Monday , 23 May 2022
Home » News » Revision of Presidential Regulation No. 26 of 2010 to Strengthen Implementation of EITI
Revision of Presidential Regulation No. 26 of 2010 to Strengthen Implementation of EITI

Revision of Presidential Regulation No. 26 of 2010 to Strengthen Implementation of EITI

The EITI MSG is currently drafting a revised Presidential Regulation No. 26 of 2010 which is the legal basis for EITI implementation in Indonesia. A number of Focus Group Discussions (FGDs) meetings and discussions have been held to be able to complete the draft revised of Presidential Regulation. One of the revisions to the Presidential Regulation is to prepare for the Indonesian EITI validation process, which is planned to take place from September this year. In addition, the more important thing in the revision of the Presidential Regulation is the strengthening of the implementation of EITI in Indonesia.

Presidential Regulation revisions can be submitted if the material added amounts to less than 50% of the old P Presidential Regulation. If there are many things that will be added and exceed 50% of the contents of the previous Presidential Regulation, then it will be better to submit a new Presidential Regulation. One of the things that is in the spotlight in an effort to increase the authority and function of the EITI is to add EITI authority in the new Presidential Regulation. Presidential Regulation 26/2010 still feels that it does not accommodate EITI’s authority because it mostly only consists of the establishment of a Transparency Team. The regulation does not in detail describe the authority and function of the EITI so that it can have an impact on improving the governance of extractive industries in Indonesia. The Transparency Team’s institution will still be included in the revised Presidential Regulation even though the portion is not as large as in Presidential Regulation 26/2010.

 There are a number of factors behind the revision of the Presidential Regulation both concerning changes in nomenclature and to increase the role of EITI in improving extractive industry governance. In Presidential Regulation 26/2010 there are a number of Ministries / Institutions that are members of the EITI MSG that have changed their nomenclature, such as the inclusion of the Ministry of Maritime Affairs as the Ministry coordinating the Ministry of Energy and Mineral Resources. Another thing is the need to consider the membership structure of the EITI MSG. Is it necessary to change the Ministry / Institution who is a member of the EITI MSG or is it necessary to add regional representation to the membership of the EITI MSG which is currently represented by 3 provinces, Riau, East Java and East Kalimantan.

In an effort to improve extractive industry governance, the revised Presidential Regulation is sought to encourage an increase in the role of EITI. EITI seeks to encourage improved governance through increased transparency. EITI authority in obtaining data is expected to increase after the revised Presidential Regulation. In the draft revised Presidential Regulation it is stated that EITI can encourage and obtain data to be transparent from parties both government and companies in the form of legislation, data and information related to business processes, data and information on state revenues and regional revenues, as well as financing programs for support extractive industry activities.

One of the things that is a challenge for EITI implementation is awareness of the parties on transparency efforts. EITI has planned various agendas for awareness raising that require a legal basis. The EITI agenda to enhance the role of the parties is the EITI implementation at the regional level and the plan to award extractive industry transparency. The revised Presidential Regulation 26/2010 was also carried out to accommodate the legal basis for the two agendas.