Freeport's commitment

Freeport's commitment

Thank you for helping clearup the latest false rumor that has
swept through the Timika-Tembagapura area (Irian tribal leader
not abducted, July 23, 1996). Father Nato Gobay obviously knows
how dangerous a rumor like this can be and he should be commended
for his quick reaction to dispel this deception.

I was disappointed to see that The Jakarta Post has yet to
correctly describe the scope and substance of the government's
Integrated Timika Development program (ITD).

The government-run ITD program will receive 1 percent of
Freeport's revenue each year, as well as contributions from other
companies operating in the area which are paid to the ITD on a
quarterly basis. This is specifically what the local people
requested in the period immediately following the disturbances in
March. Freeport made a commitment to the local people, responding
directly to their wishes, and we have kept that promise.

Separate and distinct from the 1 percent commitment to the
government's ITD program is our additional commitment of shares
in PT Freeport Indonesia for the Amungme and Komoro tribes, the
original inhabitants of the area around the mine. The shares,
which will enable tribal leaders to participate and vote in
shareholders' meetings, will generate roughly US$500,000 in
revenue each year which the Komoro and Amungme people may use
anyway they want.

Most importantly, however, is the fact that in no way, shape
or form have any of the tribes in the area rejected the ITD
program, although it is true that some individuals have objected
for their own personal reasons. Indeed, your article should have
pointed out that the Komoro tribe set up Lemasko and several
Amungme elders set up a new foundation called Amungkal
specifically to enable the tribes to participate in the ITD
Program. The other five tribes in the area are yet to set up
legal entities to administer the funds, pursuant to the
strictures of the ITD, but are reported to be in the process of
doing so.

As for the "3,000 people protesting" in Timika recently, the
number, according to our sources, indicates that perhaps several
hundred people were present in what has been described to us as a
conversation moderated by a local government official, not a
protest. The number 3,000 has been circulated by Martin Regan,
Tom Beanal's lawyer, in a press release issued from New Orleans.
It is important to remember that Mr. Regan was found guilty by a
Federal Judge for obstruction and "misrepresentations" to the
court, and he was sanctioned accordingly.

The people gathered in reaction to several prominent Amungme
leaders who stepped forward to enable the Amungme people to
participate in the ITD program. The people were directed to the
homes of the leaders, however, by certain politically motivated
individuals in a flagrant attempt to intimidate and harass anyone
participating in the program.

The government-sponsored ITD program is an attempt to involve
the local people in more of the decisions that will affect
development of the Timika and Tembagapura area. The ITD is, in
fact, the most comprehensive attempt to date to improve the lives
of the local people.

ED PRESSMAN

Manager, Public Affairs

Jakarta