Jayapura, 9/3 (Jubi) – Measures taken by PT Freeport Indonesia as a result of the Indonesian Government’s tax policy will include production cuts that may lead the company to reduce or even discontinue the sponsorship of Persipura Jayapura, an indigenous figure said.

As the community of Indigenous employees of PT Freeport Indonesia and the representative of the tenure right owners in the mining areas of PT Freeport Indonesia, Papuan Brotherhood said it was concerned about the Mining Law No.4/2009 and Minister Regulation No. 6 PMK.011/2014 on the export taxes.
“Related to the government’s policies, PT FI has discontinued its operations in several mining locations including the underground mining, Big Gossan  and open pit Grasberg,” said the chairman of Papuan Brotherhood, Herman Rumboirusi,  in a statement received by on Monday (9/3).

Papuan Brotherhood said the ,anagement of PT Freeport Indonesia take some measures to improve its efficiency considering now it only produced 40% of its normal output.

Measures could include the layoff of 30,000 workers and contractors, reductions  in community development or partnership funds allocated to support education and health services for the local communities surrounding the mining areas through scholarships and livelihood skills training as well as the collaboration with the local government to support the infrastructure development programs.


Such measurr would affect public health services for communities in Tsinga, Arwanop, Tipuka, Ayuka, Nayaro, Koperapoka and Nawaripi, the statement said.

PT Freeport would also reduce the Trust Funds or Endowments to the Watching Foundation and Yuamako Foundation who worked for the community development for Amungme and Kamoro tribes whose their tribal lands are polluted by the tailing.

The company is also expected to cut the operational cost for their Social Local Development Department for the local community surrounding the mining area including the programs of Business Incubator, Community Development, Malaria and related diseases control and Community License Officer. Other emergency funds including disaster relief funds also would be halted for management efficiency.

In addition, the Freeport’s efficiency would also affect the regional revenues of both Provincial Government and Local Government of Mimika Regency. The Regional Gross Domestic Product will decrease to 91,1 percent while it decrease to 37 percent and 0.8 percent respectively for provincial and national GDP.

Papua Province’s bid to host 2020 National Games (PON) would be also affected because Freeport would not able to finance the construction of the Mimika Sport Complex .

Papua Brotherhood also highlighted some social problems that might arise from unemployment such as crime or other social problems.

To avoid future social impacts in Mimika Regency, Papuan Brotherhood has met with the Papuan People Assembly, the Governor and Vice Governor of Papua Province and the Chairman of Papua Legislature Council.
“Generally the Government Officials and legislators were very supportive to what we have voiced,” said Brotherhood said. The chairman together with his Papuan colleagues hoped the Provincial government of Papua will increase pressure on Jakarta.

“The effort of Papuan Brotherhood is a moral movement and a show of sympathy to the workers of PT Freeport Indonesia who would be affected by the management’s policy in particularly the termination of work,” Papuan Brotherhood said. (Jubi/dominggus a mampioper/rom)

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