Letter To The Editor: Clarification From PT Freeport

| Thu, 11/03/2011 8:27 AM

http://www.thejakartapost.com/news/2011/11/03/letter-editor-clarification-pt-freeport-indonesia.html

We are responding to your Oct. 24, 2011 editorial titled “Tumult over Freeport”. Over the years, The Jakarta Post has been notable in upholding principles of fairness and accuracy. This editorial fails to adhere to these principles.

We continue to seek a mutually satisfactory resolution of the labor strike. Our current offer would guarantee compensation for top skilled non staff employees of Rp 19 million per month, a highly competitive amount. PT FI will ensure that it remains an attractive employer for Indonesians.

PT FI has long achieved success in operating in Papua which has benefited all stakeholders, including major benefits for our employees, the local community and the Indonesian government. PT FI employs 22,000 people in Papua — 98 percent are Indonesian citizens and 28 percent are Papuans. We invest in training, scholarships and schools to develop human resources.

University of Indonesia research indicates PT FI contributes more than 98 percent of the GDP for Mimika Regency and more than half for all of Papua.

PT FI paid US$52 billion in taxes, royalties and dividends during the first nine months of 2011 and over $13 billion since 1992.

The majority of PT FI’s royalties are directed to provincial and local government. PT FI pays Indonesia more than it would pay other countries if the mine were located in Canada, Australia, South Africa, Peru, Chile or the United States.

PT FI has invested over $7 billion to develop its operations and infrastructure, including town sites, power plants, an airport, seaport, roads, bridges, waste disposal facilities and communication systems.

PT FI has also built schools, dormitories, hospitals and clinics, places of worship, recreational facilities and assisted locally owned enterprise development. Over $15 billion in future investments will be funded. PT FI voluntarily contributes 1 percent of its revenues to a community fund administered by the local
community.

Your editorial portrayed PT FI’s operations as an “American enclave” which is simply not true.

We are a proud partner of Papua and Indonesia. We appreciate the support of the Indonesian government and local officials to protect PT FI as a vital national asset and urge all stakeholders to work cooperatively to resolve the current labor issues as soon as possible and restore peace in the Mimika area.

Ramdani Sirait
PT Freeport Indonesia spokesperson
Jakarta

ENDS

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