RWI grantee Indonesian Corruption Watch (ICW) has made impressive headway in its monitoring and advocacy for revenue transparency in Indonesia's oil, gas and mining sectors. The extractive industries in Indonesia accounts for over 20% of the government's revenue, but remain largely opaque. When RWI began working with groups in Indonesia two years ago, it was clear that significant work was needed to enhance public oversight and create change within government systems. ICW's progress exceeded all expectations.
Just a year after receiving their first grant RWI, ICW has produced numerous, credible reports that have resulted in myriad institutional changes throughout the government. Among ICW's projects are: the compilation of an oil and gas and minerals and mining data base for both future analysis and public education; advocacy efforts through press outreach; meetings with Indonesia's Corruption Eradication Commission (KPK), the Financial Auditor’s Body (BPK) the parliament (DPR) and the DPD; interviews with extractive industry experts; and the uncovering of discrepancies in the state's cost recovery, reported revenue, royalties and subsidies from extractive activity.
The effects of ICW's work are already becoming visible. Thanks in part to their work identifying discrepancies in government revenues, over-reported cost recovery, backlogs of unpaid coal royalties, and variance in policies for mineral royalties, the Supreme Audit Agency (BPK) has ordered a special audit of all oil and gas contracts, the Commission for the Eradication of Corruption (KPK) has created a special task force to monitor the production and sale of oil and gas, the parliament has created a special committee to monitor the oil and gas industry, and the government is attempting to renegotiate some of its contracts.
In addition to developing a reputation for hard-hitting, credible reports about the extractive industry, ICW plans to work towards creating mechanisms and reports that make it easier for the general public to monitor the industry themselves. Through online systems they hope to increase the pressure from the public on these issues and expedite reforms for the management of the extractive sectors. ICW is also an active member in Indonesia's Publish What You Pay Coalition, which has been working with RWI support for the past year and a half to increase public oversight and improve governance in Indonesia's extractive sector.
Also in Indonesia, the EITI is making progress. On March 19, the Indonesian Coordinating Ministry of Economic Affairs held a multi-stakeholder seminar involving government officials from the Finance, Energy and Minerals ministries, civil society and industry in order to introduce and discuss EITI as a starting point for Indonesia's transparency reforms.
Jonas Moberg, Head of Secretariat of the EITI, and two representatives from the World Bank met with the Coordinating Ministry of Economic Affairs and civil society representatives to discuss preparations for EITI implementation in Indonesia, including a draft Presidential Regulation providing the legal basis for future implementation, that is currently under interministerial discussions. It is hoped that the draft will be signed into law before June.
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