In late 2011, Fitch and S&P Ratings raised Indonesia's rating to investment grade. The increase is due to implementation of good governance within Government of Indonesia offices since 1998. Development planning has been undertaken through a series of public participation (PP) sessions, from bottom up. Nonetheless, after more than a decade and considering an increase of investment in the near future, PP is more demanding. Hence, the approach needs improvement. Development of PP is encouraged by two main factors. First, the presence of various regulations demands PP in every process of development. Second, the variety of international standards and best practices require that investment involve the public in every phase of investment. The paper will discuss how these factors can be undertaken in parallel, harmoniously. With regard to the first factor, three things are required in order to enhance PP: (1) presence of legal instrument that regulate PP, (2) need for openness and accountability from the government, that is sensitive to public interest, and (3) the stakeholder needs to establish an independent and well-managed vehicle as a channel of participation. And for the second factor, the private sector needs to have an adequate capacity to enhance their understanding to engage stakeholders and form a certain level of stakeholder engagement. With an appropriate approach and strategy, various conflicts that may occur, such as between local and central governments with regard to profit sharing, can be minimized. Responding to this challenge, an affiliation of the International Association for Public Participation (IAP2) was established in Indonesia. IAP2 is an international association, whose members seek to promote and improve the practice of public participation in relation to stakeholders, as it affect the public interest. The paper will also discuss what, why and how this association intends to obtain feedback and support from the Oil & gas Industry in Indonesia.
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