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.