Procedures Of Application For And Issuance Of Transportation Business License For BBG (CNG), LPG, LNG
By AMO Lawyer in conjunction with the Indonesia Directorate General of Oil and Gas
Procedures for Obtaining Temporary Business License
1. Business Entity should submit an application for Business License to the Minister of Energy and Mineral Resources through the Director General of Oil and Gas by enclosing the documents specified in the administrative and technical requirements. The application will be further processed upon completion and fulfillment of the specified administrative and technical requirements. All application documents will be returned if the administrative and technical requirements are not completed. The Business Entity may resubmit application upon completion of all required documents.
2. The completed administrative and technical documents submitted by the Business Entity will be assessed and evaluated by the Directorate General of Oil and Gas.
3. For clarification of administrative and technical data and company’s performance, the Business Entity should conduct a presentation.
4. Site visit will be conducted to ensure the conformity of the administrative data with the information of the Business Entity’s plan.
5. The Directorate General of Oil and Gas will examine and evaluate the administrative and technical data for approval/refusal of the Temporary Business License.
6. The Director General of Oil and Gas on behalf of the Minister of Energy and Mineral Resources will issue the Temporary Business License with effective period of maximally 3 (three) years with regard to the approved application for Business License.
Procedures for Obtaining Business License
1. Business Entity shall complete the documents specified in the requirements for issuance of Business License.
2. Business Entity shall submit an application for Business License.
3. The Directorate General of Oil and Gas will examine and evaluate the administrative and technical data for approval/refusal of Business License.
4. The Director General of Oil and Gas on behalf of the Minister of Energy and Mineral Resources will issue the Business License with effective period of maximally 20 (twenty) years with regard to the approved application for Business License.
Service Standard
In order to provide excellent service to Business Entities, the service process will be completed within 10 working days upon fulfillment of all requirements and accurate completion of all required documents.
TRANSPORTATION BUSINESS LICENSE
Transportation Business License for
Gas Fuel (CNG), LNG and LPG
A. TEMPORARY BUSINESS LICENSE
1. Administrative Requirements:
a. The Company’s Deed of Incorporation and its amendment that have been approved by the competent authority.
b. Company Profile.
c. Company Tax Registration Number (NPWP).
d. Certificate of Company Registration (TDP).
e. Certificate of Business Domicile.
f. A written declaration with sufficient stamp duty regarding the company’s commitment to operational safety, occupational health, environmental management and local people development.
g. A written declaration with sufficient stamp duty regarding the company’s commitment to complying with the prevailing laws and regulations.
h. Principle Approval from the Local Government with regard to location for the construction of facilities and infrastructure.
i. A written declaration with sufficient stamp duty regarding the company’s willingness to accept the site visit made by the staff of the Directorate General of Oil and Gas.
2. Technical Requirements:
a. Preliminary Feasibility Study.
b. Funding guarantee arrangement or any other funding guarantee;
c. Waste Management Plan;
d. Environmental Study Plan;
e. Plan regarding type, quantity, capacity and operating area of transportation facility including the technology to be used.
f. Plan regarding product, standard and quality of product to be transported.
g. Relevant Agency’s Recommendation.
Land
Ministry of Transportation
● Motor Vehicle Inspection (KIR) Book/Periodic Inspection Book
● Copy of Vehicle’s Identification Number (STNK)
Directorate of Metrology, Directorate General of Domestic Trade
● Certificate of Measuring Device Calibration
Sea
Directorate General of Sea Transportation, Ministry of Transportation
● SIUPAL (Sea Shipping Business License)
● Vessel Registration Card
● Hull Classification Certificate
● International Oil Pollution Prevention Certificate
● Certificate of Seaworthiness
● Nautical Certificate of Registry/Ship Flag Certificate of Registry
● ISM Code (Document of Compliance and Safety Management Certificate)
● Route Plan (RPT)
● Certificate of Equipment
● Certificate of Machinery
● Certificate of Fitness for LPG/LNG
Directorate of Metrology, Directorate General of Domestic Trade
● Certificate of Measuring Device Calibration
3. Obligations of the business entity:
a. Within 2 years upon issuance of the Temporary Transportation Business License, the Business Entity shall execute:
● Head of Financial Agreement
● Facility Procurement Agreement
Extension may be granted for maximally 1 (one) year. The Temporary Business License shall lawfully expire if within the specified period the Business Entity fails to fully perform the aforesaid obligations.
b. Submit report in writing to the Minister of Energy and Mineral Resources through the Director General of Oil and Gas regarding the progress in the performance of the obligations as referred to in letter a once every 1 (one) month.
c. Complete the procurement of the Transportation facilities and infrastructure within 3 (three) years and such period may be extended for maximally 2 (two) years if the facility procurement process has reached 60% completion. The principle approval shall lawfully terminate if within the specified period the Business Entity fails to complete the procurement of the required Transportation facility and infrastructure.
d. Submit a report to the Minister of Energy and Mineral Resources through the Director General of Oil and Gas regarding the progress in the procurement of the Transportation facility and infrastructure as referred to in letter c above once every 1 (one) month.
e. Submit an application for Transportation business license to the Minister of Energy and Mineral Resources through the Director General of Oil and Gas upon completion of all obligations under the Temporary Business License.
4. Sanctions
Notwithstanding the provision of Article 1266 of the Indonesian Civil Code, the Temporary Transportation Business License for Gas Fuel (CNG), LNG and LPG may be revoked and rendered null and void if:
a. the Business Entity violates any of the prevailing statutory regulations.
b. the Business Entity fails to fulfill its obligations and the provisions set out in the Temporary Transportation Business License for Gas Fuel (BBG/CNG), LNG, LPG.
B. BUSINESS LICENSE
1. Administrative Requirements:
a. The Company’s Deed of Incorporation and its amendment that have been approved by the competent authority.
b. Company Profile.
c. Company Tax Registration Number (NPWP).
d. Certificate of Company Registration (TDP).
e. Certificate of Business Domicile.
f. A written declaration with sufficient stamp duty regarding the company’s commitment to operational safety, occupational health, environmental management and local people development.
g. A written declaration with sufficient stamp duty regarding the company’s commitment to complying with the prevailing laws and regulations.
h. Principle Approval from the Local Government with regard to location for the construction of facilities and infrastructure.
i. A written declaration with sufficient stamp duty regarding the company’s willingness to accept the site visit made by the staff of the Directorate General of Oil and Gas.
2. Technical Requirements:
Land Transportation
a. SKPP (Equipment Worthiness Certificate)
b. Relevant Agency’s Recommendation.
Ministry of Transportation
● Approval for Transportation of Hazardous Materials
● Motor Vehicle Inspection (KIR) Book/Periodic Inspection Book
● Copy of Vehicle’s Identification Number (STNK)
Directorate of Metrology, Directorate General of Domestic Trade
● Certificate of Measuring Device Calibration
Sea Transportation
Relevant Agency’s Recommendation.
Directorate General of Sea Transportation, Ministry of Transportation
● SIUPAL (Sea Shipping Business License)
● Vessel Registration Card
● Hull Classification Certificate
● International Oil Pollution Prevention Certificate
● Certificate of Seaworthiness
● Nautical Certificate of Registry/Ship Flag Certificate of Registry
● ISM Code (Document of Compliance and Safety Management Certificate)
● Route Plan (RPT)
● Certificate of Equipment
● Certificate of Machinery
● Certificate of Fitness for LPG/LNG
Directorate of Metrology, Directorate General of Domestic Trade
● Certificate of Measuring Device Calibration
3. Obligations of the business entity:
a. To ensure and be responsible for the quality standard of the Gas Fuel (CNG), LPG, LNG in accordance with the standard specified by the Minister and or the agreement during transportation.
b. To ensure and be responsible for the use of equipment, accuracy, and measuring device system used in accordance with the standard specified by the statutory regulations.
c. To ensure the implementation of occupational safety, health, environmental management and local people development.
d. To ensure the possession and/or control of the required transportation facility and infrastructure including any modification thereto.
e. To periodically report to the Minister through the Director General regarding the transportation activities once every 1 (one) month and/or at any time when required.
4. Sanctions
The Business Entity that holds the Transportation Business License for BBG (CNG), LPG, LNG may be imposed with sanction in the forms of written warning, activity suspension, activity deferment and revocation of its business license if:
a. it violates any of the prevailing statutory regulations.
b. it fails to fulfill its specified obligations.
c. it fails to comply with the specified commitment requirements.
d. after starting its operation, the Business Entity does not carry out any significant activity for 2 (two) consecutive years upon issuance of the Business License.
For more detail please contact our lawyer at info@amoktarina.co or n.pasaribu@amoktarina.co
