Freeport confirms allowances for military, police in Papua
Freeport confirms allowances for military, police in Papua
Tiarma Siboro and
Muninggar Sri Saraswati
The Jakarta Post
Jakarta
The U.S. gold and copper mining company PT Freeport Indonesia
confirmed on Saturday it had allocated from its budget allowances
for the military and police in Papua to protect its assets and
employees due to security disturbance which was rife there.
The company's senior manager corporate communication Siddharta
Moersjid said that such of funds were actually been provided
since the company started to run operation in 1970's, but had to
hold a complete review of the security operations and
later implemented a new comprehensive approach to security in the
area following an incident in Tembagapura in 1996.
He was referring to the abduction of 13 local and
international researchers of Laurentz team blamed to separatist
group's Kelly Kwalik in Mapnduma area.
According to Siddharta, the company allocated some US$5.6
million last year as supporting finance for Government-provided
security for the operations, or has been increased from $4.7
million in 2001.
The support consists of costs of infrastructure, catered food
and dining hall costs, housing, fuel, travel, vehicle repairs,
allowances to cover incidental and administrative costs, and
community assistance programs conducted by the military and
police. The total capital costs for associated infrastructure for
2002 and 2001 was $0.5 million ($0.4 million net to PT Freeport
Indonesia) and $0.6 million ($0.5 million net to PT Freeport
Indonesia), respectively.
Freeport's data showed that the Government has decided to
increase the number of security personnel stationed in the
company's compound to over 2,000 from 200, consisted of, among
other units, Coast Guard at the portsite, Air Force at the
airport, riot control personnel to deal with civil disturbances,
and both perimeter and on-site security at the mine and the mill.
"Many shocked when they found out that we (PT Freeport)
allocated some millions of U.S. dollar of funds to security
personnel to guard the company, because they thought that we give
it in cash.
"But it is not like that because we allocates that funds to
several posts, of which only small some of it given to soldiers
in cash as allowance," Siddharta told The Jakarta Post without
further elaboration.
Siddharta said that efforts to intensify security approach
there was due to the government's concern over the company which
considered as "national assets."
Separately, the Indonesian Military (TNI) spokesman Maj. Gen.
Sjafrie Sjamsoeddin said that only 20 percent of the funds were
received in cash as allowance by soldiers assigned to protect
some 2,800 km wide-PT Freeport, or some Rp 350,000 (S39) per
month.
"The funds disbursed by PT Freeport should be seen as
supporting funds for soldiers who have to face hardship while
carrying their job in the remote area of Timika.
"Of course the TNI headquarters allocated certain budget for
soldiers assigned at operation regions which consisted of Rp
10,000 as allowance plus Rp 11,700 for their meals. It, of
course, considered as additional funds for soldiers whereas they
also receive Rp 15,000 as daily meals allowance," Sjafrie told
the Post.
Sjafrie further admitted that "TNI only receive such of
financial support from foreign companies stationed in the
country's troubled provinces like Papua and Aceh".
Asked on why the Indonesian government did not directly
control the distribution of the funds, Sjafrie said that "the TNI
headquarters received annual report over the disbursement of
these funds transparently".
TNI has repeatedly complaint over their poor budget that has
been allocated by the government, saying that such of funds would
not be able to cover their operations at troublesome areas across
the nation as well as to provide the force with some eligible
military arsenals.
As consequences, the TNI once has demanded to maintain its
various businesses despite mounting public criticism.
Many also believed that the Aug. 31, 2002 deadly ambush that
killed two American teachers and an Indonesian employed by PT
Freeport had a close link to this "security funds". Currently,
the Army's Strategic Reserves Command (Kostrad)'s battalion 515
is stationed at the site.
Both Sjafrie and Siddharta, nevertheless, declined to comment
over the issues.