Freeport needs to adjust approach to social issues
Freeport needs to adjust approach to social issues
JAKARTA (JP): Minister of Environment Sarwono Kusumaatmadja
yesterday revealed that initial reports of a social audit of PT
Freeport's activities in Irian Jaya show that the mining giant
still needs to make adjustments in its dealings with the local
population.
"Based on the auditors' preliminary report, Freeport needs to
make corrections in its handling of social issues in its
surrounding areas," Sarwono told journalists after reporting the
initial findings of the audit to President Soeharto.
He added that the government will establish pointers on social
programs on which Freeport could base their own programs.
"The government's task is to provide a guide for Freeport and
other investors in the context of running their social programs,"
Sarwono said.
The New Orleans-based company currently runs one of the
biggest copper and gold mines in the world. Over the past few
months, there has been some unrest surrounding the mining area in
Timika regency, which some locals and observers allege was the
results of inequalities created by the Freeport mine.
The audit on the impact of PT Freeport Indonesia on its social
environment, conducted by international auditors Labat and
Anderson, was expected to be released sometime last month.
Sarwono yesterday explained that the full audit would take
longer then expected, since the issue is extremely complex.
An environmental audit by Dames and Moore issued in April
concluded that PT Freeport is an environmentally conscious
company. The environmental audit also gained the immediate
backing of the Ministry of Environment.
Sarwono noted that the lack of guidelines for social
activities is a missing ingredient which would help foreign
companies when encountering such situations as those in Irian
Jaya.
"We can't let them operate and conduct things based merely on
their own perceptions. That is what creates the problem," he
said.
He asserted, however, that the government has no intention
whatsoever of closing the company's operations in Irian Jaya.
Sarwono also said that the preliminary report of the social
audit has found that the root of the problem lies in the fact
that a multinational and modern company like Freeport conducts
its activities in the middle of a traditional society.
"Freeport's neighbors are our brothers, the local inhabitants
whose level of civilization is still very simple. That's the core
of the problem," the minister said.
The report also found that the government's limited presence
in the area was one of the reasons for the lack of a conducive
climate to promote better understanding.
"The government's position (there) is still very weak, since
it is only represented by a district chief," he said.
In an administrative reorganization, the government has
announced that Timika will be elevated to become an
administrative regency.
Speaking on the continued presence of the military apparatus
there, Sarwono maintained that it was needed to maintain order in
the region.
"Without the presence of the military, nothing could be done,"
he said. (mds)