National Development Planning Minister Sofyan Djalil has called on giant gold and copper miner PT Freeport Indonesia to increase its procurement of goods and services from state-owned enterprises (BUMN) as well as from other domestic sources, rather than importing them from abroad.
"Freeport's local sourcing is already at more than 60 percent, but there is still room for it [to add more]," said Sofyan, who also heads the Natural Resources Management Team for Papua, on Tuesday as quoted by Antara news agency.
According to Sofyan, several BUMN, such as state-owned coal miner PT Bukit Asam, state-run steel giant PT Krakatau Steel and state-owned cement maker PT Semen Indonesia, would be encouraged to supply coal, steel and cement for Freeport.
"There are also other BUMN [that will cooperate with Freeport]. Basically they are ready," said Sofyan.
Sofyan also called on Freeport to increase its cooperation with local businesspeople in Papua.
According to a data from the Energy and Mineral Resources (ESDM) Ministry, Freeport's local sourcing has reached 70 percent for goods and 90 percent for services, but the role of BUMN was still low.
"Freeport's procurement of goods and services through BUMN is only Rp 165 million [US$11,400]," said ESDM Minister Sudirman Said.
In total, Freeport's expenditure reached $1.9 billion per year; around $1.4 billion is product procurement.
Sudirman said that cooperation between Freeport and local companies would be more sustainable if it was based on mutual benefits, not merely due to obligations to obey the government's regulations.
"The important thing here is for Freeport to provide the necessary specifications [of its required goods and services], so its needs can be met by BUMN or private companies," said Sudirman. (kes)(++++)
2) Marise Payne says she’s ‘here for the long haul'
Marise Payne has an important message for her Defence Ministry: she's there to stay.
by John Kerin
Defence Minister Marise Payne says she is determined to defy the "revolving door" nature of the job and signalled in her first press conference that Australia will be maintaining a strong stance on China's territorial disputes.
Leadership turmoil and defence scandals have taken their toll on the post since 2007.
"I can commit to being here for the long haul," she told reporters in Canberra.
That she decided to talk to the media was itself a surprise: traditionally new defence ministers give themselves up to six weeks to get on top of the brief before talking to the media.
"I have no intention of walking away from politics any time soon," she said. "That should be an important message for defence: that this is the commitment this government gives and I have every intention of backing it up."
Senator Payne, who shifts from the Human Services portfolio and has also served a long apprenticeship on a series of Parliaments' defence, foreign affairs, and national security committees over 18 years, declared she is "absolutely passionate" about defence.
She also revealed her interest was inspired by her father's World War II service. "I am the daughter of a World War II veteran ... an enlisted soldier from the Southern Highlands of NSW. My father was my inspiration. He fought for this nation in Papua New Guinea and in Noumea."
Though Senator Payne said considered positions on defence and national security issues would have to await the release of the government's Defence White Paper – the government's 20 year vision for defence which comes with a $300 billion plus weapons wishlist – she did give a glimpse of defence policy under a Turnbull government.
Asked about Mr Turnbull's comments on the ABC on Monday night that China had done itself a disservice with its behaviour in the South China Sea by driving countries in the region to more closely align with the United States, Senator Payne said she had "no difference with the remarks".
"His remarks [on China] were very considered. As to its affect on the white paper ... this is a matter that will come in due course."
The white paper, which is now expected to be released in October/November, is expected to depict China as more friend than foe, in line with former Labor defence minister Stephen Smith's 2013 version and a departure from former prime minister Kevin Rudd's 2009 effort.
Asked whether the government would continue to warn Australians about the threat posed by Islamic State/Daesh as Mr Abbott had done, Senator Payne said she did not believe the "magnitude of the threat should be underestimated".
"There is absolutely no doubt that there are individuals, leaders in that organisation who are intent upon disrupting Western democracies and their ways of life," she said.
Senator Payne said among her first tasks would be travelling to the US with Foreign Minister Julie Bishop for talks with US counterparts Secretary of State John Kerry and Defence Secretary Ashton Carter.
She said she also intended to visit Indonesia in a bid to strengthen defence ties with Australia's near neighbour.
She declined to be drawn on the fate of Australia's $50 billion new submarine project, which is being fiercely contested by the Japanese, French and Germans.
Of her role as the first woman to serve in the defence post, she asked to be judged "on performance and not my gender".
Senator Payne said she would continue to expect an improvement in the "culture of defence", given well-publicised failings.
"The work of the former sex discrimination commissioner, Elizabeth Broderick, and the strong support of the former chief of army, David Morrison, have made some significant differences ... but I suspect there is still more to do."
Senator Payne said she had visited many of the conflict zones where Australian troops had been deployed, including Timor Leste, the Middle East, the Solomon Islands and Afghanistan; she paid tribute to Defence Force personnel now taking up the fight against Islamic State/Daesh.