OVERVIEW OF THE MULTI-

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IV. OVERVIEW OF THE MULTI-

STAKEHOLDER GROUP’S RESPONSES TO THE RECOMMENDATIONS FROM RECONCILIATION AND VALIDATION GAPS OVERVIEW OF THE MSG THE IMPLEMENTATION TEAM PROGRESS Some Information is not publicly available - DG Oil and Gas: Create regulatory amendment to access information provided in Inameta because it is still a paid application. - SKK Migas and DG Mineral and Coal: Create formal request for full access to the contracts, a mechanism pursuant to Public Information Disclosure Act Law No. 142008. - All Agencies: Defi es e eficial o er so i for atio ca e accommodated in future reporting format . - CSO: create dialogue on discuss the reason for unpublicly available data, discuss the definition of secrecy term, and proposing to information co issio to co duct pu lic i terest test’ for the se siti e information. Application Minerba One Map Indonesia MOMI can be accessed as a guest. Information that can be accessed is limited Access public for PKP2B can not be accessed yet. It still process in the Constutional Court. Production Sharing Contract PSC can not be opened, SKK Migas only can provide data that are agreed to be opened in the contract. Beneficial Owner workshop has been held. It is expected to finish Beneficial Owner roadmap in the end of 2016. Tax Disclosure Tax Procedures Act prohibits the disclosure of taxpayers identities, unless companies attach Letter of Authorization LoA - DG Tax: Chair of the Implementation Team should submit request to the Minister of Finance to provide written approval for the DG Tax to disclose Corporate I co e Ta ta pa ers’ data. - CSO: The EITI Secretariat should collect the authorization letter from the report entities companies more early, and asking Ministry of Finance to write recommendation to DG Tax letter based on those authorizations letter. - It will be discussed further by the Implementation Team for the 2014 EITI Report 11 GAPS - OVERVIEW OF THE MSG THE IMPLEMENTATION TEAM - PROGRESS Submission from Reporting Companies Total reporting companies that submit report is 252 companies out of 282 targeted companies All Agencies: It needs rewards and punishment to the companies that are targeted to submit report CSO: Create publication for companies that have not submitted report. Ministry of MEMR raises the issue of uncompliant company in the media and sends the warning to the company. Publication for companies that did not submit templates in the mass media. Differences in identifying gas volume It makes Inconsistencies during reconciliation process SKK Migas: Create standard conversion rate for identifying gas volume. CSO : Using single standard of units for volume in the report In the new template, oil and gas companies will submit data about conversion rate of gas volume based on EITI Report need Accounting Errors in Mining Sector Because it two different accounting systems that are used: General Accounting System Sistem AkuntansiUmum S AU is used by the Ministry of Finance and Institution Accounting System SistemAkuntansi Instansi SAI is used by DG Mineral and Coal. DG Treasury: create integrated payment and reporting system to eliminate SAU- SAI differences CSO : Discuss the adjustment and create integrated system for reporting in the future DG Budget announce that there is an application called Simponi that is an online application. It will avoid different result between those two systems. DG Mineral and Coal create new directorat called Directorate of Mineral and Coal Revenue that ill reduce error of go er e ts’ revenue from mineral and coal sector DG Mineral and Coal actively conduct dissemination for companies about non tax payments 12 GAPS OVERVIEW OF THE MSG THE IMPLEMENTATION TEAM PROGRESS Discrepancies of reconciliation is more than 5 IMA: Agree because it is suitable with requirements from Financial Authority OJK DG Budget: Agree, but it is not necessary to be announced, because IA has target to achieve as small as possible discrepancies. BPKP: Percentage of every post has different judgments. For example: small percantage in oil and gas sector is actually big. Discrapencies in the reconciliation process of 2014 EITI Report is as small as possible. Scoping Study All Agencies: Increase the number of companies that will be reconciled in the 2014 EITI Report. Materiality threshold for 2014 EITI Report is 20 billion rupiahs. It will raise naumber of campanies that will be reconciled. 13

V. SPECIFIC STRENGHTS OR WEAKNESS IDENTIFIED IN THE EITI PROCESS