STATE LOSING Rp 30 TRILLION BECAUSE OF FREEPORT

JUBI, 16 July 2011

Member of Commission IV of the Indonesian Parliament, Markus Nari, has reported that Indonesia has suffered the loss of Rp 30 trillion as a result of Freeport Indonesia ‘s failure to work on the basis of a licensing permit to operate within forestry areas known as Regulation in lieu of Law (Perpu) Ijin Pinjam Pakai Kawasan Hutan, despite two official requests from the Indonesian forestry minister.

Commission member Markus Nari, made this statement during a visit to Timika, to see the tailings waste spilling into the Ajkwa River. He pointed out that all mining companies which operates within forestry regions must be in possession of an IPPKH. ‘The company has been pressed twice by the forestry minister to obtain this license but has until now failed to do so. Instead of being requested for a third time, the company should be sent a very strong warning,’ he said.

According to information received by JUBI, Freeport Indonesia is using of 202,000 ha of land, much of which is adjacent to the Lorenz National Park. There are altogether thirteen companies operating within these protected forestry areas, including Freeport.

Nari said that he had received reports from local communities during his visit to the area that the forests had been damaged, while silt had affected the depth of the river and the nearby sea.

He said that the team from parliament and the forestry ministry had paid close attention to Freeport’s utilisation of forestry areas, and had seen the impact of the tailings in silting the estuary and the sea.