We are responding to your Oct. 24, 2011 editorial titled “Tumult over Freeport”. Over the years, The Jakarta Post has been notable in upholding principles of fairness and accuracy. This editorial fails to adhere to these principles.
We continue to seek a mutually satisfactory resolution of the labor strike. Our current offer would guarantee compensation for top skilled non staff employees of Rp 19 million per month, a highly competitive amount. PT FI will ensure that it remains an attractive employer for Indonesians.
PT FI has long achieved success in operating in Papua which has benefited all stakeholders, including major benefits for our employees, the local community and the Indonesian government. PT FI employs 22,000 people in Papua — 98 percent are Indonesian citizens and 28 percent are Papuans. We invest in training, scholarships and schools to develop human resources.
University of Indonesia research indicates PT FI contributes more than 98 percent of the GDP for Mimika Regency and more than half for all of Papua.
PT FI paid US$52 billion in taxes, royalties and dividends during the first nine months of 2011 and over $13 billion since 1992.
The majority of PT FI’s royalties are directed to provincial and local government. PT FI pays Indonesia more than it would pay other countries if the mine were located in Canada, Australia, South Africa, Peru, Chile or the United States.
PT FI has invested over $7 billion to develop its operations and infrastructure, including town sites, power plants, an airport, seaport, roads, bridges, waste disposal facilities and communication systems.
PT FI has also built schools, dormitories, hospitals and clinics, places of worship, recreational facilities and assisted locally owned enterprise development. Over $15 billion in future investments will be funded. PT FI voluntarily contributes 1 percent of its revenues to a community fund administered by the local
community.
Your editorial portrayed PT FI’s operations as an “American enclave” which is simply not true.
We are a proud partner of Papua and Indonesia. We appreciate the support of the Indonesian government and local officials to protect PT FI as a vital national asset and urge all stakeholders to work cooperatively to resolve the current labor issues as soon as possible and restore peace in the Mimika area.
Ramdani Sirait
PT Freeport Indonesia spokesperson
Jakarta
Comments (12)
devine | Sat, 05/11/2011 - 14:11pm
It is sad to see, reading the articles over the last few weeks, that obviously Papua and its native folks are only CASH COWS and nothing else...
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Steve | Sat, 05/11/2011 - 12:11pm
...$2.34 per hour (that's 30 percent increase based on the current $1.80-$1.90 salary)...current price of gold is $55.82 per gram.
Yes a low wage worker could earn 11,000,000 if they work an 130 hour week.
Do the police security get a "lunch money rise" for the next round of shootings?
The figure of over 50 billion in taxes is a global figure (even if it's true).
Can you state the new hourly rate of the lowest paid worker, how many hours they have to work to make the Rp 11,000,000 monthly that was mentioned in the earlier article?
Paying miners the same wage as an average western worker is the fair way. Are you saying that you pay miners the same as a miner in USA?
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tri | Sat, 05/11/2011 - 12:11pm
A wage rise as desired by Freeport’s employees is reasonable because the mine is located in a remote area, which tends to have high living costs
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Fath | Sat, 05/11/2011 - 11:11am
@Lauren (Melbourne)
as outsider you'd better silent and do not bring moslem into this pure 'justice' problem. Do not import hatred n enminty to indonesia by your banal argument
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Aries Musnandar Uin Maliki | Sat, 05/11/2011 - 09:11am
PT FI must go out of Papua right away......!!!
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risyda | Fri, 04/11/2011 - 19:11pm
PT. FI paid $52 billion in taxes, royalties, and dividens during the first nine months of 2011?? Are you crazy? that's 5% of GDP of Indonesia, i think the amount is only USD 51 million, it is really small amount compare to the profit of PT FI get in 1 semester which is $2.1 billion, the ratio is only 1.6%. This is the time for PT FI to get out of Papua after you rob their land.
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Lauren | Fri, 04/11/2011 - 14:11pm
Only 28% Papuan employees? Isn't the existence of the Freeport mine part of the reason for the mass immigration of Indonesian Muslims into Papua? Once again RI and its 'actual' citizens benefit most. As for the taxes paid, so you should be paying proper taxes and developing the area. For $2.50 per hour FI employees get to share in the massive wealth of Freeport. Media relations communications like this do not even dent the damage done to FI's reputation. Paying police to be hired guns or private security is ethically despicable.
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Roger | Fri, 04/11/2011 - 13:11pm
I quoted: "PT FI pays Indonesia more than it would pay other countries if the mine were located in Canada, Australia, South Africa, Peru, Chile or the United States."
Saying "We pay Indonesia more than Australia" is the same thing like you buy two cans of cokes; one is 1 Liter and the other is 250 ml, and then you say: "We pay more for the 1 Liter".
Grasberg is the NUMBER ONE gold reserves and the world's NUMBER THREE cooper reserves in the world. Of course you should pay Indonesia more. There is no doubt that Freeport's Indonesian operations accounted the large share (if not the largest) of the total profit of Freeport International.
Tell me, Mr. Sirait: Why were you able to pay the Police 14 million dollar a year, but you could not raise the salary of low-skilled, working-class Papuans who work in your workplace?
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Fath | Fri, 04/11/2011 - 11:11am
PT. FI should conduct press conference officially to clarify the positive roles and contributions to Indonesia and don't let public imagine FI as Devil only.
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Kobe Oser | Thu, 03/11/2011 - 20:11pm
Justice over Peace should prevail.If Freeport chairman J.Moffet stated security-forces pay-offs as "ordinary business activities", what more security TNI /BRIMOB /KOPASSUS atrocities to Papuans is to expect? See for background link:http://english.aljazeera.net/indepth/opinion/2011/08/2011828142858857222.html
The US should take its responsibility (also for US-Freeport's sake), and take back West Papua with help of the
UN-C24, furthermore re-implement the 1962 New York Agreement on the Referendum-obligation. By using Indonesia's 40 Years of mismanagement, the US should urge the Dutch as co-signers of the 1962 New York Agreement to get an ICJ verdict over RI's administration over the Papuan territory, and RI's breach of the 1962 NY Agreement contract.Justice will be done and West Papua Melanesia can easily finance this Roadmap
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mauriceg | Thu, 03/11/2011 - 18:11pm
Maybe I'm missing something, but while FreePort claims to enjoy the support of the Indonesian government, it has allegedly been paying money to Indonesian law-enforcement officers for a while. These officers receive payment (possibly ill-fitting), for there role in enforcing what could be called the rule of law, from the Republic of Indonesia. In taking these extra payments from a additional source, they cannot be construed as disinterested parties. It may also be, and would be difficult to prove, that there are parties even less savoury than the police being paid to do work as agents provocateur, or much less innocent.
This needs clarification too. Let's hear it.
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Rahim from Germany: Thanks to the Staff of TJP | Thu, 03/11/2011 - 16:11pm
To
The Editor and Staff of the Jakarta Post:
.
The TJP ist the best English newspaper of Indonesia. Thank you for providing this service to the Online readers.
Again: Thank you, Thank you and Thank you and may God bless your and your staff.
.
Rahim from Germany