Investors Need To Pass 300 Permit Processes For Upstream Oil And Gas Activities, Bahlil: We Will Cut It

JAKARTA - Minister of Energy and Mineral Resources (ESDM) Bahlil Lahadalia revealed his plan to facilitate licensing in the upstream oil and gas sector.

Bahlil said, currently there are at least 300 permits that must be prepared by cooperation contract contractors (KKKS) in order to explore and exploit domestic oil and gas.

"Well, in order to increase investment upstream of oil and gas, we are formulating comprehensive and measurable steps, especially regulation and licensing. Why? Because our permits are too much, there are around 300 permits. We will cut this," Bahil told reporters, Wednesday, September 11.

Bahlil ensured that the government would assist the KKKS for various kinds of licensing so that it could be issued sooner than before.

Not only that, to attract investors, he also ensures that the government will prepare'manizers' to be offered to investors or KKKS.

This, he said, is very much needed because almost all countries with great oil and gas potential are competing to find foreign investors to work on this potential.

"We will pay attention to qualified sweeters for us to offer to investors. Because almost all of the world is now competing to find Foreign Direct Investment (FDI) in the upstream oil and gas sector," he said.

Bahlil Pede with this step, Indonesia's revenue from the upstream oil and gas sector can increase and the state can pocket at least 12 billion US dollars per year from oil lifting which is only in the range of 600,000 BOPD.

"So if we are able to increase our lifting, then automatically state income will increase, reduce imports, create jobs, and slowly lead to energy independence," concluded Bahlil.