SBY promises probe into Freeport fracas

President Susilo Bambang Yudhoyono promised Thursday the government would get to the bottom of the dispute between PT Freeport Indonesia and the local community in Papua, but cautioned violence should not be part of the protests demanding the closure of the copper-and-gold mine, The Jakarta Post reported on Friday.

Yudhoyono, who said he would meet with related ministers to determine their actions on the dispute, said protests must not be marred by destructive behavior because it would discourage investors, particularly from overseas.

?We need to look deeper into what the problem really is because there are always ways to solve it,? he said.

?If it?s about Freeport?s funds for community development, then discuss it. Find out if it?s about the money not being distributed at all or perhaps incorrect use of the money. We can always evaluate the mistakes.?

Yudhoyono, speaking in Yangon on the final leg of his regional tour of three countries, said all sides must refer to the law before taking action because it was the approach of a country with democratic objectives.

?If it?s about conflicts with local illegal miners, resolve it according to the law. We have regulations on illegal mining, which seems to be taking place in other areas as well outside Papua,? he said.

The dispute began on Feb. 21, when security guards at the local unit of U.S. company Freeport-McMoran clashed with local miners sifting through the mine?s tailings in Timika. It led to a four-day blockade of a road leading to the mine and the suspension of operations.

Protests against the company have continued in Papua and Jakarta.

Yudhoyono also said the government would investigate if protesters - who vandalized the Jakarta high-rise where Freeport Indonesia?s main office is located and have held almost daily demonstrations this week - were truly concerned about the problems at the mine.

He did not discount the possibility that some elements ?just want to fuel the protests, but have no interest at all in Papua. The bottom line is that we have to refer everything with the laws. Are there any laws being violated? Is there something wrong in the relationship between Freeport and the locals??

He said violence or vandalism would only result in negative effects to the country as a whole.

?What will we do then with the image of a good investment climate we?re trying to build and promote to foreign investors? It?ll just disappear. They?ll see what is being done to businesses that invested here, and it will scare them away,? he Said. (*)