Eduvest – Journal of Universal Studies Volume 3 Number 4, April, 2023 p- ISSN 2775-3735-
e-ISSN 2775-3727 |
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PERMIT SIMPLIFICATION FOR UPSTREAM
OIL AND GAS OPERATION IN INDONESIA: THE DEVELOPMENT ADMINISTRATION AND GOOD
GOVERNANCE PERSPECTIVES |
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Didik Sasono
Setyadi, Hyronimus Rowa, Ario Bimo Utomo Institut Pemerintahan Dalam Negeri, Indonesia Email: [email protected] |
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ABSTRACT |
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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. |
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KEYWORDS |
permit simplification;
upstream oil and gas operation; development administration; good governance;
administrative law |
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This work is licensed under a Creative
Commons Attribution-ShareAlike 4.0 International |
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INTRODUCTION
According to Article 41 of Law No.22/2001
regarding Oil and Gas (OG), any upstream oil and gas activity in Indonesia has
to comply with all mechanisms of control and supervision by the authorized
Government institutions as stipulated in the Laws and Regulations.
Setyadi noted that this stipulation is at
least regulating the production sharing contractor to make “legal engagements”
with various administrative officials or institutions whichever by the laws and
regulations having obligation and authorities related to any activity of
Upstream OG sector (Setyadi, 2017).
Many institutions, laws, and regulations are
concerned with such upstream oil and gas operations. For instance, when such
upstream OG operation be conducted in land area, it will need several documents
such as: (1) Land Use / Master Plan Confirmation (kesesuaian tata ruang); (2) Location Determination (penetapan lokasi); (3) Environment
Permit and Environment Assessment Approval (izin
lingkungan dan amdal / UKL-UPL); (4) Permit to Use Public Road for Special
Purpose (izin melintas jalan); (5)
Certificate of Design and Installation Approval (persetujuan layak operasi); (6) Water Use Permit, either Well Water
and/or Surface Water (izin penggunaan air
permukaan dan/atau air bawah tanah); (7) Crossing Permit whether for River
Crossing, Road Crossing, and/or Railways Crossing (izin melintas sungai, jalan dan atau rel kereta api) as well as
many other permits, depending on the complexity of the OG activities.
In case such OG activity is conducted in
Forestry Area, the differencing mechanism applies. Land Acquisition in the
Forestry Area is not allowed. In the forestry area, the scheme applied is the
Lend / Borrow Use (Persetujuan Pinjam
Pakai Kawasan Hutan). The other additional basic permits: Environment
Approval, Certificate of Design, and Installation.
Offshore, there is the other scheme namely
Sea Location Determination (penetapan
lokasi). As a consequence, other permits related to sea operation shall
apply, such as Permit to Use Foreign Vessel (Izin Penggunaan Kapal Asing), Dumping Permit (Izin Pembuangan Limbah), Special Terminal Harbor (Izin Pelabuhan / Terminal Khusus) and
others.
In relation with permit or recommendation
that is issued by Local Government, Monika Suhayati said “Such a permit issued
by the government is intended to create safe and convenience for the public so
that any activities are conducted as permitted accordingly. However, on the
other side, in many cases such permit has also been utilized to generate Local
Government Income, by a reason that income is important to support local
autonomy” (Suhayati, 2017).
In addition to Monika statement Arifuddin mentioned
“Provision of Permit, is a starting process of control by law which will be
effective only if it will be followed up by such proportional overseeing by the
Government as the Law Enforcer to ensure the Permit Holder carry on the
activity according to the permit and
consistently” (Arifuddin, 2017).
The problem is, all required permits have to
be obtained one by one through various Government Ministries/ Institutions.
This mechanism has been significantly prolonging the process of exploration and
exploitation of Oil and Gas so far.
Based on identification done by the authors,
in such most complicated Upstream OG activity, it may relate to 15 – 16
Ministries and Institutions, including Local Government Institutions as the
issuer even more, so that the efforts and time to obtain permits become very
hard and very long. Even sometimes they cannot be predicted how long to
complete.
In case of only one of those permits has not
been obtained yet, then the whole Upstream OG activity cannot be conducted,
because it is deemed as in compliance with the regulation.
Muhammad Rezky noticed “the complexity of
Government bureaucracy and inefficiency have been becoming the big concern. For
instance, the nature of Permit in Indonesia is mostly partial, sequential and
un-integrated. Many of permit do not utilize information technology (online)
system. Time frame to obtain as well as cost of permit are not defined. The bureaucracy paradigm is not simple (Ardiyan & Firdaus, 2018).
The problems of permit complexity have been
discussed in many official meetings within and inter-government institutions.
It is also discussed in some international and national forums on the strategy
to ease business and enhance investment in Indonesia, in which commonly known
that permitting system is the handicap / difficult factor to do business in
Indonesia. Therefore, such a change in the existing Permit System is radically
needed.
There have been many policies issued by the
Government of Indonesia in regards to business permit. There are two recent
important policies that have been issued by the President. The first one is the
President Regulation No. 91 / 2017 regarding Acceleration of Business
Execution, and the second one is the President Regulation No 24/ 2018 regarding
Business Permit Service Integrated by Electronic System. However, the issued
regulations do not have any significant impact on the simplification and ease
of obtaining permits required for the Upstream OG activity.
Paramita Nur Kurniawati has a view “this is important to be done
because the acceleration of the development has been being burdened by various
ineffective and inefficient regulation, even there many redundant regulations.
Regulations reformation processes in Ministries and Institutions will be
conducted under monitoring by National Planning Board (Bappenas) and
Presidential Staff Office (KSP)” (Kurniati & Roesida, 2018).
However, Mochamad Nurhestitunggal criticize “there are some
reformation program progressing and achieving the target, however the change is
relatively small and incremental. The implementation of reformation so far has
not made any significant change on the dominant model of Old Public
Administration” (Nurhestitunggal & Muhlisin, 2020).
In the few years, the oil and gas price are
declining significantly. The decline has made it worse to the investment on
Upstream OG so that the business is no longer as attractive as before. On the
other hand, the natural decline of the existing OG Wells is happening and
continuing. Without such extra efforts to speed up Upstream OG activities in
finding some new reserve and producing the proven reserve, Indonesia will be
very hard to maintain production for the needs of OG energy supply to the
domestic demand, as result, Indonesia has to fill the gap of the demand by
importing OG from abroad.
The following diagram is showing the trend of
oil production vs consumption in Indonesia. This diagram is showing a clear
message that Indonesia has to do something different, instead of something as
business as usual.
Figure
1. the trend of oil production vs
consumption in Indonesia
The matter that may help the country to
improve the Upstream OG activity performance is by improving the permitting
system so that the Upstream OG activities plan can be executed more rapidly and
aggressively. The permit system should be made into some simpler process,
purposive, measurable, accountable, effective, and efficient.
The permit simplification is a phenomenon of
the Development Administration and Good Governance so that the authors will be
focusing on those two approaches.
Moreover, this study aims to discusses how the permit simplification for
upstream oil and gas opera-tion in Indonesia is conducted.
RESEARCH
METHOD
This methodology of this research is
classified as qualitative research. According to Bogdan and Bilken, there are
several characteristics of a qualitative resarch as follows. First, it has a
natural setting, meaning that a qualitative research study things as the way
they are. Second, it is descriptive, in the sense that it gives us a thick
narrative about what is actually going on from a phenomenon which we choose as
a case. Third, it is concerning more in the process rather than outcomes, which
signifies that a qualitative study will look into nuances and dynamics occuring
within its process, as opposed to quantitative researches which look at the
measurable outcomes. Fourth, it tends to analyze data indictively rather than
deductively, meaning that a qualitative research seek to build patterns from
seeing the phenomenon rather than starting from a problem-solving theory to
prove a hypothesis. Lastly, a qualitative research sees “meaning” as an
essential feature, which means that the researcher also needs to interpret its
findings which will later be used to understand the phenomenon being studied (Sugiyono, 2010).
The method applied in this research is a
literature research method, by using secondary data found during the research
to analyze the Permitting System of the Upstream OG activities. This method
means searching, collecting and qualifying data and information from various
“expertise products in written form” regarding facts and their views on the
permit, development administration and good governance issues related to the
matter. These secondary data are collected from books, articles, journals,
statements in media, and other written and published sources.
According to Terry Hutchinson in “Researching
and Writing in Law” this research might be called as a “Fundamental Research”
and as a non-doctrinal methodology (Research designed to secure deeper
understanding of law as a social phenomenon (Hutchinson, 2002). Especially as a phenomenon of the Governance
Study. However, due to the time limitation, there will be no direct interview
with stakeholders is engaged in this research. The literature and secondary
data prevail as the main sources of this research.
Existing Condition of the
Indonesian Upstream OG Activity
The Upstream OG Activity in Indonesia is
classified as a vital and strategic activity. This phrase of “vital and
strategic” can be found in the consideration of the Law No. 22 / 2001 regarding
Oil and Gas. AS the vital and strategic activity the Upstream OG activity
cannot be executed in the absence of the Government intervention.
This principle is coming from the mandatory
order by the Indonesia Constitution 1945.
Article 33 (3) of the mentioned Constitution provides that:” the earth
and water and the natural resources contained within them are to be controlled
by the State and used for the greatest possible prosperity of the people”. This
article means that the Government is being mandated to manage and use the
natural resources for the prosperity of the people, as proof of the most
crucial function of a state government.
This mandate shall obligate the government to
prepare, form, execute, control, evaluate, and reform the “tools and methods”
on how the upstream OG to be managed effectively and efficiently. The
characteristic of the Upstream OG activity in Indonesia is very specific as
figured out in the following diagram;
Figure
2. Oil price and oil and gas sector
contribution to the Indonesian’s state income
Figure
3. Non-oil and gas sector
contribution to Indonesia’s state income
Currently, there are three existing
conditions regarding the Upstream OG activity in Indonesia. First, Upstream OG
activity is expected to provide a significant contribution to State Income.
Second, in comparison to the income from other natural resources, Upstream OG
activity still contributes more revenue to the state budget. Lastly, the Upstream OG activity is expected
to maintain the energy resilience of the country
Regarding energy resilience, Benny Lubiantara said (Lubiantara, 2017):
According to the Energy Assembly in the Publication of Indonesia Energy
Outlook 2014, the Indonesia energy mix resilience to fulfill the domestic
demand is still highly dependent on Oil and Gas, it is about 66% with the
breakdown 48% of Oil and 18% of Gas. The oil has been contributing almost half
of the domestic consumption, ironically the domestic production is continuously
and naturally declining because of lack of exploration discovery of new
reserve
These facts are proofing that Upstream OG is
still vital and strategic for Indonesia in terms of energy supply as well as
state income. However, the applicable permitting system is not sufficiently
supporting the policy, even in many cases become the handicaps.
Framework of Thinking
Figure
4. Framework of thinking
RESULT
AND DISCUSSION
Analysis
There are “Three Legal Products” which have
to be referred to identify the goals and how to achieve them which stipulate
the Indonesian Government in executing the mandated obligations by the Constitution.
There are:
1) Law
No 22 / 2001 regarding Oil and Gas Law; This law addressing that Oil and Gas
resources and assets are owned by the Government instead of the Partner.
2) Constitution
Court Verdict No. 02 / PUU – I /2003 regarding the Judicial Review of Law No.
22 / 2001; This Verdict addressing that Government cannot transfer any public
authority to the partner.
3) Constitution
Court Verdict No. 36/ PUU – X/2012 regarding the Judicial Review of the Law No.
22 / 2001; This Verdict addressing the mining right of Oil and Gas Resources is
part of sovereignty that can not be transferred to the partner. The Government
shall play a strong position to control the partner. The government role will
be represented by a State Owned Company.
All the above products should be interpreted
systematically. Those products are jointly providing very clear messages that
they have a very strong position in the management of Upstream OG. The
Government shall not transfer any (public) authority to the private partner of the
Production Sharing Contract (PSC) on Upstream OG activity. The partner shall
only be in position as the “Contractor” of such a production sharing scheme.
The Partner shall only focus on Finance, Technical and Operation Management
issues and provisions, instead of the whole Upstream OG activity management nor
any public obligations.
The matter is currently (in fact) the
Upstream OG Contractors are obligated to obtain permits required for Upstream
OG activities. Even the worse thing: the required permits are too many (too
many types of permits, too many regulations to follow, to many institutions to
deal with). The following is the example of the government institutions that
deal with permits (these only an example, this is not all included). This table
will only mention about 10 permits. Actually, one Upstream OG activity requires
much more than ten types of permits.
Table 1. Government Institutions that deal
with permits
No |
Institution |
Type of Permit |
Legal Reference |
1 |
Ministry of Forestry and Environment |
Permits Related to Environment |
Environment Law and the Implementing Regulations |
2 |
Ministry of Forestry and Environment |
Permits Related to Forestry Area Use |
Forestry Law, Conservation of Ecosystem Law and the Implementing
Regulations |
3 |
Ministry of Sea and Fishery |
Sea Location Determination |
Sea Laws and the Implementing Regulations |
4 |
Ministry of Agrarian and Master Plan (National Land Board) |
Recommendation on the conformation on the Master Plan |
Master Plan Law and Implementing Regulation |
5 |
Ministry of Transportation |
Permits Related to the Use of Foreign Vessel. |
Marine and Shipping Law and Implementing Regulation |
6 |
Ministry of Transportation |
Special Harbor Permit (if any) |
Marine Transportation Laws and Regulations |
7 |
Ministry of Transportation |
Special Airport Permit (if any) |
Air Transportation Laws Regulations |
8 |
Ministry of Finance |
Master List / Importing Permits |
Custom Law and Regulations |
9 |
Ministry of Manpower |
Permit for Expatriate Planning and Placement |
Manpower Laws and Regulations |
10 |
Ministry of Public Work |
Permit for River Water Use |
Water Resources Laws and Regulations |
Each of the ten permits above has to obtained
separately in series instead of parallel. There are hierarchical procedures for
obtaining permits. There is a lack of involvement of the society to control the
disciplinary of the bureaucrat in performing public services so that the
permitting system and services are beyond any control of the civil society and
privates.
The following description is to explain how
inefficient and ineffective process of the permit: to entry into permit
process, the Permit Applicant (SKK Migas and or the Partner) shall prepare and
submit the “same administrative requirement” to all Permit Issuers: Copy of PSC
Contract, Tax Registration Number, the Identity of Company (Partner), the
Authorized Person Appointment as such subject to the verification by the Permit
Issuers / Institutions. This administrative requirement is basically to check
the “Legality Status of the Partner / Contractor”. The question will be “what
for?” and “why?”. But the issuers will be simply answering “it is stipulated in
the regulation”.
This requirement is showing that the
Government is inconsistent with their owned principle underlined by those
“three legal products” as mentioned above. This administrative requirement
demonstrates that the government is not confident about their management over
the Upstream OG activity which is factually and legally under the control of
the Government through Government Executive Task Force for Upstream Oil and Gas
Activity (SKK Migas) as the representative of the Government. If so, why then
the various institutions are individually asking and reviewing the
administrative requirement? hasn’t it been done by the SKK Migas (as
representative of the government) which has sovereign right over the Upstream
OG activity?
The other basic question raised when the
Upstream OG activity is being conducted: why should the approved activity by
the government (by concession i.e. Production Sharing Contract) have to deal
again with so many government institutions and officials? why don’t the
government just organize their concerns through only one or two institutions?
So that it becomes much more focused and efficient.
Actually, in the modern era, the various
concerns across the multi ministry functions can be made into such a checklist of
compliance then it is delegated to the leading sector of supervision of the
Upstream OG activity (it may be Ministry of Energy and Mineral Resource or SKK
Migas). So that any activity of Upstream OG shall trough one door service only.
This will be focusing on the improvement of communication across
multifunction.Back to the definition said by Edward Weidner as mentioned above (Anggara & Sumantri, 2016):
For the
administration of the development, the administrative machinery itself must be
improved and developed to enable a well-coordinated and multi-functional
approach towards solving the national problem on the development
As well Gisselquist cited the
OECD definition on the Good Governance (Gisselquist, 2012):
‘the use of political authority and exercise of control in society to
the management of its resources for social and economic development,’ which
‘encompasses the role of public authorities in establishing the environment in
which economic operators function and in determining the distribution of
benefits as well as the nature of the relationship between the ruler and the ruled’ (OECD 1995)
Further, understanding the data as shown by
the Ministry of Finance as well as Benny Lubiantara's statement as previously
mentioned above, there is no more reason to excuse or delay that Indonesia must
change/simplify the permitting system for Upstream OG activity.
Many works of literature found that
bureaucracy always is challenged in any intention of stakeholders to change the
governance system. The bureaucracy always takes the position in the most
conventional attitude. “Its work is
regarded as carrying out the laws, policies, and instructions handed down by
the elected officials or issued by the regime as a whole” in other words
they mostly reluctant to create any breakthrough and or any out of the box
thinking (Du Gay, 2005). Therefore,
changing the permitting system means also changing the culture of bureaucracy.
It shall be addressed in the bureaucracy reformation policy. Since so far the
key messages of the Development Administration and Good Governance: “self-
machinery” and “economic operator function” (promoted by Weidner and
Gisselquist) still looked absurd in the eyes of bureaucrats.
The following diagram is showing how the
current permitting requirement and complexity for such Upstream OG is
identified. It is started from what is the plan of activity, then to be
identified “where” will be the location and “how” will be the methods of
execution and finally entering into the “jungle of permits”.
Figure
5. The complexities of the existing permit
system
The
following table is explaining the above diagram by identifying the Permit
Issuers / Government Institutions to deal with to obtain a permit.
Table 2. Permit issuers and their remarks
in order to gain a permit
No |
Institution |
Remarks |
(1) |
a.
Province Government b.
Local Government |
To obtain Master Plan Confirmation a Location Determination for Land
Acquisition. Note: The Execution of Land Acquisition Process will be different
process after this requirement obtained |
(2) |
a.
Ministry Forestry and Environment b.
Province Government |
Governor Recommendation shall be obtained first before Forestry Lend
Use Permit is applied. Environment Permit shall also be required before obtaining Forestry
Lend Use Permit |
(3) |
a.
Ministry of Sea and Fishery |
To obtain Sea Location Determination from the Ministry of Sea and
Fishery |
(4) |
a.
Ministry of Energy and Mineral Resource |
To obtain Approval on Technical Compliance |
(5) |
a.
Ministry of Forestry and b.
Province Government |
To obtain Environment Permit. It is depending on the scale and how significant is the impact
assessment. The more impact has to be concerned by the higher level of
government structure level to approve/decide. |
(6) |
a.
Ministry of Finance (Directorate General of
Custom) b.
Ministry of Energy and Mineral Resources
(Directorate General Oil and Gas / DGOG) |
To obtain a Master List of Imported Goods from the Ministry of
Finance. Previously to obtain Recommendation from DGOG |
(7) |
a.
Ministry of Transportation |
To obtain Permit for New Infrastructure Construction and Operation for
the New Transportation Infrastructure |
(8) |
a.
Ministry of Transportation |
To obtain Permit of Operation on the Existing Infrastructure |
(9) |
a.
Ministry of Transportation |
To obtain Permit of Using
Foreign Vessel |
(10) |
a.
Ministry of Public Work b.
Ministry of Forestry and Environment c.
Local Government |
To obtain Permit of Utilizing River Water To obtain Permit of Using Sea Water To obtain Permit of Utilizing Well Water |
(11) |
a.
Local Government |
To get support/acknowledgement to conduct cut and filling works during
the impact assessment discussion before the issuance of Environment Permit
(as mentioned in No.5) |
(12) |
a.
Ministry of Communication and Information |
To obtain Radio Frequency Use |
(13) |
a.
Ministry of Forestry and Environment |
To obtain Determination of Location for Reforestation |
(14) |
a.
Ministry of Forestry and Environment b.
Local Government |
To obtain a Permit for Toxic Waste Management. Depending on the level |
(15) |
a.
Ministry of Forestry and Environment b.
Provincial or Local Government |
To obtain a Permit for Waste Management. Depending on the level |
(16) |
a.
Ministry of Energy and Mineral Resources |
To obtain Approval for Flaring Gas |
(17) |
a.
Ministry of Forestry and Environment b.
Provincial or Local Government |
To obtain a Permit for Water Treatment. It is depending on the
leveling |
(18) |
a.
Ministry of Forestry and Environment |
To obtain Water Injection Permit |
(19) |
a.
Ministry of Forestry and Environment b.
Provincial or Local Government |
To obtain Reclamation Procedure Approval |
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Note: Most of the Processes are not using the Online Single
Submission |
The above table is not a complete list of
permits, there are still some permits required for the specific purpose of e.g.
Explosive for Seismic, Electricity Power and Installation for Internal Use,
etc.
If the government consistent with the
Development Administration, Good Governance, and Good Permit Governance
therefore, the permits can be clustered into two categories. The first one
being “Cluster by the Permit Issuer” and the second one is “Cluster by the
Permit Substance”.
Table 3. Clustering based on the permit
issuer
Permit Issuer |
Coding Number of Permit |
Ministry of Forestry and Environment |
(2), (5),
(10), (13), (14), (15), (17), (18), (19) |
Ministry of Energy and Mineral Resources |
(4), (16) |
Ministry of Transportation |
(7), (8),
(9) |
Ministry of Sea and Fishery |
(3) |
Ministry of Public Work |
(10) |
Ministry of Finance |
(6) |
Provincial and Local Government |
(1), (2), (10), (11) |
Table 4. Clustering based on the permit
substance
Substance |
Coding Number of Permit |
Location and Master Plan |
1, 2, 3 |
Environment |
5, 14, 15, 16, 17, 18, 19 |
Infrastructure |
7, 8 |
Material and Equipment |
4, 6, 9 |
Natural Resources Use |
10, 12, 14, 15, 17, 19 |
From the first table, the author have clustered
the coding number of permit based upon the issuer. The result shows that
instead of 19 processes, they can be simplified into 7. The same goes with the
second table, from which we can see how the permit codes have been clustered
based upon their substances. Instead of 19 processes, this new approach can
simplify them into 5 processes only.
This Clustering approach is intended to ease
the government conducting simplification. Then the choice will be on the
government hand to “machinery-itself” to be a well-coordinated and multi-functional approach towards solving the
national problem.
By this
clustering, the simplification will reduce the type of permits, erase
duplication on the administrative requirement, avoid regulation and policy
overlapped, minimize the institutions to deal. As a result, the Government may
provide more attention and focus on the strategic issues rather than wasting
resources to do some overlaps and similar works that are done by many
institutions, individually and separately.
The simplification of permit is a form of
transformation from a conventional bureaucracy to the new management of
bureaucracy which is more concerned with the outcomes rather than the process.
This transformation is an important part of development administration as S.L
Das mentioned (Kapur & Khosla, 2019):
The relationship between bureaucratic performance and economic growth
and development outcomes has been a subject of interest to the international
development community as well as scholars for quite some time. Some forty years
ago, it is centered on the role of development administration, an approach to
public administration that was meant to differ from a more conventional
bureaucratic approach.
The simplification of permits by clustering approach is also an
important form of Good Governance as described by S.L Das (Kapur & Khosla, 2019):
Governance as an alternative approach to the public sector, and more
specifically public administration, represent and attempt to involve the
society more in governing and to reduce the hierarchical elements of the
system. The basic diagnosis of the ills of government is that hierarchy has led
to wasting the talents of people inside government and alienated the public
Without simplification of permits the
government suffering themselves, suffering society as well as the private so
that they cannot jointly develop the national economic growth effectively and
efficiently by optimizing state income, energy resilience, and enhancing
multiplier effects of Upstream OG activities to the socio-economic life of the people.
The simplification of course will require a
change in the communication method of the government from a hierarchical model
of communication to be diagonal (cross-communication) because the
simplification will be involving various functions and stakeholders within the
government organization. The principle of this diagonal communication is:”
Respect, Empathy, Audible, Clarity, Humble” which is relevant to be applied (Priansa, 2018).
The simplification shall be driven by the
“Good Governance”, and supported by “Ethics, Academic Reasons as well as Legal
Aspect / Regulation” thoroughly as figured out by the following diagram.
Figure
6. Simplification diagram based
upon the other four supporting values
Ethics will be very
important in the simplification process because this will remind the government
to consider the urgent questions: “is the change good or not?”, rather than
only asking ‘is the change logic or not?” and ‘is the change comply or not?”. To
measure the “good” is by the measurement of the “most benefit” for the people
as mandated by Article 33 of Constitution 1947.
Good Governance and Ethics
shall play more role in public policy formulation and implementation as the
ultimate goals of the government-supported by Academic Reasons. Governance is
no longer similar to merely implementing regulations as had been happening in
the traditional and conventional Government.
CONCLUSION
Based upon the aforementioned discussion, we can come to
several points of conclusion. First, it has been apparent that the current
Permitting System for Upstream OG Activity is not suitable for the Development
Administration and Good Governance in the Democratic Country.
Second, our findings
observes that the simplification for Upstream OG Activity is urgently needed
for maintaining State Finance, Energy Resilience, and Multiplier Effect to the
Economic Growth.
Last but not least, the
simplification will end the wasting resources of the government and society's
potentials. The simplification will help the government to be more focused on
the strategic and substantive works (outcomes-oriented), rather than
administration and bureaucratic procedures.
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