JAKARTA – The socialization about the existence of EITI (Extractive Industries Transparency Initiatives) is considered to be continuously strengthened at the regional level. The importance of the socialization was raised when the EITI Indonesia socialization was held for the regional government, Wednesday-Friday, May 21-23, 2014.
The EITI socialization involved the Heads of Provincial and District Mining and Energy Services, as well as Heads of Provincial and District Revenue Services in several oil and gas producing regions and coal minerals throughout Indonesia. According to the recognition of a number of regions, the existence of EITI is not yet well known by many parties, therefore socialization should also be targeted at the region, considering the important role of EITI to encourage transparency in the extractive industries at the regional level.
Besides the importance of socialization. A number of other questions also arise, especially regarding the extent to which EITI will be brought forward and have a stronger legal umbrella, such as the Law. In addition, another question that arises is whether EITI will continue after the election of a new President.
Other themes discussed in the socialization were Presidential Regulation 26/2010, the role of the government in the transparency of extractive industry revenue, the role of civil society in the transparency of extractive industry revenue presented by Maryati Abdullah as PWYP Indonesia’s National Coordinator.
To note, EITI is a global standard for transparency in the extractive sector (including oil, natural gas, minerals, and coal). The main part of this standard is the process by which comparisons are made between payments to government by companies in this sector and government revenue.
In Indonesia, this initiative of transparency of state revenue from extractive industries began in 2007 when the then Minister of Finance Sri Mulyani expressed support for EITI to representatives of Transparency International Indonesia. The Deputy Chair of the KPK at the time, Erry Riyana Hardjapamekas and the KPK Deputy for Prevention Waluyo reviewed the legal basis for its implementation. The Presidential Regulation on EITI was then discussed by the Ministry of Energy and Mineral Resources (ESDM).
The following year the Coordinating Minister for the Economy at the time, Boediono, led a coordination meeting for EITI, and finally in 2010 Indonesian President Susilo Bambang Yudhoyono signed Presidential Regulation no 26 of 2010 concerning Transparency of State Revenues and Regional Revenues obtained from the Extractive Industries.