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Between Freeport and Famine in Papua

Between Freeport and Famine in Papua

Sidik Suhada
November 28, 2011

Pathetic, when reading the headline of Sinar Harapan, Wednesday (23/11), entitled, "Thousands of Papuans Hunger". This is because we all know.

As a region producing gold, Papua enjoys the benefits of U.S. $ 19 million or around Rp 114 billion per day for PT Freeport Indonesia, a foreign company owned by the United States (U.S.) which has been operating for 44 years in Papua.

Since 1967, PT Freeport Indonesia (FI) has been operating and exploiting natural resources (SDA) in Papua. More than 2.6 million hectares of land has been exploited, including 119,435 hectares of protected forests and 1.7 million hectares of forest conservation. Land rights of indigenous peoples evicted too.

From the results of exploitation that, every day, the average corporate giant and the largest contributor to the gold industry in the U.S. was able to achieve a profit of Rp 114 billion per day. If the gain is multiplied by 30 days, the benefits of PT FI reached U.S. $ 589 million or around Rp 3.534 trillion per month. Residence times in the past 12 months, PT FI profit reached Rp 70 trillion per year.

Contribution

Based on the report of works contract between the government of Indonesia and PT FI with effect from December 1991 until now, the mining company's contribution to the Indonesian government was only about US. $ 12 billion per year.

However, in early November, before there were strikes of employees demanding higher wages, PT FI claimed to have been depositing the royalties, dividends, and taxes amounting to Rp 19 trillion to the government of Indonesia or up to Rp 1 trillion if compared to 2010 which is only Rp 18 trillion.

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Some opinions about the contribution of that is certainly not comparable with results obtained by exploitation of PT FI. This is because based on the financial statements of PT FI in 2010, mining companies are able to sell 1.2 billion pounds of copper with an average price of U.S. $ 3.69 per pound.

In addition, in 2010 PT FI also has sold 1.8 million ounces of gold with an average price of U.S. $ 1,271 per ounce, so if the average is calculated at an exchange rate of Rp 9,000, PT FI's total sales reached about Rp 60.01 trillion . Therefore, various groups urged the Indonesian government to review the contract work.

Loss

In general, the government of Indonesia has not only harmed in any material benefit. Exploitation of mines by PT FI also has damaged the environment.

Indonesian Forum for Environment (Walhi) noted, at least 291,000 tons of mining waste dumped into rivers Freeport every day. The amount is a 44-fold more than the daily garbage in Jakarta.

While the area is a place to dispose of waste Freeport reach 230 square kilometers, or 27 times wider than the lake PT Lapindo Brantas hot mud that drowned parts of Sidoarjo regency, East Java. As a result, the wells owned by residents of Papua is now contaminated with mercury.

In fact it could be, if not be ascertained, suffered thousands of starving Papuans as reported SH Wednesday, one reason is PT FI.

This is because it can not be denied, the natural damage caused by the exploitation of the mine can certainly exacerbate the natural condition of the agricultural community in Papua during bad weather. Famine and malnutrition or even famine struck the toddler who was in the land of Papua.

If this is allowed and the government is not responsive in responding to the Papuan people suffering hunger, did not rule out the integrity of Homeland will be increasingly threatened. This is because since the presence of PT FI, Papuans feel do not get good protection from the Indonesian government.

Moreover, the exploitation of nature by PT FI is felt to be beneficial for the local indigenous community. Since the presence of mining companies and the arrival of U.S. origin, the indigenous Papuan independence is threatened.

Even some feeling of independence is taken. This is because many traditional land or lands which have been the source of life of indigenous peoples disappear and turn into the mine area that can not be enjoyed by the public.

In addition to taking quick and appropriate steps to address famine in the land of Papua, the government must immediately restructure the work contract with Freeport because it has hurt the people of Papua.

Rights to communal land ownership must be returned, and the structure of land ownership which has spawned inequality to be overhauled, as mandated by the BAL No. 50 of 1960 and Article 33 of the 1945 original.

What does it mean Freeport, what's the exploitation of natural resources, if not bring change for the better for the life of mankind. Certainly be meaningless as well if only to feel to have, but never could enjoy it.

ENDS

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