APPROVAL AND PUBLICATION OF THE EITI REPORT

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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 contractlicense, 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

On November 3, 2015, The Implementation Team approved 2012-2013 EITI Indonesia report. After some refinements by the technical team, the report was submitted to the EITI International Secretariat. The report contains data from 164 oil and gas companies operator and non-operator and 87 mining companies about revenues that needed to be reconciled and revenues outside reconciliation process. Information of revenues that needed to be reconciled are corporate income tax and dividend oil and gas sector, government lifting and DMO received in kind oil and gas sector, Signature Bonus and Production Bonus oil and gas sector, Royalty, PHT, Corporate income tax and dividend paid in cash to state’s treasur i i g sector, SOE transportation services received by SOE only for mining sector. State revenue that are outside reconciliation scope are Signature Bonus for the signing of new contracts reported by DG Mineral and Coal, Land and Building Tax reported by DG Budget, Value Added Tax 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 There are several findings from the 2012-2013 EITI Report that need to be followed up by The Implementation Team. Some of the findings had been communicated during Implementation Team meeting. The team will follow up some findings to make smoother process for the fourth EITI Report. The head of the Implementation Team will formally request to get free access of information provided in Inameta because it is now still a paid application. The head of the team will also create formal request to the Minister of Finance to provide written approval for the DG Tax to disclose Corporate Income Tax ta pa ers’ data ecause the disclosure of ta pa ers’ identities now still needs Letter of Authorization LoA from the companies. The Implementation Team also has discussed to increase content quality of the fourth Report. Some material that had not be included in the third report, such as beneficial ownership will be included in the next 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 EITI Indonesia and the World Bank are on progress in developing the Indonesia Extractive Industries Data Portal the Portal as part of its efforts to facilitate public communication and outreach of EITI Reports, a d ore roadl , to ser e as the o e-stop-shop for ti el a d rele a t data, information and analysis about the extractives sector in Indonesia. The information and analysis to be presented on the portal will draw from the EITI Reports and other relevant sources, such as the contextual information and revenues from the sector, as well as related materials, e.g. policy briefs, info graphics and data visualization. The portal is expected to be launched in November 2016 5

II. ASSESSMENT OF PERFORMANCE AGAINST TARGETS AND ACTIVITIES