Papuans Set for Showdown With US Gold Miner http://www.ipsnews.net/news.asp?idnews=32350
CORRUPTION-INDONESIA:
Papuans Set for Showdown With US Gold Miner
Kafil Yamin
JAKARTA , Mar 2 (IPS) - After two weeks of protests
and a sustained blockade, the United States miner,
Freeport-McMoran, continues to hang on to the world's
largest gold and copper mine in eastern Papua
province, on the strength of assurances from the
central government.
Residents of Kali Baru and Banti villages have been
blockading the company's mining site in Tembaga Pura
and forced the company to halt operations over the
past week.
Freeport stands accused by the people, the provincial
government of Papua and non-government organisations
(NGOs) of colluding with corrupt military and other
central officials, to fleece the mines and degrade the
environment around the mine located deep in the remote
snow-capped central highlands.
Papua's legislative house and the Papua People's
Assembly have been firm that Freeport must shut down.
''We have asked the central government in Jakarta to
close down Freeport,'' Papua house speaker Komarudin
Watubun told a crowd of 300 demonstrators staging a
rally on Tuesday. ''We want a total closure of the
company.''
Joining the chorus is one of Indonesia's prominent
political leaders, Amien Rais, who said, last week,
that Freeport should be closed down for ''three big
crimes''.
''The first is ecological crime by destroying land and
environment. The Ajkwa river that was once clean and
green has now become a heap of tailing.'' The second,
he said, was ''robbery by channeling concentrates of
gold and copper from Jayawijaya mountain top through a
100 km pipe to the Arafura sea and taken overseas for
decades, unreported.''
Rais said he had reliable data to show that only three
percent of mined concentrates of gold and copper were
accounted for.
''The third is tax crime,'' he said, demanding that
President Yudhoyono review the Freeport contract.
Freeport is already Indonesia's biggest tax-payer.
On Wednesday, the protesters managed to meet James
Moffet, commissioner of Freeport. Negotiations have
continued but tensions have been running so high that
clashes have broken out with Indonesian security
forces who are paid, illegally, by the company.
Meanwhile in Jakarta, NGO activists and the Papua
students have been marching to the Freeport office in
South Jakarta demanding closure of the company and
clashing with police.
Last week, the protesters turned violent and rampaged
through the building destroying furniture and breaking
window panes. The arson stopped only after police
fired warning shots.
Facing frequent protests, including attacks on its
workers, Freeport has sought Indonesian military
protection by paying off high-ranking military
generals and police officers.
An investigation by the London-based NGO, 'Global
Witness' has revealed names of military and police
officers who personally received money from Freeport
in what the company calls 'pay for protection'. Brig
Gen Ramizan Tarigan admitted he received 14,000 US
dollars during 2002.
In April 2002, Freeport gave the then Papua military
chief Maj Gen Mahidin Simbolon 64,000 dollars in what
the company dubbed as 'fund for 2002 military
project'. In December of that year, Simbolon received
another 67,000 dollars for 'humanitarian civic
project', according to Global Witness. Simbolon is now
the inspector general of the Indonesian Army.
In 2003, as the U.S. government imposed stricter
assessment on companies, Freeport switched to paying
police and military units instead of persons. During
that year, the company paid Indonesia's military
police and paramilitary 200,000 dollars.
Freeport has spent at least 20 million dollars from
1998- May 2004 on military and police officers in
Papua, according to the Global Witness investigation.
Several former managers interviewed by Global Witness
said at least 10 million dollars more were paid after
2004.
Freeport is also accused of obscuring its real
revenue, prices of copper and gold and tax fraud. The
government is now setting up a team to assess Freeport
transactions.
Vice President Yusuf Kalla said there is an urgent
need to review the Freeport contract with the
Indonesian government. ''If they (Freeport) are proved
to have scammed taxes, prices and other unfair
dealing, we will certainly impose a legal sanction,''
he told journalists in Jakarta, last week.
The review team will comprise officials from the
ministries of finance and of energy and mining, with
the assistance of several legislators.
But even as the team is in the making, the Indonesian
military and police has sent in more troops to the
company's base in Papua to deal with the people's
blockage.
Last Thursday, Freeport denied it gave dollars to the
Indonesian military officials as suggested by Global
Witness. But the company acknowledged that it has
provided the military guarding the mining site with
logistic assistance. ''We don't bribe. We do give
assistance to the military, not in cash, but in the
form of field equipment such as handy talky, cars,
food,'' said AR Soehoed, a Freeport official.
Soehoed said the company needs to ensure security at
its mining sites and due to challenge in the field,
the military needed good facilities. ''All payments
are transparent and reported to the New York Stock
Exchange,'' he said. ''And assisting security
personnel on duty is just normal. If you give some
food to your starving guard, that is normal, right?''
(END/2006)