Freeport's mining site in Papua. Photo by: Freeport Indonesia (www.ptfi.co.id)
The recent scandal involving PT Freeport Indonesia (“Freeport”)and theSpeaker of the House Setya Novantois now entering the new level. After Minister of Energy and Mineral Resources Sudirman Said testified before the House Honorary Council, the proceeding continued by summoning Freeport’s President Director Maroef Sjamsoeddin yesterday.
During the proceeding, Mr. Sjamsoeddin explained about the conversation between himself, Speaker Novanto, and businessman Muhammad Riza Chalid. The conversation was recorded by Sjamsoedin, unbeknownst to the other two parties.
“I needed to protect myself so that I could give a good account of myself in the future should any difficulties or accusations transpire,” Mr. Sjamsoeddin explained when testified before the House Honorary Council (Majelis Kehormatan Dewan – “Council”), in Jakarta on Thursday, 3 December 2015.
The recording was made during the third meeting which took place in June of this year. It was planned after Mr. Sjamsoedin became suspicious during the second meeting, when businessmen Riza Chalid also attended the meeting, to Mr. Sjamsoedin’s admitted surprise. The meeting lasted for one hour.
“We discussed material business during the meeting and I conveyed the message that for us, business is open for anybody,” Mr. Sjamsoedin said.
After the meeting, Mr. Sjamsoedin admitted that he had conducted a private analysis of the conversation and had concluded that Speaker Novanto, a state official, was angling for business. Mr. Sjamsoedin explained that Speaker Novanto should have invited members of Commission VII, which is responsible for the administration of energy and natural resources, to the meeting.
“This is my personal analysis of the conversation and the meeting I should stress,” Mr. Sjamsoeddin explained.
Mr. Sjamsoeddin, who is the Former Deputy Head of the State Intelligence Agency, also stated that two weeks after the second June meeting, a third meeting took place. The time and venue for this meeting was determined by the Speaker Novanto’s staff and the meeting eventually took place in the Pacific Place, a shopping mall in Jakarta. Mr. Sjamsoedin recorded the meeting on his mobile phone.
“I put my cell phone on the table and recorded the conversation,” he stated clearly to the court.
According to Mr. Sjamsoeddin, the substance of this conversation was identical to that of the recording played at the MKD on Thursday night, when the Council heard the testimony of Sudirman Said.
“Nobody told me to record the conversation and I am fully accountable for it. I recorded the conversation owing to my earlier suspicions,” Mr. Sjamsoedin explained.
Furthermore, Mr. Sjamsoeddin stated that during this third meeting, the conversation began with a few light topics before moving onto heavier subjects. Towards the end of the conversation, Mr. Sjamsoedin became more reticent to speak, as important issues were touched upon.
Distributing Shares
Confirming on the issue that Speaker Novanto was asking of Freeport’s shares, Mr. Sjamsoeddin stated that his company has no authority to distribute shares. According him, the distribution of shares is the sole authority of stakeholders.
“Freeport International should receive permission from the owners, and this includes shares in hydropower generators,” explained Mr. Sjamsoeddin.
Mr. Sjamsoeddin also told the Council that a heated discussion relating to the distribution of shares had taken place between Freeport and Speaker Novanto. However, he said that he was not participating in the conversation about the shares at that time, as he felt that the subject was unethical.
Mr. Sjamsoeddin also denied that any special treatment as regards mining contracts had been agreed with the Indonesian government.
"Freeport is not in a rush to renew its contract, and there has been no special treatment. In fact, we are still trying to comply with the Mining Law,” stated Mr. Sjamsoeddin.
New Mining Law
Previously, the Working Committee Member for Minerals and Coal at Commission VII (“Committee”), Joko Purwanto, had stated that the Committee did not want to get snared up in any political instability and infighting as regards the shares requested by the House Speaker, Setya Novanto.
“The Committee will focus on finishing up the Draft Bill on the Mining Law in order to resolve the current problems," Lawmaker Purwanto said.
Lawmaker Purwanto supports the reform of various state assets that have previously been controlled by foreign parties, such as Freeport. However, according to him, the resolution of these issues need not involve any political intrigue or conflict of interests between stakeholders.
According to Purwanto, the solution to this problem involves a revamping of the laws and derivative regulations which relate to the management of natural resources in Indonesia.
“My belief is that the current crisis has been caused by conflicting regulation. A number of differences exist between the law, the Government Regulation (PP), and the ministerial decree. Whether this was intentional or not, it needs to be fixed,” Purwanto explained.
The member of Commission VII also stated that he preferred to focus on finishing the Draft Bill on Mining Law than adding to an already rowdy and fractious atmosphere. Mr. Purwanto believes that the new law will improve the integrity of the nation while maintaining state assets, particularly those relating to mining.
“Freeport and other foreign parties have extracted the wealth of Indonesia and have made us feel stupid as a consequence,” Mr. Purwanto concluded.
Freeport's mining site in Papua. Photo by: Freeport Indonesia (www.ptfi.co.id)
The recent scandal involving PT Freeport Indonesia (“Freeport”)and theSpeaker of the House Setya Novantois now entering the new level. After Minister of Energy and Mineral Resources Sudirman Said testified before the House Honorary Council, the proceeding continued by summoning Freeport’s President Director Maroef Sjamsoeddin yesterday.
During the proceeding, Mr. Sjamsoeddin explained about the conversation between himself, Speaker Novanto, and businessman Muhammad Riza Chalid. The conversation was recorded by Sjamsoedin, unbeknownst to the other two parties.
“I needed to protect myself so that I could give a good account of myself in the future should any difficulties or accusations transpire,” Mr. Sjamsoeddin explained when testified before the House Honorary Council (Majelis Kehormatan Dewan – “Council”), in Jakarta on Thursday, 3 December 2015.
The recording was made during the third meeting which took place in June of this year. It was planned after Mr. Sjamsoedin became suspicious during the second meeting, when businessmen Riza Chalid also attended the meeting, to Mr. Sjamsoedin’s admitted surprise. The meeting lasted for one hour.
“We discussed material business during the meeting and I conveyed the message that for us, business is open for anybody,” Mr. Sjamsoedin said.
After the meeting, Mr. Sjamsoedin admitted that he had conducted a private analysis of the conversation and had concluded that Speaker Novanto, a state official, was angling for business. Mr. Sjamsoedin explained that Speaker Novanto should have invited members of Commission VII, which is responsible for the administration of energy and natural resources, to the meeting.
“This is my personal analysis of the conversation and the meeting I should stress,” Mr. Sjamsoeddin explained.
Mr. Sjamsoeddin, who is the Former Deputy Head of the State Intelligence Agency, also stated that two weeks after the second June meeting, a third meeting took place. The time and venue for this meeting was determined by the Speaker Novanto’s staff and the meeting eventually took place in the Pacific Place, a shopping mall in Jakarta. Mr. Sjamsoedin recorded the meeting on his mobile phone.
“I put my cell phone on the table and recorded the conversation,” he stated clearly to the court.
According to Mr. Sjamsoeddin, the substance of this conversation was identical to that of the recording played at the MKD on Thursday night, when the Council heard the testimony of Sudirman Said.
“Nobody told me to record the conversation and I am fully accountable for it. I recorded the conversation owing to my earlier suspicions,” Mr. Sjamsoedin explained.
Furthermore, Mr. Sjamsoeddin stated that during this third meeting, the conversation began with a few light topics before moving onto heavier subjects. Towards the end of the conversation, Mr. Sjamsoedin became more reticent to speak, as important issues were touched upon.
Distributing Shares
Confirming on the issue that Speaker Novanto was asking of Freeport’s shares, Mr. Sjamsoeddin stated that his company has no authority to distribute shares. According him, the distribution of shares is the sole authority of stakeholders.
“Freeport International should receive permission from the owners, and this includes shares in hydropower generators,” explained Mr. Sjamsoeddin.
Mr. Sjamsoeddin also told the Council that a heated discussion relating to the distribution of shares had taken place between Freeport and Speaker Novanto. However, he said that he was not participating in the conversation about the shares at that time, as he felt that the subject was unethical.
Mr. Sjamsoeddin also denied that any special treatment as regards mining contracts had been agreed with the Indonesian government.
"Freeport is not in a rush to renew its contract, and there has been no special treatment. In fact, we are still trying to comply with the Mining Law,” stated Mr. Sjamsoeddin.
New Mining Law
Previously, the Working Committee Member for Minerals and Coal at Commission VII (“Committee”), Joko Purwanto, had stated that the Committee did not want to get snared up in any political instability and infighting as regards the shares requested by the House Speaker, Setya Novanto.
“The Committee will focus on finishing up the Draft Bill on the Mining Law in order to resolve the current problems," Lawmaker Purwanto said.
Lawmaker Purwanto supports the reform of various state assets that have previously been controlled by foreign parties, such as Freeport. However, according to him, the resolution of these issues need not involve any political intrigue or conflict of interests between stakeholders.
According to Purwanto, the solution to this problem involves a revamping of the laws and derivative regulations which relate to the management of natural resources in Indonesia.
“My belief is that the current crisis has been caused by conflicting regulation. A number of differences exist between the law, the Government Regulation (PP), and the ministerial decree. Whether this was intentional or not, it needs to be fixed,” Purwanto explained.
The member of Commission VII also stated that he preferred to focus on finishing the Draft Bill on Mining Law than adding to an already rowdy and fractious atmosphere. Mr. Purwanto believes that the new law will improve the integrity of the nation while maintaining state assets, particularly those relating to mining.
“Freeport and other foreign parties have extracted the wealth of Indonesia and have made us feel stupid as a consequence,” Mr. Purwanto concluded.