Papua demands fair royalties

Papua demands fair royalties

From Bisnis Indonesia

The recent complaint lodged by Papua's Puncak Jaya regional administration regarding its royalties from PT Freeport Indonesia should get a fair and wise response from the government, because the demand is valid.

Based on the decision of Papua Governor No.5/2001 on mining profits shared with PT Freeport, Puncak Jaya will receive Rp 12 billion to Rp 14 billion, whereas the Ministry of Energy and Mineral Resources Decree No.517/2001 on mining profits shared between the central government and regional administrations states that Puncak Jaya will only be allotted Rp 3 billion a year.

In my view, the complaint was made due to an absence of good coordination. Unless the government properly handles this issue, the interests of local people and PT Freeport will be harmed. This can also trigger social unrest and disturb the company's performance.

MUHAMMAD IRWAN Bogor, West Java