Irian, Riau groups demand share of mining royalties

Irian, Riau groups demand share of mining royalties

JAKARTA (JP): Several non-governmental groups have demanded
that the government split earnings from mining, oil and gas
operations in Irian Jaya and Riau with the two provinces.

Dozens of Irianese students and the noted leader of the
Amungme tribe Tom Baenal told Minister of Mines and Energy
Kuntoro Mangkusubroto at his office yesterday that the people of
Indonesia's easternmost province had not benefited from the
development of massive mining operations in their region.

"(Copper and gold company) PT Freeport Indonesia has been
exploiting our natural resources for 30 years, but we still live
poor lives. Are we going to be in a similar position in 30 years
time?" Baenal asked.

The Amungme are one of several tribes which inhabit the area
around Freeport's Grasberg mining contract area.

Freeport Indonesia is a subsidiary of American company
Freeport McMoRan Gold and Copper Inc.

A day earlier Kuntoro received a 25-strong delegation from a
group called the Riau People's Association for Reform which
demanded that 10 percent of the government's earnings from the
operations of oil company PT Caltex Pacific Indonesia be given to
the province.

The funds would be used to speed up development in the
province, the group said.

Caltex produces 60 percent of the country's oil output of 1.5
million barrels per day (bpd).

"Caltex has been developing our oil resources for 50 years but
many people in Riau still live in poverty," delegation member
Thamrin Nasution said.

Kuntoro acknowledged that the government should pass a law
allowing provinces to receive a share of the royalties from the
exploitation of their own natural resources.

The central government currently collects all royalties and
taxes from mining, oil and gas operations and pools them in the
state budget before redistributing them among all the provinces
with little regard to their respective contributions to the
budget.

Several non-governmental organizations (NGOs) who accompanied
the students also protested at the activities of two mining
companies, PT Montaque Mimika and PT Nabire Bhakti Mining, which
are currently prospecting inside the Lorentz nature reserve in
Irian Jaya. The NGOs included the Indonesian Forum for the
Environment (Walhi), World Wide Fund for Nature (WWF), Telapak,
ELSAM, Fokker LSM Irian Jaya, BIOFORUM and Japama.

Kuntoro said the areas for which mining contracts had been
issued did not lie in the Lorentz reserve until the Ministry of
Forestry enlarged the conservation area.

He also said the companies' exploratory activities would not
necessarily be followed by exploitative operations.

"The Ministry of Forestry could forbid the companies from
mining inside the reserve to protect the area," Kuntoro said.
(jsk)