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1. Tangled Web: The Role of Oil, Gas and Mining in Funding Regional Governments in Indonesia

Author:
David Manley, Rani Febrianti, and Hari Subhash
Publication Date:
03-2020
Content Type:
Special Report
Institution:
Natural Resource Governance Institute
Abstract:
Indonesia’s system of funding provincial, district and city governments is one of the most complex in the world, and has undergone substantial expansion over the last two decades. While the system allows thousands of authorities to function, it is failing in three respects: inequality of funding between regions persists, funding for some governments is unpredictable and volatile and some oil- and gas-rich regions have not sufficiently prepared for a possible future with much lower revenues. Indonesia’s planning ministry, Bappenas, should investigate these issues further focusing particularly on clarifying policy objectives, ensuring more reliable funding, supporting oil- and gas-rich regions in becoming more resilient to a long-term decline in prices and clarifying the published rules around the funding system.
Topic:
Civil Society, Government, Oil, Gas, Media, Mining, and Political Parties
Political Geography:
Indonesia and Southeast Asia

2. Unpacking Decentralization: Improving How States and Regions in Myanmar Issue Artisanal and Small-Scale Mining Permits

Author:
Sebastian Sahla and Hosana Chay
Publication Date:
10-2019
Content Type:
Special Report
Institution:
Natural Resource Governance Institute
Abstract:
Recent reforms in Myanmar’s mining sector have given greater powers to states and regions. Following regulatory changes in 2018, the responsibility for issuing permits for artisanal and small-scale mines has shifted from the capital Nay Pyi Taw to state- and region-level boards. Decentralization could be an opportunity to improve governance of Myanmar’s mining sector. Most artisanal and small-scale miners currently operate without permits. By reducing the physical distance that they need to travel to get a permit, decentralization could make it easier to operate legally. Legal title could strengthen livelihoods while helping the government to monitor mining activities. Decentralization in mining is also part of a broader shift to empower subnational stakeholders. It is an important element of Myanmar’s political transition and attempts to end decades of civil conflict. However, there are major challenges around how the government is implementing decentralization. States and regions have new responsibilities but not necessarily the experience and skills to fulfil them effectively. As a result, decentralization could drive mismanagement and corruption, exacerbate environmental and social impacts, and generate conflicts with large-scale mining. The authors of this report find that at present the potential benefits of decentralization could go unrealized.
Topic:
Natural Resources, Mining, and Decentralization
Political Geography:
Southeast Asia and Myanmar

3. The Case for Publishing Indonesian Mining Agreements

Author:
Robert Pitman and Rani Febrianti
Publication Date:
09-2019
Content Type:
Policy Brief
Institution:
Natural Resource Governance Institute
Abstract:
The disclosure of contracts and licenses in the extractive industries is a rapidly growing global norm. There are now over 44 countries that have disclosed at least some extractive industry contracts or licenses, and the new EITI Standard makes it a requirement for all implementing countries to publish contracts and licenses that are granted, entered into or amended after 1 January 2021. This reflects a growing recognition among governments, the private sector and civil society organizations that disclosure of these documents helps to improve governance of natural resources and contributes to a more stable investment climate. In Indonesia, long-standing advocacy by civil society has resulted in notable advances. In 2011, a decision by the Central Information Commission declared that mining contracts are open documents and a 2016 decision by the Supreme Court declared that IUP licenses are also open documents. Together with a new EITI requirement for the publication of contracts and licenses, these decisions provide the groundwork for the government of Indonesia to develop disclosure practices that will position the country at the forefront of a global trend. This brief explains why Indonesia should proactively publish these important documents, gives an overview of the documents that it should make public, and suggests a path for making publication a reality.
Topic:
Treaties and Agreements, Mining, and Transparency
Political Geography:
Indonesia and Southeast Asia

4. Considerations for Taxing Myanmar’s Large-scale Mining Companies

Author:
David Manley, Sebastian Sahla, Ko Ko Lwin, and Khin Saw Htay
Publication Date:
09-2019
Content Type:
Policy Brief
Institution:
Natural Resource Governance Institute
Abstract:
Despite geological potential, Myanmar's mining sector has attracted few large-scale companies to date and the sector generates little government revenue. The authors of this briefing present the challenges the Myanmar government has faced in designing an effective mining tax regime. They suggest three ways in which the government could attract greater investment and allow the people of Myanmar to maximize benefits from the potentially significant mineral wealth of their country. The briefing is informed by the Natural Resource Governance Institute’s engagement with Myanmar’s Ministry of Natural Resources and Environmental Conservation (MONREC), helping the ministry implement strategic reforms.
Topic:
Natural Resources, Tax Systems, Mining, Private Sector, and Revenue Management
Political Geography:
Southeast Asia and Myanmar