KSP LEGAL UPDATES

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KSP LEGAL UPDATES

Regulation on three hours license services for mining and mineral infrastructure (Pelayanan Cepat Izin Investasi 3 jam - Layanan Cepat I23J) has been come into effect since June 2016. Some provisions of the previous regulation were amended under the Ministry of Energy and Mineral Resources Number 13 of 2017 (“MOEMR Reg 13/2017”). These regulations significantly expedite licenses services which normally take 20 until 40 working days.

Pursuant to the previous regulation, Layanan Cepat I23J applies for geothermal business, electric power generation business, electric power transmission business and temporary business license of oil and gas downstream. However, the geothermal business and all relevant provisions were removed in the MOEMR Reg 13/2017.

Submission of the applications for this services should be done by director of the company at the head office of the Indonesian Investment Coordinating Board (Badan Koordinasi Penanaman Modal - BKPM). Checklist of the administration and technical requirements are attached in the MOEMR Reg 13/2017.

The following are nine business licenses provided in Layanan Cepat I23J:

1. Temporary business license of electric power supply.

2. Temporary business license of oil/fuel oil/liquefied petroleum gas storage.

3. Temporary business license of processed products/compressed natural gas storage.

4. Temporary business license of liquefied natural gas storage.

5. Temporary business license of oil processing.

6. Temporary business license of processed products processing.

7. Temporary business license of natural gas processing.

8. Temporary business license of oil/fuel oil general trading.

9. Temporary business license of processed products general trading.