FREEPORT EXPECTED TO COMPLETE DIVESTMENT THIS MONTH

by Andi Abdussalam

Jakarta, April 14 (Antara) - The US-based gold and copper mining company PT Freeport Indonesia (FI) is expected to divest 51 percent of its shares this month based on the directives of President Joko Widodo.         The government has assigned state-owned mining holding firm PT Indonesia Asahan Aluminium (Inalum) to hold negotiations with PT FI on the divestment of its shares.         Inalum President Director Budi Gunadi Sadikin confirmed that his company is now closer to completing negotiations on the divestment deals.         He stated that the divestment of PT FI is in the final stage.          "Yes, we are handling the divestment process that has reached the final stage," Sadikin had informed reporters in Bogor, West Java, on Saturday (Apr 14).    Sadikin did not elaborate on how the divestment process had reached the final stage but only gave an implicit answer. Sadikin did not explain the next steps to be taken nor the process of the final negotiations.          Earlier, Minister of Energy and Mineral Resources Ignasius Jonan noted that no report was received from PT Inalum on results of the negotiations with PT FI over the divestment of 51 percent shares.

GOVERNMENT ASKED TO CONCRETIZE FREEPORT'S DIVESTMENT PLAN

By Andi Abdussalam

Jakarta, Aug 26 (Antara) - The Indonesian government has been asked to concretize its plan to divest 51 percent of US-based gold and copper mining company PT Freeport Indonesia (FP) stake by assigning a state company to take over the divested shares.          The Indonesian government is still negotiating several issues, including the divestment of the 51 percent shares with FP, whose mining operation contract will expire in 2021. The government has stressed that FP will be allowed to extend its mining operation permit if it divests 51 percent of its shares to the Indonesian government.          "I agree with the government's step to take over 51 percent of FP stake. Therefore, we call on the government to take a concrete step regarding the divestment," Legislator Ahmad M Ali of Commission VII on energy affairs of the House of Representatives (DPR) stated in Jakarta on Thursday (Aug 24).          Hence, the lawmaker, who is a politician of the National Democrat Party (NasDem), asked the government to concretize its proposal on the divestment of Freeport by assigning a state-owned enterprise (SOE), including the payment system and legal instrument.

FREEPORT AGREES TO DIVEST 51 PERCENT STAKE

By Andi Abdussalam

Jakarta, Aug 18 (Antara) - PT Freeport Indonesia (FI) has agreed to divest 51 percent of its shares to the Indonesian government as one of the conditions it has to meet in extending its work permit to operate in Indonesia.          PT FI, the US-based gold and copper mining company, will end its contract in 2021 and is seeking to extend it until 2041, but based on regulation, the contract can only be extended for another 10-year period or reviewed in every decade.          However, according to Coordinating Minister for the Ministry of Maritime Affairs Luhut Binsar Pandjaitan, the contract can be made for a period of 20 years until 2041, if PT FI divests 51 percent of its shares.          "Virtually, there is no problem if PT Freeport Indonesia wants to review its contract until 2041 on the condition that it is prepared to divest 51 percent of its stake to the Indonesian government," Pandjaitan noted on August 14, 2017.          The Indonesian government signed its first work contract with Freeport McMoran Inc on April 7, 1967, with exclusive mining rights on a 100 square-kilometer tract in Ertsberg, Papua. The work contract was extended in 1991 and would expire in 2021.

GOVERNMENT, FREEPORT TO CONCLUDE TALKS THIS MONTH

by Andi Abdussalam

Jakarta, July 15 (Antara) - The Indonesian government is optimistic of concluding by this month-end its negotiations on the extension of copper and gold miner PT Freeport Indonesia's (PT FI's) operation permit that expires in 2021.          "The government, through the Ministry of Energy and Mineral Resources (ESDM), expects to accomplish the negotiations before October," ESDM Minister Ignasius Jonan stated in Jakarta on Wednesday (July 5).          In order to accelerate the negotiation process, the government is planning to invite President Director of US-based Freeport Mc Moran Richard Adkerson to discuss the operation permit of PT Freeport Indonesia.          ESDM Secretary General Teguh Pamudji said the ESDM, Ministry of Finance, and several other agencies have formed a negotiation team to discuss four agenda on the extension of PT FI's operation permit.          The four agenda comprised the divestment of 51 percent of Freeport shares, extension of its operation permit, construction of a smelter, and investment stability.          The ESDM ministry is in charge of deliberating matters relating to the extension of the operation permit and the construction of the smelter. The government has requested a smelter, whose construction has to be completed by the company in 2022.

FREEPORT MANAGEMENT-WORKERS STANDOFF CONTINUES

by Andi Abdussalam

Jakarta, May 11 (Antara) - PT Freeport Indonesia in Mimika, Papua Province, still needs to meet with the labor union to resolve its dispute with thousands of workers who have struck work demanding reinstatement of colleagues who were laid off.          The US copper and gold mining giant has been plagued by conflict with workers, following its decision to impose a furlough policy on its workers after the government banned it from exporting concentrate for its failure to build a smelter.          The company's trade union, as part of observing the International Labor Day, or May Day, on May 1, has since organized a strike for thousands of workers. The company is also reported to have laid off 178 regular workers.         Ignasius Jonan, Energy and Mineral Resources (ESD) Minister, has asked for a confirmation from the local government regarding the strike by thousands of workers and the layoffs of 178 regular workers.         According to Eltinus Omaleng, Mimika District Head, Jonan wanted to know why the workers had staged the strike. Minister Jonan was making a transit at Mozes Kilangin aiport of Timika (district capital of Mimika) during his flight from Jayapura to Jakarta, Wednesday (May 10).

FREEPORT INDONESIA WORKERS FACE LAYOFFS

by Andi Abdussalam

Jakarta, Feb 23 (Antara) - Over 19 thousand workers of PT Freeport Indonesia and its affiliated contractor and privatized companies face the threat of losing their jobs if the US-based copper and gold mining firm halts its production and exports.          It was reported at least 20 expatriate workers have returned to their countries, and over 300 workers have been laid off as a result of the contract crisis between the government and PT Freeport Indonesia, which operates in Mimika District, Papua Province.          Mimika District head Eltinus Omaleng admitted that PT Preeport and a number of affiliated privatized/contractor companies had started to send their workers home, including expatriate workers from various countries.          "In a report of the Mimika Manpower Service, the number of employees who are already laid off has reached over 300 persons. Workers of PT Freeport were sent home. Those who are on leave are ordered not to return to Timika (district capital of Mimika), until the company's operations return to normal. Every day about 30 to 500 workers are sent home; possibly now they would have reached over one thousand," Omaleng told Antara after receiving thousands of workers who held a rally in front of his office on Feb 17.          The Immigration Office of Tembagapura in Mimika said more than 20 expatriate employees who work with PT Freeport Indonesia's contractor companies had left Timika, Papua, for their countries.

INDONESIA ALLOWS FREEPORT TO CARRY OUT EXPORTS FOR ONE YEAR

by Andi Abdussalam

Jakarta, Feb 22 (Antara) - The Indonesian government has given PT Freeport a chance to carry out concentrate exports for one year, although it is still negotiating the continuation of the US-based company's license to operate in Indonesia.          The Ministry of Energy and Mineral Resources (ESDM) has issued a recommendation for PT Freeport to export raw minerals for a period of one year. However, according to the Ministry of Trade, PT Freeport has yet to submit application for the export agreement letter (SPE).           Based on the recommendation, Freeport is allowed to export 1,113,105 wet metric tons of copper concentrates. The permit allows it to carry out exports from Feb 17, 2017 to Feb 16, 2018.          According to Finance Minister Sri Mulyani, the reluctance of Freeport to carry out the export of copper concentrates when it is offered an option could have negative impact on its performance in the long run.         "Freeport is a public company; if it stops (exports), its stocks will fall. So, in this case, no party will lose or win," Mulyani stated in Jakarta on Wednesday.         The Indonesian government is still continuing its negotiation process with Freeport to seek the best solution for the national economy and for the continuation of Freeport's investment in Indonesia.

GOVT WILL NOT EXTEND FREEPORT CONTRACT BEFORE 2019

By Andi Abdussalam
Jakarta, April 12 (Antara) - The government will not extend the work contract of US-based gold and copper mining firm PT Freeport Indonesia prior to 2019, though the company is currently seeking an extension of its contract.          "There has been no decision now regarding the extension of Freeport Indonesia because the contract can only be extended two years before it expires," Director General of Mineral Resources and Coal R Sukhyar said in Jakarta on Friday.          The work contract extension signed by Freeport and the government in 1991 will expire in 2021, resulting in Freeport only being able to propose an extension in 2019.          Rumors suggested that Freeport's work contract would be extended, along with its revisions, following the enacting of a law which requires all mining firms to build smelters.          The law, Law No.4/2009 on Mineral and Coal Mining, also bans the exports of unprocessed mineral ore. Due to this new requirement, all contracts for mining firms have to be revised.    "We are negotiating on six points of revision in the work contract, but none of the six points are about contract extensions," stated Sukhyar.

SHOOTING AT FREEPORT MUST BE INVESTIGATED

By Andi Abdussalam

Jakarta, Oct 11 (ANTARA) - The shooting incident during a clash between demonstrating PT Freeport workers and patrolling police in Mimika, Papua, that claimed the lives of one Freeport worker and one police on Monday should be investigated.          "The police chief should make an immediate effort to investigate thoroughly the shooting incident and violence that occurred on October 10, 2011," Coordinator of the Commission for Missing Persons and Victims of Violence (Kontras) Haris Azhar said.         One of the demonstrating workers and one police officer were killed in the clash between gun-shooting police and rock-throwing demonstrators.      The incident happened after thousands of Freeport employees along with their spouses and children had marched from the All Indonesia Labor Union (SPSI) office at Jalan Perintis Kemerdekaan Timika Indah to the Gorong-gorong bus Terminal.          It was reported that demonstrating workers, who tried to prevent other workers from going to work at the terminal, demanded that the management should temporarily stop its operation until the strike case is solved and demand for employee salary increase met.          The management of Freeport regretted the occurrence of the incident. "We learned that a group of workers who were holding a rally and other individuals were marching from the office of All Indonesian Workers Unions (SPSI) for Freeport to the Timika bus terminal to disturb the departure of PT Freeport's employee buses who want to return to work," PT Freeport Spokesman Ramdani Sirait said.         According to Ramdani, the demonstrating workers forced their way into the terminal but police blocked their access that caused the group to act aggressively.          Haris Azhar said  that Kontras urged Police Chief Timur Pradopo to investigate the clashes between Freeport workers and police, and criticized the shooting of the Freeport workers who were trying to hold negotiations with PT Freeport management.          According to the non-governmental organization, the workers held the rally on Monday in protest against the management policy which recruited new workers to replace those who were holding demonstrations.          Freeport workers have been on strike since September 15, 2011 to demand for an increase in their salary, asking the management to agree with a new wage system in a new joint labor agreement (PKB).         Kontras was of the view that the shooting and violence constituted an intervention and threat by police to the industrial relations dispute which was protected by Law No. 13/ 2003 on manpower affairs.          Kontras said that the government, particularly the ministry of manpower should play a role in ensuring the basic rights of workers based on the law, including their rights to stage a strike based on article 137 of the law.          In the meantime, Manpower Minister Muhaimin Iskandar said his ministry had tried to mediate the workers problem with the management of PT Freeport..          "We will continue to provide assistance in overcoming problems at Freeport from the manpower aspect by involving negotiators between the workers union and the company's management. We hope that the   industrial relations dispute would soon be settled, and would no longer claim another victims," the minister said.          The minister said that the government has tried to mediate the workers union and the management to negotiate workers' demand in their joint labor agreement (PKB).          He said that the two sides had met three times at the office of manpower minister to discuss their dispute. "The tree-time mediation was not yet able to bring them into an agreement so that the case was taken to the industrial relations court," the minister said.          In that way, the minister said, the industrial relations dispute would be overcome and all parties involved would restrain and seek for the best solution without using violence that would even disadvantage all parties.          The labor dispute at Freeport began with differences between workers and the management over the wage system to be included in the new PKB. The differences appeared during negotiations to draw up a new KPB for the 2011 - 2013 period.          The negotiations on the PKB lasted for 30 days from July 20 to August 19, 2011, which were later extended by seven days until August 26, 2011.          But because the workers union and the management failed to reach an agreement, the government fielded a tripartite plus team composing of representatives from the government (ministries of law, manpower, energy and mineral resources and police) businessmen (national executives of Apindo) and workers to have direct dialogs with the representatives of workers.          In the meantime, Chief Economic Minister Hatta Rajasa hoped that Monday's incident at PT Freeport would not escalate and a solution would be found so that the problem would be settled.          "I hope Freeport would settle it well through negotiations with workers. The solution, namely win-win solution, should be found," the coordinating minister for economic affairs said.          Hatta said that if the problem protracted it would cause losses to the company, workers and the country as a whole.  "If not settled well it would cause more losses to the company, workers and Indonesia," the minister said.          Therefore, Manpower Minister Muhaimin Iskandar is sending a special team to Timikia, Papua to carry out persuasive approaches and to help defuse tension at PT Freeport.          "We are sending a team to Freeport to help overcome the problem there. The team is in charge of seeking solutions to the problem in the manpower aspect. The aspects that are related to the legal and political aspects will be handled by police,"   Muhaimin Iskandar said here on Tuesday.           The minister said that the team was sent to the field especially to slacken tension and to calm down workers and to coordinate with the local manpower service and other related parties.***3*** (T.A014/A/HAJM/23:10/a014) 11-10-2011 23:25