[Mongabay] The Freeport Noise Isn't Just About Money, What's the Fate of the Environment and the Papuan People?

Workers are mining in the underground tunnel of PT Freeport Indonesia. Photo: PT Freeport Indonesia

Indra Nugraha, Jakarta

PT Freeport Indonesia's action, in refusing to change its work contract permit to a special mining business permit (IUPK) if it wants to export raw minerals, has received a lot of attention. Various groups have spoken out, ranging from the company's 'habit' of getting special privileges to criticism that Freeport's fuss is only about money but not about the safety of the people and environment of Papua.

Merah Johansyah, Jatam National Coordinator said, from 2014 until now Freeport has exported 4.55 million tons of concentrate which can produce 1,016 million pounds of copper and 1,663,000 troy ounces of gold.

He estimates that Freeport's profits during the two-year extension of concentrate exports will reach US$256 billion or IDR 3,328 trillion.

"This figure is worth twice Indonesia's APBN," he said.

In 2014, Freeport paid taxes and royalties of IDR 5.6 trillion. In the same year, state budget revenues were IDR 1,667.1 trillion. "This means that the amount of Freeport's taxes and royalties is less than 0.4% of state revenue," he said.

He considered that the issue between Freeport and the Indonesian government was that they did not talk about the safety of the people and the environment. Only economic interests are the main discussion. In fact, the Freeport discussion must not ignore the safety of the people, the environment, violations of law and human rights during this time in Papua.

"Regarding export permits, right "In fact, the government has repeatedly relaxed export permits."

Jatam notes, he said, there have been five export recommendations since 2014. In Law 4/2009 concerning minerals and coal there is an obligation for downstreaming by building a smelter factory, a five year deadline from 2009.

"That means 2014. Because the government was too lenient with Freeport, five violations occurred," he said.

The government has violated the Mineral and Coal Law from the start. If the government had been consistent, since 2014 there should have been sanctions or legal and political measures to stop Freeport's concentrate exports.

"Now there have been five recommendations for export permits. The sixth time, in the form of IUPK offers and export recommendations. Unfortunately, the government also violates it."

"Both are equal to three dollars, because they only prioritize economic interests above the safety of the people and the environment, law and human rights."

He also views that the DPR has never held the government accountable for violations of the Minerba Law.

"The DPR should call the government on why it is violating the law? Unless the law is revised. Until now it has not been revised. The government continues to provide discounts to Freeport.”

Source: PT Freeport Indonesia

He asked the government to firmly implement the mandate of the Mineral and Coal Law and not to worry about the threat of mass layoffs and arbitration disputes.

“Legal sovereignty is in our hands. If Freeport violates, why should the government be afraid of arbitration? Even until the afterlife, if we are right, just do it."

He asked the government for a moratorium on Freeport permits. “Stop all Freeport mining. A comprehensive evaluation including environmental issues, legal violations and human rights."

Freeport, he said, had committed tax evasion. In the case of surface water tax alone, the value is more than IDR 32 trillion.

“Now in the name of thousands of workers to scare the government. So it's a tool to threaten the government. This is an old trick in mining. Without reducing our respect for fellow workers, Freeport should not use workers as bargaining chips. Do not be like that. That's the same as making humans chess pieces, to be pitted against each other. "This is a very cruel tactic," said Merah.

He said that the Freeport smelter factory had not yet been realized, the construction in Gresik was progressing very slowly. “The presence of smelters must also be checked. "Can there be added economic value, what about the chain of damage caused by the construction of the smelter?"

Ermy Ardhyanti, Coordinator of the Extractive Industries Division Article 33 said that the problem with Freeport's concentrate exports was the obligation to build a smelter. Freeport has so far been disobedient.

“The government has been lenient by providing several relaxations. Then it shifted to sort of bargaining position for the extension of the work contract. They use investment figures for bargaining extension of the work contract," he said.

So far, he said, there has been no transparency, especially regarding Freeport's contribution to Indonesia.

He hopes that the government will be consistent with regulations. Regarding the current processing of mining products, he said, there is legal uncertainty when the government grants special rights to certain companies.

Supposedly, investment certainty is not just Freeport. Building a smelter is not a bargain, but an obligation.

Markus Haluk, a young Papuan figure hopes that Freeport in Papua can stop completely. "One day the government will look for the real shareholders, namely the Papuan people as land owners," he said.

Now, he said, should be the right time to not only talk about their stomachs and the economy, but about guaranteeing human rights, the economy, social and culture of Papua.

Rachmi Hertanti, Executive Director of Indonesia for Global Justice, asked the Indonesian government to ignore Freeport's threat of a lawsuit and consistently implement the mandate of the Mineral and Coal Law.

“Freeport's legal efforts are an old strategy to improve their bargaining position. Don't let the experience of the 2014 Newmont lawsuit be repeated. Newmont sued Indonesia to ICSID to improve its bargaining position. "Evidently, Newmont withdrew the lawsuit on August 25 2014. The government issued Newmont an export permit from September 18 2014 to March 18 2015."

Rachmi believes that Freeport's threat of arbitration is not related to the Indonesian government's alleged breach of contract regarding the contents of the work contract but is reluctant to implement the Mineral and Coal Law. Then, Freeport used the investor-state dispute settlement (ISDS) mechanism. to avoid obligations.

"The government must not submit to Freeport and continue to force Freeport to comply with the regulations of the Mineral and Coal Law."

http://www.mongabay.co.id/2017/02/23/ribut-freeport-jangan-cuma-soal-duit-bagaimana-nasib-lingkungan-dan-orang-papua/