The Framework for Extractive Industries Governance in ASEAN is launched

| December 2, 2014 | 0 Comments

This is unique Framework could assist ASEAN member states fulfill the call to harmonize their mineral policy and ensure the extraction of resource benefit the country, its people, and strengthening ASEAN economic integration.

pic1Jakarta, December 2, 2014. Institute for Essential Services Reform (IESR) launched The Framework for Extractive Industries Governance in ASEAN, in Jakarta, Indonesia on 28 November 2014. Extractive Industries as such oil, gas and minerals have been playing important role to the economy of ASEAN member countries as sources of revenues and raw material for industry. With strategic geographic position, countries in ASEAN have become the significant players to meet the demands of energy and minerals commodity throughout the world.

“Nonetheless most ASEAN member states are still grappling with challenges to govern its resources and revenues from the extraction in transparent, accountable, and sustainable that respect people and environment. Thus these has lead to serious impact on environmental degradation, social conflicts, poverty, and corruption, as well as illicit commodity trading that diminish social and economic benefits from the resource extraction,” said Fabby Tumiwa, IESR Executive Director.

A study commissioned by IESR on Governance of Extractive Industries in South East Asia that conducted in 2011 highlighted governance gap and challenges in regulatory and institutional framework and practices that potentially harm the environment, violate human rights, and ineffective resource rents collection and distribution in some countries in the region. “ASEAN member countries need strong regulatory and institution framework that ensures the management and utilization of their resources will bring benefits for the countries and its people. These resources should be able to improve human development and narrow development gap in the region,” adds Fabby who also one of the drafter of the Framework.

The framework was developed as an initiative from civil society organizations to provide a platform and tool for harmonization of policies in extractive industries in ASEAN, as well as to ensure a similar level of competitive environment for investment across ASEAN Member State in order to avoid “the race to the bottom”.

This Framework could serve as standard setting instrument for ASEAN member countries in managing the extractive industries for ASEAN, especially in facing the upcoming ASEAN Economic Community in 2015.

pic2“For country as such Cambodia, this framework in an opportunity to strengthen the governance in the mining and oil sector. As resource governance in Cambodia is quite weak where the gap between the law and the implementation is quite wide,” said Natacha Kim, the Executive Director of Cambodians for Resource Revenue Transparency (CRRT).

The framework comes with four principles and prescriptions that cover good governance principles and practices across the value chain of extractive industries. The four principles are (1) Protection of the environment; (2) Respect and protect human rights; (3) Transparent and accountable practices; and (4) Sound Fiscal framework and revenue management.

The Framework than has developed for two and half years by a team from IESR in collaboration with civil society organizations from the region: CRRT from Cambodia, IDEAS from Malaysia, Bantay Kita from Philippines, CODE and Pan Nature from Vietnam, Luta Hamutuk from Timor Leste, Spectrum and Shwe Gas Movement from Myanmar, and Publish What You Pay (PWYP) Indonesia, Article 33, and PolGov UGM from Indonesia, and Natural Resource Governance Institute (NRGI). It involves a number of in-country and regional consultations that also involves government and private entities. This collaboration comes under USAID’s IKAT-US Project during 2011 to 2014.

orangeIESR and its partners plan to implement this Framework in some ASEAN member states next year. IESR plans to develop a toolkit for the Framework, and work with government, civil society and business to conduct assessment in the country level. “We are expecting two or three country assessments to be started by next year so we can report the result and share lesson learn to upcoming ASEAN Ministerial Meeting on Mineral (AMMIn) by the end of 2015,” said Fabby.

The Framework will also be launched in Hanoi, Vietnam on 5 December 2014 and presented during ASIA CSR FORUM on 10 December 2014 in Singapore.

For further information about detailed framework you can download at http://www.iesr.or.id/regional-framework/. If you you have any comments and suggestion regarding the framework and its possible implementation through ASEAN organs and member states, please drop us a line to Fabby Tumiwa, Email: fabby@iesr.or.id or Yesi Maryam, Email: yesi@iesr.or.id

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