Freeport told to donate 20% of shares for locals<\/p>\n
JAKARTA (JP): Outgoing Irian Jaya Governor Rear Adm. Freddy
\nNumberi petitioned mining-giant PT Freeport Indonesia on Friday
\nto donate 20 percent of its shares and profits to the regional
\nadministration in Irian Jaya to support the community where the
\ncompany exploits the natural resources.<\/p>\n
The current contract stipulates that approximately 20 percent
\nof the company's operation be owned by the Indonesia government
\nand another Indonesia company.<\/p>\n
Freddy, who also holds the post as State Minister for
\nAdministrative Reforms, said that some of the profits should be
\nchanneled directly to the surrounding community.<\/p>\n
\"The local government never got anything from the deal,\"
\nFreddy told reporters on Friday.<\/p>\n
PT Freeport Indonesia is 81.28 percent owned by United States
\nmining company Freeport McMoran Copper & Gold. The Indonesian
\ngovernment holds a 9.36 percent interest in the company along and
\nPT Indocopper Investama Corporation owns an equal interest.<\/p>\n
Indocopper is 50.48 percent owned by Nusamba Mineral
\nIndustries, which is linked to former president Soeharto.
\nFreeport McMoran holds a 49 percent stake in Indocopper and the
\ninvesting public holds 0.52 percent.<\/p>\n
Freeport has been criticized by many parties believing its
\nmining activities in the Grasberg area of Irian Jaya have
\nadversely affected the environment.<\/p>\n
State Minister of Environment Sonny Keraf last month said his
\noffice would audit, and perhaps redo, the environmental impact
\nanalysis (Amdal) of PT Freeport Indonesia as the existing report
\ncontains several irregularities.<\/p>\n
Sonny did not elaborate on the alleged irregularities in the
\nreport but remarked that they included inconsistencies in reports
\non the company's environmental management and environmental work
\nplan. He further remarked that the tailings disposal system was
\ninadequate.<\/p>\n
Some have openly questioned the validity of the environmental
\naudit results of American auditor Montgomery Watson, who lauded
\nFreeport's environmental protection as exemplary.<\/p>\n
Two commissions at the House of Representatives also have
\nrecommended a review of the contract of work held by PT Freeport
\nIndonesia.<\/p>\n
During a meeting with former U.S. Secretary of State Henry
\nKissinger, who is a member of the company's board of directors,
\nPresident Abdurrahman Wahid on Monday pledged to honor the
\ngovernment's contract with the company.<\/p>\n
Nevertheless, he asked Freeport to be more mindful and
\nconcerned with developing the community where it conducts its
\nactivities.<\/p>\n
Speaking during a luncheon with the Indonesian Australian
\nBusiness Council here, Freddy also dismissed the idea of
\nannulling the Freeport contract.<\/p>\n
He conceded that he had received numerous reports of
\ndetrimental effects of Freeports' activities but asserted that
\nthe government will honor its contract.<\/p>\n
\"I see it as a legal problem so we'd better settle the problem
\nin court not by revoking the agreement,' he said of the
\nallegations of environmental destruction by the company.<\/p>\n
Freddy said he had also sent an official letter to the World
\nWildlife Fund for Nature asking for assistance in dealing with
\nthe environmental issues.<\/p>\n
Freddy, who will officially relinquish his gubernatorial post
\non March 20, said it was crucial for the government to honor the
\ncontract.<\/p>\n
\"It is the right of the company to do business here, we have
\nto respect that,\" he remarked.<\/p>\n
Nevertheless there should be several changes in the agreement
\nwhich would allow the people of Irian Jaya a stake in the
\nbusiness. Such changes will be necessary to implement regional
\nautonomy likely to be enacted in the near future.<\/p>\n
\"There were some small mistakes made in the past that we have
\nto revise,\" he said while pointing to the fact that the company
\nwas not obligated to deal with the local administration.<\/p>\n
Freddy further remarked that the public should view the
\npresence of the company objectively.<\/p>\n
\"The company does bring some advantages for us, like job
\nopportunities and other profits,\" he contended. (dja)<\/p>",
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