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Freeport Indonesia: Committed to the people of Irian Jaya

Freeport Indonesia: Committed to the people of Irian Jaya

So many questions are asked of PT Freeport Indonesia
concerning its social commitments toward the indigenous tribes of
Irian Jaya. Mining companies, of course, have great impact on the
local people in the areas where they operate. Both positive and
negative. But what can most definitely been in these areas is
positive development of the local communities when a mining
company starts operations.

Such is it with PT Freeport Indonesia, which came to Irian
Jaya in 1972, when the local population numbered only in the
thousands. At that time, the programs carried out by the company
for the local community were simple and limited. Houses for local
leaders and community infrastructure were built and free medical
care was provided for the community.

Since then, Freeport has fully supported community development
in tandem with the company's progress. This is because of its
commitment to building and maintaining a positive relationship
with the indigenous people living in the area where it operates.

Commitment

Part of the company commitment is to provide opportunities for
social and economic development of the local people, including
special efforts to train and hire people indigenous to each area
operations.

Another part is to learn more about the local people, their
history and their changing circumstances in order to achieve a
greater understanding necessary for building a constructive
relationship.

Freeport was ever expanding when a "revolution" came with the
discovery of the world-class Grasberg deposit in 1988. And the
years of rapid operational expansion that followed, both the need
for local communities and PT Freeport Indonesia efforts to
respond to them with an array of social and economic programs
spiraled in complexity.

PT Freeport Indonesia's resident workforce expanded
particularly during construction and its attraction as a source
of economic opportunity increased, drawing thousands of migrants
from other indigenous Irian Jaya tribes over the mountains and
into the area of PT Freeport Indonesia's operations.

The company made a commitment to set aside 1 percent of its
annual gross revenue for a period of 10 years, beginning in 1996,
as a fund for community development in Lembaga Pengembangan
Masyarakat Irian Jaya (LPM-Irja), an independent organization.

This 1 percent is being used for education and training,
health services, economic development, developing public
facilities and housing, and empowerment of the local community
institution.

The LPM-Irja Board comprises leaders from the Amungme and
Kamoro communities (two tribes located around the Freeport
compound), local church leaders, local government leaders and a
Freeport representative.

Local languages

Before this organization was development, PT Freeport formed
relations with anthropologists and demographers from the
Australian National University and Cendrawasih University in
Jayapura to prepare baseline studies documenting the history and
contemporary social, economic and cultural situation of the
Amungme and Kamoro people. This has resulted in improvements in
communications and understanding between PT Freeport and the
local people.

PT Freeport has also funded research by Cendrawasih University
on Amungme and Kamoro traditional law as well as a Kamoro
language program, which has produced the first Kamoro
conversation book, similar to work done previously on the Amungme
language.

PT Freeport also realized that in an area that has so many
people living in traditional settings, education was also very
important to guaranteeing their livelihoods in the future. This
was a point of concern for the company because it needed to hire
so many well-educated people for the company, especially
Irianese.

With a new contract drawn up in 1991, Freeport now pays even
more taxes and dividends in the country. In its activities since
1991, it provides many important contributions for the community,
including making available scholarships to the tribes near its
operations. The company said this is a reinvestment in Indonesia.

Local employees

For the new century, PT Freeport is pleased to double the
local employee volume until 2001, and will double it again in
2006 as the company is running a vocational training center and
other educational programs. The number of Irianese now employed
by PT Freeport is 2,100 or almost 25 percent of all PT Freeport
employees.

Projects handled by PT Freeport in 1997 included helping to
build a school and dormitory and also give education material to
schools located in the highlands and lowlands. PT Freeport is
committed to carrying out these ambitious programs because, it
says, it all comes down to helping and working with the community
to develop the province.

The company with logistics for teachers and material for
school renovations. The Waa Tsinga and Aroanop elementary school
was built by Freeport and then given to the local government.

It built a dormitory in Tembagapura and Kwamki Lama for the
high school. The Timika Basic Training program is for training
people who are looking for a job. These people include the seven
tribes in the Freeport area; the Amongme, Kamoro, Dani, Damal,
Nduga, Ekari and Moni.

Training

The company also sponsored training for small businesses
through the Business Training Program in Kwamki Lama, Timika and
Kuala Kencana.

There are many, many programs, including agricultural training
at the Center for People's Development, Support on Skilled
Training Program in Jayapura, working with Cendrawasih University
on the transfer of technology and women's education in
Tembagapura.

PT Freeport hopes the employees from the local communities
will increase, and that the local employees can be encouraged to
strive to increase their knowledge so that their opportunities
within the company can be increased.

The company also encourage private businesses to do the same.
The local people spend their whole life here. Most of them will
settle down and raise a family here. Their children also have the
opportunity to work at Freeport or some other major private
business located here.

Before Freeport came, education had very little meaning here.
They might have felt that there was no point even if you had an
education because there was no company to hire you.

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