INILAHCOM, Jakarta – Publish What You Pay (PWYP) Indonesia found, 27 out of 108 mineral and coal industries have not submitted company payment data for the Extractive Industry Transparency Initiative (EITI) 2012-2013.
On the other hand, there are 11 out of 174 companies in the oil and gas (minerba) sector that have not completed the EITI report. A number of mining and oil and gas companies that have not reported EITI have the potential to set a bad precedent for transparency and governance of the extractive industry in Indonesia.
Maryati Abdullah, Coordinator of PWYP Indonesia, regretted the attitude of the company in not sending the EITI report amidst the government’s efforts to restore the suspended status of EITI Indonesia’s membership. This suspended status has been in effect since 26 February 2015 because Indonesia was late in issuing the EITI report for the 2012-2013 period.
“This shows the weak commitment and seriousness of these companies to be transparent and at the same time do not support the Jokowi administration’s efforts to improve transparency and accountability for the extractive industries in Indonesia,” said Maryati, Tuesday (29/9/2015).
She explained that the mineral and coal companies that had not yet reported consisted of 1 company holding a Contract of Work (KK), 9 mining business permits (IUP) for minerals, 2 working agreements for coal mining operations (PKP2B) and 15 coal IUPs.
Yenni Soetjipto, Civil Society Representative in the EITI Indonesia Implementation Team, urged the government to take a firm stance against companies that are reluctant to report EITI. “The reluctance of companies to report EITI should be a tool for evaluating the government on the existence of these companies. Moreover, the implementation of EITI Indonesia is one of the actions mandated in Presidential Instruction (Inpres) No. 7/2015 on Corruption Prevention and Eradication Action, so that the reluctance of companies to report EITI can be interpreted as resistance to anti-corruption movement efforts, ”he said.
Yenni added that the 38 companies that have not reported are expected to send their reports no later than 5 October. “Later, we will consider in the implementation team forum the consequences of those companies that do not report. If possible, we hope that there will be sanctions for not reporting, such as being announced to the mass media and following up on the report to the Minister and the relevant local governments, “said Yenni.
EITI is an international standard in reporting state revenues from extractive industries, whose process involves multi-stakeholders consisting of government, business and civil society and has been implemented in 46 countries. The implementation of EITI in Indonesia is based on Presidential Regulation No. 26 of 2010 concerning Transparency of State Revenue and Regional Revenue Obtained from Extractive Industries. [ipe] PW