PERMIT SIMPLIFICATION FOR UPSTREAM OIL AND GAS OPERATION IN INDONESIA: THE DEVELOPMENT ADMINISTRATION AND GOOD GOVERNANCE PERSPECTIVES.

This article discusses how the permit simplification for upstream oil and gas operation in Indonesia is conducted. In doing so, the authors utilize two perspectives, namely development administration and good governance. This research is inspired by a condition where there are many regulations apply and required to obtain permits for upstream oil and gas operation in Indonesia. The current problem nowadays are related to the type of the permits, the regulations and procedures to follow, as well as permit issuers to deal with are too many submissions. This have caused handicaps for the industry to grow competitively. Meanwhile, Indonesia still has a high dependency on Oil and Gas Industry for State Income reason and Energy Resilience. Even though the reformation has been started since 1998 however the change of old bureaucratic system and mentality of the bureaucrats into the new paradigm of good governance is still very less and tend to be progressing very slowly. Therefore, this qualitative research is interested in viewing the implementation of the ongoing simplification. This research is qualitative in nature and utilizes secondary data related to the permitting system of the upstream oil and gas activities. This research concludes that the current system is not in line with the principles of development administration and good governance. Second, the findings conclude that the simplification is urgently needed for maintaining State Finance, Energy Resilience, and Multiplier Effect to the Economic Growth. [ABSTRACT FROM AUTHOR]