Extractive Industry Income Transparency Regulation

• Author: William A. Sullivan/Christian Teo Purwono & Partners
• Profession: Licensed Foreign Advocate in Indonesia as well as a Solicitor of the Supreme Court of New South Wales
• Pages: 167-171

CHAPTER 14

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

2.1Objectives: 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 Indonesia’s 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.

2.2Transparency 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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