The Framework for Extractive Industries Governance in ASEAN: Comments
Yose Rizal Damuri
Centre for Strategic and International
Studies
Discussion Outline
• Some areas of framework
• Implementing the framework: Country level
• ASEAN institutional support
Economic Management of Revenue from Resources
• Natural resources curse
• Mechanism to collect revenue
– Balancing between investment attractiveness and state revenue
• Economic consequences of spending
– Macroeconomic stability: how to handle Dutch disease and windfall revenue
– Where to spend the money?: Optimal social return, doesn’t mean to spend in related activities, e.g.
Indonesia and fuel subisidy
Possibility of Implementation
• South East Asia is quite a diverse region
– Different level of economic development – Different governance and legal system – Should have a detail benchmark in the
implementation of good governance
– Assessment on the current situation
ASEAN Institution
• Should ASEAN adopt such framework in their legal structure
– Perhaps, but in what forms? ASEAN guidelines
– ASEAN’s guidelines on certain issues are normally broadly defined and never really touch detail problems, e.g. guidelines on
competition policy or IP
• And how to ensure implementation at regional level
– ASEAN has relatively poor track record in implementation – There is no compliance mechanism in ASEAN
– There is even no sufficient monitoring mechanism
– Transparency is the key, but ASEAN countries prefer to keep issues in the closet
