Abundant extractive resources (i.e. Oil, gas and mining) in Indonesia are a significant capital for development to bring welfare of the people. Thus, it is important to transparently, fairly, sustainably and accountably manage those resources. However, economic contribution of extractive resources through tax and state revenues, jobs creation, growth and other economic developments, must be aligned with adequate consideration to the carrying capacity of environment, fairness, and social accountability. The extractive resources must be managed to sustainable and equally benefit people, as well as fully aware to the future generation. Briefly, our paradigm should be transformed, from seeing natural resources as commodities, to natural resources as development assets.
Governance of extractive resources in Indonesia is still facing huge challenges. In the midst of global market volatility, this sector is demanded to implement high governance standard. For instance, transparency and accountability, social responsibility, environmental protection, compliance to regulation and law enforcement. Instead, this sector is colored by corruption, collusion and nepotism practices such as bribery case that involved head of oil & gas upstream body, legislators, and local government officials. Such poor governance practices lead to loss of state revenue, environmental degradation, social conflicts and violence, violation of human rights. For instance, findings by government showed hectares of conservation forests that was illegally handed over for mining licenses, overlapped use of forest and land with mining operation, leak in the tax and state revenues, pits from ex-mining operation that cause loss of lives, and social conflict that involved violence.
Efforts to improve governance of extractive sector have been initiated in various areas. For instance, Extractive Industry Transparency Initiative (EITI), establishment of oil and gas reformation team to provide recommendation on oil and gas sector, a special initiative from anti-corruption commission (KPK) with Ministry of Energy and Mineral Resources (MEMR) and local government through Coordination and Supervision of Mineral and Coal Sector, as well as through legislation process such as revision of oil and gas law, and mineral and coal law in the House of Representative. Furthermore, there are specific initiatives and governance opportunities which require participation from stakeholders such as impact of the implementation of Local Government Law, integrated licensing system to promote transparency and accountability, one map policy (Minerba One Map Indonesia), and integrated system for revenue collection (SIMPONI).
The National Conference of Extractive Resources Governance will pull together various stakeholders in the sector, from government, legislator, analyst, think tank institution, private sector, Civil Society Organizations, and wider public. This conference will discuss, brainstorm, and share ideas on how to effectively and sustainably manage our extractive resources for the benefit of the people, national advancement, and the future generation.