Govt told to review Freeport deal
Govt told to review Freeport deal
JAKARTA (JP): The House of Representatives asked the
government on Tuesday to review its contract with mining company
PT Freeport Indonesia, saying the deal violated investment
regulations and the 1945 State Constitution.
The recommendation was announced by House commissions I and II
following a visit to Irian Jaya during the recess in December of
last year.
"We suggest that the government review the deal," Commission I
deputy chairman Astrid Susanto said after a House plenary session
to hear the joint-commission's report of its Irian visit. The
session was presided over by Deputy House Speaker Soetardjo
Soerjogoeritno.
Commission I is in charge of defense, security and foreign
affairs, while Commission II deals with home and legal affairs.
The rich mining company, a subsidiary of American firm
Freeport McMoran Copper and Gold, began operating in the early
1970s in the gold-rich province. Indonesia, then under long-time
ruler Soeharto, and Freeport signed the first deal in 1967 and
extended it in 1991.
Astrid said the revenue sharing stipulated in the contract was
unfair since it earned Indonesia only 20 percent of the income.
"Indonesia who owns the land receives only a tiny share. Is
that fair?" she said.
Astrid said the two commissions fell short of suggesting a
fairer revenue sharing program.
Meanwhile, the Commission I spokesman, Hepi Bone Zulkarnain,
said the commission deemed the current contract to be against the
1967 Foreign Investment Law and the Constitution.
"The exploitation of natural resources in the province should
benefit the local people as stipulated in the law and
Constitution chapter 33," Hapi said.
He suggested that the government seek "a win-win solution"
should the contract be revoked.
The two commissions concluded in their report that the mining
operations had resulted in socioeconomic injustice, rampant human
rights abuse and political tension.
Demands for independence have mounted in the province over the
past year. (jun)