Experiences of Indonesian CSOs

ADVOCATING FOR BETTER GOVERNANCE ON EXTRACTIVE

INDUSTRIES

Maryati Abdullah | National Coordinator of PWYP

Indonesia

Kuala Lumpur, April 24 th, 2014 |IDEAS Oil & Gas Forum |

IDEAS–RWI-USAID

Publish What You Pay Indonesia

• Coalition of civil society for transparency and accountability of extractive resource revenues and governance of oil, gas, minerals and other natural resource.

• Established in 2007 (with own Indonesian registered legal entity in 2012, Yayasan Transparasi Sumber Daya Ekstraktif). PWYP Indonesia consists of 38 civil society organizations and non- government organizations from across large islands of Indonesia, particularly those of rich extractive resource regions.

• Its purpose for the advancement of extractive resource governance accountable and transparent in Indonesia and at the global level; aggregation of public interest from the point of view of civil society organizations; as well as strengthening civil society capacity to play an strong role and actively engagement in the extractive resource governance reform for sustainable development.

• Scope of activities : Research, campaign, assistance, capacity building, and advocacy works on policy and regulation to promote transparent and accountable extractive resource management, including piloting in some extractive resource-rich regions.

• PWYP Indonesia is affiliated network of Publish What You Pay-a global network of civil society organizations campaigns for transparency in the extractive industries.

Vision • For the realization of good governance on extractive resources in Indonesia

that is transparent, accountable, and in favor of the national interest that it becomes capital for welfare and social justice.

Missions

(1) Develop national and local campaigns for accountability and transparency in governance of extractive resources of oil and gas, mining, and other extractive sectors;

(2) Doing strengthening civil society groups at the local and national level to promote accountability and transparency in governance of extractive resources of oil and gas, mining and other extractive resources.

(3) Escorting the formation and implementation of regulations related to the transparency and accountability of resource extractives.

Chain for Change of Publish What You Pay

Concern Issues – PWYP Chain for Change

Publish Why You Pay and How You

Extract

Licensing & Contract

Transparency

Social & Environment

Standard

Communities & Local Right (FPIC, Local

Content, etc)

Public Participation & Governance Institution on

Managing of EI

Publish What You Pay

EITI & Social Payment Advocacy

Contextualization of EITI Report

to the Public Audience

Anti-Corruption & Illicit Financial

Flow

Stat Revenue Collection & Sub-National Sharing

System

Publish How You Earn &

How You Spent

Fiscal Policy & Revenue

Management Social Expenditure

Down-streaming & Economic

Development

Sovereign Wealth Funds/Nat.

Resources Funds Issue

Publish What You Preach &

What You Learn

Transparent & Accountable

Governance of Coalitions

Research & Knowledge

Management

Advocacy & Outreach

Capacity Building & Piloting

Oil & Gas Context in Indonesia

Regulation Framework

Flow of Revenue of Oil & Gas (PSC Models)

Main Principle :

- First Trance Petroleum (FTP)

- Split in the Custody Transfer Point

- Recoverable Cost

- Assume & Discharge

Comparison of PSC Model in Asia Pacific Countries

Comparison of PSC Model in Asia Pacific Countries

Revenue Sharing to the Sub-National (Law No.33/2004)

No Specific Allocations Yet on Expenditure of Revenue from Extractive Industries, except in some local areas such us in Special Autonomy of Aceh, and in the Forestry Sectors on Utilizations of Reforestation Funds

The Expenditure

There are a problematic policy on Fuel Subsidies Where the Number of Budget were used for Fuel subsidies was bigger than the revenue from oil & gas, and its caused the deficit on balance of payment (BOP) > Its vulnerable for increasing of debt and decreasing subsidies for the poor

There are no Inter-generations Policy on on Extractive Industries Revenue Allocation in specific models such us Sovereign Wealth Funds, Endowment Funds, Natural Resources Funds, and etc ; Unless general policy on saving and investment of revenue.

Terima kasih....

THANK YOU