Freeport defends record in Irian Jaya<\/p>\n
JAKARTA (JP): PT Freeport Indonesia, the giant American mining
\ncompany, says that its operation in Irian Jaya has contributed to
\nthe social and economic development of the local people contrary
\nto what some local officials have suggested.<\/p>\n
Freeport President Hoediatmo Hoed on Monday night also
\nreiterated the company's commitment to the social development
\nprogram in the province, particularly of the Timika regency where
\nthe firm has operated since the 1960s.<\/p>\n
Freeport has been committed to the development of Irian Jaya,
\nespecially around the mining site in Timika regency, since its
\nestablishment, he told reporters.<\/p>\n
He made the remarks in response to a journalist's question
\nabout a statement made by Irian Jaya Governor Jacob Patippi last
\nweekend, suggesting that Freeport's presence had hardly touched
\nthe tribes in Timika.<\/p>\n
"I won't comment on the report, but we have given many
\ncontributions to the social development program in Timika," he
\nsaid after the signing ceremony of a collective labor agreement
\nbetween the management and workers on Monday night.<\/p>\n
Hoediatmo also announced that beginning next year, Freeport
\nwill grant US$100 million annually towards an integrated social
\ndevelopment program for indigenous people in Timika.<\/p>\n
Governor Patippi was quoted by Antara news agency as telling a
\nnews conference in Jayapura on Saturday that Freeport's presence
\nin the area has widened the wealth gap between its employees and
\nthe local people.<\/p>\n
He said income disparity has led to social envy which was
\nunderlined by the violent unrest in the area over the past year.<\/p>\n
A church leader, M.F. Rumsarwir of the Kristen Injili
\ndenomination, yesterday appealed to Freeport to give greater
\nattention to the development of the Amungme and Komoro, the two
\nindigenous people who live in and around Timika.<\/p>\n
Rumsarwir told Antara in Jayapura that Freeport may be making
\nsignificant contribution to the national development but it has
\nnot made any impact in advancing the condition of the two tribes.<\/p>\n
Meanwhile, under the new collective labor agreement signed
\nhere on Monday night, Freeport's 15,000 employees, including
\n3,000 expatriates, have been guaranteed a 25 percent salary
\nincrease over the next two years.<\/p>\n
The management is committed to increasing the Idul Fitri and
\nChristmas bonuses, originally 130 percent of an employee's
\nsalary, to 230 percent.<\/p>\n
The agreement also raises the social security contribution of
\nthe company and raises the company's contribution towards down
\npayments on houses for employees to Rp 1.75 million. (rms)<\/p>",
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"sponsor": "Okusi Associates",
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