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19 March 2018
The Ministry of Energy and Mineral Resources (MEMR) recently announced the revocation of 32 regulations in furtherance of the government's efforts to reduce the regulatory burden on businesses in the energy and mineral resources sector (for further details please see "MEMR announces easing of regulatory burden for new and renewable energy sector"). However, it was unclear which of these regulations had been revoked before the announcement and which would be revoked in the future.
This situation has now been clarified with the issuance of four new revoking regulations, which form part of what some have called a 'big-bang' reform. However, there has been some criticism that many of the revoked regulations were:
Despite such criticism, any lightening of the regulatory burden on businesses and thinning out of the country's bulging statute books should be warmly welcomed.
The abovementioned revoking regulations are:
The full list of MEMR regulations that have been revoked by the abovementioned regulations is as follows:
Oil and gas sector
The regulations revoked by MEMR Regulation 6/2018 are:
The regulations revoked by MEMR Regulation 7/2018 are:
Minerals and coal sector
The regulations revoked by MEMR Regulation 8/2018 are:
New and renewable energy and energy conservation sectors
The regulations revoked by MEMR Regulation 9/2018 are:
Such a wholesale revocation of regulations is unusual in the Indonesian context and appears to demonstrate the MEMR's commitment to the government's oft-stated goal of enhancing the country's competitiveness. With Indonesia coming under increasing pressure from regional trade rivals, such as Vietnam, it is hoped that this commitment will be maintained going forward.
For further information on this topic please contact Giffy Pardede at Ali Budiardjo, Nugroho, Reksodiputro by telephone (+62 21 250 5125) or email (firstname.lastname@example.org). The Ali Budiardjo, Nugroho, Reksodiputro website can be accessed at www.abnrlaw.com.
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