Dear IPA members, please find update on EITI Activities during this past month:
1. EITI Indonesia End of Year Report
Message from Erry Riyana Hardjapamekas, Head of Team for the Formation of the Secretariat of the Extractive Industries Transparency Initiative (EITI) in Indonesia.
Dear colleagues in the Extractive Industries:
In my current capacity as Head of the Team for the Formation of the Secretariat of the Extractive Industries Transparency Initiative (EITI) in Indonesia, I write to inform you of progress over the last year. Please click here for the attached report.
EITI is now an official Government of Indonesia undertaking.
- The Initiative has been established by Presidential Regulation 26/2010.
- The Government of Indonesia has requested formal Candidate status in the EITI, and this request was favourably considered by the EITI Board.
- EITI in Indonesia is led by a Ministerial Steering Team, at the head of which is the Coordinating Minister for Economic Affairs.
- The Coordinating Ministry will contribute nearly five billion rupiah to the operations of the EITI in Indonesia in 2011.
- The initiative is being executed by an Implementation Team, led by the Coordinating Ministry’s Deputy for Energy, Mineral and Forestry Resources. As required under the Presidential Regulation, the Implementation Team has begun to meet, and has approved a time and cost specified work plan.
- The Implementation Team is made up of 13 Directors General (or officials at the equivalent rank) from six ministries and agencies which have discussed a number of things, including:
- The need for BPMIGAS to make sure that the 2010 year-end Financial Quarterly Reports (FQRs) of major oil and gas producers are released to BPKP in a timely manner.
- That during the first round of EITI reporting and reconciliation, the Ministry of Finance’s Directorate General of Budget and Directorate General of Tax, and the Ministry of Energy and Mineral Resources’ Directorate General of Minerals and Coal, will report the receipts of the large EI revenue streams which come under their regulatory authority. If this Directorates General has not done so already, they could begin to get up to speed on what this will entail in practice, and begin to identify persons responsible for accurately filling out reporting templates.
- The need for the assistance of the BPKP to audit FQRs and ministerial accounts underlying government EITI reports.
Looking to the future, Indonesia has two years to become compliant or near-compliant with the EITI (a determination that will be made by an independent Validator in mid 2012). If our nation is not judged to be, at a minimum, near-compliant, it could be de-listed from the Initiative.
Let us use the two coming years to fulfill our promise to implement EITI in a manner consistent with the globally-established rules, so that the goal of becoming Asia’s most transparent country can be reached. Thank you.
Regards,
Erry Riyana Hardjapamekas
Head, Team for the Formation of the Secretariat of the EITI in Indonesia
2. Draft of Reporting Template
On 23rd December 2010, the EITI Implementation Team held a meeting at the office of the Coordinating Ministry for the Economy to discuss the draft of the template which would be use for reporting of oil and gas revenues. Also present at this meeting were representatives of Migas, PSC's, Associations and Civil Society representatives. The proposed template is attached and it was agreed that it would need to be tested. A workshop to test this template using actual figures of 2008 or 2009 is being envisaged in February - March 2011.
During this meeting, we were also informed that the reporting will only include companies producing 80% of the total national production of the commodity concerned i.e. oil and gas, copper, gold, nickel and coal.
For oil and gas, we were presented with a slide showing that 7 companies covering 13 units would be involved in the EITI reporting respectively:
The above data originate from the 2007 - 2008 US Embassy Petroleum Report on Indonesia and therefore would need to be re-checked and updated.
3. EITI 2011 Global Conference in Paris
On 14 December 2010 the Deputy of the Coordinating Minister for the Economy extended an invitation to the representatives of IPA, the IMA (Indonesian Mining Association) and APBI (Indonesian Coal Mining Association) who are members of the EITI Implementation Team to become a member of the Indonesian delegation attending the EITI 2011 Global Conference which will take place on 2-3 March 2011 in Paris.
At the IPA Board meeting held on Wednesday, 26 January 2011, it was decided that IPA presence at this conference was not considered essential and therefore we would not participate this year.