Addressing the Freeport Case
It’s been about 45 years of mining activities by PT Freeport-McMoran Indonesia (Freeport) exploration in the Motherland. Again, a wide variety of polemic caused by the largest contributor to the GDP of the Republic.
After some time ago, the company known as the gold company the third largest in the world in trouble with the local population because of the activities of people doing gold panning of the remnants of production waste Freeport, now nearing completion of a contract between PT Freeport and the Government of the Republic of Indonesia in 2021, re-drawn public attention because both sides until now insisted defend their respective interests related to the continuity of contracts that supposedly could potentially reap the seeds of disaster.
History also vary depending now, it is said whoever its president, the Indonesian government has been ascertained hostage with contracts G2B which is a legacy of the previous order. The number of Indonesian government discretion of the missing to execute policies that conflict with the contents of the contract.Nevertheless, like a disease, we ought to society Indonesia fully supports the government’s efforts to divest 51% stake in Freeport to treat various diseases which has been acute created by Freeport.
Gus Dur Era
In 2000’s, during the administration of President Abdurahman Wahid era or the addressee is familiar with Gus Dur, the government had issued Government Regulation No. 13 of 2000 which contains about modifying the royalty rates of copper and gold were initially 3.75% and 1% turned into 4% and 3.75%. Instead, Freeport simply saying that “We will not adhere to the rules that violate the contract”.
Continued into the era of President SusiloBambangYudhoyono, many rules and policies established. In 2009 ago, the President is known by the acronym SBY is approved Law No. 4 of 2009 on Mineral and Coal which generally contains about changing the contractual regime to license (IUP) in the mining industry. Meanwhile, in article 169 of the Act clearly stated that the Government honor the contract until the end, but the contract terms have been set to be adapted later than 1 (one) year since the Act applies.
In addition, in Article 170, the government also requires the contractor who has done production; purification must do no later than five (5) years from the Mining Law applies.
Then what is the response of Freeport? Until now there have been no internal regulations that are tailored to Freeport Act. Coupled with the issuance of Government Regulation No. 9 of 2012 which is expected to set back the royalty rate, but what happened? All seemed to breeze through alone.
A year before the completion of the term of office of the President, he had issued Government Regulation No. 1 of 2014. Article 112C figure 3 this policy states that credit card holders can sell their minerals abroad after conducting purification. But what happens, Freeport precisely maneuvered back to the government by threatening to lay off employees.
President Jokowi Era
Just two years in office, President Jokowi has issued Government Regulation No. 1 of 2017 which aims to relax the relevant provisions of the concentrate export requirements.
At the same time also, the Government requires the contractor should change regime to IUPK COW (Special Mining Business License). In addition, the government also seeks to require the contractor to divest up to 51% in the 10th year since the production.
However, Freeport precisely unilaterally terminate the contract and switch to IUPK and accompanied by threatening to bring the settlement of the case to the International Arbitration Court if the Indonesian Government insisted impose its will.
Responding to the Freeport response that had seemed to reign on Earth of Cenderawasih, as the future generation should support any policy of the Government to take over the entire operation of the Freeport mine in Timika, Papua through divestment policy.
Started to look at new sheets and focus our glasses to the Freeport issue, because of the need to be aware that the company that supposedly back up by the Central Intelligent Agency (CIA) has a lot of American strategy and attempts to probe the government cuts.
Beware of Provocation and intimidation SARA, and began to pay attention objectively against our families in Papua, because sooner or later, an operation strategy Freeport to reaching the aim to survive explore Papua earth does not necessarily stop there.
*) Ardian Wiwaha, Social and Politic Student in University of Indonesia