News

The cuts in Bahlil enable the process to increase oil withdrawal

Jakarta (MidLand) – Minister of Energy and Mineral Resources (ESDM) Bahlil Lahadalia has cut the licensing process, which was considered too complicated as an important step to increase oil withdrawal.

“Our country is criticized because there are many regulations, before there were more than 320, now there are almost 200 permit regulations that we need to complete,” Bahlil said at the 2024 Oil and Gas Security Awards in Jakarta , Monday. evening.

Bahlil noted that Indonesia previously had more than 320 regulations related to permits in the oil sector, which have now been reduced to nearly 200 regulations.

Besides that, his party highlighted the project gross subdivision with cost recovery. The system still presents obstacles, especially in terms of confusing complexity of the criteria.

Initially the scheme included 29 items gross subdivision which is considered difficult for contractors to understand. Bahlil also admitted that, even as Minister of Energy and Mineral Resources, it was difficult for him to understand these criteria.

“There is a new gross subdivision which previously consisted of 29 items, I myself struggled to read, what is this? Why are the criteria so long, not yet an entrepreneur, only then was I the minister (who) read it,’” he said.

For this reason, Bahlil took the initiative to streamline the criteria from 29 to just five. This should give contractors flexibility in choosing the best route.

“So, we reduced the number of elements from 29 to five, to give contractors the freedom to choose which route so we can optimize and accelerate our lifting process,” Bahlil said.

With this step, the government hopes to speed up the process of tapping oil and encourage contractors to be more active in developing existing wells.

Bahlil stressed that he is open to criticism and input, as a step to continue improving policies in the energy sector.

He also recalled that domestic potential needs to be optimized, with the hope that Indonesia can reduce oil imports.

“I am not anti-criticism or input, I also happen to be a (former) businessman if other countries provide it sweetener “It’s good that we will definitely go there, but on the one hand we have to optimize the existing potential,” Bahlil said.

Read also: Bahlil said Indonesia once exported up to 1 million barrels of oil
Read also: Bahlil says Prabowo-Gibran has an energy sovereignty agenda

Reporter: Muhammad Harianto
Publisher: Hisar Sitanggang
Copyright © MidLand 2024

Quoted From Many Source

Leave a Reply

Your email address will not be published. Required fields are marked *

Back to top button