3.1.5 Case Study: EITI in Indonesia

Since the 2000s, Indonesia has experienced significant and rapid growth in its mining sector. Today, Indonesian companies are major global suppliers of mining products such as coal, nickel, and tin. However, this mining boom has been accompanied by entrenched structures that foster conflicts of interest, resulting in widespread corruption, tax evasion, and environmental degradation. In response to these challenges, Indonesia became a candidate country for the Extractive Industries Transparency Initiative (EITI) in 2010 and achieved compliant status by 2014. Research indicates that Indonesia’s participation in EITI has strengthened civil society participation and empowerment, enabling more effective engagement in extractive industry governance (Yanuardi et al., 2021). Nonetheless, persistent issues remain, particularly regarding transparency in contract publication and ownership disclosure. The 2024 EITI Validation Report also highlights significant gaps in data concerning small-scale mining activities (EITI, 2024). Positive developments are also reflected in Indonesia’s Corruption Perceptions Index (CPI) score, which nearly doubled from 20 in 2000 to 37 in 2024, signaling progress in anti-corruption efforts. This case underscores that addressing conflicts of interest is a long-term endeavor requiring structural reforms that often extend beyond the mid-level to encompass broader political and legal frameworks.