Freeport mining area (Jubi)

Papua Does Not Need Special Autonomy Fund, But Shares in Freeport McMoran

Freeport mining area (Jubi)

Freeport mining area (Jubi)

Jayapura, Jubi – A Member of Parliament from Papua, Willem Wandik said the Papua provincial government did not need special autonomy funds, but shares from Freeport McMoran

He said before the expiry of the contract, there was a talk of a Memorandum of Understanding draft between Freeport and the government of Indonesia, addressing issues including the possibility of Freeport divesting 30 percent shares.

He said it was was a good plan, because Freeport was fully owned by foreigners. Now Freeport must take seriously Papua’s proposal for it to divest its shares.
“The Government of Papua needs to prepare a discussion draft Regulation (Regulation) which would be a legal umbrella for the management of the gold and copper mine that had been controlled by PT. Freeport. The Government of Papua do not need Special Autonomy funds but shares in PT. Freeport, ” Wandik said via phone on Wednesday (12/11).

The plan should involve the Government of Papua and Papua People’s Assembly (MRP) as a representation of indigenous Papuans. The presence of others who seek to enter in the renegotiation with PT. Freeport should not overstep the interests of local government and the people of Papua.
“The balance funds and special autonomy funds should come from royalties and taxes from PT. Freeport. The royalties and taxes income becomes part of the country’s income which is then shared in the form of revenue sharing funds to local governments in Papua,” he said.


He further added, the revenue of Papua from tax and non-tax of PT. Freeport are very small which is far away from the exploitation of gold and copper in Papua. The basis of calculation of tax revenues from the component does not  significantly boost state revenue.
“Certificate of Freeport shares is important as a evidence of ownership of a company. Shareholders have the right to claim on the company’s earnings. Therefore, with the ownership of Freeport interest , Papuans can directly control the management of natural resources in their own land,” he said.

On one occasion, the Governor of Papua, Lukas Enembe said, as customary owners of Freeport mining area, the provincial government wants to have a stake in the mining company.
“Reportedly Freeport agreed on additional shares of the previous government from 10 percent to 25 percent. Later the central government will give to the provincial government. How will it be implemented? This will be discussed again. If the provincial government is given a stake, it means government must have enough money to buy,” Enembe said at the time. (Arjuna Pademme)

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