Gas Development Master Plan Steering Committee Meeting – 28 March 2013 Draft Policy Note 6: Permitting and Approvals Process

2 The two main barriers of the midstream and downstream sector are the overlapping of laws and regulations and the lack of coordination between the central and regional governments in law-making. Overlapping laws and regulations create uncertainty for investors on how to comply with the applicable laws and regulations. Furthermore, in practice, this overlap delays license and approval procedures. Indonesia needs regulatory reforms to reduce issues such as, overlapping jurisdictions between regulatory bodies, departments and ministries as well as to simplify the licensing procedures for more efficient application procedures to stimulate investors to become active in Indonesia’s midstream to downstream gas sector. Permitting and Approvals Process

3 Create a coordination system to manage consistency and to avoid overlapping of any laws and regulations issued by central and regional governments or any other related government bodies Create an online system to monitor the process of licenses and approvals applied for by the investor to be conducted in accordance with the regulations in a timely, fair and clean manner. Simplifying document submission for licenses and approvals by accepting soft-copy form, minimizing double submission of similar documents required for every license and approval applied for. Recommendations