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Ada Pertanyaan? Hubungi Kami Christina Desy, Kartini Laras Makmur
Since the enactment of Governmental Regulation No. 1 of 2014 on Mineral and Coal Mining Businesses (Regulation) last January, the Indonesian mining sector has been shaken with a frenzy of protests objecting to it. A number of mining companies are finding this regulation is hampering their business.
Freeport, for instance, has suffered substantial losses since the regulation was introduced. In the first of this year, the US-based mining company was unable to export its cropped raw mining materials. Only in August could Freeport can finally continue its raw materials export activities after securing an export license from the Minister of Trade.
Concerned with possible broader consequences, the Papuan Brotherhood, a group representing Freeport’s employees together with Freeport’s board of directors decided to pay a visit to the Indonesian parliament to press their case.
Supported by the regional government of Mimika, the Freeport representatives requested the legislators to revise Law No. 4 of 2009 on Mineral and Coal Mining (Mining Law). They are also lobbying for the restriction on the export of raw mining materials export to be revoked.
Silas Natkime, Chairman of the Papuan Brotherhood, who is also Freeport’s Vice President, stated that the export restriction not only harms the company, but also the surrounding communities because Freeport has been a center of social and economic support for the Papuan people.
During this visit, Mr. Natkime also conveyed his hope for the nationalization of Freeport. He believes that the people of Papua deserve proper rewards in return for their open-handed willingness to lend their land to Freeport for its business activities.
Oesman Sapta Oedang, Deputy Chairman of the Congress, welcomed the idea of nationalization . On that basis, Mr. Oedang conveyed to the Papuan Brotherhood that discourse on this issue will be immediately taken to other Assembly members. Once they have reviewed all the relevant considerations, a decision will then be made on the best measures to resolve the Freeport nationalization issue.
The Regulation also includes an obligation for mining companies to smelt their mining crops in Indonesia, as mandated under the Mining Law. Mining companies have been stopped from exporting raw mining materials, despite the significant contribution of such exports to the income of most mining companies.
In the case of Freeport, the company is still struggling to stabilize its business activities. Recently, the company has only been producing 70 thousand tons of mining materials per day, while previously daily production was as high as 250 thousand tons. This huge decrease has forced Freeport to consider terminating some of its employees. It is estimated that around 33 thousand employees are at risk of being terminated.
(For further discussion on the Regulation, see ILB No. 2320 and No. 1867)
(hot/kc)
Christina Desy, Kartini Laras Makmur
Since the enactment of Governmental Regulation No. 1 of 2014 on Mineral and Coal Mining Businesses (Regulation) last January, the Indonesian mining sector has been shaken with a frenzy of protests objecting to it. A number of mining companies are finding this regulation is hampering their business.
Freeport, for instance, has suffered substantial losses since the regulation was introduced. In the first of this year, the US-based mining company was unable to export its cropped raw mining materials. Only in August could Freeport can finally continue its raw materials export activities after securing an export license from the Minister of Trade.
Concerned with possible broader consequences, the Papuan Brotherhood, a group representing Freeport’s employees together with Freeport’s board of directors decided to pay a visit to the Indonesian parliament to press their case.
Supported by the regional government of Mimika, the Freeport representatives requested the legislators to revise Law No. 4 of 2009 on Mineral and Coal Mining (Mining Law). They are also lobbying for the restriction on the export of raw mining materials export to be revoked.
Silas Natkime, Chairman of the Papuan Brotherhood, who is also Freeport’s Vice President, stated that the export restriction not only harms the company, but also the surrounding communities because Freeport has been a center of social and economic support for the Papuan people.
During this visit, Mr. Natkime also conveyed his hope for the nationalization of Freeport. He believes that the people of Papua deserve proper rewards in return for their open-handed willingness to lend their land to Freeport for its business activities.
Oesman Sapta Oedang, Deputy Chairman of the Congress, welcomed the idea of nationalization . On that basis, Mr. Oedang conveyed to the Papuan Brotherhood that discourse on this issue will be immediately taken to other Assembly members. Once they have reviewed all the relevant considerations, a decision will then be made on the best measures to resolve the Freeport nationalization issue.
The Regulation also includes an obligation for mining companies to smelt their mining crops in Indonesia, as mandated under the Mining Law. Mining companies have been stopped from exporting raw mining materials, despite the significant contribution of such exports to the income of most mining companies.
In the case of Freeport, the company is still struggling to stabilize its business activities. Recently, the company has only been producing 70 thousand tons of mining materials per day, while previously daily production was as high as 250 thousand tons. This huge decrease has forced Freeport to consider terminating some of its employees. It is estimated that around 33 thousand employees are at risk of being terminated.
(For further discussion on the Regulation, see ILB No. 2320 and No. 1867)
(hot/kc)