Contracts & Commercial

Energy Ministry revokes 22 Regulations

Date: 12 February 2018; Type: Legal News; Source: Antara

Jakarta, Feb 12 (ANTARA News) - The Energy and Mineral Resources Ministry has revoked 22 regulations that were hampering the investment process.

"From 51, we have reduced the number of regulations to 29. The revocation is expected to increase investment," Energy and Mineral Resources Minister Ignasius Jonan said here, Monday.

Of the 29 simplified regulations, seven come from the ministry`s Directorate General of Oil and Gas, one from the Directorate General of Mineral and Coal, two from the Directorate General of Renewable Energy, one from the Directorate General of Electricity and 18 from the Upstream Oil and Gas Regulatory Special Task Force (SKK Migas).

The Energy and Mineral Resources Ministry and SKK Migas have an investment plan of US$50 billion.

Meanwhile, the realization of total investment in the energy and mineral resources sector is worth $26 billion.

The minister earlier revoked 32 regulations. A total of 52 regulations have been revoked.

The minister pointed out that the regulations that were revoked included ministerial regulations, ministerial decrees, implementation guidelines, licensing rules and work regulations, both at the Directorate General of Energy and Mineral Resources, and in SKK Migas.

The revocation process will be carried out gradually. The ministry will review the plan to simplify the regulations.

The simplification is based on three things, namely Article 33 of the 1945 Constitution, safety and public governance.

President Joko Widodo earlier called on the ministers, heads of agencies and officials of echelon I to simplify the regulations to bring about swift improvements in the government`s performance.

"The regulations and permissions are just conditions, and therefore, they must be simplified," President Joko Widodo stated.

Besides this, Jokowi has also urged the authorities to simplify the already existing regulations, which cannot be removed.

He remarked that the trading business license (SIUP) and company registration (TDP) can be incorporated to simplify the process, as the two licenses exist in the law.

The head of state has also called on the state officials to not add new regulations and to avoid signing regulations that can hinder development.

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