Walhi calls for independent audit for Freeport and re-negotiation of COW

The prominent Indonesian Environmental Forum (Walhi) called on the government and the House of Representatives on Tuesday to task an independent auditor to audit the operation of PT Freeport Indonesia in Irian Jaya and to review totally its contract of works (COW).

Walhi also planned to launch a lawsuit against the government for signing an illegal COW with Freeport in 1967, when Irian Jaya was still under the administration of the Netherlands and the United Nations. Irian Jaya officially came into Indonesia's fold in 1969

Speaking at a hearing with the House of Representatives' Commission VIII on mining and energy, Walhi executive director Emmy Hafid said that such an independent audit was necessary to ensure that Freeport complies with all environmental regulations and protect the environment.

Emmy noted that the auditor must be appointed by the government and the House, in consultation with non-governmental organizations.

"So, not an auditor which is appointed by Freeport," Emmy said cynically, referring to the recently announced environmental audit result by auditor Montgomery that Freeport appointed without any consultation with the government. The results of the audit mostly praises Freeport operation.

Emmy also called on the government and the House to re-negotiate Freeport's contract of works (COW) with the government, by adopting temporary development in the country and especially in Irian Jaya in the contracts.

He noted that the presence of Freeport in Irian Jaya, that Emmy claimed to have marginalized local people and destroyed their environment, had helped spark separatism in the province.

"People under the leadership of Kelik Walik become members of the Papua Free Organization (OPM) because they are against the presence of Freeport. And people wants independence because they think that the Indonesian government only brings Freeport to Irian Jaya," Emmy said.

OPM fights for independence of West Papua or Irian Jaya as it is officially called.

Because of those facts, Emmy said, re-negotiation of the whole contracts - not re-negotiation of articles per articles - were imperative to prevent further separatist movement and environmental destruction in the province.

Emmy said the government should not hesitate to re-negotiate the COW because she said that it would not scare off investors. She believed that the re-negotiation of Freeport's COW and the appointment of independent auditor to audit Freeport's operation would give assurance for investors about Indonesia's seriousness to deal with legal and environmental issues. (*)