2) Church, civil society urge Indonesia to halt military operations in Papua
Indonesia and the US mining giant Freeport-McMoRan have struck an agreement extending the operating rights of the vast copper and gold complex in Papua for the life of its reserves.
The memorandum of understanding signed last week amends the special mining permit for the Grasberg mine, operated by PT Freeport Indonesia (PTFI), preserves the existing governance structure, and sets out commitments for expanded exploration spending, social investments in Papua, including a hospital and medical education facilities, continued prioritisation of domestic downstreaming, and an eventual additional 12% equity transfer to the Indonesian state. Freeport will retain 48.76% ownership, declining to roughly 37% after 2042.
On paper, the arrangement signals stability and long-term partnership. In practice, it raises deeper questions about sovereignty over strategic minerals, industrial policy and the unresolved tensions surrounding West Papua.
Grasberg is not just another mine. It is one of the world’s largest copper and gold reserves. Copper is indispensable for electric vehicles, renewable power grids and digital infrastructure. As major economies scramble to secure critical mineral supply chains, copper has become a geopolitical asset.
Indonesia’s push for greater state participation in PTFI has always had two objectives: increase national revenue and ensure compliance with downstreaming – the requirement that minerals be processed domestically rather than exported as raw ore. Downstreaming is meant to generate higher value-added activity at home: refining, manufacturing, skilled employment and technological spillovers.
The new MoU advances these goals only partially. The additional 12% share transfer is deferred until 2041, meaning that for the next 15 years Freeport retains substantial ownership and influence. Governance arrangements remain intact. While this stability reassures investors, it potentially limits Jakarta’s leverage to enforce ambitious downstreaming targets if global demand pressures intensify.
That pressure is not hypothetical. The United States has sharpened its focus on securing access to critical minerals, including copper. If demand for refined or semi-processed copper rises, Indonesia could face commercial and diplomatic incentives to prioritise exports over domestic industrial development. The MoU allows expanded marketing to the US in line with market mechanisms. Commercially sensible, perhaps – but it could complicate Indonesia’s long-term industrial strategy.
Downstreaming depends on processing capacity. The $3.7 billion Manyar copper smelter complex in Gresik, East Java, is central to Indonesia’s plans. It is meant to anchor a domestic copper value chain linking mining to manufacturing sectors such as wiring, electronics and renewable energy components. Yet capacity constraints and operational disruptions have exposed vulnerabilities. When the smelter cannot reliably absorb concentrate, pressure builds to allow exports of raw or partially processed material. Each exception weakens policy credibility and risks returning Indonesia to a commodity-export model.
Jakarta therefore needs to push Freeport to optimise and stabilise the Gresik smelter. Measurable performance benchmarks, transparent reporting and enforceable compliance mechanisms are essential. If capacity proves insufficient, the government should connect PTFI with other private firms and state-owned enterprises to build a broader downstream industrial cluster rather than relying on a single facility.
Energy is another critical dimension. Smelting is electricity-intensive. If the Gresik complex relies heavily on coal-fired power, Indonesia risks undermining both climate commitments and long-term competitiveness in carbon-sensitive markets. The government should assess and disclose the current energy mix powering the smelter and accelerate renewable installations to reduce emissions intensity. Cleaner power would strengthen Indonesia’s position in markets increasingly attentive to supply chain emissions.
Yet the debate over ownership and industrial strategy cannot be separated from realities in Papua. The mine sits on the traditional lands of indigenous communities, including the Amungme and Kamoro peoples. For decades, resource extraction in West Papua has coincided with political unrest, grievances over autonomy and allegations of human rights abuses linked to security operations around strategic assets.
Many Papuans argue that despite the immense wealth generated by Grasberg, local communities have seen limited economic benefit while bearing environmental and social costs. Rivers have been affected by tailings disposal, and rapid economic change has strained traditional livelihoods. Armed incidents and protests have underscored that resource governance in Papua is inseparable from questions of justice and inclusion.
The MoU’s commitments to fund a hospital and expand medical education facilities are welcome. But infrastructure alone will not resolve longstanding tensions. Sustainable stability requires meaningful participation of local communities in decision-making, transparent revenue sharing and accountability mechanisms that address past grievances. Without this, economic gains risk remaining politically fragile.
None of these concerns negate Freeport’s technical contribution to developing one of the world’s most complex mining operations. Nor does prudent regulation imply hostility to foreign investment. But countries that have successfully leveraged natural resources into durable prosperity have paired foreign capital with firm domestic policy direction and inclusive governance.
The MoU secures operational continuity and reassures global markets. What it does not automatically secure is transformation – whether in Indonesia’s industrial structure, in the decarbonisation of its mineral sector, or in equitable development for Papua.
Church organizations, along with civil society groups, have urged the Indonesian government to halt its militaristic approach in the Papua region and its food and palm oil projects that are fueling conflict with indigenous people.
The call comes amid the ongoing violent conflict in the predominantly Christian region.
The Papuan Council of Churches and 44 organizations of the Coalition for Civil Society Transformation in Papua (Ko Masi), in a statement following a meeting in the provincial capital, Jayapura, on Feb. 20, called for "the immediate withdrawal of all members" of the army.
Army personnel engaged in civilian duties, "such as teachers, media personnel, and others," should also be withdrawn, the statement said.
The ecumenical statement also demanded that the military and the pro-independence group, the West Papua National Liberation Army, uphold international humanitarian law in areas of armed conflict, and the government open access for journalists and foreign media to Papua, including for the United Nations High Commissioner for Human Rights to directly monitor human rights violations.
“Stop all national strategic projects that destroy and rob the living space of indigenous people in Papua,” they said, referring to the project to clear two million hectares in South Papua for crop cultivation, including palm oil plantation.
They also urged the government "to immediately open a dialogue" with the Papuan people.
Speaking with UCA News on Feb. 23, Reverend Benny Giyai, moderator of the Papuan Council of Churches, said the troop deployment has displaced thousands of Papuans, and the armed conflict has rendered more than 100,000 people refugees.
Many of them live scattered in remote, hard-to-reach areas, experiencing limited access to food, health services, and pastoral care, the council said.
One of the worst-hit is Nduga Regency in the Papua Highlands Province, with 20,000 refugees.
Giyai said research by the state-run Indonesian Institute of Sciences has identified four drivers of problems in Papua: racism and marginalization, failed economic and educational services, political issues on the legality of Indonesia's occupation, and the impunity of military and police who commit violence.
"However, we see no signs of improvement at this time," he said.
Meanwhile, Faisal Ramadhani, the head of Operation Peace Cartenz, tasked with addressing the conflict, said on Feb. 22 that they had recently increased their troop deployment to Yahukimo Regency in the Papua Highlands, from 80 to 150, bringing the total to 250.
Ramadhani said the increase was to address the escalating “security disturbances,” specifically in Yahukimo, where 23 cases were recorded in the two months of this year, up from three in the same period last year.
According to data from the advocacy group Imparsial, the number of soldiers in Papua is 16,900, most of whom are units with combat qualifications.
Christian-majority Papua has been marred by conflict and deaths since the 1960s, when Indonesia annexed the territory after the end of Dutch colonial rule.
A referendum to determine Papua's future was considered rigged in favor of Indonesia.
The National Commission on Human Rights recorded 115 cases of violence in 2025, with 130 deaths and 88 injuries, with the majority of victims being civilians, an increase from 85 cases with 71 deaths in 2024.
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