Procedure for Application and Issuance of Business License for Storage of Petroleum, Fuel and Processed Products

The business license for the storage of petroleum, fuel oil (BBM), and processed products is one of the important regulations that must be fulfilled by companies engaged in the energy industry. This license is needed to ensure that storage activities are carried out in accordance with safety, technical, and environmental standards set by the government. The following is the general procedure in applying for and issuing a business license for the storage of petroleum, fuel, and processed products:

1. Document Preparation

Before applying for a license, the company must prepare various necessary supporting documents. These documents include:

  • Deed of Establishment of the Company and its amendments (if any), which have been legalized by the Ministry of Law and Human Rights.
  • Business Identification Number (NIB) obtained through the Online Single Submission (OSS) system.
  • Environmental Documents, such as Amdal (Environmental Impact Assessment) or UKL-UPL (Environmental Management Efforts –
  • Environmental Monitoring Efforts), which demonstrate compliance with environmental regulations.
  • Letter of Ownership or Land Tenure where the storage facility will be built.
    Engineering and Safety Plan, which includes the facility design, safety systems, and emergency procedures followed.

2. Application Submission Through OSS

The application for a business license to store petroleum, fuel, and processed products is made through the OSS system managed by the government. The steps to apply through OSS are as follows:

  • Registration: The company must register on the OSS platform and obtain a NIB. This NIB serves as a single identification for the company in the licensing process.
  • Business Type Selection: In OSS, the company will select the appropriate business type, namely “storage of petroleum and/or fuel and processed products.”
  • Form Filling: The company is required to fill in various forms that contain information related to company identity, type of storage facility, capacity, and storage location.
  • Document Upload: All supporting documents that have been prepared are uploaded into the OSS system.

3. Evaluation and Verification

After the documents and application are submitted through OSS, the relevant authorities will conduct an evaluation and verification of the application. This evaluation includes:

  • Technical Verification: A technical team from the relevant authority (usually the Ministry of Energy and Mineral Resources) will examine the facility plans, design, and safety systems to ensure their compliance with standards.
  • Site Review: If necessary, a direct inspection of the storage facility location will be conducted to ensure the alignment between the submitted plan and the field conditions.

4. Issuance of License
If all requirements are met and the evaluation results are satisfactory, the government through the Ministry of Energy and Mineral Resources will issue a permit for the storage of crude oil, fuel oil, and its derivatives. This permit is valid for a certain period and can be extended in accordance with applicable regulations.

5. Obligations After the License is Issued

After the permit is issued, the concerned company must comply with various obligations, including:

  • Periodic Reports: Companies are required to report storage activities periodically to the government. These reports include the volume of crude oil, fuel oil, and stored processed products, as well as safety and environmental aspects.
  • Periodic Inspections: The government has the right to conduct periodic inspections of storage facilities to ensure compliance with applicable standards.
  • License Renewal: Before the license expires, the company must apply for a renewal by attaching a performance report and other supporting documents.

6. Sanctions and Supervision

If the company violates the established regulations, such as failing to meet safety standards or not reporting activities regularly, the government can impose administrative sanctions, ranging from warnings, fines, to revocation of permits.

Conclusion

The procedure for applying for and issuing business permits for the storage of crude oil, fuel oil, and refined products is a stringent process to ensure that all storage activities are carried out safely, in accordance with standards, and are environmentally friendly. Companies that wish to operate in this field must ensure that all requirements are met, from administrative documents to the completeness of storage facilities.By adhering to the established procedures, the company can operate smoothly, safely, and in accordance with the applicable regulations.