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Thursday, 08 February 2018 15:48

Regulation Simplification Boosts Activities of Oil and Gas Sector

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To boost the activities of oil and gas sector, the Ministry of Energy and Mineral Resources -ESDM is revoking 32 regulations in the sector of oil and gas. The effort is expected to boost investment, economic growth and employment. The policy is distributed in the oil and gas sub-sectors, such as minerals and coal (minerba), electricity, renewable energy and energy conservation (EBTKE). In addition, the Ministry also simplifies the regulations on the Special Unit for Upstream Oil and Gas business activities (SKK-Migas).

This step is a government effort to eliminate the obstacles that have been a stumbling block, especially for entrepreneurs. Thus, investment is expected to grow as expected by the government and the people. Minister of the ESDM, Ignasius Jonan said that the government through the Ministry of Energy and Mineral Resources will continue to implement the strategy so that the business sector is getting better and better. The efforts to facilitate investment through the revocation or simplification of regulations and licensing will continue to be encouraged. Of the 32 regulations revoked, 11 are from the oil and gas sector. Secretary General of the ESDM, Ego Syarial explained that some businesspeople complained about some irrelevant regulations that must be simplified. Meanwhile, the regulations of the ESDM that are not revoked cover the derivatives of the mandate of the Constitution on the management of natural resources as much as possible for the welfare of Indonesian people.

Head of SKK Migas, Amien Sunaryadi said that there are a number of points that hamper the investment rate of upstream oil and gas sector. There is still a pending or unrealized investment today due to exploration problems to find oil reserves. The reason is that t the world’s oil prices are very cheap nowadays. In addition, there is also impact of the regulation. Amien Suryadi explained that the government has issued a new regulation that is expected to create favorable condition for investment in the oil and gas sector.

The government is pursuing economic growth of 5.5% by 2018. Thus, various efforts are carried out by the stakeholders to boost some sectors. The revocation of 32 regulations that hamper economic acceleration, particularly in the fields of oil and gas and renewable energy, is an option that is considered significant today, especially in meeting the target of economic growth.

Although macroeconomic indicators are now improving, the reality is that this is not a high economic growth. The policy of regulation simplification is expected to boost investment activities across Indonesia.

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