REPUBLIKA.CO.ID, JAKARTA -- Energy and Mineral Resources Minister Ignasius Jonan has called on the Investment Coordinating Board (BKPM) to take more proactive steps in materializing the investment in the energy and mineral sector.

Jonan disclosed that the total investment commitment in the energy and mineral sector in the country, especially oil and gas, in 2016 has reached Rp276 trillion. "I call on the BPKM to be more proactive to speed up the licensing process," he said, after the launch of the three-hour licensing process special services for energy and mineral sector, here on Monday.

Jonan noted that such a high commitment in investment has also been recorded in the geothermal sector at Rp135 trillion, as well as the mineral and coal sector at Rp91 trillion. "In total, it has reached some Rp500 trillion, and now 20 percent of it has been materialized. The other 80 percent, with the support of the licensing agency, would be remarkable and we don't need to invite other investors," he stated.

However, Jonan acknowledged some issues that could not be set to support investment in the sector, including global oil price. "When the oil price declines below US$50 per barrel, realization of the commitment might also decline," he affirmed.

The ministry has set the target of investment in the energy and mineral sector in 2017 to reach $43 billion or some Rp568 trillion. In 2016, investment in the sector has reached Rp347.8 trillion or some $26.76 billion. The investment is expected to increase with the support of the three-hour licensing services in the sector.

Meanwhile, head of BKPM Thomas Trikasih Lembong asserted that the contribution of the energy and mineral sector to the national investment within the next few years is expected to reach 20 to 50 percent. Therefore, simplification and improvement of licensing services in the sector are significant to reach the national investment target.

However, the three-hour services, for now, could only be enjoyed by oil, gas and electricity sectors, and has yet to include mineral and coal sector, Thomas stated. The latter has been closely related to the environment issue, he added. "Smelter has the potential to affect the environment. It is more complicated than those in power generators, which are easier to control the environmental impact.

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