EITI Indonesia participated in the Extractive Industry Transparency Initiative (EITI) Global Conference meeting in Dakar, Senegal, June 13-14, 2023. At this conference, over 1,000 stakeholders were present to share updates on using open data and natural resource management. The Indonesian delegation was represented by the EITI Indonesia Secretariat, Head of the Data and Information Center (Pusdatin) of the Ministry of Energy and Mineral Resources Agus Cahyono Adi, and Theodore Pandhu Baskhoro; Secretary of the Southeast Sulawesi Provincial ESDM Office Ridwan Botji, and Vice President Tax, PT Freeport Indonesia Mukhlis Murtadlo Ishak. Delegates also came from representatives of civil society organizations, namely Aryanto Nugroho and Wicitra Dwisasri from PWYP Indonesia, Astrid Debora from the Indonesian Center for Environmental Law (ICEL), and Rocky Ramadani from the Riau Community Leaders Communication Forum (FKPMR).

EITI is a global initiative that accommodates governments, companies, and Civil Society Organizations (CSOs) that set international standards of transparency in terms of taxation and payments to governments in extractive sectors such as oil and gas, minerals, and coal. EITI standards have been implemented in more than 50 countries to create transparency and accountability, a form of good governance practice.

Secretary of the Energy and Mineral Resources Agency of Southeast Sulawesi Province, Ridwan Botji, was one of the speakers in the parallel discussion “Down to Earth: Empowering Local EITI Stakeholders.” In this session, he shared about the EITI platform and data disclosure that enables stakeholder engagement and encourages accountability of extractive industry revenues.

North Sulawesi Province is one of the regions with a wealth of mining resources, so it will take advantage of the opportunity with EITI stakeholders worldwide to meet, share and discuss information about progress, as well as challenges in advancing EITI.

“The multi-stakeholder approach carried out in the EITI platform is welcomed enthusiastically by the community because it provides a forum to discuss challenges and resolve conflicts between the community and the government. Through regular meetings, communities better understand mining companies’ obligations, including their environmental and social impacts,” Ridwan Botji said.

He added that local governments are interested in creating EITI forums at the local level so that it becomes one of the solutions in resolving the transparency gap at the local government level and citizens and mediating conflicts between companies and communities.

Head of the Data and Information Center (Pusdatin) of the Ministry of Energy and Mineral Resources Agus Cahyono Adi said that in strengthening participation and collaboration among stakeholders, EITI Indonesia plans to formalize the establishment of the EITI Indonesia national secretariat. As well as accelerating preparations for the following EITI validation and sustainable funding for EITI operations.

In addition, in EITI implementation, EITI Indonesia plans to mitigate risks in mainstreaming EITI, encourage contract disclosure by strengthening the role and involvement of the Ministry of Finance, and create an EITI Data portal based on consultation with users.

Representative of the company, Vice President Tax PT Freeport Indonesia Mukhlis Murtadlo Ishak, in his discussion session, conveyed how data is used to eradicate corruption in the extractive sector using a multi-stakeholder approach.

“We understand that extraction in the oil and gas and mining sectors has the potential for corruption risks that can hinder sustainable development. As an EITI reporting company, we (Freeport Indonesia) support the running of EITI Indonesia and comply with the obligations in reporting data for EITI,” said Mukhlis.

PWYP Indonesia National Coordinator Aryanto Nugroho, who was one of the speakers at the conference, shared how EITI data can be used to drive sustainable mineral supply chains, from the formalization of artisanal and small-scale mining (ASM) to revenue monitoring and ownership of more significant mining operations.

In this discussion, Aryanto raised standards and due diligence for responsible trading of mining commodities and the importance of traceability in building supply chain transparency to minimize corruption along the supply chain.

On the last day of the EITI Conference, the new EITI International Board members were appointed. Indonesia’s EITI Secretariat Coordinator, Agus Cahyono Adi, was elected as an alternate member of the EITI Board for the period 2023-2026. In his speech, Agus Cahyono Adi reiterated that the implementation of extractive industry transparency in Indonesia not only improves governance, it can further increase investment and prosperity of the country.

Source: EITI Indonesia