Publish What You Pay Indonesia's Blog (29)

Since 2011, ex-mine pits have claimed the lives of 32 people in East Kalimantan Province, Indonesia. Not to mention the environmental disaster, namely flood and damaged water system. PWYP Indonesia has identified a number of issues leading to such tragedy.

First, low company compliance. 60% of mining permits (domestic investment) have not allocated reclamation and post-mining fund, according to ministry…

Panama Papers which revealed the hidden wealth of global leaders and politicians, including 1,038 of Indonesian taxpayer, shows that corporations are prone to misuse for money laundering practices. As a global understanding, that perpetrator misuse corporation to hide and conceal the origin of asset, and most of the perpetrator identified as beneficial owner. Therefore, beneficial ownership disclosure is urgent to be implemented in Indonesia, particularly to expose and deal with the…

Publish What You Pay (PWYP) Indonesia has launched a report, entitled Coordination and Supervision on Mineral and Coal Mining Sector. Resulted from rigorous collaborative work with Anti-Corruption Commission (KPK), this report summarizes the findings, follow-ups, and achievements of KPK’s led initiative, namely Coordination and Supervision in mineral and coal mining…

In the past year, the public debate in the oil sector in Indonesia revolves around the gross split scheme, which is meant to replace the production sharing contract (PSC) scheme. The urgency to adopt gross split is mainly grounded on the issue related to the cost recovery which has been unresolved for years. Publish What You Pay (PWYP) Indonesia highlights several issue around cost recovery and lifting also its correlation with the performance of oil and gas non-tax revenue in Indonesia.…

Disclosure of contract and license in the extractive industry sector, especially in oil, gas and mining are mandatory. Firstly, they are important to trace the income flows from extractive industry sector, and also to secure social and environmental justice. Contract and licensing documents of extractive industry sector always involve public resources and become the basis of many public policies for its fiscal, social, and environmental aspects. So the public has the right to know and aware…

Jakarta – National Coalition Publish What You Pay (PWYP) Indonesia applauds the Presidential Decree Number 13 Year 2018 about Principle of Recognizing Beneficial Ownership of Corporation in the Framework of Prevention and Eradication of Criminal Act on Money Laundering and Criminal on Terrorism Funding. This rule requires every corporation (such as LLCs, foundations, associations, CVs, firms, and…

By Ian Wollff*

The article is originally featured in the Coal Asia Magazine, January 25 – February 25, 2018

Introduction

Many mining industry related seminars and publications provide the miners outlook on the Indonesian exploration and mining sector. Newspapers and mass media sometimes follow some popular trend, often just to boost their own ratings. A recent NGO seminar provided…

Publish What You Pay (PWYP) Indonesia asks The Ministry of Energy and Mineral Resources to be cautious of the rise of coal prices in 2018 which is believed to keep soaring. This rise will lead to massive coal exploitation, while the government supervision and company compliance in some regions is still poor and need to be improved.

PWYP Indonesia’s mining governance researcher, Rizky Ananda stated that the industries will use the momentum of price increase to boost production. It’s…

Indigenous peoples, especially those living in around forests and hinterland areas, often receive direct impacts from extractive industry activities, particularly in terms of social and environmental impacts. It is not infrequent that the needs and activities of extractive industries, such as mining, plantation, and industrial plantation forest, have shifted and even reduced local community’s governance territory.

The book “Indigenous Peoples in the Midst of Extractive Industries’…

Good governance in extractive industries (EI) and natural resources has played an important role in development, particularly for economic and social welfare. A lack of good governance can potentially lead to asymmetric information, high economic costs, and corruption. It also has critical impact on environmental damage, social conflict, and can even potentially fuel human right violations. This is particularly true in the case of EI, which mostly deals with un-renewable resources that are…

Recently we launched our report on the administration of coal mining permit in Indonesia, result of rigorous teamwork between Publish What You Pay (PWYP) Indonesia and KPK. The report depicts the chaotic state of coal mining permit, the efforts taken by the government to unravel the problems also a little improvement…

JAKARTA - Ministry of Energy and Mineral Resources is urged to utterly implement the policy on the restriction and reduction of coal production on 400 million tons by 2019. Such policies are the mandate of the National Medium Term Development Plan (RPJM) 2015-2019 and the General Planning of National Energy (known as RUEN).

The coordinator of National Mining Advocacy Network (JATAM), Merah Johansyah Ismail said that his side…

JAKARTA – Coalition of Publish What You Pay Indonesia appreciated the issuance of Extractive Industries Transparency Initiative (EITI) Report for fiscal year of 2014 and roadmap of beneficial ownership as well as portal of Extractive Industries (EI) Openness in Indonesia by Coordinating Ministry for Economic Affairs of the Republic of Indonesia. These are part of the commitments of Government of Indonesia with the support and participation of multi stakeholder, both the industry and civil…

The global transparency wave has reached Indonesia. Initiatives such as the Extractive Industries Transparency Initiative (EITI) are bringing more transparency to Indonesia and the mandatory disclosures laws of the EU have led to more data on extractive activities in Indonesia becoming available.

But the oil, mining and gas industries are still among the most corrupt sectors and accessing relevant data on the amount of production, marketing, shipment and payment of taxes and other…

Jakarta-Publish What You Pay Indonesia supports Directorate General (DG) of Mineral and Coal, Ministry of Energy and Mineral Resources to crack down mining companies which would not pay off the non-tax revenue arrears, either mining permits holder, Coal Contract of Work, and Contract of Work. MEMR is urged to be bold to impose special treatment, such as formulation of the black list of company, business permit revocation, and law enforcement.

National Coordinator of PWYP Indonesia,…

The deadlock of renegotiation between Government of Indonesia and PT Freeport Indonesia (PTFI) to reach an agreement regarding the adjustment toward Indonesia regulations (2009 Mining Law), particularly on the export permit of concentrate, the switch of Contract of Work (KK) into Special Mining Permit (IUPK), provision of tax (prevailing vs nail down), and divestment provision, will be likely settled through dispute settlement mechanism in the International…

Civil society coalition for energy and extractive industry governance reform, Publish What You Pay Indonesia, urged the government to select Pertamina’s President Director in transparent, credible, and independent manner. It’s to ensure the continuity of oil and gas governance reform in order to ensure energy security as well as encourage Pertamina to become a world-class oil and gas company.

Fabby Tumiwa, Director of Institute for Essential Service Reform said that it’s…

Recently, the Minister of Energy and Mineral Resource of Indonesia issued Ministerial Regulation Number 37 Year 2016 concerning the Provision Deals of Participating Interest (PI) 10% on the Oil and Gas Block. Publish What You Pay (PWYP) Indonesia assesses that the regulation has big potential to reduce rent seeking in the PI management in the oil and gas industry by prioritizing Region Owned Enterprise (BUMD) which’s fully owned by the local government or other companies whose at least 99%…