Overlap Of Oil And Gas WK Land With Other Industries Becomes A Challenge For Oil And Gas Investment

JAKARTA - Medco E&P President Director Ronald Gunawan explained the challenges and obstacles faced by the upstream oil and gas industry in realizing their investments.

Ronald admitted that the challenge faced by Medco on land or onshore is the problem of overlapping or overlapping land which is the working area of oil and gas with other industries.

"For example, in South Sumatra, we want to draw we need up to 3 years just for drilling because we have to free the land, there is also a certain process," Ronald told Commission VII DPR RI quoted on Thursday, March 14.

He admitted that land already controlled by other industries tends to be very difficult to release because the previous land authorities had negotiated beyond the ethical limit of Medco E&P's business.

"The land controlled by other industries is increasingly difficult for us to free because we ask for negotiations that may no longer be normal with our ethical business," Ronald continued.

For this reason, he asked the DPR RI Commission VII for assistance to assist his party in resolving the problem of overlapping land.

On the same occasion Ronald also said that the investment conditions in Indonesia in the last 3 years have increasingly shown positive developments.

He explained that one of the drivers of the investment climate is the provision of incentives regulated in the ESDM Meterical Decree number 199 of 2021 so that investors have a strong legal umbrella.

"Second, the process is accelerating. For example, from Medco we have POD which can be approved in less than 1 week to 1 week, it has been approved, so you do projects faster," he continued.

Third, he continued, is the synergy and cooperation between the KKKS and SKK Migas and the Directorate General of Oil and Gas (Ditjen Migas) of the Ministry of Energy and Mineral Resources so that the licensing process and so on is getting better and can be accelerated.

"That is an appetite for the industry to get better. Coincidentally, I am quite active in the Indonesian Petroleum Association (IPA). Friends from international companies see the progress is also very good," he concluded.