Freeport defends record in Irian Jaya

Freeport defends record in Irian Jaya

JAKARTA (JP): PT Freeport Indonesia, the giant American mining
company, says that its operation in Irian Jaya has contributed to
the social and economic development of the local people contrary
to what some local officials have suggested.

Freeport President Hoediatmo Hoed on Monday night also
reiterated the company's commitment to the social development
program in the province, particularly of the Timika regency where
the firm has operated since the 1960s.

Freeport has been committed to the development of Irian Jaya,
especially around the mining site in Timika regency, since its
establishment, he told reporters.

He made the remarks in response to a journalist's question
about a statement made by Irian Jaya Governor Jacob Patippi last
weekend, suggesting that Freeport's presence had hardly touched
the tribes in Timika.

"I won't comment on the report, but we have given many
contributions to the social development program in Timika," he
said after the signing ceremony of a collective labor agreement
between the management and workers on Monday night.

Hoediatmo also announced that beginning next year, Freeport
will grant US$100 million annually towards an integrated social
development program for indigenous people in Timika.

Governor Patippi was quoted by Antara news agency as telling a
news conference in Jayapura on Saturday that Freeport's presence
in the area has widened the wealth gap between its employees and
the local people.

He said income disparity has led to social envy which was
underlined by the violent unrest in the area over the past year.

A church leader, M.F. Rumsarwir of the Kristen Injili
denomination, yesterday appealed to Freeport to give greater
attention to the development of the Amungme and Komoro, the two
indigenous people who live in and around Timika.

Rumsarwir told Antara in Jayapura that Freeport may be making
significant contribution to the national development but it has
not made any impact in advancing the condition of the two tribes.

Meanwhile, under the new collective labor agreement signed
here on Monday night, Freeport's 15,000 employees, including
3,000 expatriates, have been guaranteed a 25 percent salary
increase over the next two years.

The management is committed to increasing the Idul Fitri and
Christmas bonuses, originally 130 percent of an employee's
salary, to 230 percent.

The agreement also raises the social security contribution of
the company and raises the company's contribution towards down
payments on houses for employees to Rp 1.75 million. (rms)