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Govt cuts land procurement red tape for SKK Migas projects
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Agrarian and Spatial Planning Minister Sofyan Djalil (The Jakarta Post/wienda parwitasari)
The government has cut red tape in procuring land to facilitate the oil and gas industry's upstream business.
Through a memorandum of understanding (MoU) with the Upstream Oil and Gas Regulatory Agency (SKK Migas), ownership of the land that used by oil and gas contractors will belong to the Agrarian and Spatial Planning Ministry.
SKK Migas believed that issuing a state property certificate would assure security and legality of the land used for upstream projects, said Agrarian and Spatial Planning Minister Sofyan Djalil. He added that the new policy would help avoid overlapping ownership claims.
Sofyan also said the land procurement policy was based on Law No.2/2012 on acquiring land for development.
“We know that SKK Migas has been facing problems acquiring land, which is vital to ensuring our oil and gas supply,” Sofyan said, following the MoU signing ceremony recently in Jakarta.
“We have also given the industry discretionary status under Law No.2/2012 by declaring it a public interest sector,” he said.
Sofyan said the bureaucracy of the land procurement process had caused low exploration activities in the upstream sector. “So in the future, if SKK Migas needs land, we will help them procure it, just as we have been doing for toll road projects,” he said. (bbn)
