Government to assess state income from Freeport

An inter-governmental team has begun the assessment on state income from Freeport Indonesia to find out if the payment from the world's gold and copper giant has been made in according to the existing regulation, Kompas reported on Friday.

Minister of Energy and Mineral Resources Purnomo Yusgiantoro said in Jakarta on Thursday that the assessment would cover Freeport's payment for royalty, taxes and non-tax contribution fees.

According to him, there are three main issues including environment, production and revenues that have been under the public's scrutiny. But the assessment team's main priority is those related to state income.

Chief Minister of Economy Boediono confirmed that the assessment on the state income from Freeport was now underway. He, however, ruled out any plan to review the company's contract.

Former speaker of the People's Advisory Assembly (MPR) Amin Rais recently charged Freeport of concealing its actual gold and copper production to reduce payment to the government. He also charged the company of causing serious damages on the environment.

Vice President Jusuf M. Kalla also said that with the price of gold ores rising to US$600 pr ton, the company's payment to the government should increase more than 300 percent. (*)