Senior Consultant Revenue Watch Institute Sefton Darby said the importance of transparency in the extractive industries financial flows, such as oil and gas industry (oil), and mining.
"There needs to be transparency in funding from companies to state, local governments, and the public to avoid recriminations," Darby said during a public discussion Transparency of Oil and Gas Model Building in the Local Level, at the Harris Hotel, Jakarta, Monday (8/3/2010 ).
She told me, in some countries that are not transparent that he never visited, the people in a number of countries accused each other where the flow of funds come and go. "Therefore, transparency is here to stop the rumors that resulted in the state becomes unstable," he said.
She is also working for the extractive industries transparency initiative (EITI) International says, a country dependent on oil, gas, and mining, more attention need to ensure that payments by oil and mining companies to the state or local governments are reported in a transparent, credible, and easy to understand.
"Without transparency, it is very difficult to ensure that the wealth produced by the extractive industries to be sustainable development," he explained.
Transparency is thought to be done from small parties and from the smallest things. "If the small parties will not participate (transparent), then the parties to such BP Migas, I think they will not want transparent, too," said Darby.
Oil and gas exploration projects in the District and Bojonegoro Blora, East Java, for example. According to Darby, the project in both regions is extremely interesting and challenging.
The big challenge in Block Cepu, Blora regency, East Java, in comparison with other exploration projects, she continued, is because in this Cepu Block oil volume which is large enough, but only for a short time.
"For that, it becomes a challenge also for central government and local governments to spend funds or revenues from the oil," he said.
She told me, during the many oil-producing countries are bankrupt and indebted to the banks of the world because they can not spend the funds or income from the oil and gas well.
Therefore, she suggested that local governments and citizens are able to plan properly the use of oil funds are to build physical and social infrastructure that will endure long-lasting Cepu oil exceeded.
Back Darby warned, the role of BP Migas is very important here. "Of course transparency at the local level will not occur if there is no transparency at the national level," he said.
On the same occasion, Deputy Minister of Oil and Gas Ministry of Economic Coordinating M. Husen said the government is processing a presidential decree (decree) on the transparency of revenues and revenues from extractive industries.
"Still in the process of finalization, just waiting for the ratification or signature of some relevant ministers and presidents," said Husen.
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