Transparency wave in the extractive industries showing by the rapid development on the initiatives such Extractive Industries Transparency Initiative (EITI) and European Union (EU) Mandatory Disclosure has led to data disclosure in the sector known for its secrecy. Today public can easily obtain data and information on the company payment, state revenue as well as fiscal regime governed by the contract. Greater opportunity arises for countries which has adopted Freedom of Information Law, as in Indonesia.

Nevertheless, data and information disclosure won’t necessary resolve problems caused by the absence of transparency. Without deep analysis and interpretation, those data won’t contribute in an optimum manner for transparent and pro-public interest policy reform. Thus, it important to develop model on the data and information utilization benefitting from massive data disclosure, by using solid method which can be argumentatively communicated to the policy maker.

Publish What You Pay (PWYP) Indonesia with the support of Open Oil, Berlin based consultancy and training provider, specialized on open data and natural resources, committed to promote openness in the extractive industries by encouraging the development of financial modelling. The approach is to model specific extractive project by make use of publicly available data and information, both provided by the company or third parties. Through financial modelling, public is able to ensure the implementation of contract, especially related to the fiscal regime which effects state revenue; evaluate the project’s profitability as one of the considerations of decision to extract; also estimate the future state revenue from the extractive industries.

This program also conducting mentoring activity to develop financial modeler community in Indonesia, which is not only involving civil society organizations, but also academics, journalists and government officials. By doing so, demand on the data and information disclosure in the extractive industries is expected to increase. In addition, greater analysis generated from the financial model also lead do more substantive public discourse. For instance, better fiscal terms which bring greater profit for the government as well as local revenue planning.

Generally, this program is a statement of support on the data and information openness policy, also an encouragement for the government to use data as the basis of policy making, particularly in the extractive industries sector.

Related links:

  1. Program Financial Modelling and Openness in the Extractive Industries
  2. Financial Model on Copper & Gold Mine “Batu Hijau” – West Nusa Tenggara
  3. Testimony of Financial Modeler of PWYP Indonesia (Maryati dan Rizky Ananda)