House questions operation of US-based Freeport<\/p>\n
JAKARTA (JP): Members of Commission X of the House of
\nRepresentative (DPR) yesterday asked Irian Jaya's Governor J.
\nPattipi if PT Freeport Indonesia's operations in the province
\nhave benefited the local people.<\/p>\n
The House members contended in a hearing that the profits
\ngained by the United States company from the copper and gold it
\nhas mined in Irian Jaya may have been much more than the benefits
\nthe local people have received from the company's presence.<\/p>\n
\"When we visited the Freeport mining complex, we got the
\nimpression that the company treated the area as part of the
\nUnited States,\" said Mike Prionggo, a member of the commission.<\/p>\n
PT Freeport Indonesia is a U.S.-Indonesian joint venture, 80
\npercent owned by Freeport McMoRan Copper & Gold of the United
\nStates, 10 percent by the government of Indonesia and another 10
\npercent by a local private company.<\/p>\n
Governor Pattipi told the commission that Freeport has
\ncontributed greatly to Irian Jaya's economic and social
\ndevelopment.<\/p>\n
\"In 1991 PT Freeport Indonesia contributed 47 percent to Irian
\nJaya's regional gross domestic product, up from 45 percent in
\n1990. This will further increase in the future due to the
\nexpansion of its production capacity up to 115,000 tons per day
\nin 1996,\" Pittipi said.<\/p>\n
He also assured the commission that although PT Freeport is
\nthe biggest contributor to the province's economy, it will not
\nturn itself into an independent government and neither will its
\nin mining area become a U.S. territory.<\/p>\n
\"The company also contributes Rp 500 million (US$231,588)
\nevery month to the local economy through its purchases of local
\ngoods,\" Pittipi added.<\/p>\n
Unfair<\/p>\n
The House members argued that the deal between the government
\nand Freeport was unfair, thereby enabling the U.S. company to
\nhave too many advantages.<\/p>\n
The chief of the Irian Jaya office of the Ministry of Mines
\nand Energy Yudo D. Elyfas reminded the House commission that
\nFreeport works in the province under a work contract with the
\ngovernment which was approved by the House.<\/p>\n
\"I must remind you that the deal is based on the contract
\nwhich was approved by the House before it was ratified by the
\nPresident,\" Yudo said.<\/p>\n
He explained that the central government increased the shares
\nfor Irian from 70 percent to 80 percent out of royalties given by
\nFreeport.<\/p>\n
The company started its copper and gold mining operation in
\nIrian Jaya in 1967.<\/p>\n
The company's mining concession was extended last year in
\nlight of its expansion program that includes the construction of
\na copper smelter in Gresik, East Java.(yns)<\/p>",
"url": "https:\/\/jawawa.id\/newsitem\/house-questions-operation-of-us-based-freeport-1447893297",
"image": ""
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"sponsor": "Okusi Associates",
"sponsor_url": "https:\/\/okusiassociates.com"
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