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Statement Pak Jonan (Ministry of ESDM) about Permit OG Company and EITI

The Minister of Energy and Mineral Resources (ESDM) Ignasius Jonan will refuse permission for the activities of oil and gas contractors (oil and gas) that do not include beneficial ownership names. This effort is made so that the oil and gas sector is more transparent and prevents corruption.

According to Jonan, oil and gas companies must include the name of the owner if they request permission for activities. “It is not easy to eradicate corruption, but we still do not give permission if beneficial ownership is not clear,” he said in Jakarta, Monday (23/10).

The ownership data disclosure in a company is actually a step of transparency in extractive industries, namely industries whose raw materials are obtained directly from nature. This was also stated in Presidential Regulation No. 26 of 2010 concerning Transparency of State Revenues and Regional Revenues Obtained from Extractive Industries.

The rule is also a legal umbrella for the existence of the Extractive Industries Transparency Initiative (EITI). The institution under the Coordinating Ministry for Economic Affairs is a forum for governments, industry players and civil society to encourage the openness of the oil and gas and mineral and coal sectors.

The main aspects highlighted by EITI are transparency of company deposit data and government revenues. With the opening of this information, the public can find out and participate in supervising the tax payments of oil and gas companies to the amount of production ready to sell (lifting) carried out by the contractor of the cooperation contract.

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