PwC reported that Indonesia has the sixth largest coal bed methane reserves in the world at 453 trillion cubic feet with shale gas reserves estimated at 574 trillion cubic feet. In addition, according to the BP Statistical Review of World Energy 2018, the natural gas reserves in Indonesia were recorded at 102.9 trillion cubic feet. Gas production in Indonesia has reached 68 billion m3, contributing to 60% of the country’s total oil and gas production.
In order to improve the control over exports and imports of oil, gas and other fuels in Indonesia, as well as to simplify the business license process, the Regulation No. 21 of 2019 on Export and Import Provisions for Oil, Gas and Other Fuels has been issued by the Minister of Trade. This newly enacted regulation will replace the Regulation of the Minister No. 03/M-DAG/PER/1/2015.
Generally, Regulation 21/2019 covers issues with regard to securing relevant imports and exports licenses for oil, gas, and other fuels in Indonesia:
Types of imported and exported oils, gas, and other fuels for exports and imports that are included in the Regulation 21/2019 are stated in the following:
The exports and imports of oil, gas and other fuels that are used for research purposes or as samples are exempted from the mentioned provisions. However, importers and exporters must first get approval from the Directorate General of Foreign Trade
Exports of oil, gas and other fuels can only be carried out by the following parties, only if they have registered themselves as exporters and have secured the export approval from the Minister of Trade:
Oil and Gas
State-owned Oil and Gas
Registration as Exporters
Obtaining Export Approval
Imports of oil, gas and other fuels can only be carried out by the following parties, only if they have secured the import approval from the Minister of Trade:
Oil and Gas
Imports of oil, gas and other fuels do not require importer registration anymore. Only import approval is needed.
Obtaining Import Approvals
A good understanding of the import and export rules and regulations in Indonesia is crucial to any business. Cekindo can help simplify the process to get your business license in Indonesia for you while complying with the latest regulations on oil, gas and other fuels exports and imports.
Get in touch by filling in the form below or visit our offices in Jakarta, Bali and Semarang.