House can issue a "vote of no confidence" against Freeport: legislator

The House of Representatives can issue a "vote of no confidence" against giant gold mining firm PT Freeport Indonesia which could become a political backup for the government to renegotiate its contract with the company, according to a legislator of the House's commission VIII on mining and energy.

Legislator Pramono Anung said Thursday that the House would issue the vote of no confidence if Freeport does not change. He said that Freeport has a poor performance in transparency, and commitment to environment as well as community development.

Pramono said that there was a successful precedence in Bangladesh when the country's parliament issued a vote of no confidence against an independent power producer in a bid to provide a political back up for the state electricity firm.

Meanwhile, head of the House commission VIII Irwan Prayitno said that it's only his commission which has the rights to recommend to the government to renegotiate mining contracts.

Irwan was responding to the move made earlier this week by commission I on security and human rights which issued a recommendation that the government should revise and renegotiate its contract with Freeport because the company had failed to lift the welfare of the Irian Jaya people. The commission I made the recommendation based on their recent visit to Irian Jaya.

Irwan said that the recommendation of the commission I would be treated as input by commission VIII in its planned hearing session with the Minister of Mines and Energy, Minister of Environment and Freeport itself.

Meanwhile, Freeport Indonesia vice president Yuli Ismartono repeated on Thursday that the government must honor the contract and if the government wanted to revise the contract, wait until the contract expires.

"Contract is a contract. It must be honored," she said.(*)