Indonesia won't change Freeport contract
Monday, March 6 2000 - 03:00 AM WIB
The government won't change the mining contract of giant gold mining firm PT Freeport Indonesia because such a move would undermine the country's legal certainty and discourage foreign investment from entering Indonesia, according to Foreign Minister Alwi Shihab.
Speaking in a press conference on Saturday, Alwi said that the government would instead ask for Freeport to provide a concession for the local Irian Jaya people including stake in the company and a more spending for social and environmental development.
Many have called on the government to revise the Freeport mining contract amid allegations of environmental destruction, indifference to the social and economic life of the local people, and practice of corruption in winning and maintaining the contract during the 32-year rule of former president Soeharto.
Minister of Environment Sonny Keraf and State Minister of State Administrative Reforms Freddy Numberi were among those demanding a change in the Freeport contract. Freddy is an outgoing Governor of Irian Jaya.(*)