Cutting Red Tape, SKK Migas Launches One Door Service Policy

MINISTRY OF ENERGY AND MINERAL RESOURCES
REPUBLIC OF INDONESIA
PRESS RELEASE

NUMBER: 029.Pers/04/SJI/2020
Date: 15 January 2020

Cutting Red Tape, SKK Migas Launches One Door Service Policy

To realize the common vision of achieving 1 million BOPD in 2030, the government through Special Task Force for Upstream Oil and Gas Business Activities (SKK Migas) officially launches One Door Service Policy (ODSP). The launching ceremony is performed by Secretary General of Ministry of EMR Ego Syahrial and Head of SKK Migas Dwi Soetjipto at the office of SKK Migas in Jakarta, Wednesday (15/1).

Ego Syahrial is convinced that all PSC licensing process will finish faster because the licensing is granted through one door. In addition, SKK Migas and PSC Contractors jointly check the completeness of each document in order to meet the requirements of various licensing agencies and assist with the licensing at relevant agencies.

"The launch of One Door Service Policy is intended to smooth away licensing and inter-agency communication. I'd like to pass on the Minister's message that this service can cut red tape and speed up the process to achieve the target of 1 million barrel production in 2030," said Ego.

Ego continues that long bureaucracy is one of the obstacles in upstream oil and gas activities. "Thus, the ODSP is the response to simplify licensing; this is in accordance with the Minister of EMR's wish expressed to me," he added.

On the same occasion, Head of SKK Migas says delays in upstream oil and gas projects due to excessive and time-consuming licensing will not happen again because the obstacle is solved by the ODSP. "Timely project completion is one of the efforts to make a project meet the approved costs and be carried out efficiently. Any delays in upstream oil and gas project will escalate the costs. The impact on the government is delayed and lower state revenue", said Dwi Soetjipto.

The ODSP is expected to make a real and optimum contribution to the government's effort to improve the investment climate, especially in the upstream oil and gas sector, to be able to compete with other Southeast Asian countries such as Malaysia, Thailand, and Vietnam, as well as with countries from other parts of the world, considering the cross-country nature of upstream oil and gas investment.

"The ODSP will reinforce the upstream oil and gas transformation carried out by SKK Migas. In 2020, we are optimistic to achieve the upstream oil and gas target of eliminating several bottlenecks, such as those in licensing and data accuracy, with the operation of the ODSP and the IOC simultaneously since early January 2020. We have enough time to make adjustment if any obstacles are found during the implementation of PSC Contractor's WP&B; we have the data to prevent negative incidents that may hamper upstream oil and gas operation in 2020", Dwi Soetjipto continued.

The ODSP started in November 2019 with the formulation of ODSP concept, FGD, and dissemination to PSC Contractors. The ODSP is made up of four Working Groups, namely:

-Licensing I covers land and spatial layout

-Licensing II covers environment, safety, and security

-Licensing III covers usage of local resource and other infrastructure

-Licensing IV covers usage of foreign materials and resources

The ODSP Working Groups consists of elements of SKK Migas and representatives of PSC Operators so that the ODSP will be workable and more coordinated in its operation. The ODSP is located at Kaji Semoga Room of Wisma Mulia Building, 35th Floor, Jalan Gatot Subroto, South Jakarta; email: ODSP@skkmigas.go.id, phone number: (021) 29241607, 29246765. (IY)

Head of Bureau of Communication, Public Information Services, and Cooperation

Agung Pribadi (08112213555)

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