2) TNI, police seize Free West Papua HQ
3) Government defends Freeport deal amid criticism
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1) Armed rebels remain serious threat in 2019: Papua police chief
Reporter: Antara 1 hour ago
Jayapura, Papua, (ANTARA News) - Armed Papuan rebels would likely remain a serious security threat in certain areas of the central mountain range of the Indonesian province of Papua, Papua Police Chief Inspector General Martuani Sormin stated.
The police have attempted to approach the armed groups to end the circle of violence but the effort has yet to yield success, he remarked while responding to local journalists` questions on this year`s security situation in Papua Province.
However, owing to the presence of army and police personnel in the areas of the central mountain range that might potentially be threatened by what the police call "armed criminal groups," or "KKB," the frequency of security disturbances can be reduced.
Sormin said those responsible for administering the areas are the governor and heads of districts, and the armed forces and police personnel could not conduct their duties without their support.
Hence, in dealing with these security threats, he proposed that the "Regional Leadership Communication Forum," or "Forkopimda," be activated, so that necessary solutions can be sought together to all problems occurring in the regions.
For those posing security threats and disturbances, the police will enforce the law against them, he noted, adding that the perpetrators would eventually be caught.
On December 2, 2018, a group of armed Papuan rebels had brutally killed 31 workers from PT Istaka Karya, who were engaged in construction and building the Trans Papua project in Kali Yigi and Kali Aurak in Yigi Sub-District, Nduga District, Papua Province.
Among the victims were Jepry Simaremare and Alpianus M, both employees of PT Istaka Karya, as well as Agustinus T, Carly Zatrino, Muh. Agus, Fais Syahputra, Yousafat, Aris Usi, and Yusran, all workers of PT Istaka Karya.
The armed rebels, who launched the brutal killings, also killed a soldier named Handoko and injured two other security personnel, Sugeng and Wahyu.
Reporting by Evarukdijati
Editing by Rahmad Nasution
The police have attempted to approach the armed groups to end the circle of violence but the effort has yet to yield success, he remarked while responding to local journalists` questions on this year`s security situation in Papua Province.
However, owing to the presence of army and police personnel in the areas of the central mountain range that might potentially be threatened by what the police call "armed criminal groups," or "KKB," the frequency of security disturbances can be reduced.
Sormin said those responsible for administering the areas are the governor and heads of districts, and the armed forces and police personnel could not conduct their duties without their support.
Hence, in dealing with these security threats, he proposed that the "Regional Leadership Communication Forum," or "Forkopimda," be activated, so that necessary solutions can be sought together to all problems occurring in the regions.
For those posing security threats and disturbances, the police will enforce the law against them, he noted, adding that the perpetrators would eventually be caught.
On December 2, 2018, a group of armed Papuan rebels had brutally killed 31 workers from PT Istaka Karya, who were engaged in construction and building the Trans Papua project in Kali Yigi and Kali Aurak in Yigi Sub-District, Nduga District, Papua Province.
Among the victims were Jepry Simaremare and Alpianus M, both employees of PT Istaka Karya, as well as Agustinus T, Carly Zatrino, Muh. Agus, Fais Syahputra, Yousafat, Aris Usi, and Yusran, all workers of PT Istaka Karya.
The armed rebels, who launched the brutal killings, also killed a soldier named Handoko and injured two other security personnel, Sugeng and Wahyu.
Reporting by Evarukdijati
Editing by Rahmad Nasution
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2) TNI, police seize Free West Papua HQ
News Desk The Jakarta Post
Jakarta / Wed, January 2, 2019 / 03:24 pm
The Indonesian Military (TNI) and National Police have taken over the West Papua National Committee headquarters in Timika, Mimika Baru district, Papua to use it as a joint military-police post.
"The headquarters is not allowed to operate anymore and was taken over as a TNI and police post from now on,” Mimika Police chief Adj. Sr. Comr. Agung Marlianto said in a statement on Tuesday.
He said 80 TNI personnel and police officers went to monitor an anniversary and new year celebration at the headquarters on Monday morning.
Agung said the officers ordered the Free West Papua activists in the headquarters to remove all of the movement’s insignia and to not to shout any freedom slogans.
"They refused at first, but finally we could remove all the insignia," he said, adding that officers had painted a wall red and white and knocked down another wall that bore the committee’s symbol.
Beginning on Monday, he said, Papuans were not allowed to use any Free West Papua insignia or anything with the morning star symbol.
The committee spokesperson Ones Suhuniap said the takeover was immoral and unethical.
He said the committee had informed the police they were holding an event on Dec. 31.
“Unless the land and buildings belonged to them and they retook it from us," Suhuniap said in a statement on Tuesday, explaining why the seizure of the property was improper. "It was built by the Papuans on their own land. They had given this to us.” (ggq)
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3) Government defends Freeport deal amid criticism
Stefanno Reinard Sulaiman The Jakarta Post
Jakarta / Wed, January 2, 2019 / 10:27 am
The government has been fending off criticism questioning its recent deal with United States mining giant Freeport-McMoRan (FCX) to acquire majority shares in its subsidiary PT Freeport Indonesia’s (PTFI) Grasberg copper and gold mine in Papua for US$3.85 billion since the deal was signed on Dec. 21.
Critics have questioned the acquisition of the world’s second-largest copper and gold mine, asking why the government did not wait until PTFI’s current contract ended in 2021 — by which time it could simply take over the mine without paying a single rupiah.
Finance Minister Sri Mulyani Indrawati, one of the key figures involved in finalizing the deal, has personally come forward in defense of the deal through her official Facebook account.
She explained that PTFI’s previous contract of work (CoW) stipulated that the government would extend the company’s contract after it ended in 2021.
“In the 1991 KK [CoW], the government is scheduled to grant PTFI a mining rights extension until 2041, and we would not be able to terminate it without reasonable cause,” she said in a lengthy Facebook post shared last week.
She assured that the negotiators, which comprised officials and executives from various government institutions and firms, only had one intention, which was to “fight for the country’s interests, including the interests of the people of Papua”.
The former World Bank managing director acknowledged that the negotiations were challenging, with the involved parties often engaging in heated debates. However, she praised the negotiators and expressed pride at sealing the deal with FCX.
Although Indonesia closed the deal, the country may need to wait another four years before it can fully benefit from PTFI’s operations.
A recent statement from FCX revealed that the company was still entitled to a larger share of PTFI’s production, as the former is set to retain its economic interest of 81.28 percent in PTFI until 2022.
Therefore, FCX is entitled to the majority of production derived from the prized Grasberg mine, whether it is copper, gold or silver.
“The arrangements provide for FCX and the pre transaction PTFI shareholders to retain the economics of the revenue and cost sharing arrangements under the joint venture,” FCX said in a statement issued shortly after closing the deal.
Commenting on the matter, Institute for Development of Economics and Finance economist Abra PG Tallattov said such an arrangement subsisted because of a previous arrangement with Anglo-Australian mining giant Rio Tinto.
“PTFI had an agreement back in 1996 with Rio Tinto for a 40 percent share of Grasberg’s production only after 2022,” he said.
In 1996, Rio Tinto signed a participation agreement with PTFI for a 40 percent interest in PTFI, making the former entitled to 40 percent of production above specific levels until 2022 and 40 percent of all production starting 2023.
The government, through state-owned mining holding company PT Indonesia Asahan Aluminium (Inalum) paid $3.5 billion for Rio Tinto’s 40 percent participating interest in PTFI. The remaining $350 million was paid to FCX.
Legally, Abra said, the arrangement was not a problem as it was based on a previous agreement.
Nevertheless, he said it was unfortunate as it would affect Inalum’s revenue from PTFI at least until 2022. “The economic interest should be equivalent to the equity interest,” he added.
PTFI spokesman Riza Pratama declined to comment. Meanwhile, Inalum head of corporate communications Rendi Witular could not be reached for comment.
Critics have questioned the acquisition of the world’s second-largest copper and gold mine, asking why the government did not wait until PTFI’s current contract ended in 2021 — by which time it could simply take over the mine without paying a single rupiah.
Finance Minister Sri Mulyani Indrawati, one of the key figures involved in finalizing the deal, has personally come forward in defense of the deal through her official Facebook account.
She explained that PTFI’s previous contract of work (CoW) stipulated that the government would extend the company’s contract after it ended in 2021.
“In the 1991 KK [CoW], the government is scheduled to grant PTFI a mining rights extension until 2041, and we would not be able to terminate it without reasonable cause,” she said in a lengthy Facebook post shared last week.
She assured that the negotiators, which comprised officials and executives from various government institutions and firms, only had one intention, which was to “fight for the country’s interests, including the interests of the people of Papua”.
The former World Bank managing director acknowledged that the negotiations were challenging, with the involved parties often engaging in heated debates. However, she praised the negotiators and expressed pride at sealing the deal with FCX.
Although Indonesia closed the deal, the country may need to wait another four years before it can fully benefit from PTFI’s operations.
A recent statement from FCX revealed that the company was still entitled to a larger share of PTFI’s production, as the former is set to retain its economic interest of 81.28 percent in PTFI until 2022.
Therefore, FCX is entitled to the majority of production derived from the prized Grasberg mine, whether it is copper, gold or silver.
“The arrangements provide for FCX and the pre transaction PTFI shareholders to retain the economics of the revenue and cost sharing arrangements under the joint venture,” FCX said in a statement issued shortly after closing the deal.
Commenting on the matter, Institute for Development of Economics and Finance economist Abra PG Tallattov said such an arrangement subsisted because of a previous arrangement with Anglo-Australian mining giant Rio Tinto.
“PTFI had an agreement back in 1996 with Rio Tinto for a 40 percent share of Grasberg’s production only after 2022,” he said.
In 1996, Rio Tinto signed a participation agreement with PTFI for a 40 percent interest in PTFI, making the former entitled to 40 percent of production above specific levels until 2022 and 40 percent of all production starting 2023.
The government, through state-owned mining holding company PT Indonesia Asahan Aluminium (Inalum) paid $3.5 billion for Rio Tinto’s 40 percent participating interest in PTFI. The remaining $350 million was paid to FCX.
Legally, Abra said, the arrangement was not a problem as it was based on a previous agreement.
Nevertheless, he said it was unfortunate as it would affect Inalum’s revenue from PTFI at least until 2022. “The economic interest should be equivalent to the equity interest,” he added.
PTFI spokesman Riza Pratama declined to comment. Meanwhile, Inalum head of corporate communications Rendi Witular could not be reached for comment.
This article was originally published in The Jakarta Post's print edition on Jan. 2, 2019, with the title "Govt defends Freeport deal amid criticism".
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