Jakarta – Through Presidential Regulation (Perpres) Number 67 of 2019 concerning the Arrangement of Duties and Functions of State Ministries of the Advanced Cabinet for the 2019-2024 Period, the government has shifted duties and functions in several Ministries / Institutions (K / L). One of them is the shift in managing Indonesia’s Extractive Industries Transparency Initiatives (EITI) from the Coordinating Ministry for Economic Affairs to the Coordinating Ministry for Maritime Affairs and Investment to sustain the implementation of extractive industry transparency in Indonesia.

Based on a copy of a letter from the Coordinating Minister for Maritime Affairs and Investment to the Coordinating Minister for Economic Affairs, information is obtained that the management of EITI Indonesia has been delegated to the Coordinating Ministry for Maritime Affairs and Investment. In the current transition period, the transition of the composition of the EITI Indonesia Steering Committee and Implementation Team is being prepared through the revision of Presidential Regulation Number 26 of 2010 concerning Transparency of State and Regional Revenues Obtained from Extractive Industries. In addition, there is also a process of preparing secretarial support (including human resources) to support the management of EITI Indonesia.

Several EITI Implementation Team members, especially civil society representatives and extractive industry private sector associations, said that the transition process of EITI Indonesia management must remain transparent and accountable and refer to the applicable EITI Standard. The EITI Implementation Team members also stated that they are ready to support the transition process faster while maintaining the substance of EITI’s objectives to encourage reforms to improve extractive industry governance in Indonesia.

Furthermore, members of the EITI Indonesia Implementation Team conveyed several concerns that need serious attention from the Government related to EITI management in Indonesia, namely:

  1. The transition process of EITI Indonesia, primarily related to the Revision of Presidential Regulation 26 the Year 2010, must involve the entire EITI Indonesia Implementation Team as mandated in EITI Standard 20191, especially requirement 1.
  2. The EITI initiative is not just about publishing reports however, how EITI can answer the problems and challenges of extractive industry governance in Indonesia, including how EITI Indonesia must meet the EITI Standard, which is increasingly developing, not only related to state revenue but increasingly developing to the issue of contract disclosure, beneficial ownership data disclosure, mitigation of climate change impacts, energy transition, human rights (HAM), employment, to gender mainstreaming and other strategic issues.
  3. In addition to the transition of EITI management, the Government is still responsible for ensuring that the EITI report for the 2020 period is published based on applicable standards.
  4. The government must also implement several recommendations from the results of the validation carried out by the EITI International Board, which approved Indonesia as entitled to hold the status of “Meaningful Progress” on December 23, 20192. The International EITI Board stated that Indonesia obtained the status of “Meaningful Progress” because it was considered to have made significant progress in implementing the 2016 EITI Standard, amidst its complex and decentralized extractive industry governance system. The EITI International Board provides several improvement recommendations to the Indonesian government and gives 18 months to implement these recommendations. The proposals relate to the implementation of EITI standards associated with the active involvement of government (#1.1), industry players (#1.2) and civil society (#1.3), governance of multi-party teams (#1.4), work plans (#1.5), license allocation (#2.2), contract document disclosure policy (#2.4), production data (#3.2), export data, and (#3.3) the impact of EITI implementation on improving extractive industry governance (#7.4)

    EITI3 is an international standard for reporting state revenues from extractive industries (oil, gas, coal, and minerals) whose process involves government, business, and civil society groups. EITI has been implemented in over 53 countries, including Indonesia, and has been recognized as a global standard to encourage transparency and accountability of state revenues and company payments from extractive industries.

Once again, this transition period is a significant momentum for the Government, the private sector, and civil society to demonstrate its commitment to promoting transparency and accountability in the extractive industry. EITI Indonesia4, as a multistakeholder groups (MSG) platform that encourages collaboration and co-creation in improving extractive sector governance, should be maintained and further strengthened in Jokowi’s second term.

June 24, 2020

Member of EITI Indonesia Implementation Team:

  1. Aryanto Nugroho, Civil Society Representative in EITI Indonesia Implementation Team
  2. Ermy Sri Ardhiyanti, Civil Society Representative in EITI Indonesia Implementation Team
  3. Tenti Kurniawati, Civil Society Representative in the EITI Indonesia Implementation Team
  4. Hendra Sinadia, Representative of Coal Company Association in EITI Indonesia Implementation Team
  5. Mukhlis Ishak, Representative of the Mineral Company Association in the EITI Indonesia Implementation Team
  6. Triono Hadi, Alternate Civil Society Representative in the EITI Indonesia Implementation Team
  7. Nurkholis Hidayat, Alternate Civil Society Representative in EITI Indonesia Implementation Team
  8. Dakelan, Alternate Civil Society Representative in EITI Indonesia ImplementationTeamContact Person: Aryanto Nugroho (aryanto@pwypindonesia.org)
  1. https://eiti.org/files/documents/eiti_standard_2019_en_a4_web.pdf
  2. https://eiti.org/news/indonesia-breaking-down-complex-extractives-sector
  3. https://eiti.org
  4. http://eiti-indonesia.id/secretariat/
EITI