Freeport not transparent: Legislator

Legislator Priyo Budi Santoso said on Thursday that copper and gold miner PT Freeport Indonesia was not transparent in meeting its obligation to divest up to 51 percent of stake at the company to the government or local entity.

Priyo said Freeport always took refuge behind the Government Regulation No. 20/1994 that allows foreign investors to control up to 100 percent stake in mining industry.

"That's evidence from the meeting between the House of Representatives' Commission VIII and Freeport on Wednesday. Freeport did not give straight answer on divesting up to 51 percent stake to the government. They still defends their argument on using PP 20/1994," he said.

He warned that if Freeport was still reluctant to divest its ownership, the House would take political pressures to the government to add more articles in the contract of works with Freeport. If necessary, the House would press for legal measures against Freeport.

"If the House continues with those moves, Freeport should be ashamed of its efforts to maintain its arrogance," he said.

Nevertheless, Priyo said Freeport was already transparent in its environmental management, and in meeting its commitment with the government to reduce its production level from over 200,000 tons of ore per day to 200,000 tons level or below.

However, if Freeport started not to obey its commitment, Priyo said, the House would disqualify Freeport from Indonesia. "We will not try to maintain a foreign company that do not abide by regulations in Indonesia." (*)