Monday, December 7, 2015

1) West Papua railway master plan to be completed by December-end

1) West Papua railway master plan to be completed by December-end
2) Papua aims to increase  investment by 20-30%
3) Setya Novanto Denies Freeport Extortion Allegation
4) Jokowi condemns Freeport  fiasco
5) House may force oil tycoon’s  attendance at Freeport  scandal hearing 

1) West Papua railway master plan to be completed by December-end

Senin, 7 Desember 2015 18:50 WIB |
Map of transportation in Papua (red color for railway). (
Manokwari (ANTARA News) - The master plan of a railway project in east Indonesias West Papua province is expected to be completed by the end of December 2015, according to local Transportation and Communication Department spokesman Bambang Heriawan Soesanto.

"The railway system should be available soon as this program is important for large-scale economic development in West Papua," Soesanto remarked here on Monday.

He stated that the consulting and technical teams from the West Papua Department of Transportation and Communication had been on the field to survey, assess, and seek inputs on the districts and cities that will be covered by the railway network.

According to the spokesman, the teams will return to Manokwari on Monday to finalize the preparations of the master plan.

Soesanto stated that the construction of a railway network in West Papua is a great program with a long-term vision.

He believes that the existence of a railway network in West Papua will be able to improve effectiveness and efficiency in the distribution of mining, agricultural, and plantation commodities to support the regional economy.

"With the existence of a railway network, oil, gas, minerals, coal, and agricultural and other natural resources can be distributed more quickly and at relatively low costs," he pointed out.

He expressed hope that the people and all public elements in the area would support the railway network, which has been launched by the central government.

In the near future, PT SDIC Papua Cement Indonesia will operate in the region of Maruni to mine quartz sand at the Botak Mountain Region in Momiwaren, South Manokwari District.

"The transportation of quartz sand materials will be easier and cheaper if done by train," he said.


2) Papua aims to increase  investment by 20-30%

Prima Wirayani, The Jakarta Post, Jakarta | Headlines | Mon, December 07 2015, 6:15 PM 

The administration of Papua, Indonesia’s poorest and most remote province, is working to attract more domestic and foreign direct investment to the region to develop its untapped resources.

Papua Development Planning Board (Bappeda) head Muhammad Musa’ad has said the administration aims to increase investment in the region by 20 to 30 percent next year.

“Our mid-term regional development plan [RPJMD] has set 2016 as the year to increase investment in the province,” he said recently. 

He did not mention the province’s investment target for this year.

Investment Coordinating Board (BKPM) data said that Papua recorded domestic direct investment (DDI) realization of Rp 995.82 billion (US$71.95 million) in the first nine months of the year, while foreign direct investment (FDI) realization reached $831.39 million.

Papua Governor Lukas Enembe said, in his speech read by Musa’ad, that his administration had drafted several policies to develop the region’s investment potential. 

The policies included encouraging the establishment of new local potential-based economic zones, simplifying licensing procedures and involving people and commodities in economic activities.

To set a guideline for investors planning to invest in Papua, the administration has divided its area into five economic development zones (KPE). The zones are Mamta, Saereri, Mee Pago, La Pago and Anim Ha, where potential activities from plantations, mining, fisheries to manufacturing.

The administration also provides One-Stop Integrated Services (PTSPs) at all government levels to ease license issuance procedures. It has also developed the Simtaru spatial information and management system to ensure potential investors can attain comprehensive information about land.

Lukas said such measures were taken to ensure openness in investment procedures and to create a conducive business climate.

“The administration, along with all Papuans, guarantee that the region is safe and convenient for investment,” he wrote.

BKPM economic zones subdirectorate head Noor Fuad Fitrianto said during the event that problems faced by potential investors in Papua revolved around land ownership disputes, fishery license issuance, contract renegotiations, gas allocation and pricing.

To weather such obstacles, the government had offered several facilities for investors, such as tax and other area-based incentives, and reduced several bureaucratic obstacles, he said.

“The government relies on Papua and its neighbor West Papua to boost investment in the country,” he said, adding that Papua had around Rp 120 trillion worth of investment potential, as stated in investment principle licenses submitted to his office. However, only 40 percent of the amount had been realized.

To accelerate investment in Papua, Fuad said, the government had formed a team to supervise the region. It also plans to establish the Teluk Bintuni industrial estate in West Papua and two special economic zones (KEK) in Papua’s Merauke and West Papua’s Sorong as part of its plan to establish 14 industrial estates and seven KEKs in eastern Indonesia by 2019 to spread investment and economic development.

3) Setya Novanto Denies Freeport Extortion Allegation

TEMPO.COJakarta-The speaker of Indonesia's parliament on Monday denied seeking to extort shares in the local unit of Freeport McMoRan Inc to ensure a contract extension for the mining firm, a member of the assembly's ethics panel said.
Freeport, which operates one of the world's biggest copper and gold mines, is at the centre of a major political scandal after the head of its Indonesian operations told the panel last week he had secretly recorded a meeting in which speaker Setya Novanto asked for a 20 percent stake.
The panel summoned Novanto for questioning on Monday, but the speaker - a senior member of Indonesia's second-biggest political party, Golkar - asked for a closed-door hearing.
"What is clear is that he denied the accusations or reports, including the contents of the recording that became the basis for the ethics council to hear this case," council member Akbar Faisal told reporters after the hearing.
Journalists thronged the parliament on Monday, but a row of security officers kept them out of the room where the hearing was held.
Novanto dodged the journalists, entering by a side entrance.
His assistant did not respond to telephone calls seeking comment.
"We have to respect the process," President Joko Widodo told reporters. "But if it is said that there is profiteering, asking for shares, that is not done. This is about decency, morality, and the authority of the state."
Analysts say the allegations could further erode investor confidence in Indonesia, which is routinely ranked as one of the world's most corrupt countries.
Anti-corruption group Transparency International says its surveys show the parliament is perceived to be among Indonesia's most corrupt institutions.
The contract extension and now the scandal are more headaches for Freeport in Indonesia, where new rules have banned the export of unprocessed minerals, forcing mining groups to build smelters.
The Indonesian government already has a 9.36 percent stake in Freeport's Indonesian operations, and is due to take another 10.64 percent stake under existing regulations.
U.S.-based Freeport had sought the contract extension to give it legal certainty before investing billions of dollars in an underground phase at its Grasberg gold and copper sites in Papua province.
In the recording, said Freeport's Indonesia head, Maroef Sjamsoeddin, Novanto indicated that a 20 percent stake be given to Widodo and Vice President Jusuf Kalla.
Novanto allegedly told the Freeport executive that he could ensure the miner's contract would be extended from 2021 to 2041.
Golkar, the parliamentary speaker's party, supported Widodo's opponent in the 2014 presidential election.

4) Jokowi condemns Freeport  fiasco

President Joko "Jokowi" Widodo has expressed his anger about his name allegedly being misused by House of Representatives Speaker Setya Novanto, adding that such misconduct dishonored state institutions.
Jokowi said on Monday in regard to the hearing into Setya at the House' ethics council that he respected the council’s process but he was firmly opposed to institutions of the state being misused.
Jokowi said he accepted any abuse thrown at him but it would be misconduct if it was aimed at undermining a state institution.
"I am okay being called a crazy president or stubborn president. But if it relates to integrity, [allegedly] asking for an 11 percent share, I don't want that."
"This is a matter of appropriateness, ethics, morality and the state's dignity," he said as quoted by newsportal
Setya, a Golkar lawmaker, and oil and gas businessman Muhammad Riza Chalid are alleged to have asked for a 20 percent share of mining firm PT Freeport Indonesia. In a meeting with Freeport's president director Maroef Sjamsoeddin, Setya and Riza allegedly invoked Jokowi and Vice President Jusuf Kalla's names without their approval to ask for 11 and 9 percent shares for the state leaders, respectively, in return for helping Freeport extend its mining contract. An audio recording of the conversation was made public last week at a House ethics council hearing. 
Setya requested a closed hearing of the ethics council on Monday, despite public demand for an open hearing, as had been the case with the two previous hearings involving Energy and Mineral Resources Minister Sudirman Said, who reported the matter to the council, and Maroef. The ethics council chaired by Golkar lawmaker Kahar Muzakkir approved the request.
Setya told the hearing he committed no wrongdoing and refused to comment on the recording produced by Maroef saying it was illegal. He defended himself and said his conduct was in the best interests of Indonesia's investment climate.
Council member Akbar Faisal confirmed that Setya had denied all allegations made against him.
"He has the right to deny but we have all the evidence that we [the council] need to discuss," he said.
Teguh Juwarno, a lawmaker from the National Mandate Party, condemned the conduct of the hearing, which focused on legal technicalities. He said the council should have aimed only at Setya's alleged misconduct.
"Even the fact that Setya asked Freeport's boss to have an eye-to-eye meeting without concern for other House members is a violation," he said. (anh/rin)


5) House may force oil tycoon’s  attendance at Freeport  scandal hearing 

Ayomi Amindoni,, Jakarta | National | Mon, December 07 2015, 9:11 PM 

The House Representatives ethics council (MKD) is considering summoning oil and gas businessman Muhammad Reza Chalid to a council hearing in connection with his involvement in the PT Freeport Indonesia scandal.
“We could call him by force if necessary,” Akbar Faisal, a member of the House Representatives and of the MKD, said on Monday.
Reza was involved in an informal meeting with House speaker Setya Novanto and the president director of Freeport Maroef Sjamsoeddin, in which he apparently requested shares in Freeport in exchange for favorable government treatment.
In that meeting, which was recorded in whole by Maroef, Setya reportedly misused the names of President Joko “Jokowi” Widodo and Vice President Jusuf Kalla in asking for the shares.
“We are going to hold an internal meeting first, and I will ask that we summon him,” MKD deputy chairman Junimart Girsang told
The MKD has already examined Energy and Mineral Resources Minister Sudirman Said, the Freeport president director and the House speaker.
The scale and scope of Reza’s political tentacles were hinted at during the hearing at the House’s ethics council last week, during Maroef’s testimony on Setya’s alleged misconduct.
A majority of the council members agreed to make public the recorded conversation between Setya, Reza and Maroef. (dan)

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