Gold Reserves Valued at Rp 569. 7 Trillion, but Freeport Pays 1 Percent in Royalty? – West Papua No.1 News Portal
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Gold Reserves Valued at Rp 569. 7 Trillion, but Freeport Pays 1 Percent in Royalty?

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Gold in Freeport Indonesia mining area - Suplied

Gold in Freeport Indonesia mining area – Suplied

Jayapura, Jubi – PT Freeport Indonesia denied allegations by the Minister of Maritime Rizal Ramly that it pays a small royalty to the Indonesian government.

As one of third larger gold and copper company in the world operating in Papua, PT Freeport Indonesia was accused raking in huge profit, while Papua indigenous around the mining areas are living under poverty. The Minister Ramli accused PTFI only pay 1 percent of royalty for gold exploitation on the Amungsa land.

But the company’s spokesperson Riza Pratama denied the allegation, saying that the company has increased the royalty for copper, gold and silver since 2014.
“In line with the renegotiation of the Contract of Work, since July 2014, PTFI has increased the amount of royalty for copper, gold and silver respectively from 3.5%, 1% and 1% to 4%, 3.75% and 3.25%,” Riza said.

During the time it was estimated that PTFI has produced 40.9 tons of gold per year. If the price of a gram of gold is Rp 300 thousand so 40.9 tons equals with Rp 12.3 trillion per year. 1 percent of the company’s gross income is Rp 123 billion, it’s excluding the copper and silver.

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Based on Freeport’s data, the stock of gold in DOZ (Deep Ore Zone), Deep MLZ, Big Gossan, Grasberg Bloc Cave and Wild Cat mining areas is recognized 67 million ounce or approximately 1.899 tons (1 ounce = 28.35 gram). PTFI plans to work on these gold mining till 2042. Refer to the price of Rp 300 thousand/gram, PTFI has earned Rp 569.7 trillion from the gold stocks during its operation in Papua.

Because of since 1967 to 2014, Freeport only paid 1 percent of royalty to the government, including the indigenous Papuans around the mining from its profit, the government asked for the increment to 7 percent. “We (the government) asked Freeport to pay 6 to 7 percent royalty,” said Rizal Ramli during his presentation at the Indonesian House of Council in the mid October. (Victor Mambor/rom)

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Economy

MRP traces the chronology of the dismissal of thousands of employees of PT Kodeko Papua

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MRP working group meet with the representatives of PT Kodeko Papua’s ex-workers in Serui, Yapen Islands Regency, Monday (24/2/2020). – Jubi/MRP Public Relations

Jayapura, Jubi – The working group for the indigenous issue of Papuan People’s Assembly (MRP) meet with the representatives of PT Kodeko Papua’s ex-workers in Serui, Yapen Islands Regency, Papua on Monday (24/2/2020). In the meeting, the working group take not on the chronology of the dismissal of 1,435 employees of PT Kodeko Papua in 2004.

The working group chairman Demas Tokoro through MRP public relations says the meeting between the working group and workers’ representative occurred on Monday is the second meeting. “Today is our second meeting, while we had the first on 13 February,” he said.

According to him, in the first meeting, the workers’ representatives talked about the severance allowance should be paid to the workers after the termination in 2004. Meanwhile, the second meeting is focusing on learning the chronology of the dismissal.

Tokoro says that during 14 years, 1,435 ex-workers are still waiting for the company to pay their salary and severance allowance. “They tell about their long efforts in fighting their rights as ex-workers,” says Tokoro.

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Meanwhile, an ex-worker Costan Podayar said PT Kodeka Papua was a plywood company founded in 1995 and began its operation since 1997.

“In 2002, the situation changed and it claimed bankruptcy in 2004. The employees have been made redundant without receiving severance allowance. As a consequence, the company’s assets become a warrant to pay severance to its ex-workers,” said Pondayar as cited from MRP public relations.

In 2006, the workers sued the management of PT Kodeko Papua to the Tangerang District Court with a demand that the company must pay the salary and severance allowance of 1,435 ex-workers. “The Court won our lawsuit in 2006,” said Pondayar.

At that time, he says that the Court instruct those who took over the assets of PT Kodeko Papua must pay the rights of ex-workers. But, in reality, PT Sinar Wijaya who continue the operation has not paid the severance allowance to the ex-workers.

“As the ex-workers, we did not know how can PT Sinar Wijaya take over the operation because there was no announcement to us,” says Pondayar.

PT Sinar Wijaya has paid the amount of money to the ex-workers, but the payment was less than the amount that the ex-workers should receive.

“The local government has facilitated the meeting between us and the management of PT Sinar Wijaya at Kampung Awunawai Office. They paid the amount of money for us but did not give us time to read the letter that we should sign. They said it was because there were many employees in queueing to sign,” said Pondayar.

Later on, the ex-workers realised that the amount of money they received is smaller than it should. “The Court’s decision said that I had to receive IDR 32 million, but I only received IDR 15 million,” says Pondayar.

Meanwhile, Demas Tokoro said his working group would implement the mechanism by MRP to bring both representatives of ex-workers PT Kodeko Papua with the local government and the management of PT Sinar Wijaya. The working groups of women and religious issues of MRP will also attend this meeting.

“We will conduct a joint visit consisting of MRP, indigenous, religious and women’s working groups. We hope people will support us,” says Tokoro. (*)

 

Reporter: Benny Mawel

Editor: Pipit Maizier

 

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Government introduces Papua’s business potential to 45 investors

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Illustration. -dailysocial.id

Sorong, Jubi – The Indonesian government in association with Yayasan Inisiatif Dagang Hijau (Green Trade Initiative Foundation) took a total of 45 foreign investors to witness firsthand the business potential in the country’s eastern provinces of Papua and West Papua.

The foreign investors met with young businessmen from Papua during a high-level meeting on green investment in Sorong, West Papua, on Thursday.

Also present at the meeting were Coordinating Minister for Maritime Affairs and Investment, Luhut Binsar Panjaitan; Agriculture Minister Syahrul Yasin Limpo; Head of the Investment Coordinating Board, Bahlil Lahadalia, and Vice Minister of Tourism and Creative Economy, Angela Tanoesoedibjo, to support the Papuan businessmen to move forward.

Panjaitan said the concept of green investment or environmentally friendly investment is one of the models of sustainable development in the provinces of Papua and West Papua.

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The concept of green investment is aimed at encouraging small-scale investment to promote the agricultural and fisheries sectors in the two provinces, he said.

The presence of foreign investors will encourage the export of agricultural and fishery commodities including nutmeg, cacao beans, seaweed, and other key commodities from the two provinces, he said.

The minister further asked the Papua and West Papua provincial governments to work hard and cooperate with all sectors to develop the potential in the province as part of efforts to promote the economy of the locals. (*)

 

Source: ANTARA

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Papua High Prosecutors Office investigates corruption allegation in Bank Papua

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Illustration photo. – pixabay.com

Jayapura, Friday – Papua High Prosecutors Office and Nabire District Prosecutors Office are currently investigating corruption allegation in Bank Papua Branch Paniai in Enarotali, the capital of Paniai Regency, Papua. This allegation associated with the prior case of loan distribution of IDR 281 billion for creditors.

This investigation was confirmed by the Assistant of Special Crime of the Papua High Prosecutors Office Alexander Sinuraya to Antara News Agency in Jayapura on Friday (31/1/2020).

“This case is currently under the investigation of Nabire District Prosecutors Office who in charge for Paniai Regency and prosecutors from Papua High Prosecutors Office will assist the investigation,” he said.

According to him, so far there is no suspect named in this allegation. “Hopefully the investigation becomes more in-depth shortly,” he said.

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Separately, the Business Director of Bank Papua Sadar Sebayang admits the bad loan case of IDR 281 billion in Bank Papua.

“The case that happened in 2016 is currently under the investigation of Papua High Prosecutors Office,” Sebayang confirmed.

According to him, Bank Papua had penalised the employees involved in this case, including dismissal. Sebayang also said that non-performing loan creditors had paid their instalments up to IDR 185 billion including bank interest. However, he said Bank Papua is supportive of this legal conduct by these two prosecutors offices.

“BPD Papua fully supports the current legal process conducted by Papua High Prosecutors Office,” said Sebayang. (*)

 

Reporter: Aryo Wisanggeni G

Editor: Pipit Maizier

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