvals, letters and certificates that have been partially done online.

Adding the minister, Director General of Oil and Gas, IGN Wiratmaja Pudja stated that the simplification of permit will make the time needed to manage the licensing process in oil and gas sector becomes less.

“Licensing in the oil and gas sub sector used to average 30-45 days with this simplification will be between 10-15 days if all the requirements are complete, this simplification will make everything move quickly so that investment will be better,” said Wiratmaja.

In addition, Jonan continued, the ministry will also accelerate the process for permit award. It actually take 7-14 days for each permit.
(Written by Linda Silaen, Email: