Extractive Industry Income Transparency Regulation

AuthorWilliam A. Sullivan/Christian Teo Purwono & Partners
ProfessionLicensed Foreign Advocate in Indonesia as well as a Solicitor of the Supreme Court of New South Wales
Extractive Industry Income
Transparency Regulation
I. Executive Summary
1. Overview
1.1 The EI Income Transparency Regulation (hereinafter referred to as
PR 26/2010) was issued with legal effect from April 23, 2010.
1.2 PR 26/2010 has been introduced by Indonesia as a result of the
Extractive Industry Transparency Initiative, a global initiative
announced at the World Summit on Sustainable Development in
Johannesburg, South Africa, in 2002.
2. Approach
2.1 Objectives: The main objectives of PR 26/2010 are as follows:
a. To provide certainty and accountability in terms of the business
operations of companies engaged in Indonesias mining, oil, and
gas industries;
b. To reduce corruption in the Extractive Industries; and
c. To improve the investment climate for the Extractive Industries by
encouraging transparent management of natural resources.
2.2 Transparency Committee: GoI will establish an Extractive Indus-
tries Transparency Working Committee, under the supervision of and
having direct responsibility to the President, for the purpose of
implementing PR 26/2010.
2.3 The primary role of the Transparency Committee is to ensure that
disclosure of State Income and Regional Income generated from
Extractive Industries is made in a transparent manner.

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