Publish What You Pay (PWYP) Indonesia is a civil society coalition for transparency and accountability in the extractive resources sector’s governance, oil and gas, mineral and coal mining, and other natural resources. PWYP Indonesia collaborates with Open Oil, a consultancy agency specializing in open data and natural resources based in Berlin, to carry out a mentoring program related to financial modeling in the extractive industry sector, particularly oil and gas and mining.
The Financial modeling program developed by Open Oil and PWYP Indonesia uses a project-based approach, using data and information available to the public, both in the form of company financial reports and reports and data provided by other parties. Through the development of a financial model, the public can ensure the implementation of contract provisions, especially concerning the fiscal regime that has an impact on state revenues, conduct project economic evaluations as one of the considerations for extraction decisions, as well as project state revenue from the extractive industry sector. Financial modeling can be further developed for cost and benefit analysis of an extractive industry for the economy, social, and environment.
For example, this financial model can answer several strategic questions that have not been reached by the public, including: What is the projection of state revenue with some price scenarios? How much revenue should the government receive? What is the value of project assets for investors? companies? How is the impact of changes in production, prices, costs & contract terms? Are the fiscal terms imposed by the government for the project reasonable ? and How do environmental and social impact control performance affect the cost of a mining project?
This program will carry out mentoring activities to develop the financial modeler community in Indonesia to develop knowledge and share experiences and skills in creating and analyzing financial models. The financial modeler community is not limited to civil society organizations but also academics, journalists, and government representatives. A financial modeler community is believed to increase the demand for disclosure of data and information related to the extractive industry. Not only that, with more and more analyzes generated from the financial model, public discourse will also develop in a more substantive direction, such as more favorable fiscal provisions for the government to regional revenue planning.
This program is a manifesto of support for data and information disclosure policies and a form of encouragement for the government and various groups to use data as a basis for policy formulation, assessment, and evaluation, particularly in the extractive industry sector.
This year, we started a financial model mentoring program to develop a broader financial modeling community that can collaborate in developing financial models, particularly in the extractive and natural resources sectors.
Mentoring Stages

  1. Build necessary skills by taking online courses on a) Excel, b) FAST modeling standards. PWYP-Open Oil will provide Free Vouchers for this Stage.
  2. Project identification taking into account project relevance and public interest, data availability, and individual capacities. Participants must at least reach a score of 70% of the online course followed in stage 1 to continue to this stage. PWYP-Open Oil will assist technical assistants / mentoring in data search and project identification.
  3. Develop a financial model, including data collection and model development. The resulting output is a model spreadsheet in Excel, a summary of data source documentation, and a narrative report regarding the model’s findings. PWYP-Open Oil will conduct technical assistant / mentoring in the preparation of the financial model. Model completion will be carried out in a modeling workshop, which will be held in October 2017.

How to Join the Modeling Program?
We open opportunities for the public to take part in a mentoring program and work with our modeling team to develop financial models and attend workshops with other modeling teams from Indonesia and from other countries, with the following conditions:
Terms and Conditions

Registration Requirement

  1. Participants are active activists in the relevant professions in the economic, financial, legal, social, and public policy sectors, both from NGOs / CSOs, Government, Universities, Researchers, Journalists, and Practitioners in the Extractive Industry Sector.
  2. Support and encourage the openness of public data and information for the development of public knowledge and policies
  3. Have a commitment and curiosity to develop knowledge and skills in the aspects of financial modeling
  4. Committed to sharing experiences, knowledge, and skills with the public in terms of financial modeling and other crucial aspects of public concern
  5. Please fill out the following online form by 9 September 2017.

Related Links

  1. Financial Modeling Program and Extractive Industry Openness
  2. Example of Financial Modeling of PWYP Indonesia – Open Oil in the Copper and Gold ‘Batu Hijau’ Project – West Nusa Tenggara
  3. Testimonials from PWYP Indonesia’s Financial Modellers (Maryati and Rizky Ananda)

Related document

  1. Brief profile of the PWYP Indonesia-Open Oil Community Modeller Program
    Further questions can be submitted to rizkyananda@pwyp-indonesia.org/ sekretariat@pwyp-indonesia.org.
Financial Modelling