Minister to Cut Hundreds of Permits to Boost Oil and Gas Investments

Jakarta, VIVA – Minister of Energy and Mineral Resources (ESDM), Bahlil Lahadalia, plans to cut hundreds of permits in Indonesia's upstream oil and gas sector to boost investment in the industry.

The minister stated that there are currently a significant number of permits, approximately 300, which pose challenges to attracting oil and gas investments.

Therefore, Minister Lahadalia confirmed that the Ministry of Energy and Mineral Resources is currently discussing comprehensive and measured steps to streamline regulations related to oil and gas sector permits.

"Because we have too many permits, there are more than 300. We will cut them," the minister said in Jakarta on Wednesday (Sept 11).

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Menteri Energi dan Sumber Daya Mineral (ESDM) , Bahlil Lahadalia

Photo :

• VIVA.co.id/Anisa Aulia

At the same occasion, CEO of Pertamina Hulu Energi, Chalid Said Salim, acknowledged that the issue of permits is an aspect that must be addressed to boost oil and gas production in Indonesia.

"The permitting issue involves several institutions. There are ministries, such as the Ministry of Environment and Forestry (KLHK), related to environmental impact assessments and others," Salim stated.

He admitted that efforts to increase oil and gas production in the field often face challenges related to other sectors, such as agricultural land issues.

"For example, there are issues with the Ministry of Agriculture, because (field efforts) overlap with rice fields," Salim said.

"In the future, we have programs for food security and energy security. We need to address this mutually," he added.

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He admitted that efforts to increase oil and gas production in the field often face challenges related to other sectors, such as agricultural land issues.