ESDM Minister To Prioritize On Simplifying Energy And Natural Resources Regulations

, 27 Oct 2024

By ferry@insightinnews.com

The Ministry of Energy and Mineral Resources (ESDM) is actively working to expedite the simplification of regulations within the energy and mineral resources sector. This initiative aims to enhance efficiency, attract investments, and ensure improved public services.

Minister of ESDM Bahlil Lahadalia has emphasized that simplifying regulations in the energy sector is a priority to accelerate investments, particularly during the first 100 days of his leadership.

He noted that one of the most significant challenges faced is the overlapping licensing requirements, which have hindered investment flow. For instance, in the oil and gas exploration sector, Bahlil pointed out that there are still over 100 permits that need to be obtained, resulting in a slow and inefficient exploration process.

"Imagine that we want to conduct exploration, yet there are still more than 100 permits to secure, 129 to be exact, if I am not mistaken. While these permits are fundamentally sound, our Service Level Agreement lacks efficiency and speed. I am currently seeking solutions to this issue," Bahlil stated in a written statement on Friday, October 25, 2024.

In addition to the oil and gas sector, Bahlil also highlighted similar issues in the Mineral and Coal (Minerba) sector, where numerous overlapping regulations burden officials and business operators.

"We observe that many of our colleagues, particularly those in the Directorate General, have been affected by overly complex regulatory issues. We will implement improvements to ensure that officials are not hindered, while also preventing unnecessary burdens on businesses seeking to accelerate their operations," he remarked.

In response to this directive, Agus Cahyono Adi, Head of the Bureau of Communication, Public Services, and Cooperation (KLIK) at the ESDM Ministry, affirmed that the simplification of regulations is intended not only to expedite investments but also to enhance governance in the energy sector as a whole.

"We are committed to streamlining overlapping regulations to make the licensing process in the oil and gas and mineral sectors more efficient. This is a primary focus during the first 100 days, in line with the Minister of ESDM's directives," Agus stated.

Agus further stated that the government is expediting the harmonization of regulations between the central and regional levels. "In accordance with the directives of the Minister of Energy and Mineral Resources, we are striving to ensure that the licensing process at both the central and regional levels can be completed within no more than one year. This is our priority to encourage the acceleration of investments," he explained.

Through these efforts, the Ministry of Energy and Mineral Resources aims to create a more dynamic business ecosystem and enhance the energy sector's contribution to national economic growth. Moving forward, the government will continue to evaluate and simplify other regulations to align with the investment needs in the energy sector.

"Overly complex regulations will hinder the investment process and lead to prolonged bureaucracy. Through regulatory simplification, the government hopes to foster a more conducive business climate," Agus remarked.

Tag:

We would appreciate your comments

Business_Economy