Indonesia was formally recognized as an Extractive Industries Transparency Initiative (EITI) Compliant country at the International Board meeting of the EITI, held in Nay Pyi Taw, Myanmar in October 2014. Indonesia is the first country that is member of the Association of Southeast Asian Nations (ASEAN) to achieve compliance with EITI after joining the initiative in 2010. Other countries from the region, such as the Philippines and Myanmar, are also pursuing the implementation of EITI standards in their countries to deepen transparency in the extractives and improve governance in this sector so that revenues from oil, gas and mining can contribute more to reducing poverty in their countries.
“This achievement marks an historic moment for our country, given the importance of extractive industries to our economy and our effort to ensure that the revenues generated are directed to benefit the people,” said Dr. Montty Girianna, Head of the Indonesian EITI Multi Stakeholder Group (MSG) and Deputy Coordinating Minister of the Ministry of Economic Affairs.
Bringing transparency to the extractive industries in Indonesia is a top priority for the country given that the sector represented 16 percent of GDP (7 percent from mining and 8.5 percent from oil and gas) and more than 40 percent of exports (22 percent from mining and 20 percent from oil and gas) in 2011. Indonesia is also the world’s top exporter of tin, bauxite, nickel and thermal coal. Moreover, oil, gas, minerals and coal revenues account for about one-third of Indonesia’s national budget.