Freeport vs. people

If what The Jakarta Post has been reporting lately concerning the 1991 shares transactions which involve PT Freeport Indonesia, Indocopper Investment Corporation and PT Nusamba is true, there is certainly much presented that would lead most analytical minds to suspect that the transactions are not all that those involved are asking the general public to believe.

Given the statement of Mr. Tadjuddin Noor Said, that the House "supported" the divestiture by Freeport McMoRan Gold and Copper, Inc. of an additional 10 percent of their ownership of PT Freeport Indonesia, "for the people of Indonesia", one is hard put to understand why a substantial bulk of the shares were allowed to be repurchased by PT Freeport Indonesia only one year later. Certainly such repurchase is not in keeping with the supposed intent of the COW condition that formed the basis for the required divestiture. Since the shares sale and the repurchase occurred during the tenure of a single Minister of Mines and Energy, and since until only recently has House legislation been initiated by the House, one can only conclude that the incumbent Minister who was responsible for the COW development and implementation did not act responsibly and competently.

Further, the divestiture requirement of the COW is clearly poorly composed to have permitted such a manipulative scenario to have transpired. There can be but few analytical minds who would credit such gross oversight to accident and not to design. In retrospect, the people of Indonesia have benefited not all from this charade.

I have not been able to find anyone who remembers PT Freeport McMoRan Gold and Copper, Inc. announcing their intent to sell 10 percent of their shares, and their willingness to provide a substantial bank guarantee to anyone (Indonesian) willing to make the purchase. I will appreciate a response from anyone who saw such an announcement.

It should not be all that difficult for the responsible authorities to investigate the relevant transactions. The loan guarantee and loan agreements for the shares transaction should certainly be reviewed, as should the receipts, withdrawal, deposit and account records for the sale to PT Nusamba.

C. DUPUIS

Jakarta