REPUBLIKA.CO.ID, JAKARTA – Marwan Batubara, a mining analyst who also director of Indonesia Resources Studies (IRESS), was pessimistic when asked about the renegotiation on Freeport contract. He pointed out that the process was unlikely concluded in 2012, since no guarantee that Freeport would bow to Indonesian demands. 

“Since the beginning of this year, we have heard official statement from the US ambassador and his deputy here that they would not bow to ‘the game’ (played by Indonesian government –Ed),” Batubara said on Sunday.

Besides, Indonesian government still hesitates to make a firm decision which hampers the renegotiation process. “Our government is still fearful of the US. If only they were firmer and confident, we could have finish it by now,” he added.

Similar point of view is also shared by Komaidi Notonegoro, deputy director of ReforMiner Institute. Under the recent government, renegotiation was hardly concluded within this year, he said.  

“We heard a lot of policies made as a lip service without any action,” he added then emphasized the imortantce of strong commitment from the government. “Setting a timeline is must.”

While a member or parliament, Satya Widya Yudha, urged the government to accelerate the renegotiation process. “Especially to increase our royalty within the range of 3.5 to 5 percent,” he said.     

Freeport started its gold and copper mining in Erstberg, Mimika, Papua since 1967. In 1991, the government and the mining company renewed the contract in which to finish in 2041.  

In its development the government is trying to renegotiate the contract in order to get a fairer share. It is expected that the royalty for Indonesian government will increase from 1 percent.

Earlier, coordinating minister for economy, M Hatta Rajasa as the leader of renegotiation team, explained that the process was still ongoing. The team discussing five points, not only about the work area but also on extending the contract, smeltering, divestment, and restriction on using foreign goods and services of foreign mining.    

Ikuti Whatsapp Channel Republika