Govt to Scrap 220 Exploration Permits

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  • TEMPO.CO, Jakarta - The government has identified 289 types of oil and gas exploration and exploitation permits nationwide, planning to cut 220 of them.

    The remaining 69 permit types will be gruped into nine categories, says SKK Migas acting chief J. Widjonarko. The grouping will be discussed in a meeting at the Coordinating Ministry for the Economy, inviting relevant agencies such as the Financial and Development Supervisory Agency (BPKP).

    "We hope the synchronization of these 69 rules can be completed soon, so that there are no more overlapping rules between various sectors," Widjonarko said in a written statement last week.

    According to Widjonarko, the many number of permits is caused by a very high level of local participation. Therefore, it is necessary to increase communication between all institutions, including the local governments.

    Energy observer from the ReforMiner Institute, Pri Agung Rakhmanto, is pessimistic about the plan to cut and group exploration permits. The process, he said, cannot be done solely by SKK Migas, as these permits involve the participation of  different ministries and local governments.

    Previously, Deputy Minister of Energy Susilo Siswoutomo said that the key to maintaining the level of oil production is by increasing the intensity of exploration. It is an effort that requires system improvements, especially in the field of licensing. "Exploration license must be facilitated. How come the permit to conduct a three-month drilling takes up to two years to process?"