JAKARTA – Coalition of Publish What You Pay (PWYP) Indonesia welcomes the publication of the third report of Extractive Industries Transparency Initiative (EITI) for year 2012 – 2013. For the first time since Indonesia is appointed as EITI Implementing Country, EITI reporting process refers to the new EITI Standard, 2013 EITI Standard [1].
Maryati Abdullah, National Coordinator of PWYP Indonesia conveyed, we applaud Implementing Team of EITI Indonesia consisting of representation of government, business and civil society that put the best effort to finish the report. “By issuing this report, Indonesia is expected to obtain “Compliant Country” status in EITI membership,” said Maryati.
She adds that Coalition of PWYP Indonesia will continue monitoring the follow-up of findings and recommendation of EITI report. The ultimate goal of EITI to promote improvement of oil, gas, and mining governance will never be achieved if the effort taken is limited to publication of report only. “Do not let this EITI Report ends up as stack of files. It should be followed by a concrete action and strong commitment from government and other stakeholders,” underlined Maryati.
Aryanto Nugroho, Advocacy and Outreach Manager of PWYP Indonesia gave some notes related to 2012-2013 EITI Report. First, there are 10 non-operator companies and 21 mining companies that are not comply to EITI Indonesia.[2] It clearly shows that those companies are not transparent and also not supporting Jokowi government to improve transparency and accountability in the extractive industries in Indonesia. “Government must evaluate and give sanction to those companies,” stated Aryanto.
Second, this report doesn’t fully meet requirements of 2013 EITI Standard. For example on the disclosure of cadaster information, contract and beneficial ownership. “Indonesia Implementing Team need to ensure that the next EITI report really meets 2013 EITI Standard”, added Aryanto.
Chitra Retna, Executive Director of Article 33 Indonesia that’s served as CSO’s representation in EITI Indonesia Implementing Team said that it is important to formulate EITI in the form of per-topic issue that is easy to read, analyzed and understood by public, particularly related to transparency of key information such as zoning of mining area, coordinate point in the contract and non-tax revenue per area. So that transparency can pave the way to solve problems in the field.
Besides that, added Chitra, Indonesia need to see EITI as ‘Beyond Reporting’ mechanism, which serves as ‘focal point’ to strengthen extractive transparency initiative by public agencies. “By this extra role, EITI which’s represented by Implementing Team (government, business and civil society) can effectively monitor and push other initiatives such as Online Non-Tax Revenue Information System (SIMPONI), Minerba One Map Indonesia (MOMI), State Revenue Module (MPN) and also recommendations of Coordination and Supervision Corruption Eradication Commission (KPK) on Mining Sector,” stated Chitra.
EITI is an international standard on state revenue reporting from extractive industry (oil, gas, coal and mining), which the process involves multi-stakeholder, i.e: government, public sector, and civil society. EITI has been implemented in 46 countries, including Indonesia, and has been acknowledged as global standard to promote transparency and accountability of state revenue and company payment from extractive industry. The implementation of EITI in Indonesia is regulated under Presidential Regulation no. 26/2010 on State Revenue and Local Revenue Transparency from Extractive Industry.
Previously Board of EITI International has granted Indonesia “Compliant Country” status in the 28th EITI Board Meeting on 15 October 2014 in Naypitaw, Myanmar, because they see Indonesia has complied with EITI Rules 2011. However, since 26 February 2015, membership status of Indonesia is suspended due to incapability of Indonesia to publish 2012-2013 EITI report in timely manner.
[1] 2013 EITI Standard can be downloaded in the following link http://eiti.ekon.go.id/the-eiti-standard/
[2] Further information can be checked in 2012-2013 EITI Report via the following link: http://eiti.ekon.go.id/laporan-eiti-indonesia-2012-2013/