Break the Chain ! Corruption in Oil, Gas and Mining Sector - an overview in Indonesia’s case -

Maryati Abdullah | Publish What You Pay Indonesia National Coordinator

Presented in 16th IACC Conference, Kuala Lumpur, September 3rd, 2015

Overview of The Main Corruption Cases : 2011 - 2015

Source : acch.kpk.go.id

Year Case Main Modus Current Status 2011 Procurement of Gas Distribution

Transmision PT. PGN (Gas SOE)

Kick Back of ‘Dana Taktis’ from the

project partner

Court Decision

2011- 2012 Procurement of SHS (Solar Home System) and Micro Hydro Power Plan in the Ministry of Energy and Natural

Resources (MEMR)

Gratification on procurement and installation of solar power plant and microhydro in the Ministry of Energy

and Natural Resources (MEMR)

Court Decision

2011-2015 Procurement of TEL (Tethra Ethyl Lead) PT. Pertamina (Oil and Gas

SOE)

Gratification on policy making process and procurement of TEL in PT.

Pertamina

Court Decision

2013 - 2014 Procurement of Oil Trader for

Government Entitlement on Upstream Body (SKK MIGAS)

Gratification of bidding process to

procure the trader of crude oil (government share/entitlement)

Court Decision

2013 - 2015 Budget Allocation Process for

Ministry of Energi and Mineral Resources (Parliament)

Gratification on Budget Formulation for

operational cost in the MEMR

First Court

Decision

2012 - 2014 Bioremediation on Rehabilitation and Post Mining (Chevron Pacific

Indonesia)

Mark-up on project implementation First Court Decision

2015 Mining Licensing Award in Local

Government (Regent of Tanah Laut, South Kalimantan)

Gratification on Mining Licensing

Award in Sub-National Authority

Prosecution

2015 CSR Project Implementation (Pertamina Foundation)

Allegation – markup of CSR funds Investigation

The Main Modus & Actors of Corruption - along the business process of extraction -

Political Corruption on Policy making process (Parliament & Ministry)

Bribery and Kick Back on Procurement & Business Supply Chain (Priate Sector, Government Body)

Bribery and Political Corruption on Licensing Award

Mark-up in the project implementation

of CSR & Rehabilitation and Post Mining

Various Actor “ Government Body,

Parliement, Regent, and Private Sector

Government Body – Head of SKK MIGAS

Parliament – Member of Commission VII

Sub-National Government – Regent Private Sector

Civil Society Engagement

[with KPK – MEMR – Local Government on GN SDA & EITI]

Mining License Audited

Production & Revenue State (Tax,

Royalties, etc) – collaboration with

EITI

Environmental Protection (Forest

and land use, rehabilitation & post-

mining funds, etc)

* Contract Renegotiation &

Downstream Development