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wp Papua administration wants 10% of Freeport

April 19, 2013

http://www.thejakartapost.com/news/2013/04/19/papua-administration-wants-10-freeport.html

Papua administration wants 10% of Freeport

Nethy Dharma Somba, The Jakarta Post, Papua | Archipelago | Fri, April 19 2013, 8:00 PM

The Papua administration has announced that it will ask for a 10 percent stake in mining giant PT Freeport due to the fact that the company operates on Papuan soil but contributes little to regional development.

“We demand the Papuan people’s customary land right in the form of a 10 percent stake in the company,” newly installed Governor Lukas Enembe said on Friday.

According to him, a 10 percent share in PT Freeport was equal to Rp 87 trillion in cash.

“Of course, we cannot afford to buy the shares, but the company could grant us the shares in compensation for the years of mining on our land,” he said.

Lukas also expects Freeport to help more with increasing Papuan people’s welfare. He said that all this time Freeport had paid only the central government in the form of taxes and royalties and it was the central government that allocated funds for the Papuan administration.

He said Papuans wanted the company to help the local administration in building infrastructure, such as bridges, highways and other public facilities.

Commenting on this, Papuan activist Joseph Rahawadan said the Papuan administration’s request was reasonable considering Freeport had operated in the province for years and had benefited from its presence here.

“In fact, according to my estimate, it would be OK if the local administration asked for a 25 percent share,” he said.(dic)

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