As many as 21 mining companies and two oil and gas companies in the country have reportedly failed to file transparency reports meant to reduce corruption.
Maryati Abdullah, coordinator of Publish What You Pay Indonesia, a nongovernmental organization, said on Sunday that 18 of the companies that failed to file their Extractive Industries Transparency Initiative reports operated in Kalimantan, a center of the country’s mining industry.
Indonesia is among the resource-rich countries that have implemented the EITI, a set of reporting guidelines for companies in the extractive industries to improve the transparency of payments to the government and the public.
The initiative was launched by Tony Blair, the former British prime minister, at the 2002 World Summit on Sustainable Development in South Africa.
Maryati said 11 of the companies failing to file reports were coal miners that operated in Kalimantan. He identified some of the offenders as Kideco Jaya Agung, Mandiri Inti Perkasa, Fajar Bumi Sakti, Gema Rahmi Persada, Kayan Putra Utama Coal and Bukit Baiduri Energi.
“Most of these companies are owned by big businessmen,” he said, adding that their failure to file reports indicated they were not serious about improving the transparency of their dealings.
According to the NGO, there are 129 companies in Indonesia that are required to file EITI reports. Companies required to file reports include oil and gas firms that contribute a minimum of $10 million to the state through taxes and fees and $1 million for mineral miners.
EITI is voluntary, though, and no penalties would be imposed on any company that doesn’t meet standards.