Kissinger calls on RI to honor Freeport deal

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)