JAKARTA: Extractive Industries Transparency Initiatives Agency is investigating a tax and non-tax payment over 129 companies engaging in extractive sector of oil and gas, mineral, and coal.
Chairman of Formation Team of Extractive Industries Transparency Initiatives Agency (EITI) Indonesia Erry Riyana Hardjapamekas said the investigation against 129 companies is based on a 2009 report.
The agency is investigating mineral and coal miners that have paid royalty more than US$1 million in 2009 as well as oil and gas contractors that have paid non-tax state revenue more than US$10 million in the same year.
Therefore, the team led by Erry has distributed a report template to 129 companies to be filled up by them.
“The government also reports several revenues which they collect. If the companies report is different with the government’s report, thus the report will be reconciled by a public accountant office.”
EITI is a global initiative for a revenue transparency of oil and gas, mineral, and coal miners.
Erry revealed the system of EITI has been already implemented in 35 countries including Indonesia.
In October 2010, Indonesia has been accepted officially as the only one candidate of EITI among state members of Asean.
Executive Director of Institute for Essential Services Reform (IESR) Fabby Tumiwa reasoned that Indonesia should support the implementation of EITI in the region.
He added, the corruption is still systematic in the region, so the governance system of extractive industries becomes very essential in a context of Asean.
A member of Formation Team at EITI Chandra Kirana viewed the potential revenue leakage in the mining sector came mostly from companies having a mining business license issued by a local government after decentralization.
The number of mining licenses allegedly rise further along with the decentralization giving an authority to the local government to issue the license.(T01/NOM)