Jakarta, 4/3 (Jubi) – Freeport should allocate shares for the Papua provincial governmentas part of efforts to improve local people’s welfare, a legislator said.
House of Representatives deputy chairman Priyo Budi Santoso made the calls on Monday during a meeting between the Monitoring Team for Special Autonomy with the central government and PT Freeport Indonesia in Jakarta.
“It’s also a form of implementation of Freeport’s responsibility to Papuans. It has operated in Papua for years, but until now the people of Papua are still living in poverty,” Priyo was quoted as saying by the House official website www.dprri.go.id.
A member of the monitoring team, Bobby Adhityo Rizaldi, said the government should not extend Freeport’s contract if Indonesia did not benefit from its operations.
“There should be a strict standard of conduct shown by Freeport to determine whether it is still worth keeping. If the government wants it to be nationalized, which one of the state-owned companies is ready to replace it?” he said.
Earlier, Minister of Energy and Mineral Resources Jero Wacik said in the meeting that the government made clear its views to PT Freeport.
“The government has asked PT Freeport to sell 40% of its products to domestically, and 60% of them can be exported abroad,” the minister said.
He also stressed that Freeport should not fire workers because mass layoffs could trigger instability. The minister said all foreign companies operating in Papua are required to sign a commitment of Corporate Social Responsibility (CSR) showing their funding pledges to local communities.
Meanwhile the CEO of PT Freeport, Rozik B Soetjipto said at the moment the central government has 20% of Freeport’s shares, up from 9.36% previously. PT Freeport’s Contract of Work will end in 2021 and there are plans for 20-year extension. (JUBI / Oyos Saroso/rom)