Freeport not benefiting Irian Jaya: DPR members

Freeport not benefiting Irian Jaya: DPR members

JAKARTA (JP): Legislators are urging a review into the
operations of American mining giant PT Freeport Indonesia,
contending it has failed to better the lot of local communities
in Irian Jaya despite a more than 25-year presence.

Members of Commission VIII of the House of Representatives
told a plenary session on Thursday that their recent visit to the
province alerted them to the local people's discontent about the
firm, which is one of the country's top taxpayers. The session
was led by Deputy House Speaker Hari Sabarno.

Antara quoted the commission members as saying in their report
that people living around the company's gold and copper mining
sites remained poor.

The commission, overseeing the state budget and research and
technology, said local people wanted Freeport to be "just" and
share the profits it had enjoyed for years.

"The demands, that the company share its profits, should be
studied and accommodated in further contract negotiations in
order to give them solid legal base," the commission said.

The move was needed to dispel the impression that business
ventures only led to the people's discomfort and insecurity, the
commission said, adding that profits accrued by Freeport should
also bring prosperity to Irianese.

Critics, including opposition figure Amien Rais, have charged
Freeport's mining activities mostly benefit foreign investors.

It was reported last year that since it started mining in
Irian Jaya 25 years ago, Freeport had produced 1.65 million tons
of gold valued at Rp 470 trillion (US$202.59 billion) and 3.25
million tons of silver. The Indonesian government holds a 10
percent stake in the firm, a subsidiary of New Orleans-based
Freeport McMoran.

Thursday's plenary session was filled by commissions reporting
results of their trips to different regions during the
legislature's recess in August. Commission VIII also visited Aceh
and met with survivors and relatives of victims of alleged
military atrocities during the nine-year special Armed Forces
(ABRI) operation in the province. (swe)