Commitments

01 Extractives Data Management

Country: Indonesia
Action Plan: Indonesia Action Plan 2018-2020
Year Action Plan: 2018
Start Date: 1/1/2019  |  End Date: 12/31/2020

From the Action Plan

 
Improvement in Data Management and Compliance of Extractive, Forestry, and Plantation Sectors January 2019 - December 2020
Commitment Description
Lead implementing agency/actor
1. Ministry of Law and Human Rights
2. Ministry of Finance
3. Indonesian Financial Transaction Reports and
Analysis Center
4. Ministry of Agriculture
5. Ministry of Energy and Mineral Resources
What is the public problem that the commitment will address?
10
What is the commitment?
Indonesia Open Government Partnership National Action Plan 2018-2020
After Panama Papers went public in 2016 mentioning
1.038 taxpayers of Indonesian businessmen that had shell companies overseas and were expected to inflict the national income as well as undetected terrorism funding. In this case, the public also put their attention to the importance of Beneficial Ownership Disclosure.
Therefore, following the situation previously,
Indonesian Government initiating the Presidential
Regulation No. 13/2018 on Application of Principles
Introduces Beneficial Ownership of Corporation in the
Framework of Prevention and Eradication of Criminal
Act Money Laundering and Criminal Funding
Terrorism and Presidential Regulation No. 54/2018 on
National Strategy of Corruption Eradication. These
Regulations, especially No. 13/2018, is one of the
Indonesian milestones because it encourages corporation (such as limited liability companies, commanding companies, firms, unions, associations, foundations, and other corporate forms) to establish, report, and update their Beneficial
Ownership (BO) data. Moreover, the regulation also stipulated about beneficial ownership data request by the public. However, as a newly issued regulation, it has not widely known yet and needs to develop guidance to implement.
Beneficial Ownership in the 2018-2020 commitment will be focusing on the provision and utilization of BO database. BO registration will be carried out in extractive, forestry, and plantation sectors.
Furthermore, the use of BO database will be focusing on the permit applications in the extractive and palm oil industries as well as on the misuse of funding for money laundering and terrorism. The implementation of BO in Indonesia is collaboratively managed by related ministries and institutions. Additionally, the coordinator role is technically carried out by National Strategy of
Corruption Prevention Team. The commitment of BO in the Open Government Indonesia National Action Plan
2018-2020 will precisely adopt the same commitment in National Strategy of Corruption Prevention released by Presidential Regulation No. 54/2018 which operationalize further through National Action Plan on
2019-2020.
The commitment of BO will resolve corruption and tax evasion in Indonesia. Moreover, this commitment encourages BO database integration through
Corporate Administration Management System. So the data can further be requested by public.
How will the commitment contribute to solve the public problem?
The commitment is aligned with one of Open
Government Partnership (OGP) values which is transparency. Transparency is related to the openness quality of public information and people accessibility to the information.
Why is this commitment relevant to OGP values?
The commitment is also aligned with achievement effort of Sustainable Development Goals (SDGs) No.
17: “Strengthen the means of implementation and revitalize the global partnership for sustainable development”, especially on target 17.1: “strengthen domestic resource mobilization, including through international support to developing countries, to improve domestic capacity for tax and other revenue collection”, because not only to publish BO publicly, but this commitment also indirectly improves national income by BO collection and integration.
In addition, this commitment is mentioned in EITI
Indonesia's roadmap on how it intends to disclose the beneficial owners of the companies active in the extractives sector.
Additional information
Milestone Activity with a verifiable deliverable
Start Date: End Date:
1. The implementation of Corporate
Administration Management
System
January 2019 December 2020
2. The use of Beneficial Ownership database to prevent the misuse legal persons/arrangements for Anti
Money Laundering/Prevention of
Terrorism Funding, and the
Prevention of Tax Evasion
January 2019 December 2020
11
3. The utilization of Beneficial
Ownership database as a
January 2019 December 2020 requirement for submission of permission in the extractive and palm oil industries
Other Actors
Involved
State actors involved
1. Bank Indonesia
2. Financial Services Authority (FSA)
3. Ministry of Cooperatives and Small and Medium
Enterprises
4. Coordinating Ministry for Political, Legal, and
Security Affairs
5. Ministry of Environment and Forestry
6. Ministry of Agrarian Affairs and Spatial
Planning/National Land Agency
7. Coordinating Ministry for Economic Affairs
8. Ministry of Trade
9. Government Goods/Services Procurement
Policy Agency
CSOs, private sector, multilaterals, working groups
1. Publish What You Pay (PWYP) Indonesia
2. The EITI Indonesia Secretariat
12
10. Commission for the Supervision of Business
Competition
11. National Secretariat of Corruption Prevention

Lead Institution: 1. Ministry of Law and Human Rights 2. Ministry of Finance 3. Indonesian Financial Transaction Reports and Analysis Center 4. Ministry of Agriculture 5. Ministry of Energy and Mineral Resources


Support Institution: 1. Bank Indonesia 2. Financial Services Authority (FSA) 3. Ministry of Cooperatives and Small and Medium Enterprises 4. Coordinating Ministry for Political, Legal, and Security Affairs 5. Ministry of Environment and Forestry 6. Ministry of Agrarian Affairs and Spatial Planning/National Land Agency 7. Coordinating Ministry for Economic Affairs 8. Ministry of Trade 9. Government Goods/Services Procurement Policy Agency CSOs, private sector, multilaterals, working groups 1. Publish What You Pay (PWYP) Indonesia 2. The EITI Indonesia Secretariat 12 10. Commission for the Supervision of Business Competition 11. National Secretariat of Corruption Prevention

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From the IRM Review

 

Overview

Design

Specificity

Not Reviewed
None
Low
Medium
High

Relevant to OGP values

Potential Impact

Not Reviewed
None
Unclear
Minor
Moderate
Transformative

Implementation

Completion at Midterm

Not Reviewed
Unclear
Not Started
Limited
Substantial
Complete

Completion at End of Term

Not Reviewed
Unclear
Not Started
Limited
Substantial
Complete

Results

Did it Open Government?

Worsened
Did Not Change
Minor
Major
Outstanding


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