By: Choirul Fuadi)*
CIDISS – PT Freeport Indonesia has been in Papua, Indonesia for over 50 year since 1967. Tons crop of Papua’s land has taken by PT Freeport. They have taken many advantages from exploration the treasure of Papua’s nature. Moreover, most of the stock is owned by PT Freeport and Indonesian government only owned 9.36% of it.
Last January, the Minister of Energy and Mineral Resources, Ignasius Johan announce that Indonesian Government will give looseness the export of raw mineral with some requirements through Government regulation No 1 year 2017. The regulation consists of;
- The changes of stock divestment till 51 % will do gradually.
- The changes of time period extension for mining need permits (IUP) and need special mining license (IUPK), the soonest 5 years before expiry of an operating license.
- Government regulates the price standard for mineral and Coal trading.
- Government obligates work contract holder to changes the permit into a special mining license production operations.
- Elimination provided that the holder of KK who has made purification can do the trading of processing result in certain amount and time.
- For further regulation regarding the procedures for the improved implementation of value-added and sales of metallic minerals will be further regulated by Ministry Regulation.
As quote in BBC, the point that is rejected by Freeport on IUPK; release the 51 % stock and applying tax of prevailing or regarding the need under the law. Meanwhile, Freeport only wants to release 30% stock and the tax is still according to work contract.
It is a violation from Freeport to Indonesian law by refuse in release the stock to National (Indonesian Government) according to dealing in the contract about 51%, and today, Indonesian Government only has 9.36% of stock.
Meanwhile, the applying law is according to UUD 1945, states that the land, water and natural resource inside should be owned by stated.
Besides that, Freeport has violate to law No 4 year 2009 by do not fulfill their obligation in build a smelter. In this case, Freeport does not build the facility to processing and refining mineral (smelter). Moreover, Freeport does not obey the Indonesian law.
It is said by leader of Indonesian Youth Entrepreneur Association, Bahlil Lahadalia. “Freeport was wrong since the beginning, because they have not build smelter facility. Meanwhile, it’s clearly mention as the requirement in law no 4 year 2009,” said him.
He assumes, Indonesian government is never wrong by issued the PP 1/2017 and it’s appropriate to update the tax rule for Freeport.
By this case, Indonesian government through Coordinating Minister for maritime, Luhut Binsar Pandjaitan request Freeport to obey the Indonesian law regarding the debate of the changes status from work contract to a special mining permit.
“Freeport should realize, this is B to B (Business to Business). So, there is no business to state. Freeport has almost 50 years been here, so they should obey the law,” said him.
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