Tuesday, October 31, 2017

1) JK: Separatist Movement Not Accepted in Papua

2) Indonesian Diaspora Set to Conduct Breakthrough Program to Build Papua

3) Telemedicine program to be applied in Papua

4) How to improve maternal health: 4 lessons learned in Papua
5) Indonesian Air Force to deploy squadron of fighter jets in Biak


1) JK: Separatist Movement Not Accepted in Papua

Tuesday, 31 October 2017 | 19:51 WIB
JAKARTA, NETRALNEWS.COM - Vice President Jusuf "JK" Kalla insists the separatist movement is not accepted in Papua because the region is part of the Unitary State of the Republic of Indonesia (NKRI).
The statement was delivered by JK at the Vice Presidential Office, Jakarta, Tuesday (10/31/2017), related to the terror acts committed by the Armed Criminal Group (KKB) in Tembagapura, Mimika, Papua, for the last few days after the shooting of Police Mobile Brigade (Brimob) Post in the areas of MP67 and MP66 Tembagapura on Sunday (10/29) at around 10:35 am, Eastern Indonesian Time (WIT). "Separatist movement, of course, it tries to disrupt the situation, but the government's preparations in Papua, both police and soldiers, ready to face anything if anyone tried to interfere," the vice president said.
JK added the government will not stop doing development in Papua for evenly distributing welfare in all areas of Indonesia.
During the three years of Jokowi-JK's administration, the central government has made efforts to improve the welfare of Papuan communities, including the implementation of one price fuel for Papua since October 2016 and the acceleration of the Trans-Papua National Road along 4,330.07 kilometers.
Based on the statement by Head of Public Relation Division of Papua Regional Police Senior Commissioner AM Kamal, the joint personnel of Brimob and Indonesian Armed Forces (TNI) are still on alert in the Brimob Post area of Tembagapura, Mimika, after the KKB attack on Sunday (10/29).
He added the joint forces are also still pursuing the perpetrators of the Brimob Post shootings in the areas of MP67 and MP66 Tembagapura on Sunday at around 10:35 am.
2) Indonesian Diaspora Set to Conduct Breakthrough Program to Build Papua
Wednesday, 25 October 2017 | 13:29 WIB

JAKARTA, NETRALNEWS.COM  - The Indonesian Diaspora Network Global (IDNG) and Indonesian American Society of Academics (IASA), which consists of Indonesian Diaspora professors in the United States, agreed to implement a groundbreaking telemedicine and education program for Papua and West Papua starting January 2018.
The telemedicine breakthrough program will make two hospitals in Papua a center for telemedicine activities and connect to five district public health centers (Puskesmas) as working-models directed to 100 front-line Puskesmas.
Coordinating Minister for Maritime Affairs Luhut Pandjaitan said that the contribution from Diaspora abroad is very important for Indonesia's progress. Expertise and mastery of technology gained from developed countries can be utilized in the development of Indonesia.
According to Minister of National Development Planning Bambang Brodjonegoro, telemedicine will be conducted interactively by way of real time as well as store-forward system. This initial model can be scaled up to cover more areas, including outside Papua and West Papua. The first breakthrough educational program will target boarding high schools in Jayapura, Merauke, and Nabire to transform them into high-quality graduate power houses.
The program will begin with the recruitment of additional educators, curriculum design and teaching materials, training and mentoring, the design of instructional infrastructure. A total of 20 diaspora professors will be deployed alternately throughout 2018 to conduct mentoring and guidance using Diaspora self-funding of $350,000 or IDR4.7 billion per year.
"This is a pure donation from Diaspora from donors and sponsors. The activities of Diaspora professors are merely devotion and they will not be given salary or honorarium," said Bambang, in a press release on Wednesday (10/25/2017).


3) Telemedicine program to be applied in Papua

24th October 2017 | 1.332 Views
Ubud, Bali (ANTARA News) - The Indonesian Diaspora Network Global (IDNG), in collaboration with the Indonesian American Society Academics, will hold telemedicine and educational programs for boarding schools in the provinces of Papua and West Papua in January 2018.

The agreement was discussed during a meeting between IDNG President Herry Utomo and Chairman of the Board of Directors of IDNG Edward Wanandi with Coordinating Minister for Marine Affairs Luhut Binsar Pandjaitan and Head of the National Development Planning Agency Bambang Brodjonegoro in Washington DC, the US, last week.

In a press release received by ANTARA here on Tuesday, Utomo noted that the two programs were efforts by the diaspora to be directly involved in accelerating development in Indonesia, particularly in Papua and West Papua.

This initiative was welcomed by the minister who said it was time for the Indonesian diasporas expertise and mastery in technology to be used for building the country.

The telemedicine program will be centered at the Jayapura hospital and Merauke hospital and will be connected to five district health centers.

Later on, the "real time" program will be implemented at one hundred frontline district health centers to cover more patients.

Meanwhile, the educational programs will be held at high schools with boarding facilities in Jayapura, Merauke, and Nabire to transform them into high-quality graduate-generating institutions.

The program will begin with recruiting additional educators, designing curriculum and teaching materials, training and mentoring, and building learning infrastructure.

At least 20 professors from the Indonesian diaspora will be deployed alternately throughout 2018 to offer mentoring and guidance using the diasporas self-funding worth $350 thousand.

"This is a form of pure donation from the diaspora donors and sponsors, and these diaspora professors are devoted to fulfilling their duties, so they will not receive salaries or honorariums," Utomo said.(*)

4) How to improve maternal health: 4 lessons learned in Papua
Via YouTube

By Helen MorganNaomi Mihara 31 October 2017
JAYAPURA, Indonesia — Indonesia has some of the highest rates of maternal mortality in Southeast Asia, and one of the biggest factors affecting the rate of maternal deaths is a lack of access. Local midwives in remote corners of the country are on the frontlines of primary care, but many women in poor and rural settings don’t have access to such care — and even when services are accessible, the quality varies.
Maternal mortality remains a global issue. Despite a significant reduction in recent years —  falling by half between 1990 and 2015 — some 216 women per 100,000 live births still die each year. Now, Sustainable Development Goal 3 on healthy lives and well-being is aiming to reduce the number of women dying due to complications in childbirth to less than 70 per 100,000 live births. This is a huge challenge, and one that many countries are struggling to meet, particularly in a country such as Indonesia, where the numbers fell by just 5 percent in the same time period.

Papua, at the easternmost edge of Indonesia, is among the least developed provinces in the country, and its lack of health care infrastructure is concerning. A report from Human Rights Watch notes that Papua has Indonesia’s highest infant, child, and maternal mortality rates. But in Jayapura, the province’s capital, steps are being taken to counter this problem in primary health centers at the heart of the communities. These government-mandated centers — puskesmas, in Indonesian — are dotted around the sprawling city and its surrounding peri-urban areas. One of these centers, Puskesmas Waena, is tucked down a narrow street on the outskirts of the city, and visited by around 365 pregnant women per year — each of whom are entitled to four free check-ups over the course of their pregnancy. 
Devex spoke with health care workers at the center to hear more about how access to care for pregnant women could be improved. This video explores the impact of a new digital data collection system, developed through a partnership between Philips, telecommunications company Telkom, and the local government, to help ensure effective sharing of patient data and to enable local health workers to seek advice from specialists across the country. 
How do we ensure that people worldwide get the care they need without the risk of being pushed further into poverty? Devex explores the path to universal health coverage. Join us as we ask what it will take to achieve UHC for all by visiting our Healthy Horizons site and tagging #HealthyHorizons#Health4All and @Devex.
The content, information, opinions, and viewpoints in this Healthy Horizons content series are those of the authors or contributors of such materials. Content produced as part of the series does not represent an endorsement of the contributing institutions or their positions, nor does it imply the existence of any relationship or engagement among them in connection with this series.
About the authors 
Helen Morgan is an editorial associate at Devex. She has a background in human rights, radio and journalism, and has written for a variety of international publications while living and working in Buenos Aires, New York and Shanghai. She is now based in Barcelona and supports editorial content on campaigns and media partnerships at Devex. She is currently studying a master's degree in contemporary migration.

Naomi Mihara is a video journalist for Devex, based in Barcelona. She has a background in journalism and international development, having previously worked as an assistant correspondent for Japan's Yomiuri Shimbun newspaper and as a communications officer for the International Organization for Migration in Southeast Asia. She holds a master's degree in multimedia journalism from Bournemouth University.


5) Indonesian Air Force to deploy squadron of fighter jets in Biak
4 hours ago
Biak, Papua (ANTARA News) - The Indonesian Air Force plans to deploy a squadron of fighter jets in the Manuhua Airbase in Biak Numfor district, Papua province, next year after its status has been upgraded to type A from type B.

"Biak will have a squadron of fighter jets. The plan has been incorporated to the TNI (National Defense Forces) chief's program. The program has been notified to Manuhua Airbase," Commander of the Manuhua Air Force Base, Colonel Fajar Adriyanto, said after a get-together with religious figures and journalists at Gunadi Angkasa building on Tuesday.

The presence of fighter jets at the airbase is expected to strengthen state security defense particularly in the Indonesian eastern provinces of Papua and West Papua, he said.

He said the Air Force has made preparations including facilities and infrastructures for the operation of the squadron of fighter jets.

"The Manuhua Air Force Base in Biak has been equipped with apron facility for fighter jets. All the facilities can be used now," he said.

He expressed hope that the squadron of fighter jets, coupled with Air Force personnel including those from Manuhua airbase, Air Force Special Troops of Command Battalion No 464 and Radar Unit No 242 will strengthen security and surveillance of air space in Papua and West Papua provinces. 

Head of the Auyu people: We’re ready to die for out land and ancestral forest


Head of the Auyu people: We’re ready to die for out land and ancestral forest

An oil palm company named PT Indo Asiana Lestari has been trying to negotiate with the Auyu people living in several villages in Mandobo and Fofi sub-districts of Boven Digoel, including Ampera, Ikisi, Navini and Yare villages.
Frengky Hendrikus Woro, a resident of Yare village, explained to Okto Waken of the Justice and Peace Secretariat of Merauke Catholic Diocese that “The majority of clans do not consent to the company’s plans because we don’t want to lose our land and forest”.
The company’s public relations staff, known as Yakub, has been trying to persuade the community, but their opposition continues. The company has also asked a well-known community figure, Fabianus Senfahagi, to help convince the people to accept the company’s request to plant oil palm in their area.
Despite their efforts, the community have refused to sign a letter of agreement to allow the company to operate. Fabianus has explained to them that the company would divide the land into a core plantation and a ‘plasma’ scheme (a form of profit-sharing with the local community which is obligatory under Indonesian law).
“The company’s public relations rep said ‘We’ll pay special attention to customary land owners’ rights, you’ll be sitting pretty, you’ll get your wages at the end of the month, and a guarantee that this special treatment will extend to your children and grandchildren too'”, Frengky Woro related.
Around 20 landowning clans will be directly affected by the plantation company including the Woro, Mukri, Yame, Misa, Beni, Hamagi, Tifahagi, Nohoyagi, Senfahagi, Aweyoho, Sagi, Soh, Maa, Mabo, Bung, Sifiragi, Abugagi, Hanagi, Awe and Momu clans. Two of these clans, Senfahagi and Aweyoho, support the company’s plans.
In mid-October 2017, the chief of the Auyu ethnic group in Boven Digoel, Egedius Pius Suam, invited representatives of landowning clans from the four affected villages to meet in his house in Tanah Merah. As the clans discussed their attitudes towards PT Indo Asiana Lestari, suddenly a group of people arrived at the house where the meeting was taking place. They were believed to be a group supporting the company. They were angry and wanted to break up the meeting.
Frengky Woro related, “They spoke roughly, threatening us. ‘Don’t get in the way of us bringing this oil palm company in – if anyone does we’ll kill that person'”.
The Auyu people’s chief, Egedius Pius Suam, tried to calm the suspicions of that group and advised them that no-one was trying to be obstructive, but just wanted the company to respect the rights of other landowners in the community and hold a meeting to discuss the matter in the proper fashion. The men told the chief that if he reported this incident to the police, this would make them even more brutal. “We will kill you in own special way”, they said, according to Frengky.
In response to this threat, the Auyu chief explained that they would report the incident to the police so they could seek to resolve the matter. He stated his feelings clearly to the group of men “We are ready to die for our land and ancestral forest.”
The Auyu people continue to speak out for their rights which are currently threatened by PT Indo Asiana Lestari
[awasMIFEE note: There are indications that PT Indo Asiana Lestari was given a location permit in 2017 on land previously allocated to PT Energi Samudera Kencana, a Menara Group company which was later sold to Pacific Inter-link. An earlier article from Pusaka about opposition to PT Indo Asiana Lestari can be read in Indonesian here: http://pusaka.or.id/2017/10/perusahaan-datang-masyarakat-terbelah/]

1) Mobile Brigade Post at Freeport Gets Shot at Again

3) More shootings in Papua's Mimika area




1) Mobile Brigade Post at Freeport Gets Shot at Again
Sunday, 29 October 2017 | 22:40 WIB

                                                          A Brimob officer in Papua (ist)

JAKARTA, NETRALNEWS.COM - After an attack that caused the death of one member of the Indonesia National Police (Polri) Mobile Brigade (Brimob) officers occurred some time ago, another attack has happened again in the area of Freeport on Sunday (29/10/2017) at around 10:35 local time.
The Brimob post in MP66 area of Freeport Indonesia, Tembagapura, Timika, Papua was shot by a group of unknown people.
"Our members were being shot at from an altitude from the left side from mile 68," said Police Chief Commissioner AM Kamal, Head of Public Relations at Papua Police, on Sunday (29/10/2017).
Kamal said, the members of Brimob had replied to the shots several times. "Our members counted five shots," he said.
Commander Battalion B Brimob Mimika who happened to cross the scene immediately went to the shooting location.
"The joint forces of the Brimob and Indonesian Military (TNI) Task Force are pursuing the perpetrators of the shootings that allegedly fled to the Hidden Valley MP66 area," he said.
Currently, Kamal said, four personnel of Satgas TNI BC64 and the standby zone patrol team at Hidden Valley MP66 intersection.
Kamal added, a number of additional personnel from Mapolres and other Brimob task force were also deployed to assist the pursuit.
Meanwhile, employees and residents who were in the vicinity of the shootings were evacuated to Sporthhall MP68.
According to him, the Head of Ops Amole, Head of Task Force, Deputy Head of Task Force and Danyon B Brimob Mimika went together with several members across the scene.
“They immediately went to the scene and joined the members who were at the post. The combined forces of Brimob and TNI Task Force immediately pursued perpetrators of the shootings,” he said.
At 11:05 WP, four personnels of TNI BC64 force and the zone patrol team at the Hidden Valley MP66 intersection is still pursuing the perpetrators and guarding around the scene.
“The perpetrators of the shootings allegedly fled to the Hidden Valley MP66 area to assist the chase, troops from Mapolres and other Brimob Task Force personnel immediately deployed and residents around the shooting area were evacuated to Sporthhall MP68,” he said.
Papua Police Chief, Inspector General Boy Rafli Amar said the gunmen who fired at PTFI mining area in the past few days are suspected of having a schedule of attacks.
“It’s the season, like one of last year and we’re still identifying this armed group,” he said last week. He regretted the shootings occurred in a row in the area of ​​PT Freeport, to cause casualties and injuries. (tabloidjubi.com/Zely)

3) More shootings in Papua's Mimika area
3:09 pm today
Reports from Papua province say there have been more shootings aimed at Indonesian security forces in the Mimika area.
Brimob, or mobile brigade, policemen were the target of gunfire on Sunday, days after another spate of shootings in the same area near the Freeport gold and copper mine.
According to Papua police a small contingent of Brimob personnel was shot at on Sunday by an un-identified armed group.
A police spokesman said Indonesian military began a pursuit of the perpetrators in the surrounding area.
In the earlier shootings, ten days ago, a policeman was killed and two others wounded in shootings near the mine.
Police blamed a Papuan militant group for those shootings.


Manokwari, Jubi – West Papua Province succeeded in collecting overseas aid funds of 18 million US dollars to preserve the environment in the area of ​​coral reefs in this area.
This cannot be separated from the status of West Papua as a conservation province and the existence of the world’s coral reef triangle in Raja Ampat, Kaimana, and Teluk Wondama.
Head of West Papua Research and Development Agency Charley Heatubun, in Manokwari on Sunday (October 29), said the West Papua Provincial Government has partnered with Kehati Foundation following the launch of the conservation province.
“The Kehati Foundation will be managing the foreign aid fund, and now there are some foreign donors and funds raised about 18 million US dollars,” Charley said.
He expressed that cooperation with Yayasan Kehati was conducted to optimize the management of Raswan Bloe Abadi area.
It is expected that the presence of Kehati and donor assistance can optimize the efforts of environmental conservation and community empowerment in the area of ​​the world’s coral reef triangle in the area.
“The world’s coral reef triangle is located in Raja Ampat, Kaimana and Teluk Wondama, and we are entrusted to Kehati to manage the relief funds,” he said.
Charley said that in 2018 there will be an international conference. It is hoped that Kehati can create new innovations on biodiversity conservation and community empowerment in the area.
He added that as many as 18 million US dollars of foreign aid funds are currently stored in Singapore. Interest from the fund will be used to finance conservation activities in West Papua.
“Funds are managed by Kehati, if there are proposals related to conservation efforts can be submitted to Kehati, who will select and determine a feasible one,” he said.
According to him, all elements such as universities and community institutions can submit proposals for activities to support conservation programs in this area. (Antara/Zely)

Monday, October 30, 2017

1) Security tensions not to affect tourism in Timika

2) Police increase alert security status in Tembagapura
3) Indonesia’s Ruthless Treatment Of World’s Second-Largest Gold And Copper Mine Worries Investors
1) Security tensions not to affect tourism in Timika
7 hours ago | 682 Views
Timika, Papua (ANTARA News) - The security tension that rose in Tembagapura District of Papua Province will not affect tourist visits to Cartenzs Pyramid mount summit.

"The incident will not affect tourists. Even the total number of tourist visiting Mimika and Cartenzs has increased," the Head of Immigration Office of Tembagapura, Samuel Henoc, said here on Monday.

Most visitors of Cartenzs Pyramid are foreign tourists, including from the US, European, and Asian regions.

The immigration service noted that about 60 foreign hikers had scaled the Catenzs Pyramid from the beginning of 2017 till date.

"The visitors from Asian countries are mostly from Japan and China," Henoc added.

The immigration service plans to cooperate with the Tour Operator Cartenzs Pyramid Papua to provide better immigration access.

"The total number of visitors increases every year. We want to provide ease of immigration access for the tourists," Henoc remarked.

The peak of Cartenzs Pyramid is at 4,884 meters above the sea level. The natural scenery attracts many tourists to visit the mount.

Previously, police had increased the security status in Tembagapura District of Papua Province to an alert status.

The police had implemented the alert security status since last Sunday, after an increase in tensions in Tembagapura, resulting in the intimidation of security officers, employees of Freeport company, and civilians.

However, the Papua Regional Police could immediately handle the security situation and restore law and order. (*)

2) Police increase alert security status in Tembagapura
7 hours ago | 672 Views
Jayapura, Papua (ANTARA News) - Police have increased the alert security status in Tembagapura District of Papua Province.

"We hope that the security condition in Tembagapura could be returned to normal soon," the Head of Papua Regional Police Inspector General Boy Rafli stated here on Monday.

The police have been implementing the alert security status since last Sunday, after the increase in security disturbances in the region.

Rafli called on all parties to increase their alertness after the shooting incidents that occurred in recent weeks.

An armed group in Tembagapura opened fire at the Sector Police Post and the Mobile Brigade Post.

He added that the criminal group had terrorized local people, including the residents in Banti area.

The armed group also intimidated security officers and employees of Freeport company.

Rafli hoped that the security officers would handle the armed groups that create the disorder.

Several incidents had occurred in Tembagapura since Saturday (Oct 21), which claimed the life of a police officer.

The armed group also attacked five Freeport employees and injured a civilian in Tembagapura. (*)
3) Indonesia’s Ruthless Treatment Of World’s Second-Largest Gold And Copper Mine Worries Investors
 -26 Oct 2017
 Despite some issues concerning the Indonesian government’s divestment plans for the province of Papua’s Grasberg mine, there are growing signs that Indonesia will get its way. Nevertheless, Indonesia’s ruthless treatment of Freeport will alert future investors.
This year has been unforgiving to Freeport McMoRan Inc, an invaluable player in Indonesia’s mining sector. On August 29, after months of tense negotiations, Freeport agreed to relinquish a 51% share in Grasberg, the world’s second-largest gold and copper mine, to the Indonesian government. Having acquired Grasberg early in the Suharto era, American corporation Freeport has since transformed it into a ‘super mine’. Grasberg produced 500,000 tonnes of copper and 1.1m ounces of gold in 2016 – over 25% of Freeport’s worldwide output.
Though Freeport’s mining activities have brought some economic development to Papua, Freeport’s operations have been accused of fuelling unrest in the region. Foreign ownership over natural resources has become an increasingly contentious issue in Indonesia, most noticeably reflected in this year’s Grasberg protests.
The government’s acquisition of a majority share of Grasberg suggests it is attempting to alleviate these populist concerns. Under the agreement, new mining rules that were introduced last January will be implemented, requiring Freeport’s 30-year contract to be replaced by a new mining permit, renewable every six months.
The issue is far from settled though, as sticking points remain over this divestment concerning valuation, timescale, payment structure, and tax and royalty payments. Further, these lingering concerns are evidence of deeper fractures between multinationals and the Indonesian state. They raise questions on ownership, sustainability and the shifting role of foreign investment in Southeast Asia’s largest economy.
Grasberg signals new aggressive Indonesia
Freeport initially reacted in a hostile manner, arguing that the new laws breached its current contract, which was slated to end in 2021. Freeport further branded the new regulations ‘a form of expropriation’ and threatening to request an arbitration hearing. It proceeded to suspend its operations, leading to loss of revenue and falling share prices.
Freeport’s eventual compliance was a reflection of the strong negotiating duo chosen by Indonesian President Joko ‘Jokowi’ Widodo: Energy and Mineral Resources Minister Ignasius Jonan, a formidable statesman, as well as Finance Minister Sri Mulyani Indrawati, a powerful technocrat and past managing director of the World Bank. The pair represented Indonesia well, reflecting a government unwilling to fold. Indonesia’s willingness to play hardball showed Freeport was no longer to be given special treatment, but to be treated ‘like any other company’.
The new agreement requires Freeport to build a new smelter, reflecting Indonesia’s long-term ambition to turn copper extraction from an export industry into a local, value-added industry. Freeport also committed to developing Grasberg’s underground mining facilities, (as open-pit resources are nearing depletion), investing $17bn-$20bn by 2031. Although Freeport hopes to retain control over Grasberg mining operations and governance, Maritime Affairs Minister Luhut Pandjaitan expressed Indonesia’s desire to assume overall control.
Indonesia has been deliberately aggressive on a number of fronts, attempting to place Freeport on the defensive. Whereas Freeport wants the full divestment to be completed progressively over several years, the government has expressed interest in taking its shares as early as December, 2018.
In addition, the government wants Freeport to pay more taxes and royalties, though the exact figure is yet to be determined. Freeport insists it is not subject to any taxes, royalties, or government fees, except those stipulated in the current contract. However, Indonesia likely views their quarrel through a more historical lens, reflecting a belief that past government administrations have been too lenient with Freeport.
This uncompromising stance has been driven by intense public pressure. It reflects Jokowi’s determination to balance foreign investment and economic growth against national and regional (Papuan) self-determination. Jokowi believes that fighting for a greater role for Indonesians, and particularly Papuans, in the mining sector, will gain him favour with influential Muslim civic organisations before the next election.
Unprepared to take over a major asset?
Despite the legal power behind Freeport’s negotiating team, Indonesia is in a strong position, as it technically owns the mineral reserve. According to Article 33(3) of the Constitution, ‘the land, the waters and the natural resources within shall be under the powers of the State’. Freeport’s team will attempt to argue otherwise, further delaying and disrupting negotiations.
The Indonesian Chamber of Commerce and Industry (Kadin) advised the government to defend its position on the current agreement. Indonesia is confident of its long-term prospects, driven by a growing middle class that accounts for two-thirds of its GDP and is a key driver of domestic resource demand. Yet, even though Indonesia has the political clout to control its own resources, it may not be equipped to take over such a major asset such as Grasberg.
Regarding the distribution of shares, it remains unclear which levels of government and which government agencies will benefit. The government wants the Ministry of State-Owned Enterprises to handle the transaction, yet Indonesia has a dearth of well-run state-owned mining companies. Should Indonesian SOEs buy up the shares, corruption problems may prevent a trickle-down of profits – as intended.
But Indonesia is not swearing off Freeport altogether. In fact, it has shown some signs of compromise, allowing Freeport to continue exporting under its current contract, according to a statement by the ministry – as long as Freeport makes progress developing the new smelter. The government understands that without Freeport’s investment it would be left with poorer infrastructure and a lack of skilled workers.
Impact on investment climate
Jakarta’s intent behind its tough stance stance is to regain control of one of its best resource assets by progressively circumscribing foreigners’ legal rights over their operations – which will alert other players in the extractives industries. The Freeport talks may prove to be a bellwether of how much investors have to compromise under new contracts in Indonesia.
Whatever the result of the Freeport dispute, the government’s actions will undermine Jokowi’s business-friendly reputation. This would come on top of a ten-year-low investment in Indonesian mining last year, notes David Fickling. Net investment has been negative so far this year. Wavering confidence and uncertainty surrounding Indonesia’s mining policies could begin to affect other industrial sectors.
Growing resource nationalism raises questions about future governments’ willingness to protect and fairly compensate foreign companies’ property rights. Though Jokowi is a favourite for re-election in 2019, a more Islamic and/or protectionist alternative may be even less accommodating.

Alexander Macleod is a doctoral researcher at Newcastle University with a focus on Southeast Asian politics and geography. Article as appears on Global Risk Insights: http://globalriskinsights.com/2017/10/grasberg-talks-signal-indonesian-states-strengthening-resolve/

This column does not necessarily reflect the opinion of the editorial board or Frontera and its owners.