Bahan ini dipresentasikan Dalam Acara PWYP-Asia-Pacific Regional Forum

Di Manila, Filipina – Maret, 2014Oleh IESR

ASEAN FRAMEWORK ONEXTRACTIVE INDUSTRIESInstitute for Essential Services ReformManila, 27 March 2014

What’s going on in Southeast Asia?

✤ Most of the ASEAN member countries are depending on their natural resources as the main strategy of their development

✤ The impacts of the extractive industries to the economy, environment and social are quite high and could be cross-border, and potential to create a regional problem

✤ Imminent threat for “resource curse”and “dutch diseases” or “middle income trap” for resource-dependent country (both investment and revenue)

✤ ASEAN to become an “economic community”: single market & production base, highly competitive economic region, region of equitable economic development, region fully integrated into global economy.

ASEAN Framework on Extractive Industries Governance

✤ A framework that consist of guiding principles and indicators:

✤ As platform for the ASEAN member country to carry out continuous improvement of governance for extractive industries;

✤ As tool for the harmonisation of minerals (metallic and non-metallic, including hydrocarbon resources) policies and regulation of the ASEAN member countries to conform with responsible mining and best mining practices, and how extractive industries revenues are governed to meet the country and ASEAN’s development goals.

✤ As tool for civil society to demand the government and companies be more stringent with extractive investment, and ensuring the transparency and accountability of the revenue management coming from the extraction.

Guiding Principles:

1. Protect the environment sustainability2. Respect to Human rights 3. Bring Economic and Social Justice4. Transparent and Accountable

Protect the Environment sustainability

Governments of ASEAN Member states enforce that all companies and investors comply with national regulations and apply the best standards of mining in protecting the environment

Decide “No-Go-Zone” for mining policy that regulates mining not to occur in:

• IUCN category I-IV protected areas (strict nature reserve, wilderness area, National park, Natural monuments, Habitat/Species Management Area)

• Ramsar sites that categorized as IUCN category I-IV• High Conservation Value Area (HCVA) • World Heritage properties• the ancestral domain of Indigenous People or area that consider

sacred by Indigenous People

Respect to Human Rights

• Uphold UN’s Guiding Principles on Business and Human Rights, UN’s Declaration on the Right of Indigenous People, International Labour Organisation (ILO) Convention 169 on Core Labor Standards.

• Ratify and adopt ILO Convention No. 176 concerning Health and Safety in the Mineral, and integrated into the regulatory framework for extractive industries.

• Require governments and companies to apply Free Prior Inform Consent (FPIC) as early stage as possible.

Bring Economic and Social Justice

• The government of ASEAN member states design the developments of country’s extractive resources should be designed to secure greatest social and economic benefits for its people, and to support the realization of ASEAN Economic Community that aims to transform the ASEAN into a single market and production base, a highly competitive economic region, a region of equitable economic development, and a region fully integrated into the global economy.

….Economic and Social Justice

• Develop Fiscal Rules that tailored to the country development propitiates and fiscal allocation strategy, in order to manage the volatility of extractive industry revenues.

• Providing open and transparent data on all government income tax, royalty, levy, and other revenues flows from extractive companies, and how benefit is being distributed at the national, regional/provincial and/or local level.

• Developing oil and/or mining fund, where appropriate. • Working toward economic diversification to reduce

dependency on revenue from extractive sector, and considering the right of future generation.

Governance• Adopt and implementation of Extractive Industries Transparency Initiative

(EITI), where appropriate.• Improve legal and regulatory framework applying for mining; flexibility

mechanism build-in investment contract to deal with fluctuation of mineral prices in international market, taxation and royalties regimes, provision for royalty calculation and collection, and local economic content provision, such as shared of equity, target of local employment within or around mining project.

• Create and enforce a conducive legal framework to meaningful participation of civil society, local population and disadvantage group in decision to mining activities.

• ASEAN develop approach, and develop policy, regulation and cohesive program to assist artisanal and small scale mining (ASM) to improve their operation to meet sustainability standard.

• Working toward a development of regional certification-scheme for mineral commodities traded intra and outer-ASEAN region.

What the ASEAN Charter says?

✤ To strengthen democracy, enhance good governance, and the rule of law, and to promote and protect human rights and fundamental freedoms,…

✤ To promote sustainable development so as to ensure the protection of region’s environment, the sustainability of its natural resources, the preservation of its culture and the high quality of life of its people.

Policy Direction of ASEAN Mineral Cooperation

✤ Recalling Policy Direction agreed at the 2nd ASEAN Ministerial Meeting on Minerals in Manila, 16 October 2008:

✤ “Accelerate cooperation to work towards the facilitation and enhancement of trade and investments in minerals through harmonisation of mineral policies, incentives and taxation, standardisation of mineral resource information, and systematised flow and exchange of resource and trade information.”

✤ “Encourage cooperation to develop policy guidelines and standards for ASEAN Best Mining Practices to promote environmentally and socially sustainable mineral development in the ASEAN region;”

Hanoi Declaration on Sustainable ASEAN Connectivity

✤ Recalling Hanoi Declaration on Sustainable ASEAN Connectivity in Minerals in Vietnam, 9 December 2011.

✤ Encourage cooperation to develop policy guidelines and standards for ASEAN Best Mining Practices to promote environmentally and socially sustainable mineral development in the ASEAN region.

✤ Recalling Joint Statement of the 4th ASEAN Ministerial Meeting on Minerals in Bali, Indonesia, 28 November 2013

✤ Emphasising the importance of sustainable development and environmentally friendly development of mineral resources, the Ministers also agreed on the need for concerted efforts among ASEAN Member States to address the negative environmental and socio-economic impacts and perception of mining

What is it for ASEAN’s economic competitiveness?

✤ Framework can be used as tool for harmonisation, and induced best-practices in the region.

✤ Framework can be used as standard-setting instrument for the licensing process and operations for extractive industries in the ASEAN region.

✤ Ensure a similar level of competitiveness environment across ASEAN member countries, avoid “competing to race to the bottom”

✤ A tool to monitor progress of the adoption and implementation of “ASEAN Best Mining Practices” that set by ASEAN Cooperation in Mineral.

Who are the target audiences/beneficiaries?

✤ Governments and Government agencies

✤ The mining industry (companies, investors)

✤ Financial institutions

✤ Civil society