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Papua House of Representative asks Freeport to stop the layoffs

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Illustration of Freeport Indonesia mine – RNZI

Jayapura, Jubi – Papua House of Representative Commission I in charge of government, politics, law and human rights urged PT Freeport Indonesia to stop the employees’ lay off.

Member of the House Commission I, Laurenzus Kadepa consider Freeport has gone too far for laying off its employees. The company is now casually laying off workers who demand what is rightfully and cannot be fulfilled by the company.

“Responding SPSI demo with layoffs is not a solution,” said Kadepa on Monday (June 12).

He warn the company for not acting authoritarian by responding the demands of employees with deployment of security forces.

“I support the actions and SPSI’ demands. We also ask for no more layoffs. Hire back the laid-off employees. Freeport has pocketed the IUPK from the government so the company’s demands have been fulfilled by government. What else is the company looking for?” he said.

While the Mimika Regent, Eltinus Omaleng stated that 2,800 people who involve in the strike and staged protest were no longer have the status of employees in PT Freeport Indonesia.

“They are no longer employees of Freeport since they have no IDs and conducted no activities in the work place, they are not registered as active employees in the company,” Omaleng said last weekend.

According to him, the government has no right in this disputes. The government can only facilitate companies, employees and SPSI of Mimika Regency. (*)

Analysis

Activists fear Indian proposal for coal reserves in Indonesian-ruled Papua

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Forest clearance and plantation development in PT Megakarya Jaya Raya (PT MJR) palm oil concession in Papua. The region is home to the world’s third-largest rainforest, but is facing intense pressure due to the logging, palm oil and mining industries. Image: Ulet Infansasti/Greenpeace

By Febriana Firdaus in Jakarta

As it seeks to diversify its sources of fuel, India is looking to get in on the ground floor of coal mining in previously unexploited deposits in Indonesian-ruled Papua.

In exchange for technical support and financing for geological surveys, officials say India is pushing for special privileges, including no-bid contracts on any resulting concessions a prospect that could run foul of Indonesia’s anti-corruption laws.

The details of an Indian mining project in Papua are still being negotiated, but Indonesia’s energy ministry welcomes the prospect as part of a greater drive to explore energy resources in the country’s easternmost provinces.

In future, the ministry hopes mining for coking coal will support the domestic steel industry, while also bringing economic benefits to locals.

Rights activists, however, fear the launch of a new mining industry could deepen tensions in a region where existing extractive projects have damaged the environment and inflamed a long-running armed conflict.

Indonesia’s new coal frontier

When Indian Prime Minister Narendra Modi visited Jakarta last month, joint efforts to extract and process Indonesia’s fossil fuels, including coal, were on the agenda.

India’s interest in investing in a new coking coal mining concession in Papua can be traced to 2017, when officials from the Central Mine Planning and Design Institute (CMPDI) and Central Institute of Mining and Fuel Research (CIMFR), both Indian government institutes, met with Indonesia’s Ministry of Energy and Mineral Resources in Jakarta.

The bilateral plan was announced by then-ministry spokesman Sujatmiko after the first India Indonesia Energy Forum held in Jakarta in April 2017. “The focus is on new territories in Papua,” he said.

To follow up, the Ministry of Energy and Mineral Resources sent a team to India in early May. The current energy ministry spokesman, Agung Pribadi, who was part of the delegation, told Mongabay that officials from state-owned energy giant Pertamina, major coal miner PT Adaro Energy, and state-owned electricity firm PLN also joined the meeting.

The Indonesian team presented research outlining the potential for mining high-caloric content coal in West Papua province, and lower-caloric coal in Papua province.

According to the team’s report, only 9.3 million tons of reserves have so far been identified. By contrast, Indonesia as a whole expects to export 371 million tons of coal this year. However, the true extent of coal deposits could be larger, said Rita Susilawati, who prepared the report presented during the meeting and is head of coal at the ministry’s Mineral, Coal and Geothermal Resources Centre. “Some areas in Papua are hard to reach due to the lack of infrastructure. We were unable to continue the research,” she explained.

During the visit, Indian and Indonesian officials discussed conducting a geological survey in Papua, Agung said. India would finance the survey using its national budget. With Indonesian President Joko Widodo prioritising infrastructure investment, the energy ministry has few resources to conduct such surveys.

Expected privileges

Indonesia also anticipates benefiting and learning from India’s experience in processing coking coal.

In exchange, India expected privileges from the Indonesian government, including the right to secure the project without a bidding process, Agung said.

Indonesia denied the request, and the talks were put on hold. Approving it would have been too risky, Agung said, since the bidding process is regulated in Indonesia. “We recommend they follow the bidding process or cooperate with a state-owned enterprise,” Agung said.

India’s ministry of coal did not respond to an emailed request for comment.

Energy and mining law expert Bisman Bakhtiar said there was still a chance India could get the rights to develop any resulting coal concessions without having to go through an open bidding process. “It can proceed under the G-to-G (government-to-government) scheme by signing a bilateral agreement,” he said.

This form of agreement would supersede the ministerial regulations requiring competitive bidding, Bisman explained, although he said any such agreements should emphasise that any projects must be carried out according to local laws.

There is precedent in Indonesia for G-to-G schemes bypassing the open bidding process, Bisman said. For example, multiple projects have been carried out on the basis of cooperation agreements with the World Bank and Australia. In another instance, Indonesian media mogul Surya Paloh imported crude oil from Angola via a bilateral cooperation agreement with Angola’s state-owned oil company Sonangol.

Draft law

A draft law currently being discussed in the House of Representatives could also smooth the path for India. It says that if there is agreement between Indonesia and a foreign government to conduct geological studies, the country involved will get priority for the contract.

However, this would still require the country to meet market prices. “We called it ‘right to match.’ If there are other parties who offer lower prices, then they should follow that price,” Bisman said.

Another option would be for India to appoint one of its local companies to work with Indonesian private sector giant Adaro or state-owned coal miner PT Bukit Asam. Such a deal could be conducted as a business-to-business (B-to-B) agreement, and would be legal according to Indonesia’s Energy Law.

Or, Indonesia could assign a state-owned firm like Bukit Asam to work with India based on a memorandum of understanding (MOU) signed by both countries.

“But all these options have a potential risk,” Agung said. “They can be categorised as collusion by the Corruption Eradication Commission (KPK).” He said a conventional bidding process should be prioritised.

Bisman said India needed to consider other risks, such as the social and political situation in Papua. The region is home to an armed pro-independence movement and has faced decades of conflict around the world’s largest and most profitable gold and copper mine, Grasberg, owned by US-based Freeport McMoRan.

‘Land grab’

Despite the presence of the mine, Papua remains Indonesia’s poorest province, with some of the worst literacy and infant mortality rates in Asia. Indonesia’s National Commission on Human Rights (Komnas HAM), a state-funded body, has characterised Freeport’s concession as a “land grab,” for which the original stewards of the land, the Amungme and Kamoro indigenous people, were never properly consulted or compensated.

The Indonesian energy ministry’s own research says that any project must take into account the impact on Papua’s indigenous peoples, and must factor in specific local concepts of land ownership, leadership and livelihood.

Franky Samperante, executive director of rights advocacy group Yayasan Pusaka, said he was worried about the plan. “It is way too risky,” he said, pointing to the social and environmental fallout of the Grasberg mine.

“There should be communication between the mining company and indigenous Papuans,” he said, warning Jakarta to carefully calculate the social, environmental and national security impacts.

Local indigenous people need to be meaningfully involved in the decision-making process, he said, especially since the mining would occur in and near forests where indigenous people live and gather and hunt their food. (*)

 

Source: asiapacificreport.nz

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Papua House of Representatives will promote Ambaidiru coffee

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Secretary of the Papua House of Representatives, Juliana J Waromi (standing) with several members of the House of Representatives during a meeting with the community, coffee farmers, and officials of Ambaidiru – Jubi / Doc

Jayapura, Jubi – The Secretary of the Papua House of Representatives Juliana J Waromi said the house is ready to help the community of Ambaidiru Village, Kosiwo Sub-district, Yapen Islands District to promote their coffee.

She said she and several legislators visited the 60 hectares Ambaidiru coffee plantation area a few days ago in response to the aspiration of the local community. “I want to see it directly. If it’s good, I will help them to find a market. Based on my experience working with the Investment Coordination Board Papua for three years, I could promote the coffee to abroad,” said Waromi on (5/6/2018).

A coffee farmer Yulianus Maniamboy recently told Jubi that the coffee plantation in Ambaidiru firstly introduced in the Dutch era. The Dutch tried to plant it and worked. Ambaidiru coffee is now over 50 years old.

“Instead of in groups, we manage our commodity individually. Farmers dry their coffee by their own. There is no control, not centralised and consequently, the quality of coffee is still very varied. However, in the past years, we could produce a ton of coffee per month. That’s because there was no disruption and the management of the cooperative was good,” he said. (*)

 

Reporter: Arjuna Pademme

Editor: Pipit Maizier

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Local community must stop selling the land, says local legislator

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Indigenous Papuans in Kampung Urumb, Semangga District, Merauke District – Jubi / Frans L Kobun

Merauke, Jubi – A member of the Regional House of Representatives of Merauke Agency Hendrikus Hengky Ndiken appealed indigenous Papuans in Merauke on Wednesday (6/6/2018) to not selling the land anymore because it is the only assets of the Marind tribe.

“We should consider our children. If all land sold, what would left for future generation?” he asked.

Furthermore, he said customary leaders should play a role to remind people to not selling the land. He also asked the local community to no longer digging and mining the sand. “It can be noticed there are big holes everywhere in the mining areas flooded with seawater during the high tide.”

“For instance, the mining area in Kampung Urumb and surrounding areas where the sand excavation increasingly occurred. People better use the land for farming,” he added.

Meanwhile, the Unit Head of Merauke Civil Service Police Elyas Refra said his office conducts routine scrutiny on illegal sand mining. “Indeed, in some places, sand mining has occurred. We are persuasively approaching people to not digging the sand anymore because it is very hazardous and has an impact on the environment,” he said. (*)

 

Reporter: Frans L Kobun

Editor: Pipit Maizier

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