Indonesia has announced its commitment to implement EITI (Extractive Industries Transparency Initiative) through the release of Presidential Regulation 26/2010. EITI is a global standard where Companies and Government report their payments and receipts of extractive industry revenues, to be reconciled through multi-stakeholder working groups. Indonesia has, or will shortly, produce reconciliation reports covering the 2009, 2010, and 2011 fiscal (and calendar) years.
Papua is one of Indonesia’s richest natural resource regions, with mining, oil and gas operations as well as forestry and fisheries. Papua and West Papua provinces are both special autonomy regions which receive extra-high portion of oil and gas revenue sharing known in Indonesian as Dana Bagi Hasil (DBH), compared to other provinces in Indonesia. These revenue sharing funds are supposed to flow to both provincial and district governments.
To make the EITI Indonesia report more relevant to local audience in Papua, AJI (Aliansi Jurnalis Independen) conduct a project that aims to create communications products in order to familiarize local audiences in Papua with EITI Indonesia report findings and other information about the extractive industries relevant for Papuans. AJI Papua collaborates with Publish What You Pay Indonesia, with support from Multi Donor Trust Fund (MDTF) administered by the World Bank.
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EITI for Local Audiences: Communications Efforts to Contextualize EITI Indonesia's Report in Papua
1. Synopsis Report
EITI for Local Audiences: Communications Efforts to Contextualize EITI
Indonesia’s Report in Papua
Glossary
AJI : Aliansi Jurnalis Independen or Alliance of Independent Journalist
BP : British Petroleum
CoW : Contract of Work
CSO : Civil Society Organization
DBH : Dana Bagi Hasil (revenue sharing by central government to sub-national)
DPR : Dewan Perwakilan Rakyat (House of Representatives)
EITI : Extractive Industries Transparency Initiative
ESDM : Energi dan Sumber Daya Mineral (Ministry of Energy and Mineral Resources)
PSC : Production Sharing Contract
PWYP : Publish What You Pay
PT : Perseroan Terbatas
LNG : Liquid Natural Gas
MDTF : Multi Donor Trust Fund
SMS : Short Message System
TVRI : Televisi Republik Indonesia
Background
Indonesia has announced its commitment to implement EITI (Extractive Industries Transparency
Initiative) through the release of Presidential Regulation 26/2010. EITI is a global standard where
Companies and Government report their payments and receipts of extractive industry revenues, to
be reconciled through multi-stakeholder working groups. Indonesia has, or will shortly, produce
reconciliation reports covering the 2009, 2010, and 2011 fiscal (and calendar) years.
Civil Society has played an important role in the emergence of EITI Indonesia. Since the beginning,
civil society is a strong promoter of EITI, endorsing the initiative, formulating regulation and
policy, making sure the scope of the reporting process is as complete as possible and monitoring
EITI implementation. Whenever EITI Indonesia reports are launched, civil society uses the
momentum to contextualize EITI Indonesia for national and local audiences to make it more
meaningful for improved extractive industries governance.
Papua is one of Indonesia’s richest natural resource regions, with mining, oil and gas operations as
well as forestry and fisheries. Papua and West Papua provinces are both special autonomy regions
which receive extra-high portion of oil and gas revenue sharing known in Indonesian as Dana Bagi
Hasil (DBH), compared to other provinces in Indonesia. These revenue sharing funds are supposed
to flow to both provincial and district governments.
There are 248 tribes living in Papua and West Papua1
, spread across various locations including in
the vicinity of mines. There are five producing oil & gas PSCs in West Papua, with production
taking place in two districts, Sorong and Bintuni. In Bintuni is an LNG plant fed by operations from
the Tangguh PSCs, one of the biggest producers of gas in Indonesia, operated by BP Indonesia
1
Department of Culture, Papua Government, 2008
2. Project Report Creating Communications Products to Contextualize EITI Indonesia for Local Audience in Papua
since 2005. Indonesia’s biggest mining company also operates in Papua, PT. Freeport Indonesia (an
affiliate of McMoRan Copper & Gold), which has operated since 1967.
To make the EITI Indonesia report more relevant to local audience in Papua, AJI (Aliansi Jurnalis
Independen) conduct a project that aims to create communications products in order to familiarize
local audiences in Papua with EITI Indonesia report findings and other information about the
extractive industries relevant for Papuans. AJI Papua collaborates with Publish What You Pay
Indonesia, with support from Multi Donor Trust Fund (MDTF) administered by the World Bank.
Objectives
1. Putting the EITI Indonesia report in context for local audiences in Papua and raising public
awareness on the EITI Indonesia process
2. Enhancing participation of CSOs and media in the EITI Indonesia process
Activities & Outputs
1. Producing Newsletters
A series of newsletters was produced to elaborate the EITI Report and help make it relevant with
the Papuan context, by emphasizing information related to the extractive industries in Papua. The
content of the newsletter included, but was not limited to, the list of oil and gas companies with
Production Sharing Contracts and mineral Contracts of Work (CoW) operating in Papua, what was
stated about them in the EITI Indonesia report, information about revenue sharing transfer from
central government to the local government, and other relevant information such as social welfare
issues related to Papuans.
The Newsletter was circulated to communities, indigenous people, civil society networks,
journalists, students and youths, as well as to local governments and other stakeholders.
2. Interactive Dialogues on Local Television & Radio
Interactive dialogues on local television and radio helped to familiarize local audiences in Papua
with the EITI Indonesia report. The interactive dialogue
was also used to discuss how audiences could improve
extractive industries governance, particularly in the
context of Papua. Interactive dialogue through local
television and radio provided the public with the
opportunity to raise their aspirations and provide
feedback on EITI report and other issues related to
extractive industries governance. The Resource persons
invited to the interactive dialogue consisted of policy
makers, companies and local CSOs whose work relates
to the extractive industries, both in terms of policy and
implementation.
Interactive dialogues were held twice on TVRI’s “Lens
on Papua” show, broadcast from the provincial capital,
Jayapura. On screen, the first dialogue (July 10, 2013) were Mandenas Yan (regional parliament),
Moses M (Head of Mining Papua) and Joshua Reba (ICS Director Papua). AJI’s secretariat
corresponded with Daisy Primayanti (Director of Corporate Communication of PT Freeport
4. Project Report Creating Communications Products to Contextualize EITI Indonesia for Local Audience in Papua
indigenous Papuans.” News Cafe III was done with resource
persons from Publish What You Pay Indonesia, an
academician and a local environmental activist.
Discussions during the various News Cafe events mostly
focused on popular and indigenous rights with respect to
mining operations, the impact of extractive operations on
communities, as well as the importance of environmental
standards and impact analyses on extractive industries
operations. One other matter of concern was the need for
transparency in licensing processes, especially related to
artisanal mining (Pertambangan Rakyat) in Papua, where some
members of the community and indigenous people work as
miners in traditional mining operations.
4. SMS Gateway
Key facts and findings from EITI Indonesia's reports, important pointers and topics arising from the
interactive dialogues and press conferences were delivered to the wider community via an SMS
Gateway facility. Topics and pointers were sent to more than 500 mobile phone numbers. This
activity created mechanisms of accountability for the extractive industries and enhanced the
capacity of CSOs / NGOs to get involved and contribute to the EITI process.
This facility was implemented and controlled from AJI’s website (http://ajipapua.org/eiti). The
recipients of messages are shown in the picture, covering all districts in Papua. Text responses
came back in from the audience, and related to the data reported by EITI Indonesia, words of
thanks, the role of CSOs in endorsing the transparency, as well as the apparent contradiction
between the fantastically high number of revenue payments by companies to the state and the
number of poor people in Papua. The following is a typical comment: “Jumlah angka sangat
fantastis, sama juga dengan jumlah kemiskinan, hehe. Tapi terima kasih atas infonya ya,” which
can be translated as “The total (revenue) figures are fantastically large, almost equal to our poverty
level, ha ha. But thank you for the information.”
Outcomes
After the project, people in Papua are more aware of
EITI Indonesia and its importance in improving
extractive resources governance in Papua. The
communication strategy has managed to reach
audiences from various backgrounds such us
indigenous people, communities, CSOs, students and
local government. This effort has increased their awareness of extractive industries’ revenue issues,
particularly in the context of Papua.
News Cafe Discussion
Geographical spread of the SMS Gateway facility
5. Challenges & Lessons Learned
Some challenges and lesson learned from the project are:
1. The lack of capacity from the implementing partner on understanding the extractive industries
governance and especially on revenue flows from the oil, gas and mining sectors.
2. The low awareness and capacity of audience/stakeholder such us local government, CSOs and
communities on understanding the extractive industries flow revenue
3. The gap between urban and rural areas.
Recommendations
Some recommendations are:
1. The EITI Indonesia report needs to be more users friendly and easier to understand by
communities and the average public.
2. Capacity building is needed for journalists to understand the EITI Report and extractive
industries governance generally, especially journalists in Papua.