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MEMR Regulations Simplified to Improve Business and Investment Growth 

by Yohanes Masengi, Vincent Lie, Adilla Intan

Published: August, 2018

Submission: August, 2018

 



Earlier this year, the Ministry of Energy and Mineral resources ("MEMR") issued Press Release No. 00022/04/SJI/2018 to continue arranging dozens of overlapping regulations and permits ("Simplification"). So far, 90 regulations and 96 certifications/recommendation/permits ("Regulations") have started since 22 January 2018.


These 90 Regulations comprise 18 Regulations in the Oil & Gas ("Migas") Subsector, 20 Regulations in the Electricity ("Listrik") Subsector, 32 Regulations in the Minerals & Coal ("Minerba") Subsector, 5 Regulations on New & Renewable Energy Resources ("EBTKE") and 3 SKK Migas Regulations. The 96 certifications/recommendation/permits comprise 23 from Migas, 64 in the Minerba Subsector and 5 from EBTKE.


The main objectives of the Simplification are to end the duplication of certificates, reduce bureaucracy and reduce the complexity of the regulatory regime. For example, under MEMR Regulation No. 2 of 2018 on the Enforcement of Indonesian National Standards in the Electric Power Sector, the MEMR has revoked 11 regulations and issued one regulation on National
Standards in the Electric Power sector. To reduce bureaucracy, Migas and EBTKE have removed the obligation to obtain a Recommendation for RPTKAs (Rencana Penggunaan Tenaga Kerja Asing) and IMTAs (Ijin Menggunakan Tenaga Kerja Asing). In addition, in the Minerba sector the 5-year reclamation guarantee has been removed which in the past was required along with a post-mining guarantee.


The highlights of the Simplication in each sector are the following:


Migas
1. simplify the Fuel and LPG Management System;
2. simplify Regulations on Oil & Gas Support Businesses;
3. legal certainty of Post-Operation Activities;
4. simplify Masterlist Verification;
5. simplify the Safety Check Procedures through Operation-Worthy Approval;
6. removal of the RPTKA Recommendation requirement;
7. removal of the Fuel Distributor Certificate requirement;
8. removal of the Support Business Registration Certificate requirement;
9. removal of the Equipment Utilization Worthiness Certificate (Sertifikat Kelayakan Penggunaan Peralatan or SKPP);
10. removal of the Installation Utilization Worthiness Certificate (Sertifikat Kelayakan Penggunaan Instalasi or SKPI requirement)


 


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