Jakarta – The Ministry of Energy and Mineral Resources (ESDM), through the Secretariat of Extractive Industries Transparency Initiatives (EITI) Indonesia, facilitates the EITI Indonesia’s Multi Stakeholder Group (MSG) Meeting on March 16, 2023, in a hybrid meeting. As mandated by the Decree of the Minister of Energy and Mineral Resources Number 122 of 2021, the EITI Indonesia’s MSG Meeting is held to discuss, provide direction and decisions on developments and issues in the implementation of EITI in Indonesia that are ongoing and in the future.

The EITI Indonesia’s MSG Meeting, discussed 4 (four) agendas, including progress in implementing EITI mainstreaming, progress in preparing the 10th EITI Report, preparation for 2023 validation, and EITI 2023 work plan. During the meeting, some civil society representatives in the EITI Indonesia’s MSG civil society representatives were Astrid Debora Meliala, Rocky Ramadani, Dwi Arie Santo, Mouna Wasef, Fahmy Badoh, and Yusnita Ike.

Sampe Purba, Expert Staff of the Minister of Energy and Mineral Resources who is also the Chairperson of the EITI Indonesia’s MSG, in his remarks, said that transparency mainstreaming began to be implemented in the preparation of the 10th EITI report on several data and information contained in the extractive industry supply chain, including regulation, production, sales, revenue, and revenue sharing funds. In addition, a work plan for the implementation of revenue transparency from Indonesia’s extractive industry in 2023 is also proposed, which is divided into several main activities, including strengthening participation and cooperation between stakeholders, communication and socialization, and implementation of systematic disclosure to achieve satisfactory progress in the performance of validation which is planned to be carried out in 2023.  

Regarding the development of the preparation of the 10th EITI report itself, there are still obstacles, mainly related to the low level of reporting from companies in the mineral and coal sector, namely 34%, not yet optimized mineral and coal taxation data, and the attachment of 2021 state revenue disaggregation information. Civil society representatives also highlighted these obstacles at the meeting.

Meanwhile, related to the validation of EITI Indonesia in October, a discussion of stakeholder engagement templates, outcomes, and impact templates was held. Based on the 2019 EITI 

Standard, several validation aspects that must be considered are:

  1. Stakeholder involvement in promoting transparency in the extractive industry, at least three stakeholders (government, companies, civil society). 
  2. Data transparency along the supply chain, both from the legal framework, licensing, and contracts, as well as the fiscal framework.
  3. Transparency of production data.
  4. Transparency of revenues obtained to the state, both taxes and non tax revenues (PNBP).
  5. Information on contract disclosure, participation of state owned (BUMN), the beneficial ownership.
  6. Impacts caused by extractive industry management and contribution to the state in terms of environment and society.

Several conclusions and follow-up actions in the EITI Indonesia’s MSG Team Meeting, namely:

  1. Regarding the preparation of the 10th EITI Report, input from EITI Indonesia Implementation Team members is still open until March 31, 2023, before being published in April 2023.
  2. Related to partial mainstreaming, several coordination meetings will be held to discuss the critical data and data integration and the design and development of the Extractive Data Portal.
  3. Proposed the smelter industry under the Ministry of Industry to be a company reported in the future Indonesia EITI Report.
  4. Validation by EITI will be carried out in October 2023, and a pre-validation meeting will be held with members of the EITI Indonesia Implementation Team members to fill in the validation templates.
  5. EITI Indonesia Implementation Team members can propose activities related to EITI Indonesia implementation as part of the EITI Indonesia Work Plan.

Author: Ersya S. Nailuvar
Reviewer: Aryanto Nugroho

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