Govt told to review Freeport deal<\/p>\n
JAKARTA (JP): The House of Representatives asked the
\ngovernment on Tuesday to review its contract with mining company
\nPT Freeport Indonesia, saying the deal violated investment
\nregulations and the 1945 State Constitution.<\/p>\n
The recommendation was announced by House commissions I and II
\nfollowing a visit to Irian Jaya during the recess in December of
\nlast year.<\/p>\n
\"We suggest that the government review the deal,\" Commission I
\ndeputy chairman Astrid Susanto said after a House plenary session
\nto hear the joint-commission's report of its Irian visit. The
\nsession was presided over by Deputy House Speaker Soetardjo
\nSoerjogoeritno.<\/p>\n
Commission I is in charge of defense, security and foreign
\naffairs, while Commission II deals with home and legal affairs.<\/p>\n
The rich mining company, a subsidiary of American firm
\nFreeport McMoran Copper and Gold, began operating in the early
\n1970s in the gold-rich province. Indonesia, then under long-time
\nruler Soeharto, and Freeport signed the first deal in 1967 and
\nextended it in 1991.<\/p>\n
Astrid said the revenue sharing stipulated in the contract was
\nunfair since it earned Indonesia only 20 percent of the income.<\/p>\n
\"Indonesia who owns the land receives only a tiny share. Is
\nthat fair?\" she said.<\/p>\n
Astrid said the two commissions fell short of suggesting a
\nfairer revenue sharing program.<\/p>\n
Meanwhile, the Commission I spokesman, Hepi Bone Zulkarnain,
\nsaid the commission deemed the current contract to be against the
\n1967 Foreign Investment Law and the Constitution.<\/p>\n
\"The exploitation of natural resources in the province should
\nbenefit the local people as stipulated in the law and
\nConstitution chapter 33,\" Hapi said.<\/p>\n
He suggested that the government seek \"a win-win solution\"
\nshould the contract be revoked.<\/p>\n
The two commissions concluded in their report that the mining
\noperations had resulted in socioeconomic injustice, rampant human
\nrights abuse and political tension.<\/p>\n
Demands for independence have mounted in the province over the
\npast year. (jun)<\/p>",
"url": "https:\/\/jawawa.id\/newsitem\/govt-told-to-review-freeport-deal-1447893297",
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