The International Board of Extractive Industries Transparency Initiative (EITI) agreed that Indonesia has the right to carry the status of “Compliant Country” in implementing the provisions of the EITI Rules. This decision was made at the 28th EITI International Council Meeting on Wednesday, October 15, 2014, in Naypyitaw, Myanmar.

With this status, Indonesia is the first ASEAN member country to carry this status. In addition to Indonesia, EITI was also implemented in the Philippines and Myanmar, which had just implemented EITI and only received candidate status. Timor Leste has attained “Compliant” status in 2010.

EITI is an international standard on reporting state revenues from extractive industries (oil, gas, coal, and minerals) whose processes involve governments, businesses, and civil society groups. EITI has been implemented in 46 countries around the world including Indonesia and has been recognized as a global standard to encourage transparency and accountability of state revenues and corporate payments from extractive industries.

The implementation of EITI in Indonesia is based on Presidential Regulation Number 26 of 2010 on Transparency of State Revenues and Regional Revenues Obtained from Extractive Industries. In October 2010 Indonesia obtained the status of “Candidate Country” and after being judged to meet the provisions of the 2011 EITI Rules, Indonesia successfully received a “Compliant” status.

“Indonesia’s success in achieving EITI” Compliant Countries “status is an achievement that needs to be appreciated. EITI can help reduce corruption in the oil and gas and mining sectors, reduce leakage of state revenue, and become an instrument to improve governance in the oil and gas sector and mining on the permits and supervision of mining production. This happens if the findings and recommendations of the EITI Indonesia report are followed up consistently by the government and other stakeholders, “said Maryati Abdullah, Coordinator of PWYP Indonesia.

Fabby Tumiwa who is a member of the EITI International Council (2013-2016), who is also the Chairperson of the Indonesia PWYP Steering Board, stated that “compliant status” could be the main capital of the Jokowi Government to lead the improvement of transparency and accountability of extractive industries in Indonesia and encourage the same thing in ASEAN level. Together with the Philippines and Myanmar, Indonesia can encourage EITI to become an instrument of policy harmonization to improve the governance of the oil and gas and mining industry in ASEAN within the framework of a norm-based ASEAN Economic Community. “

Indonesia’s achievement in EITI is an achievement at the end of President Yudhoyono’s government, which would be a starting point for overall improvement in the governance of extractive industries in Indonesia.

PWYP Indonesia encourages the Government of Joko Widodo to carry out EITI seriously and consistently, especially in the process of preparing reports and on improving efforts to record state revenues as determined by the 2013 EITI Standard, which will become Indonesia’s reference for producing annual reports. PWYP Indonesia hopes that the EITI report covering 2012-2013 which will be produced in 2015 can begin to consider the transparency aspects of oil and gas contracts and mining as well as data disclosure about mining ownership and key beneficiaries of mining companies or beneficial ownership in accordance with EITI Standard 2013.

“Indonesia must improve the quality of the EITI report, strengthen government leadership and strengthen the capacity and resources of the Indonesian EITI secretariat, and encourage dissemination of information at the district/city level, especially those rich in oil and gas and mineral resources, and monitor reforms in the oil and gas and mining sectors to ensure utilization natural resources for the greatest prosperity of the people, “emphasized by Maryati Abdullah.

“The Coordinating Minister for the Economy, together with the Minister of Energy and Mineral Resources and the Minister of Finance in the upcoming cabinet must have a commitment to the implementation of a better EITI,” said Fabby Tumiwa.

Jakarta, October 16, 2014

Maryati Abdullah

National Coordinator of PWYP Indonesia

Media Contact:

Aryanto Nugroho, Advocacy Division and Network of PWYP Indonesia

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