TNI chief admits to perks from Freeport

TNI chief admits to perks from Freeport

Fabiola Desy Unidjaja, The Jakarta Post, Jakarta

Indonesian Military (TNI) chief Gen. Endriartono Soetarto said on
Friday some 600 troops stationed at the Freeport mine in Papua to
protect the company's assets receive daily allowances and lunches
from the United States-based company.

Endriartono said the money was given to soldiers in the field,
but he did not know how much each soldier received.

"The boys at the mining site receive daily allowances and
lunches, but I do not know if Freeport also donates additional
money to the TNI," Endriartono said.

He did not say whether the TNI allocated money from its own
budget for the protection of the company's assets.

Speaking to reporters after swearing in the new commander of
the Presidential Guards, Brig. Gen. Agung Widjajadi, who replaces
Maj. Gen. Nono Sampono, Endriartono said he would seek
clarification on whether Freeport Indonesia provided additional
money to the military.

Endriartono was commenting on a news report that TNI received
US$5.6 million from the American-based company to protect its
employees.

Freeport-McMoran Copper and Gold Inc. disclosed this figure in
a confidential document sent to the New York City comptroller's
office and to the U.S. Securities and Exchange Commission,
according to the report by AFX Global Ethics Monitor.

The report said these payments had been made since 2001, with
$4.7 million provided for 2,300 troops at the site to cover their
housing, fuel, travel and vehicle repair expenses.

In a Freeport document to its shareholders, the company also
said another $400,000 was disbursed in 2002 for "associated
infrastructure" in Indonesia.

The giant mining company has been operating in the country
since the late 1960s, but its presence in Papua has become
increasingly controversial of late, with critics linking it to
human rights abuses and graft.

An ambush last year that killed two American teachers and an
Indonesian employed by Freeport is one major case concerning the
company.

The U.S. Federal Bureau of Investigation is helping in the
investigation into the ambush.

"Historically, the limited resources of the Indonesian
government and the remote location and underdevelopment of Papua
have resulted in PT Freeport Indonesia being requested to provide
logistical and infrastructure support, for both the civilian
government and the military/police," Freeport wrote in the
document.

Endriartono reiterated he had never heard of or received the
large amounts of money mentioned by Freeport in the confidential
document. He said all he was aware of was the free lunches and
allowances the company provided for the 600 soldiers at the site.

"I will talk to Freeport immediately. The company has never
publicly provided such a report or said to whom they give this
money," the general said.