PT Freeport's fund should be rearranged

JAKARTA (JP): The distribution of PT Freeport Indonesia's development fund should be rearranged so that it will not cause problems or conflict among Irian Jaya tribes that receive it, a human rights official says.

"The distribution and utilization of the 1 percent fund should be corrected," said Bambang Soeharto of the National Commission on Human Rights, adding that it should be ensured that the money reached the right people.

"Recent protest by people in Timika was because the fund was not distributed fairly," he said. "There was an indication that rather than reaching appointed foundations, the money was pocketed by certain individuals."

He did not elaborate but said that it was the recent fund disbursement that triggered conflict between the tribes.

Bambang just returned from a trip to Timika where four people died last month, including two in riots that local leaders linked to the rising tension over the disbursement of the development fund by giant mining company Freeport.

Rp 2.3 billion (US$800.000) was involved, which was meant to be divided among seven tribes affected by the company's operations. They were the Amungme, Kamoro, Moni, Ekari, Dani, Damal and Nduga tribes.

Last year, controversy over the fund caused tribal warfare that killed 12 people.

Bambang called for the establishment of a forum to discuss and find solutions to the problems in Timika. The forum should include the National Development Planning Board, the Armed Forces, the local government, local people and Freeport, he said.

The company's vice president for environmental affairs, Bruce E. Marsh, said on Tuesday that the company planned to continue to allocate 1 percent of its profit for local community development, but would also start discussing ways of distributing the fund differently.

"The problem is not the fund," he said. "What's causing conflict is how the money has been distributed."

He said the rights commission had suggested that "it would be more effective" if the money was presented to each village and the locals were allowed to decide how to use the fund.

Marsh said the discussion on rearranged distribution had yet to be finalized. "But the idea is still there of how to send the money out to the locals to provide for their essential needs, such as health care, education, housing, roads and drinking water."

Separately, the three main churches in Mimika regency, Irian Jaya, along with the Foundation of Amungme's Consultative Institution, expressed disappointment over the rights commission's visit to the area.

They said in a statement that the commission had not performed a thorough and comprehensive investigation into various problems in Timika.

The churches also questioned whether the commission's two-day visit, Aug. 31 and Sept. 1, was enough to find a solution to the problems.

The commission had earlier said that they were not visiting Timika to investigate the riots but to "familiarize" themselves with the area and its problems. (10)