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BKPM Accelerate The Time Limit of Business Permit Process

by Sebastianus Epifany Monday, January 30, 2017 - 16:39

JAKARTA - Target achievement of investment in Energy and mineral resources (ESDM) is estimated up to USD 34 billion or Rp 568 Trillion. Hence, Indonesia Investment Coordinating Board (BKPM) provide 3 hours permit services for infrastructure-related business processes in ESDM sector.

Head of BKPM Thomas Lembong said investment service three hours for the EMR sector is run by the present mechanism, submit, wait, and receive. The number of permits processed nine licenses, consisting of one type of electrical activity permit, and eight permits oil and gas activities.

The type of activity permit are temporary business permit of electricity supply, temporary business permit of petroleum or gas storage, temporary business permit of PLG storage, temporary business permit of refined oil, temporary business permit of material processed, temporary business permit of natural gas processing, temporary business permit of general commerce of crude oil, and also temporary business permit of material processed.

According to Thomas Lembong, it was very significant to trimming the duration of permit process into 3 hours, because the duration of regular service permit can reach 20 to 40 working days. As reported from today (1/30/2017), he explains, " Special for what we launch today, the term that used is Three Hours ESDM. It concerns a temporary operating permit in four groups. First, the storage of the processed fuel, LPG. Second, the processing of the same product. Third, for general commercial or general trading. Then finally, in an effort to provide electrical power."

From the BKPM investment data of the ESDM sector in 2012 until 2016, beyond the upstream oil and gas activities, the investment numbers reached Rp 490 trillion, or 21 percent of the total realization of incoming investment. Actual investment in the ESDM sector contributed by subsector of electricity worth Rp 229,4 trillion, coal mining worth Rp 71,4 trillion, metal mining worth 67,4 trillion, the other mining metals except iron are worth Rp 38,8 trillion, oil and gas mining services worth Rp 21,3 trillion, and another BKPM subsector worth Rp 61,7 trillion.

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