Eng Annual Progress Report 2015 Approved by MSG

EITI INDONESIA PROGRESS REPORT

JANUARY

–

DECEMBER 2015

Kementerian Koordinator Bidang Perekonomian Building 2nd Floor Jl. Medan Merdeka Barat No.7 Jakarta – Indonesia

Contents

I. Ge eral Assess e t of Year’s Perfor a ce ... Summary of Activities ... Preparing The Third EITI Report ... A. Getting Number Companies to be Reconciled ... B. Determining The Content of The EITI Report 2012-2013 ... C. Data Collection and Reconciliation ... D. Contextual Report ... E. Approval and Publication of The EITI Report ... Communication and Outreach Activities ... Communicating The Findings of The EITI Report ... Preparing for Fourth EITI Report ... Creation of EITI Data Portal ... II. Assessment of Performance Against Targets and Activities Set Out

In the Work Plan ... III. Assessment of Performance Against EITI Requirements ... IV. Overview of The Multi-“takeholder Group’s Respo ses To The Reco e datio s

from Reconciliation and Validation ... V. Specific Strengths or Weakness Identified in The EITI Process...

1. Strengths of EITI Indonesia Implementation... 2. Weakness of EITI Indonesia Implementation... VI. Total Cost of Implementation... Date of Approval by The MSG... Record Attendance of The 2015 Implementation Team Meeting... Membership of The Implementation Team... Implementation Team Meeting 2015 ... Technical Team Meeting 2015 ... Activities of EITI Indonesia 2015 ...

1 1 1 1 1 2 2 2 3 3 4 4

5 8

1

I.

GENERAL ASSESSMENT OF YEAR’S PERFORMANCE

SUMMARY OF ACTIVITIES

The implementation of EITI in Indonesia in the beginning of 2015 gets a big momentum after I do esia as for all gra ted co plia t cou tr status at the EITI I ter atio al Board eeti g, i Nay Pyi Taw, Myanmar on October 2014. The status only lasted less than three months after Indonesia got suspension because the 2012 EITI report did not meet the deadline on December, 31 2014. The activities in 2015 focused on various activities to publish 2012-2013 EITI report as a requirement to regain the compliant status, from determine the content of the report (reconciliation and contextual) to approval and publication of the report. Communication and outreach activities were also conducted to raise awareness of the stakeholders to the EITI implementation. It activities also became a platform to discuss many issues related to extractive industries agenda reform in Indonesia, such us on contextualizing EITI Implementation with the new decentralization law.

PREPARING THE THIRD EITI REPORT

A.

GETTING NUMBER OF COMPANIES TO BE RECONCILED

From January to April 2015, the Multi-Stakeholder Group (MSG), in Indonesia called The Implementation Team met regularly in the Implementation Team meeting to determine the Independent Administrator (IA) that will work for gather and reconcile data for EITI report 2012-2013. The team also had some discussion to decide scoping study that contained information about number of companies that will be reconciled in the EITI Report 2012-2013. Based on the Scoping Study verified by IA and the Implementation Team, there are 158 oil and gas companies that met the threshold (consisting of 67 operators and 91 non-operators) in 2012 and 76 companies in the mining sector (consisting of 62 coal companies and 14 mineral companies). In 2013, there are 174 companies from oil and gas sector (consisting of 72 operators and 102 non operators) and 99 mining companies (consisting of 69 coal and 30 mineral companies). In the oil and gas sector, 100% of oil and gas companies were carrying production activities were requested to join the reporting activities. In mining sector, companies that contributed to 80% of revenues from corporate income tax in the mining sector, and companies that paid over 25 billion rupiah royalties to the state (contributing 81.67% and 84.65% of the state revenues from royalty in 2012 and 2013) were requested to give data for the report. The EITI Report 2012-2013 are the first I do esia’s Report hich used Standard 2013 as base of rules.

B.

DETERMINING THE CONTENT OF THE EITI REPORT 2012-2013

In some activities such as Focus Group Discussion (FGD) and dissemination, the Implementation Team invites speaker and relevant stakeholders to get more complete inputs and insight for the content of the EITI report. The forum was also used to discuss and creating debates and dialogue among stakeholders from Government, Private Sectors, Civil Society and relevant academician. Some topics of the discussion are :

1. Legal framework for the extractive industries

2. Government’s re e ue fro e tracti e i dustries: ro alties, ta , a d others

3. Payments of State Owned Enterprise (SOE) and private company to the government

2

C.

DATA COLLECTION AND RECONCILIATION

The Implementation Team and The National Secretariat always monitored the development of Independents Administrators (IA) data collection and reconciliation. Both The Implementation Team and National Secretariat also help the IA to solve bureaucracy problems between institutions and companies that hamper the IA to get data needed. Every month, IA gave presentation about the progress of the data collecting to the Implementation Team in the Implementation Team meeting. Not all companies sent their template on time (during the month of June to September 2015). In the beginning of October 2015, The National Secretariat invited 20 companies that have not submit the template, but only 3 companies (2 mining companies and 1 non operator oil and gas company) that came to the meeting. Until the publication of the report, 21 companies fail to return reporting format – consisting of 6 companies in 2012, 9 companies in 2013, and 6 companies in both 2012 and 2013. Meanwhile, 7 companies in 2012 and 11 companies in 2013 did not return authorization letter. The lack of sanction a d the co pa ies’ nonexistence were the main factors that cause those companies did not send the templates. The data from the government (especially DG Tax) can be gathered after the IA get data from the co pa ies ecause it eeded co pa ies’ agree e t for DG Ta to release the data.

D.

CONTEXTUAL REPORT

The preparation of contextual report was a big challenge for all of the EITI stakeholders, because it was a new requirement in the 2013 EITI Standard. It brought the development of the new EITI Report from the previous ones that only contain reconciliation report. The contextual report gave information of I do esia e tracti e i dustr . It pro ided co prehe si e illustratio o the sector’s legal fra ework as well as governance mechanism, types of contract/license, current licensing process, payments of companies to central and local government, and sharing mechanisms between central and local government. It also explains the participation of State-Owned Enterprises (SOEs) in Indonesian extractive industry. The IA collected information for contextual report from many sources including presentation from resources person in the seminar and Focus Group Discussion that was held by the National Secretariat.

E.

APPROVAL AND PUBLICATION OF THE EITI REPORT

3

reported by DG Budget, Regional Tax and Restitution reported by DG Budget, CSR reported by PSC holders.

The report was published on November 23, 2015. The publication of the EITI report was presented by the media during a press conference after ceremonial agenda. In the same day, the third Indonesia EITI Report also was published in the EITI Indonesia website.

COMMUNICATION AND OUTREACH ACTIVITIES

Communication activities are needed to spread information to the public so the result of EITI reports does not just become a set of data that is unused. The reports are expected to trigger public debate. The EITI Indonesia Secretariat collaborated with various organizations had conducted many communication activities in 2015. There were several types of activities to communicate the transparency of extractive industry to improve public understanding. Direct communications such as dissemination, Focus Group Discussion (FGD), and workshop were conducted to the main target of stakeholders. The targets of dissemination were government, local governments, extractive companies, Civil Society Organization (CSO), and think thank. FGD was held to discuss specific topic about extractive industries issues related to the specific stakeholders. The secretariat also conducted workshop to build capacity of stakeholders. Workshop about EITI standard was conducted for representative of the Implementation Team. In order to get wider target, the secretariat also made a journalist workshop to raise journalists’ capacities a out tra spare c a d e tracti e i dustries issues. A out 24 jour alists

isited PT A ta ’s gold i e i Bogor to get k o ledge directl fro the site.

The information in EITI Reports has been broadly disseminated to the public. Some indirect communication activities were also held in order to raise public awareness of this initiative. The EITI Secretariat used some tools such as social media, websites, brochure, and comic books to disseminate the information for the broader public. The secretariat also used mass media to get wider unreached audience, especially to the people around mining. Three radio talk shows and two TV talk shows were conducted to get wider audience to disseminate EITI. General public especially from rich natural resources provinces were expected more aware of their right to get information of payment that their local governments get from extractive industries.

COMMUNICATING THE FINDINGS OF THE EITI REPORT

4

PREPARING FOR FOURTH EITI REPORT

After the publication of the third EITI Report, the Implementation Team directly prepared fourth EITI Report that covers 2014 of calendar year. The Implementation Team had agreed the Scoping Study for 2014 EITI Report in the meeting held on December 22, 2015. The number of companies that will be reconciled in this report will increase, because the Implementation Team decided limit material of royalty payment of the fourth report is at least 20 billion rupiah. It is lower than the third report that only 25 billion rupiah of royalties payment. On 2016, the financial process of EITI Indonesia implementation is very long. It hampers all of the EITI activities including preparation of the 2014 EITI Report. The slow processes of financial have caused delays to recruit Independent Administrator (IA) that is very critical for the fourth EITI Report. Because of financial process problems, the tender process of the IA started in the end of June 2016.

CREATION OF EITI DATA PORTAL

5

II.

ASSESSMENT OF PERFORMANCE AGAINST TARGETS AND ACTIVITIES

SET OUT IN THE WORKPLAN

The EITI Indonesia work pla set so e priorit targets. Belo is a su ar of EITI I do esia’s progress in implementing activities in the work plan.

TARGET AND ACTIVITIES

PROGRESS

PUBLICATION OF EITI REPORT The Implementation Team has accomplished this objective with the publication of EITI 2012-2013 report.

- Timely Publication of EITI Indonesia 2012-2013 Report (on November 23, 2015) that makes Indonesia regains the compliant status.

- Transparency of tax and non-tax payment from the industries as well as revenue of the government

- Analysis of the findings of the EITI report and how such findings should be follow up - Contextual report contains Information of

extractive industries in Indonesia.

- Publication of Revenue Sharing Fund of three rich natural resources provinces. - Transparency of social expenses of the

companies (CSR)

PARTICIPATION IN EITI INDONESIA PROCESS The members of Implementation Team and other stakeholders actively participate in the process of EITI implementation in Indonesia.

- The Implementation Team meeting that held seven times in 2015.

- The Implementation Team members help the IA to solve bureaucratic problems in collecting data

- The Implementation Team support communication activities that held by the National Secretariat

6

push the companies that are reluctant to give data, also raising the issue of reluctancy in the media.

- Local government, especially three rich natural resources provinces (Riau, Kalimantan Timur, Jawa Timur) give data about revenue sharing fund.

- In 2016, There is a plan to discuss a pilot areas to exercise sub national EITI in the local government

COMMUNICATION ACTIVITIES - EITI Indonesia regularly conducted

dissemination for the stakeholders to spread information of the EITI Report - Focus Group Discussion regularly

conducted to discuss specific topics of extractive industries.

- EITI Indonesia issued press release and journalist workshop to widely disseminate EITI Report through mass media

- EITI Indonesia tried to reach the wider target (especially people around mining) trough radio and TV program.

- An executive summary of shortened version of the report as well as other communication tools explaining the report were distributed during events and briefing with stakeholders.

CAPACITY BUILDING Capacity Building activities that were conducted in 2015:

- Understanding EITI Report template for the companies

- Training on gaps between EITI Standard and template of the report for the Implementation Team

- Annual planning for Scoping study

- Journalist workshop to understand the EITI Report

FOLLOW UP REPORT Some recommendation of the report that had

been discussed by the Implementation Team: - Regulatory amendment to access

information provided in Inameta because it is still a paid application.

7

- Request to the Minister of Finance to provide written approval for the DG Tax to disclose Corporate I co e Ta ta pa ers’ data.

- Rewards and punishments to the companies

Some other recommendations will be discussed further in several activities in 2016.

PREPARING FOR FOURTH EITI REPORT Activities for preparing the report until August 2016:

- Agreement of the Scoping Study

The materiality threshold for the company that has to submit template is 20 billions of royalties. There are 72 oil and gas companies and 121 mineral and coal companies that have to submit data for 2014 EITI Report. The scoping study become base of rules for IA in completing the 2014 EITI Report.

- Agreement of TOR of the IA

The Implementation Team had agreed the TOR of IA in the Implementation Team Meeting held in the end of 2015. The TOR has been given to the companies that follow tender to be IA.

- Tender process to recruit the IA

8

III.

ASSESSMENT OF PERFORMANCE AGAINST EITI REQUIREMENTS

REQUIREMENTS

PROGRESS

Effective oversight by the Multi Stakeholder Group

Implementation Team meetings are conducted to make important decisions in implementing the EITI. Some of key decisions made by the Implementation Team in 2015: 1. Approval of the scope of EITI Report 2012 -2013 2. Approval and recommendation of Oil and Gas Draft

Report 2012-2013

3. Approval and recommendation of Mining and Mineral Draft Report 2012-2013

4. Approval of 2012-2013 EITI report

5. Approval of the Terms of Reference of the

Independent Administrator (IA) for EITI Report 2014 6. Recommendation of the scope of EITI Report 2014 7. Approval of work plan 2016

The Implementation Team is still preparing the fourth report that covers the period of 2014. The report is planned for publication before the deadline in the end of 2016. Timely Publication of EITI Reports Indonesia was able to meet the deadlines for publication of

the third EITI report (2012-2013 report) before the deadline on December, 31 2015. The report was published on November, 23 2015 that made Indonesia regained compliant status. Indonesia was also published Annual Activity Report 2014 on August, 11 2015 after approved by the Implementation Team.

EITI Reports that include

contextual information about the extractive industries

Contextual information is included in the third EITI report because it based on the 2013 EITI Standard that requires contextual information. There are four books of the report: executive summary, reconciliation report, contextual report, and appendix of reconciliation report.

The Production of comprehensive EITI Reports that include full government disclosure of

extractive industry revenues, and disclosure of all material

payments to government by oil, gas, and mining companies.

9

REQUIREMENTS

PROGRESS

A credible assurance process applying international standards

Applicable for the 2012-2013 report. The process of reconciling EITI Indonesia Reports addresses to international standards. The IA was required to get the I ple e tatio Tea ’s appro al i all ke process of reconciliation.

EITI Reports that are comprehensible, actively

promoted, publicly accessible, and contribute to public debate.

The 2012-2013 report can be freely accessed in the EITI Indonesia website. The report has been actively promoted through direct communication activities such as workshop and seminar. It is also promoted using social media and mass media.

In 2016 EITI Indonesia manage to conduct series of dissemination, dialogues, and Focus Group Discussion (FGD) to reach wider target.

CSO’s coalitio who involved in EITI – Publish What You Pay Indonesia was developed open data portal www.opendataextractive.com and creating mobile phone application a ed Ope Mi i g’ i a droid O“ system, which one of the component were for easily understanding and friendly accessing information by wider smartphone users through company by company, payment by payment and region by region information. Ope Mi i g’ applicatio also bundled with official government application named LAPOR’ as pu lic grie a ce/aspiratio for de elop e t – hosted by Presidential Staff Office.

The multi stakeholder group takes steps to act on lessons learned and review the outcomes and impact of the EITI

implementation.

10

IV.

OVERVIEW OF THE MULTI-

STAKEHOLDER GROUP’S RESPONSES TO THE

RECOMMENDATIONS FROM RECONCILIATION AND VALIDATION

GAPS

OVERVIEW OF THE MSG (THE

IMPLEMENTATION TEAM)

amendment to access information provided in Inameta because it is still a paid application.

-

SKK Migas and DG Mineral and Coal:

Create formal request for full access to the contracts, a mechanism pursuant to Public Information Disclosure Act (Law No. 14/2008).

-

All Agencies: Defi es e eficial

o er so i for atio ca e accommodated in future reporting format.

-

CSO: create dialogue on discuss the reason for unpublicly available data, discuss the definition of secrecy term, and proposing to information

co issio to co duct pu lic i terest test’ for the se siti e information.

Application Minerba One Map Indonesia (MOMI) can be accessed as a guest. Information that can be accessed is limited Access public for PKP2B can not be accessed yet. It still process in the Constutional Court.

Production Sharing Contract (PSC) can not be opened, SKK Migas only can provide data that are agreed to be opened in the contract.

Beneficial Owner workshop has been held. It is expected to finish Beneficial Owner roadmap in the end of 2016.

-

CSO: The EITI Secretariat should collect the authorization letter from the report entities (companies) more early, and asking Ministry of Finance to write recommendation to DG Tax letter based on those authorizations letter.

11

All Agencies: It needs rewards and punishment to the companies that are targeted to submit report

CSO: Create publication for companies that have not submitted report. Ministry of MEMR raises the issue of uncompliant company in the media and sends the warning to the company.

Publication for companies that did not submit templates in the mass media.

SKK Migas: Create standard conversion rate for identifying gas volume.

CSO : Using single standard of units for volume in the report

In the new template, oil and gas companies will submit data about conversion rate of gas volume based on EITI Report need

DG Treasury: create integrated payment and reporting system to eliminate SAU-SAI differences

CSO : Discuss the adjustment and create integrated system for reporting in the future

DG Budget announce that there is an application called Simponi that is an online application. It will avoid different result between those two systems.

DG Mineral and Coal create new directorat called Directorate of Mineral and Coal Revenue that

ill reduce error of go er e ts’ revenue from mineral and coal sector

12

GAPS

OVERVIEW OF THE MSG (THE

IMPLEMENTATION TEAM)

PROGRESS

Discrepancies of reconciliation is more than 5%

IMA: Agree because it is suitable with requirements from Financial Authority (OJK)

DG Budget: Agree, but it is not necessary to be announced, because IA has target to achieve as small as possible

discrepancies.

BPKP: Percentage of every post has different judgments. For example: small percantage in oil and gas sector is actually big.

Discrapencies in the

reconciliation process of 2014 EITI Report is as small as possible.

Scoping Study All Agencies: Increase the number of companies that will be reconciled in the 2014 EITI Report.

13

V.

SPECIFIC STRENGHTS OR WEAKNESS IDENTIFIED IN THE EITI PROCESS

V.1

Strengths of EITI Indonesia Implementation

1. The Implementation Team commits to produce a better content in the fourth EITI Report. The number of companies that will submit report increase because the materiality threshold of companies that will be reconciled in 2014 report is at least 20 billion rupiah of royalty payment. It is lower than the third report that only 25 billion rupiah of royalties payment. The Implementation Team also will make a deeper content of contextual report. Some material that have not included in the third report (for example: Beneficial Ownership) will be discussed in the next EITI Report.

2. Many issues related to the EITI process have been solved in a collaborative way between all of the members of The Implementation Team as well as in the technical team.

3. Publish What You Pay (PWYP) Coalition that consist of 35 Civil Society Organization (CSO) and Non-Government Organization (NGO) strongly support the EITI Implementation. The PWYP Coalition in almost all of provinces in Indonesia, actively communicate the transparency message to the public, especially people around mining. PWYP also contextualizes EITI to current initiative reform such as Open Government Partnership (OGP) and Supervision of Anti-Corruption Commission on mineral and energy sectors.

4. The Implementation Team appointed Person in Charge (PIC) of the Implementation Team, called Technical Team, in order to improve communication between all of the members. Technical Team usually discusses specific concerns or follows up the recommendation or decision of the Implementation Team in the Implementation Team meeting. It also serves as an advisor for the Implementation Team.

5. There is a plan to make a pilot about sub national EITI in the local government. It can develop EITI participation in the local level. There are three rich natural resource provinces that actively support the EITI. Those provinces are member of the Implementation Team: Jawa Timur, Riau, and Kalimantan Timur strongly support the EITI with give report of DBH or National Sharing Fund. The DBH of these provinces can be used as parameters of DBH in all provinces in Indonesia.

6. Active and critical mass media, public news as well as social media are good environment for raising public awareness and monitoring the energy and extractive industries sectors

7. The good progress and strong demand on democracy and openness as enabling environment are improved day by day. The active participation of Indonesian government in the multilateral global platform on governance, economic and sustainable development issue such us OGP, G20, ASEAN-AEC, UNCAC, UNFCC, UN-SDGs and etc, are the good modalities for Indonesia to collaborate globally to address common interest on good governance.

V.2

Weakness of EITI Indonesia Implementation

1. The absence of punishment to all companies that did not disclose their data is one of the challenges. The enabling law can make the EITI implementation stronger.

2. A transparency issue is not a highest priority yet of the government rather than the fiscal and economic policy. The government should increase awareness of transparency (especially EITI) so it can develop good governance of extractive industries.

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VI. TOTAL COST OF IMPLEMENTATION

The following cost is total cost of EITI Indonesia implementation in 2015. As indicated below, activities were funded by government of Indonesia and grant from Multi Donor Trust Fund (MDTF) that administered by the World Bank.

NO

ACTIVITIES

WORK PLAN COST

(RUPIAH)

OUT TURN COST

(RUPIAH)

Funded by Government of Indonesia (GOI)

1 Meeting 439,400,000 225,943,000

2 Operational for the Implementation Team 109,800,000 78,150,000

3 Payment for Resource Person 102.000.000 78,270,000

4 Individual Consultant 50,000,000 45,000,000

5 Talk Show Radio and TV 553,335,000 519,024,500

6 Stationery 234,000,000 182,694,500

7 Ad Auction 8,000,000 -

8 Other Expenses 3,465,000 3,465,000

Total 1,500,000,000 1,132,547,000

NO

ACTIVITIES

WORK PLAN COST

(RUPIAH)

OUT TURN COST

(RUPIAH)

Funded by Multi Donor Trust Fund (MDTF)

1 Independent Administrator (IA) 3,290,000,000 3,250,000,000

2 Individual Consultants and Support Personnels 2,230,366,000 2,244,887,341

3 Print of all Material and seminar kit 465,230,000 252,141,000

4 Meeting in Jakarta (seminar, FGD, Workshop) 148,935,000 142,725,143

5 Meeting outside Jakarta (seminar, FGD, Workshop, etc)

15

NO

ACTIVITIES

WORK PLAN COST

(RUPIAH)

OUT TURN COST

(RUPIAH)

Funded by Multi Donor Trust Fund (MDTF)

6 Traveling in Indonesia 326,103,000 286,300,815

7 Traveling Abroad 628,215,000 611,489,698

Total 8,385,303,000 8,052,096,936

GRAND TOTAL 9,885,303,000 9,184,643,936

Approved by the MSG

i

RECORD ATTENDANCE OF THE 2015 IMPLEMENTATION TEAM MEETING

Agencies

1st

Ministry of Energy and Mineral Resources (ESDM)

Secretariat General

2

Directorate General of

Directorate General of Budget

1

3

1

4

3

Directorate General of Tax

3

2

2

1

4

Directorate General of Treasury

2

1

3

3

1

1

Directorate General of Fiscal Balance

Coordinating Ministry for Economic Affairs

Coordinating Ministry for Economic Affairs

4

4

3

3

3

4

4

The Audit and Development Agency (BPKP)

Deputy for National Accounting

2

2

2

1

Special Task Force for Upstream Oil and Gas Business Activities (SKK Migas)

ii

RECORD ATTENDANCE OF THE 2015 IMPLEMENTATION TEAM MEETING

Agencies

1st Mee

ting

2nd Mee

ting

3rd Mee

ting

4th Mee

ting

5th Mee

ting

6th Mee

ting

7th Mee

ting

Sub-National Government

Province of Riau

1

2

1

2

Province of Jawa Timur

1

1

1

Province of Kalimantan Timur

1

1

Companies and Association

PT Pertamina

2

3

2

2

3

Indonesian Mining Association (IMA)

1

1

3

1

1

Indonesian Petroleum Association (IPA)

1

Indonesian Coal Mining Association (APBI)

1

1

1

1

1

1

Civil Society Organization

Publish What You Pay Indonesia a d its C“O’s

Coalition member

iii

MEMBERSHIP OF THE IMPLEMENTATION TEAM

GOVERNMENT

Agencies

Name

Coordinating Ministry for Economic Affairs

Deputy for Energy Management , Natural

Resources and Environment Coordination, as Head of The Implementation Team

Mr. Montty Girianna

Deputy for International Economics and Financial Cooperation

Mr. Rizal Affandi Lukman

Deputy for Macroeconomic Coordination and Finance

Mr. Bobby Hamzar Rafinus

Ministry of Energy and Mineral Resources (ESDM)

Secretary General Mr. M. Teguh Pamuji

Director General of Oil and Gas Mr. I Gusti Nyoman Wiratmaja Director General of Mineral and Coal Mr. Bambang Gatot Ariyono

Ministry of Finance

Director General of Budget Mr. Askolani

Director General of Tax Mr. Ken Dwijugiasteadi

Director General of Treasury Mr. Marwanto Harjowiryono Director General of Fiscal Balance Mr. Boediarso Teguh Widodo

Ministry of Home Affairs

Director General for the Administrative Development of Local Finance

Mr. Reydonnyzar Moenoek

The Audit and Development Agency(BPKP)

Deputy for National Accounting Mr. Gatot Darmasto

Special Task Force for Upstream Oil and Gas Business Activities (SKK Migas)

Head of SKK Migas Mr. Amien Sunaryadi

Sub-National Government

Sub National Secretary of Riau Mr. M. Yafiz

iv

MEMBERSHIP OF THE IMPLEMENTATION TEAM

COMPANIES AND ASSOCIATION

Agencies

Name

Companies

President Director of PT Pertamina Mr. Dwi Soetjipto

Association

Executive Director of Indonesian Mining Association (IMA)

Mr. Syahrir A.B Executive Director of Indonesian Petroleum

Association (IPA)

Mrs. Marjoline Wajong Executive Director of Indonesian Coal Mining

Association (APBI)

Mr. Supriatna Suhala

CIVIL SOCIETY ORGANIZATION

Publish What You Pay Indonesia Coalition

Mrs. Chitra Retna Septyandrica Mr. Aryanto Nugroho

v

IMPLEMENTATION TEAM MEETING 2015

No

Date

Agenda

Result

1 February 5, 2015 1. Presentation from EITI Chair, Clare Short 2. Presentation of Scoping Study EITI Report

2012-2013

3. Work Plan of The Implementation Team in 2015

1. Agreement of Scoping Study 2012-2013 2. EY and CSO will follow up recommendation

for Scoping Study 2012-2013

2

May 27, 2015 1. Presentation of Independent Administrator (IA) for EITI Report 2012-2013

2. Discussion of IA work plan

3. Presentation of draft of Inception Report 4. Appointment of technical team member

1. Agreement of draft of Inception Report 2. Recommendation for Inception Report 3. Agreement for technical team member 4. Recommendation for workshop about

findings of the EITI report 3 June 12, 2015 1. Presentation and discussion of progress of

the report

1. Agreement of template for 2012-2013 Report

2. Recommendation for content of the report: CSR, export data, dividend, transportation revenue, etc

4 August 11, 2015 1. Presentation of reconciliation and contextual report progress

2. Presentation of Annual Activity Report 2014

1. Formally agreement of the Inception Report 2. Recommendation for contextual report 3. Agreement of Annual Activity Report 2014

5 September 29, 2015 1. Discussion of EITI 2012-2013 draft report 1. Agreement of EITI 2012-2013 draft report 2. Technical meeting will be held to finalize

reconciliation and contextual report

vi

No

Date

Agenda

Result

6 November 3, 2015 1. Presentation of EITI 2012-2013 final draft report

1. Agreement of EITI 2012-2013 final draft report

2. Technical meeting will be held to discuss about recommendation of the report

7 December 22, 2015 1. Discussion of workplan 2016

2. Discussion of TOR of the Implementation Team

3. Discussion of Scoping Study for EITI Report 2014

1. Recommendation for the work plan 2016 2. Agreement of Scoping Study 2014 with

some additional recommendations

vii

TECHNICAL TEAM MEETING 2015

No

Date

Agenda

Result

1 January 19, 2015 1. Discussion about Scoping Study of oil and gas sector for EITI 2012-2013 Report

1. Recommendation for EY to refine the Scoping Study of oil and gas sector

2

January 20, 2015 1. Discussion about Scoping Study of mineral and coal sector for EITI 2012-2013 Report

1. Recommendation for EY to refine the Scoping Study of mineral and coal sector

3 June 17, 2015 1. Discussion about draft of EITI 2012-2013 Inception report

1. Recommendation for the Inception Report

4 August 21, 2015 1. Discussion about progress of EITI 2012-2013 report

2. Discussion about template for SOEs

1. Recommendation for EITI 2012-2013 report 2. Suggestion to held a strategic retreat

5 October 5, 2015 1. Discussion of EITI 2012-2013 draft report 1. Data of companies production will use data from DG Mineral and Coal

2. Some material still can not to be published: auction participants, Inameta (because it is still paid application)

3. Data of export can’t be published because of unavailable material

4. IA will finalize the EITI 2012-2013 draft report in October 12, 2015.

6 November 5, 2015 1. Discussion of the recommendation of the EITI Report 2012-2013

1. Recommendation for the EITI Report 2012-2013

7 November 16, 2015 1. Discussion for EITI Report 2012-2013 launching

viii

ACTIVITIES OF EITI INDONESIA 2015

ACTIVITIES SET IN THE

-

Show the progress for EITI Indonesia report 2012 – 2013

-

Show the effort of EITI Indonesia for the improvement of extractive industries governance Dissemination of EITI

Template for mineral and coal companies 2013 EITI Standard (for MSG and IA)

Jakarta, June 23, 2015

-

Make recommendation for 2012-2013 EITI Report

Participate in Template for oil and gas companies

Jakarta, July 8, 2015

-

Show background and current position of EITI Indonesia

-

Raise participation of oil and gas companies to EITI implementation

Focus Group Discussion Jakarta, August 25, 2015

-

Show EITI as a tool of transparency for governance

of extractive industries

-

Get information of some factors that hamper

transparency in Indonesia

Dissemination of EITI

-

Discuss local autonomy law No.23/2014 that make big impact for extractive industries in the local level

ix

Journalist Workshop Bogor, September 6-9, 2015

-

Raise jour alists’ capacit a out EITI a d riti g

skill about extractive industries issues

-

Make engagement with mass media (journalists)

-

Broaden EITI information through mass media

Site visit to gold mine (for journalists)

Focus Group Discussion Banjarmasin, September 15, 2015

-

Show role of extractive industries for national

economics

-

Get recommendation for Scoping Study of 2014

EITI Indonesia Report

Meeting with companies that have not submit report

Jakarta, October 2, 2015

-

Raise participation of oil and gas companies to EITI implementation

-

Discuss local autonomy law No.23/2014 that make big impact for extractive industries in the local level

-

Show role of local government for the EITI implementation

Radio Talkshow Surabaya, October 8, 2015

-

Broaden EITI information to wider audience,

especially people around mining

-

Show role of extractive industries for people

around mining

Radio Talkshow Jakarta

October 16, 2015

-

Broaden EITI information to wider audience,

especially people around mining

-

Show role of extractive industries for national

economics

TV Talkshow (TVRI) Jakarta, November 4, 2015

-

Broaden EITI information to wider audience

-

Show role of extractive industries for national

x

Radio Talkshow Jakarta, November 10, 2015

-

Broaden EITI information to wider audience,

especially people around mining

-

Show transparency related with reformation in oil

and gas sector

-

Show role of EITI to governance of extractive

industries in Indonesia

Press release Jakarta,

November 23, 2015

-

Broaden EITI information to general public

TV Talkshow (Metro TV) Jakarta, November 27, 2015

-

Broaden EITI information to wider audience

-

Show transparency related with reformation in oil

and gas sector

Focus Group Discussion Jakarta, October 26, 2015

-

Get recommendation for Scoping Study of 2014

EITI Indonesia Report

Radio Spot (20 times) September-October 2015

-

Broaden EITI information to wider audience

Dissemination of EITI

-

Discuss EITI implementation for the governance of

extractive industries

-

Show role of companies for people around mining

(CSR)

Throughout 2015 EITI website and social media

Create stakeholders and public awareness trough Internet. Website contains data and information about EITI Indonesia. Social media especially twitter use to spread the information of extractive industries.

Throughout 2015 EITI

merchandise and

promotional tools

xi

Chair of EITI visit Jakarta, 4-5 February 2015

-

Strengthen EITI Implementation in Indonesia

-

Coordinate with top level person of the EITI stakeholders in Indonesia

MSG & NC workshop OR Communications and

-

Strengthen EITI Implementation in Indonesia

-

Coordinate with EITI stakeholders Study of EITI eReporting

System (companies report the template by online)

Executive Course on Oil, Gas and Mining to improve governance of extractive industry

-

Create network and cooperation between EITI Secretariat around the world and other international stakeholders.

Strategic Retreat Jakarta, November 24-25, 2015

xii

ACTIVITIES

OUTSIDE

THE WORKPLAN

PLACE/DATE

OBJECTIVES/TARGETS

CIVIL SOCIETY ORGANIZATION (PUBLISH WHAT YOU PAY and Its members of CSOs Coalitions )

Capacity Building: information especially in extractive industries

-

Increase the transparency of extractive industries to reduce poverty for people around mining Dialogue: Open Data as

an instrument in the Extractive Sector Governance Reform

Jakarta, 21 February 2015

-

Encourage role of CSO in the transparency process

-

Increase people understanding of the management of natural resources and availability of data

Training Tax Analysis in the Extractive Sector

Bogor, 9-10 April 2015

-

Encourage CSO role in advocacy of taxes

-

Increase knowledge of tax especially in extractive sector

Capacity Building:

Strengthening the Role of Journalists for Oil and Gas Law Revision

Bogor, 15-17 June 2015

-

Increase public participation for extractive

industries through mass media

-

Increase capability of journalists in reporting

extractive industries issues governance of extractive industries

-

Make recommendations for good governance in extractive industries

Capacity Building: Participatory budgeting for People Around Mine

Sanggau, Kalimantan Barat , 1-2 September 2015

-

Encourage public participation for governance in extractive industries

-

Increase people understanding to access information especially in extractive industries Forum: Comparative

Institutional Aspects of rich oil and gas Countries

Jakarta, 22 October 2015

-

Increase knowledge of oil and gas governance in some countries

xiii

ACTIVITIES OUTSIDE

THE WORKPLAN

PLACE/DATE

OBJECTIVES/TARGETS

CIVIL SOCIETY ORGANIZATION (PUBLISH WHAT YOU PAY and Its members of CSOs Coalitions )

Discussion with

-

Discussion with several fractions in parliament including Gerindra, PKB, NasDem, and Hanura

Lau chi g Ope Mi i g related to extractive industries in Indonesia.

-

Its user friendly function can help public to know and get any information of operating company location, company profiles, the revenue, and social and economic issues. beneficial ownership ahead in Indonesia

-

To see the urgency and opportunities for Indonesia in implanting beneficial ownership