Pertamina Announces Joining As Supporting Company EITI

Photo: Doc. Pertamina

Pertamina has officially become the Supporting Company 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 directly support EITI.

EITI is a global coalition between governments, companies, investors and community groups that set global standards for transparency in terms of taxation and payments to governments in extractive sectors such as oil and gas, minerals and coal.

The EITI standard has been applied in more than 50 countries to create transparency and accountability which is a manifestation of good governance practices.

Pertamina's support for EITI is in line with Pertamina's commitment to strengthening clean, transparent, and ethical business practices.

Pertamina Finance Director Emma Sri Empir revealed that Pertamina wants to continue to improve the standard of implementing corporate governance to international levels to increase public trust in the company.

"The merger of Pertamina into the EITI Supporting Company affirms our commitment to realizing a healthy and sustainable business. This is also the pride of the company and I hope it can be an example for other companies in Indonesia to implement good corporate governance," said Emma in an official statement, Wednesday, November 23.

Ema added that Pertamina's initiative is also a form of support for Indonesia as a country that has implemented EITI standards. Quoted from the Ministry of Energy and Mineral Resources, the implementation of extractive industry transparency activities has been running for more than 10 years in Indonesia.

In 2007, the Indonesian Government issued Presidential Regulation (Perpres) No. 26 of 2010 concerning State Revenue and Regional Revenue Transparency obtained from the Extractive Industry. Since becoming a member of the International EITI, Indonesia has published nine EITI reports.

There are nine expectations that must be met by EITI Supporting Company. Among other things, making EITI's Principle & Standards a standard of governance, making comprehensive financial disclosures, expressing taxes and payments to the government, revealing the volume received and payments made when conducting oil and gas transactions.

In addition, companies must also disclose audited financial reports, disclose transparently related to Beneficial Ownership, publish company anti-corruption policies, publish government support such as contracts and licenses, and publish company policies related to gender diversity in the work environment.

Prior to joining as the EITI Supporting Company, Pertamina group had committed to meeting the EITI standards in the EITI implementing countries where they operate. In Indonesia, the EITI report was submitted through Pertamina Hulu Energi as coordinated by the Ministry of Energy and Mineral Resources. In Iraq, Gabon and Tanzania, reports were made by the respective governments.