According to Olena, this openness is not only applied in one industry. “If they do not disclose the”It is not easy to eradicate corruption, but we still do not give permission if beneficial ownership is not clear,” said Jonan.
Minister of Energy and Mineral Resources (ESDM) Ignasius Jonan will reject the permit for oil and gas contractor activities that do not include the owner’s name (beneficial ownership). This effort was made to make the oil and gas sector more transparent and prevent corruption.
According to Jonan, oil and gas companies must include the owner’s name if they ask for an activity permit. “It is not easy to eradicate corruption, but we still do not give permission if beneficial ownership is not clear,” he said in Jakarta, Monday (23/10).
Now, only 70% of the upstream oil and gas operators have done this even though regulated by the Minister of Energy and Mineral Resources Regulation Number 48 of 2017 concerning Supervision of Concessions in the ESDM Sector.
Apart from the owner’s name, referring to the regulation, Jonan requires oil and gas companies to attach a Corporate Taxpayer Identification Number (NPWP). “If they do not like it, we send the documents back,” he said.
This information disclosure is also implemented in other countries, such as Ukraine. It was conveyed by Deputy Minister of Justice Ukraine Olena Sukmanova.
beneficial ownership, they will not get a bank loan. It is not additional pressure but clear rules,” he said.
Disclosure of beneficial ownership data in a company is a measure of transparency in extractive industries, particularly industries whose raw materials are obtained directly from nature. It is also stated in Presidential Regulation No. 26 of 2010 concerning Transparency of State Revenue and Regional Revenue Obtained from Extractive Industries.
This rule is also the legal umbrella for the Extractive Industries Transparency Initiative (EITI) existence. The institution under the Coordinating Ministry for Economic Affairs is a forum for the government, industry players, and civil society to encourage the oil and gas and mineral and coal sectors’ openness.
A critical aspect that EITI highlights are the transparency of data on company deposits and government revenues. With this information disclosure, the public can determine and participate in monitoring oil and gas companies’ tax payments to the number of products ready for a sale (lifting) made by the cooperation contract contractor (KKKS).