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Bahan ini dipresentasikan Dalam Acara PWYP-
Asia-Pacific Regional Forum
Di Manila, Filipina – Maret, 2014
Oleh IESR
ASEAN FRAMEWORK ON
EXTRACTIVE INDUSTRIES
Institute for Essential Services Reform
Manila, 27 March 2014
What’s going on in Southeast Asia?
✤ Most of the ASEAN member countries are depending on their
natural resources as the main strategy of their development
✤ The impacts of the extractive industries to the economy,
environment and social are quite high and could be cross-
border, and potential to create a regional problem
✤ Imminent threat for “resource curse”and “dutch diseases” or
“middle income trap” for resource-dependent country (both
investment and revenue)
✤ ASEAN to become an “economic community”: single market &
production base, highly competitive economic region, region of
equitable economic development, region fully integrated into
global economy.
ASEAN Framework on Extractive
Industries Governance
✤ A framework that consist of guiding principles and indicators:
✤ As platform for the ASEAN member country to carry out continuous
improvement of governance for extractive industries;
✤ As tool for the harmonisation of minerals (metallic and non-metallic,
including hydrocarbon resources) policies and regulation of the
ASEAN member countries to conform with responsible mining and
best mining practices, and how extractive industries revenues are
governed to meet the country and ASEAN’s development goals.
✤ As tool for civil society to demand the government and companies
be more stringent with extractive investment, and ensuring the
transparency and accountability of the revenue management
coming from the extraction.
Guiding Principles:
1. Protect the environment sustainability
2. Respect to Human rights
3. Bring Economic and Social Justice
4. Transparent and Accountable
Protect the Environment sustainability
 Governments of ASEAN Member states enforce that all companies and
investors comply with national regulations and apply the best standards of
mining in protecting the environment
 Decide “No-Go-Zone” for mining policy that regulates mining not to occur
in:
• IUCN category I-IV protected areas (strict nature reserve,
wilderness area, National park, Natural monuments,
Habitat/Species Management Area)
• Ramsar sites that categorized as IUCN category I-IV
• High Conservation Value Area (HCVA)
• World Heritage properties
• the ancestral domain of Indigenous People or area that consider
sacred by Indigenous People
Respect to Human Rights
• Uphold UN’s Guiding Principles on Business and
Human Rights, UN’s Declaration on the Right of
Indigenous People, International Labour Organisation
(ILO) Convention 169 on Core Labor Standards.
• Ratify and adopt ILO Convention No. 176 concerning
Health and Safety in the Mineral, and integrated into
the regulatory framework for extractive industries.
• Require governments and companies to apply Free
Prior Inform Consent (FPIC) as early stage as possible.
Bring Economic and Social Justice
• The government of ASEAN member states design
the developments of country’s extractive
resources should be designed to secure greatest
social and economic benefits for its people, and
to support the realization of ASEAN Economic
Community that aims to transform the ASEAN
into a single market and production base, a highly
competitive economic region, a region of
equitable economic development, and a region
fully integrated into the global economy.
….Economic and Social Justice
• Develop Fiscal Rules that tailored to the country
development propitiates and fiscal allocation strategy, in
order to manage the volatility of extractive industry
revenues.
• Providing open and transparent data on all government
income tax, royalty, levy, and other revenues flows from
extractive companies, and how benefit is being distributed
at the national, regional/provincial and/or local level.
• Developing oil and/or mining fund, where appropriate.
• Working toward economic diversification to reduce
dependency on revenue from extractive sector, and
considering the right of future generation.
Governance
• Adopt and implementation of Extractive Industries Transparency Initiative
(EITI), where appropriate.
• Improve legal and regulatory framework applying for mining; flexibility
mechanism build-in investment contract to deal with fluctuation of
mineral prices in international market, taxation and royalties regimes,
provision for royalty calculation and collection, and local economic
content provision, such as shared of equity, target of local employment
within or around mining project.
• Create and enforce a conducive legal framework to meaningful
participation of civil society, local population and disadvantage group in
decision to mining activities.
• ASEAN develop approach, and develop policy, regulation and cohesive
program to assist artisanal and small scale mining (ASM) to improve their
operation to meet sustainability standard.
• Working toward a development of regional certification-scheme for
mineral commodities traded intra and outer-ASEAN region.
What the ASEAN Charter says?
✤ To strengthen democracy,
enhance good governance, and
the rule of law, and to promote
and protect human rights and
fundamental freedoms,…
✤ To promote sustainable
development so as to ensure
the protection of region’s
environment, the sustainability
of its natural resources, the
preservation of its culture and
the high quality of life of its
people.
Policy Direction of ASEAN Mineral
Cooperation
✤ Recalling Policy Direction agreed at the 2nd ASEAN
Ministerial Meeting on Minerals in Manila, 16 October 2008:
✤ “Accelerate cooperation to work towards the facilitation and
enhancement of trade and investments in minerals through
harmonisation of mineral policies, incentives and taxation,
standardisation of mineral resource information, and systematised
flow and exchange of resource and trade information.”
✤ “Encourage cooperation to develop policy guidelines and standards
for ASEAN Best Mining Practices to promote environmentally and
socially sustainable mineral development in the ASEAN region;”
Hanoi Declaration on Sustainable
ASEAN Connectivity
✤ Recalling Hanoi Declaration on Sustainable ASEAN Connectivity
in Minerals in Vietnam, 9 December 2011.
✤ Encourage cooperation to develop policy guidelines and standards for ASEAN
Best Mining Practices to promote environmentally and socially sustainable mineral
development in the ASEAN region.
✤ Recalling Joint Statement of the 4th ASEAN Ministerial Meeting
on Minerals in Bali, Indonesia, 28 November 2013
✤ Emphasising the importance of sustainable development and environmentally
friendly development of mineral resources, the Ministers also agreed on the need
for concerted efforts among ASEAN Member States to address the negative
environmental and socio-economic impacts and perception of mining
What is it for ASEAN’s economic
competitiveness?
✤ Framework can be used as tool for harmonisation, and induced best-
practices in the region.
✤ Framework can be used as standard-setting instrument for the licensing
process and operations for extractive industries in the ASEAN region.
✤ Ensure a similar level of competitiveness environment across ASEAN
member countries, avoid “competing to race to the bottom”
✤ A tool to monitor progress of the adoption and implementation of
“ASEAN Best Mining Practices” that set by ASEAN Cooperation in
Mineral.
Who are the target
audiences/beneficiaries?
✤ Governments and
Government agencies
✤ The mining industry
(companies, investors)
✤ Financial institutions
✤ Civil society

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ASEAN Framework On Extractive Industries

  • 1. Bahan ini dipresentasikan Dalam Acara PWYP- Asia-Pacific Regional Forum Di Manila, Filipina – Maret, 2014 Oleh IESR
  • 2. ASEAN FRAMEWORK ON EXTRACTIVE INDUSTRIES Institute for Essential Services Reform Manila, 27 March 2014
  • 3. What’s going on in Southeast Asia? ✤ Most of the ASEAN member countries are depending on their natural resources as the main strategy of their development ✤ The impacts of the extractive industries to the economy, environment and social are quite high and could be cross- border, and potential to create a regional problem ✤ Imminent threat for “resource curse”and “dutch diseases” or “middle income trap” for resource-dependent country (both investment and revenue) ✤ ASEAN to become an “economic community”: single market & production base, highly competitive economic region, region of equitable economic development, region fully integrated into global economy.
  • 4. ASEAN Framework on Extractive Industries Governance ✤ A framework that consist of guiding principles and indicators: ✤ As platform for the ASEAN member country to carry out continuous improvement of governance for extractive industries; ✤ As tool for the harmonisation of minerals (metallic and non-metallic, including hydrocarbon resources) policies and regulation of the ASEAN member countries to conform with responsible mining and best mining practices, and how extractive industries revenues are governed to meet the country and ASEAN’s development goals. ✤ As tool for civil society to demand the government and companies be more stringent with extractive investment, and ensuring the transparency and accountability of the revenue management coming from the extraction.
  • 5. Guiding Principles: 1. Protect the environment sustainability 2. Respect to Human rights 3. Bring Economic and Social Justice 4. Transparent and Accountable
  • 6. Protect the Environment sustainability  Governments of ASEAN Member states enforce that all companies and investors comply with national regulations and apply the best standards of mining in protecting the environment  Decide “No-Go-Zone” for mining policy that regulates mining not to occur in: • IUCN category I-IV protected areas (strict nature reserve, wilderness area, National park, Natural monuments, Habitat/Species Management Area) • Ramsar sites that categorized as IUCN category I-IV • High Conservation Value Area (HCVA) • World Heritage properties • the ancestral domain of Indigenous People or area that consider sacred by Indigenous People
  • 7. Respect to Human Rights • Uphold UN’s Guiding Principles on Business and Human Rights, UN’s Declaration on the Right of Indigenous People, International Labour Organisation (ILO) Convention 169 on Core Labor Standards. • Ratify and adopt ILO Convention No. 176 concerning Health and Safety in the Mineral, and integrated into the regulatory framework for extractive industries. • Require governments and companies to apply Free Prior Inform Consent (FPIC) as early stage as possible.
  • 8. Bring Economic and Social Justice • The government of ASEAN member states design the developments of country’s extractive resources should be designed to secure greatest social and economic benefits for its people, and to support the realization of ASEAN Economic Community that aims to transform the ASEAN into a single market and production base, a highly competitive economic region, a region of equitable economic development, and a region fully integrated into the global economy.
  • 9. ….Economic and Social Justice • Develop Fiscal Rules that tailored to the country development propitiates and fiscal allocation strategy, in order to manage the volatility of extractive industry revenues. • Providing open and transparent data on all government income tax, royalty, levy, and other revenues flows from extractive companies, and how benefit is being distributed at the national, regional/provincial and/or local level. • Developing oil and/or mining fund, where appropriate. • Working toward economic diversification to reduce dependency on revenue from extractive sector, and considering the right of future generation.
  • 10. Governance • Adopt and implementation of Extractive Industries Transparency Initiative (EITI), where appropriate. • Improve legal and regulatory framework applying for mining; flexibility mechanism build-in investment contract to deal with fluctuation of mineral prices in international market, taxation and royalties regimes, provision for royalty calculation and collection, and local economic content provision, such as shared of equity, target of local employment within or around mining project. • Create and enforce a conducive legal framework to meaningful participation of civil society, local population and disadvantage group in decision to mining activities. • ASEAN develop approach, and develop policy, regulation and cohesive program to assist artisanal and small scale mining (ASM) to improve their operation to meet sustainability standard. • Working toward a development of regional certification-scheme for mineral commodities traded intra and outer-ASEAN region.
  • 11. What the ASEAN Charter says? ✤ To strengthen democracy, enhance good governance, and the rule of law, and to promote and protect human rights and fundamental freedoms,… ✤ To promote sustainable development so as to ensure the protection of region’s environment, the sustainability of its natural resources, the preservation of its culture and the high quality of life of its people.
  • 12. Policy Direction of ASEAN Mineral Cooperation ✤ Recalling Policy Direction agreed at the 2nd ASEAN Ministerial Meeting on Minerals in Manila, 16 October 2008: ✤ “Accelerate cooperation to work towards the facilitation and enhancement of trade and investments in minerals through harmonisation of mineral policies, incentives and taxation, standardisation of mineral resource information, and systematised flow and exchange of resource and trade information.” ✤ “Encourage cooperation to develop policy guidelines and standards for ASEAN Best Mining Practices to promote environmentally and socially sustainable mineral development in the ASEAN region;”
  • 13. Hanoi Declaration on Sustainable ASEAN Connectivity ✤ Recalling Hanoi Declaration on Sustainable ASEAN Connectivity in Minerals in Vietnam, 9 December 2011. ✤ Encourage cooperation to develop policy guidelines and standards for ASEAN Best Mining Practices to promote environmentally and socially sustainable mineral development in the ASEAN region. ✤ Recalling Joint Statement of the 4th ASEAN Ministerial Meeting on Minerals in Bali, Indonesia, 28 November 2013 ✤ Emphasising the importance of sustainable development and environmentally friendly development of mineral resources, the Ministers also agreed on the need for concerted efforts among ASEAN Member States to address the negative environmental and socio-economic impacts and perception of mining
  • 14. What is it for ASEAN’s economic competitiveness? ✤ Framework can be used as tool for harmonisation, and induced best- practices in the region. ✤ Framework can be used as standard-setting instrument for the licensing process and operations for extractive industries in the ASEAN region. ✤ Ensure a similar level of competitiveness environment across ASEAN member countries, avoid “competing to race to the bottom” ✤ A tool to monitor progress of the adoption and implementation of “ASEAN Best Mining Practices” that set by ASEAN Cooperation in Mineral.
  • 15. Who are the target audiences/beneficiaries? ✤ Governments and Government agencies ✤ The mining industry (companies, investors) ✤ Financial institutions ✤ Civil society