Kissinger calls on RI to honor Freeport deal

JAKARTA (JP): Former U.S. secretary of state Henry Kissinger called on the Indonesian government to honor its contract with copper and gold mining enterprise PT Freeport Indonesia amid growing criticism over the company's mining activities.

Kissinger, listed on the company's website as a member of the board of directors of the U.S. parent company, Freeport McMoRan, warned that any violation of the contract would have an impact on the flow of foreign investment into the country.

"The contract should be respected because it is in the interests of Indonesia since you want investment from all over the world," Kissinger told reporters at the State Palace after a meeting with President Abdurrahman Wahid.

Minister of Foreign Affairs Alwi Shihab, who accompanied Kissinger to the meeting, said the President agreed to honor the contract but hoped Freeport would have some understanding of the wishes of local residents.

"The existing contract will be honored. But Abdurrahman asked Freeport to have a sort of understanding of the people's aspirations. There won't be any change made to the contract, but (Freeport) needs to give a special concession," Alwi said without elaborating.

Kissinger agreed that Freeport should pay attention to some special concerns in its operation.

"Freeport should be open-minded to special concerns in the execution of that contract," he said, but he did not elaborate.

Freeport has been criticized by many parties for allegedly destroying the environment around its copper and gold mine in the Grasberg area in Irian Jaya.

Head of the Regional Environmental Impact Management Agency (Bapedalda) of Irian Jaya Muhammad Ali Kastella recently told The Jakarta Post that his office had found 13,300 hectares destroyed by the company.

Many legislators have also demanded the government to revoke a governmental regulation of 1994 that enables Freeport to avoid its contractual obligation to divest up to 51 percent of its shares to Indonesian companies or the government.

In a media conference, Kissinger also said he had accepted Abdurrahman's offer to be his political advisor.

He said he would confer with Abdurrahman at least once a year on political and social policies for the world's fourth most populous nation.

"I responded to the President's request out of friendship for the Indonesian people and the importance I attach to Indonesia.

"I would like Indonesia to be strong, unified and democratic," he added. (jsk/prb)