Strengthening Governance Practices, Pertamina Joins as an EITI Supporting Company
November 23, 2022 - Since October 2022, Pertamina has become a Supporting Company of Extractive Industry Transparency Initiatives (EITI) with 21 global oil and gas companies, such as ExxonMobil, TotalEnergies, and Equinor, as well as 43 global companies from other industries. Pertamina is also the first oil and gas company in Southeast Asia to support EITI.
EITI is a global coalition of governments, companies, investors, and community groups that sets global standards for transparency in taxation and payments to governments in the extractive sector, such as oil and gas, minerals, and coal. The EITI standard has been implemented in more than 50 countries to create transparency and accountability, which are a form of good governance practice.
Pertamina's support for EITI is in line with Pertamina's commitment to strengthening clean, transparent, and ethical business practices.
On (16/11) a meeting was also held between Mark Robinson - Executive Director of EITI, Marie Gay Alessandra Ordenes - Asia Director & Anti-Corruption Lead of EITI, Emanuel Y.H. Bria - EITI Country Officer-Asia, Agus Cahyono Adi - Head of EITI Secretariat Indonesia (Head of Pusdatin ESDM), Pertamina Finance Director, Emma Sri Martini, Pertamina SPPU Director, Salyadi Saputra, VP Investor Relations, Juferson. V Mangempis, as well as the Pertamina ESG Team. During the meeting, Emma Sri Martini revealed that Pertamina wanted to continue to raise the standard of implementing corporate governance to an international level in order to increase public trust in the company.
"The joining of Pertamina to become an EITI Supporting Company confirms our commitment to creating a healthy and sustainable business. Pertamina's joining EITI is a matter of pride for the company, and we hope to be an example for other companies in Indonesia to implement good corporate governance," said Emma.
Pertamina's initiative also support Indonesia as a country that has implemented the EITI standard. The Ministry of Energy and Mineral Resources said the implementation of extractive industry transparency activities has been running for more than ten years in Indonesia.
Initiated in 2007, the Government of Indonesia subsequently issued Presidential Regulation (Perpres) No. 26 of 2010 concerning Transparency of State and Regional Revenues obtained from the Extractive Industry. Since becoming a member of EITI International, Indonesia has published 9 EITI reports.
Meeting EITI Standard
There are 9 expectations that must be met by an EITI Supporting Company, namely (i) making the EITI Principles & Standards a governance standard, (ii) making comprehensive financial disclosures, (iii) disclosing taxes and payments to the government, (iv) disclosing volumes received and payments made when conducting oil and gas transactions, (v) disclosing audited financial reports, (vi) transparently disclosing beneficial ownership, (vii) publishing company anti-corruption policies, (viii) publicizing government support such as contracts and licenses, and (ix) publish company policies regarding gender diversity in the work environment.
Prior to joining the EITI Supporting Company, the Pertamina group had committed to comply with the EITI standards in the EITI implementing countries where they operate. In Indonesia, the EITI report is submitted through Pertamina Hulu Energi as coordinated by the Ministry of Energy and Mineral Resources. In Iraq, Gabon, and Tanzania, reporting is carried out by the governments of each country.
Mark Robinson, Director of the International EITI Secretariat, said that through its commitment to meet the expectations of EITI supporting companies, Pertamina could learn from international best practices and become an industry leader to advocate for EITI principles internationally, especially in the Asia Pacific region.
"I congratulate Pertamina as an EITI Supporting Company, and I am pleased with Pertamina's efforts so far in encouraging good governance in the oil and gas sector," he said.**