Disclosure regarding mining contracts, licenses essential

Fikri Zaki Muhammadi and Robert Pitman
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PREMIUM

Jakarta/New York / Wed, October 2, 2019 / 09:51 am

Disclosure regarding mining contracts, licenses essential

The legal basis to publish mining contracts and licenses in Indonesia has existed for over 10 years. Article 11 of the 2008 Central Information Commission (KIP) Law mentions that public bodies must make accessible “at any time any agreement between public bodies and third parties”. (JP/Jerry Adiguna)

Indonesian mining contracts and licenses — the documents detailing the government’s agreements with companies for the exploitation of minerals — remain out of public view despite legislation and court orders that support their publication. While Indonesian civil society groups strongly support publication, the government has defended its nondisclosure of mining contracts and licenses on the basis that they include confidentiality clauses or that disclosure will hurt the commercial competitiveness of the companies. Yet, 44 other countries have already started disclosing extractive industry contracts and licenses. This is a shame for Indonesia considering that national legal provisions mean it could be a leader in this global trend. Contract disclosure benefits not only governments and citizens, but also the private sector. Industry players, including mining gian...