Indonesia is a resource rich country both in hydrocarbons and mining. Oil production has substantially declined in the last 15 years from its peak of 1.5 million barrels a day in 1996 down to .95 million barrels a day in 2011. Due to this decline in production and a rapid increase in domestic consumption, Indonesia became a net importer of oil in May 2008. Subsequently, it suspended its membership to the Organization of Petroleum Exporting Countries (OPEC) in January 2009. Indonesia had 4.2 billion barrels of oil proven reserves at the end of 2010, and Oil and gas exports accounted for 16.3% of total exports. The mining sector, on the other hand, has been expanding rapidly in the last 10 years with the increase of its copper, nickel, gold, and coal production in addition to its traditional mineral production centered on bauxite, silver, and tin. Indonesia has the world’s largest market of tin with 20% of global supply. Mineral products accounts for 12% of total exports in 2009.
Indonesia announced its intention to implement the EITI in 2009. The EITI Board designated Indonesia as an EITI Candidate country on 19 October 2010. The first EITI Report covering 2009 was published in April 2013. Indonesia has also completed validation, and the report is under consideration by the EITI Board.
The first Indonesian EITI report provides information on:
- the fiscal regime applicable to the extractive industry sectors;
- payments and revenues broken down in individual revenue streams, company by company and project by project;
- information about how much oil was allocated to the national government as part of the production sharing agreements; and
- information about where companies operate and the size of their financial contribution to the government.