Freeport Important for Papua, says Company VP

TEMPO.CO, Jakarta - Freeport Indonesia Vice President Napoleon Sawai said that his company had provided significant contribution to Papua and called Freeport as a big laboratory in the province.

“The laboratory has helped Papuans to work,” Napoleon said on Saturday, October 17, 2015.

According to Napoleon, local people account for 27 percent of the total employees. As much as 50 Papuans occupy managerial positions and seven others serve as vice presidents. Napoleon added that Freeport Indonesia had helped Papuans to improve local residents by providing them with job opportunities.

In a bid to empower local people, Napoleon claimed that Freeport Indonesia had invested funds for a community development program that were directly managed by the company, as well as a partnership with local NGO.

Freeport spokesperson Riza Pratama said that the company allocated US$92.2 million last year for the two programs.

“The total investment for the community development program for the period of 1992-2014 had reached US$1.3 billion,” Riza told Tempo on Saturday, October 17, 2015.

Riza added Freeport also provided contribution the state revenue in form of taxes, royalties and dividends with a total amount of US$15.8 billion over the last two decades. In terms of Freeport’s indirect contribution, the giant mining company had disbursed US$29.5 billion in form of salary, domestic purchases, regional development and domestic investment for the same period.

Freeport is currently in a process of extending its contract that will expire in 2021. However, the contract extension is considered to violate Article 169 of the Law on Mineral and Coal. Despite the speed bump during the contract negotiation with the government, Napoleon said that it would not disrupt Freeport’s operation.

“We consider that Freeport is important for Papua. I think the political speed bump would not disrupt our operation,” Napoleon said.

ARIEF HIDAYAT