Tag Archives: NeoColonialism

New supermarket in Jayapura triggers complaints about goods on offer and price differentials

Bintang Papua, 9 and 10 July 2012

[Comment: This report reveals the continuing tendency to promote businesses from outside Papua while failing to advance the interests of local Papuan producers. TAPOL]

Many complaints about price differentials at newly open supermarket in Jayapura

Although the supermarket  Hypermart Jayapura has only recently open its doors to the general public, many people who have purchased goods have complained that there has been a huge differential  between the prices marked on the shelves and the prices of the goods when they reach the cashier to pay for their purchases. As a result people who have been shopping at the new store are being advised to take care about their purchases to avoid losing a lot of money.

One shopper who spoke to Bintang Papua said  that she was charged at the cashier for something costing Rp 91,000 although she hadn’t even purchased the product. Other shoppers made similar complaints. In once instance, the shopper was charged  Rp. 105,000 for cooking  oil while the oil normally costs only Rp. 29,000. Other shoppers complained of striking differences in the prices they were charged.

In most cases, the shoppers were able to get refunds from the store after complaining. A store manager said that they would give refunds to anyone complaining about price differentials.

In a subsequent article, Bintang Papua reported that demands were being made by many people for the supermarket’s licence to trade to be revoked, because the terms of the licence which had been agreed in Jakarta with the business had been violated.

Some people complained that many of the vegetables and fruit that were offered for sale had been imported from outside West Papua or even from abroad. Indigenous Papuans who were able to produce these products in large quantities had not been able to compete with the many products on offer at the store. Another complaint was that the store was selling alcohol

The Indonesian Consumers Association said that there was no need for foodstuffs to be imported from outside Papua or from abroad because they were readily available in the Land of Papua and would enable local producers to compete in the local market. Taking supplies from local producers would also help to improve the level of welfare of the Papuan people

[Abridged in translation by TAPOL]

Empty promises whitewash Freeport’s rights, responsibility record

 http://etanaction.blogspot.com/2011/08/empty-promises-whitewash-freeports.html

Special for ETAN‘s  Blog

by David Webster

What does a mining company need to do to get a top score for “corporate social responsibility”?

Freeport's contribution to Papua's welfare - Riverine tailings pollution

To judge by the recent “100 Best Corporate Citizens List”, all it takes to finesse a long and controversial record of human rights abuses is to come up with a piece of high-minded rhetoric, then carry on as usual.

Human rights advocates and those who have studied the record of Freeport McMoran in West Papua were startled to learn that Corporate Responsibility Magazine had named Freeport as the 24th-best corporate citizen in America (click for the full list). More startling still, the company scored well based mainly on a sixth-place ranking in the human rights category.

How is this possible? Well, the survey’s methodology seems to pay no heed to human rights performance. Only human rights rhetoric matters. And in that, Freeport excels. A strong written policy on human rights declares: “Freeport-McMoRan does not tolerate human rights transgressions.” It points to rights risks in West Papua, Peru, and the Democratic Republic of Congo, and adds that PT Freeport Indonesia policy is to “notify the direct commanders of the perpetrators” in cases where human rights allegations are made against Indonesian security forces. Since reputable human rights groups suggest that the top ranks of the security forces are implicated in widespread human rights violations in West Papua, this is hardly striking at the root of the problem.

As local people have pointed out, and researchers have confirmed, Freeport’s performance is a far cry from the written policies. The main trouble is intimate ties to Indonesian security forces.

Security forces may be implicated in the murder of American citizens near the Freeportmine, as Eben Kirksey and Andreas Harsono have reported.

Violence around the mine is used by security forces to target and scapegoat local people. In 2005, the New York Times revealed thatFreeport paid the security forces more than $10 million in 2001 and 2002. Payments are now made “in-kind” rather than in cash. The local Amugme people have long protestedFreeport seizure of their lands. Pictures of Freeport’s Grasberg mine from space (left) show the scale and environmental impact in the mountains that are home to the Amungme.

And lest all of this be hailed as “old news,” the Amungme filed a lawsuit last year sayingFreeport had taken their lands illegally. Meanwhile, the Indonesian army’s presence around Freeport, and the company’s close ties to Indonesian security forces, were reinforced this year. The continuing alliance between Freeport Indonesia and the Indonesian security forces is likely to exacerbate, rather than improve, the human rights situation.

None of these reports are taken in to account in the “100 Best Corporate Citizens List.” All the human rights indicators measure “human rights disclosure” and the sole source, according to the methodology details, comes from “Company public disclosures” – a corporation’s own information about itself.

The methodology, in other words, measures promises, not performance. There are parallels to the debate over whether companies accused of operating sweatshops overseas can be trusted to police themselves, or should accept independent monitoring. Thus the list cites the voluntary “Sullivan principles” first created under the Reagan administration and welcomed by companies resisting demands to divest from apartheid South Africa. AndFreeport boasts of adherence to the Voluntary Principles on Security and Human Rights, launched by the British and American governments in 2000.

The key word here is “voluntary.” As with the mining industry globally and with businesses jumping on the corporate social responsibility (CSR) bandwagon more generally, companies are happy to promise good performance, as long as no one will be looking over their shoulders.

So perhaps it’s no surprise to learn that Corporate Responsibility Magazine is in fact published on behalf of the Corporate Responsibility Officers Association, a body made up of many of the companies being judged, and steered by such firms as Domtar and KPMG.Freeport is listed as a “recent member” of the CROA. It’s advanced in the listings – it was ranked 83rd in 2010.

The problem here isn’t just the “corporate social responsibility” methodology, but the entire concept of “CSR”. It can all too often be used by companies to buy their way out of “corporate social irresponsibility.”

Freeport is no champion of the best values of corporate citizenship: For human rights activists, it’s long been a poster child for corporate irresponsibility. A list of good corporate citizens with Freeport winning laurels demonstrates more than flaws in the study. As George Monbiot has written of climate change credits, the lists offer corporations a new form of medieval European Catholic “indulgences,” forgiveness for any form of offence. Jeff Ballinger recently pointed out on this blog that companies like Nike are wrapping themselves in the CSR garment to burnish their corporate images, despite continuing disregard for many labor rights. Freeport, too, is now having itself measured for a fine CSR wardrobe.

—-

David Webster is an assistant professor of International Studies at the University of Regina inSaskatchewan, Canada. He is a former coordinator with the East Timor Alert Network/Canada.

see also

West Papua Report (monthly)

ETAN/WPAT: Statement on the operations of the Freeport McMoran Mine in West Papua, to the U.S. Senate hearing on Extracting Natural Resources: Corporate Responsibility and the Rule of Law

SMH: Chipping away at paradise (Report on Australian mining in Raja Ampat)

http://www.smh.com.au/environment/conservation/chipping-away-at-paradise-20110701-1gv3s.html

Tom Allard

July 2, 2011

Turquoise waters ... the Kawe Island coral reef.Turquoise waters … the Kawe Island coral reef.

Australia’s lust for minerals threatens a marine wilderness, writes Tom Allard in Jakarta.

About once a month, a ship from Townsville makes the long journey to Raja Ampat, a seascape of astonishing beauty and diversity.

In the far western reaches of the island of New Guinea, where the westerly currents of the Pacific flow into the Indian Ocean, hundreds of improbable, domed limestone pinnacles rise from the sea, encircling placid, turquoise lagoons.

Fjord-like bays cut deep into the hinterland of mountainous islands, framed by vertiginous jungle-clad cliffs that drop steeply into the water. There are oceanic atolls, shallow bays with fine white sand beaches, snaking rivers and mangrove swamps.

Wayag Island is one of the islands within the Raja Ampat district in the province of West Papua. The island is known for its beautiful atolls and amazing underwater life covering a total area of 155,000 hectares. Click for more photos

The beauty of Raja Ampat

Wayag Island is one of the islands within the Raja Ampat district in the province of West Papua. The island is known for its beautiful atolls and amazing underwater life covering a total area of 155,000 hectares.

  • Wayag Island is one of the islands within the Raja Ampat district in the province of West Papua. The island is known for its beautiful atolls and amazing underwater life covering a total area of 155,000 hectares.
  • Even though this photo was taken in southern Raja this scene could easily be from Wayag. Photo: Jones/Shimlock
  • Beautiful scenery at Raja Ampat. Photo: Jones/Shimlock.
  • A turtle at Raja Ampat. Photo: Jones/Shimlock.
  • A wrasse in the waters of Raja Ampat. Photo: Jones/Shimlock.
  • A typical bommie in northern Raja Ampat. Photo: Jones/Shimlock
  • Local children enjoying the reef in front of their village. Photo: Jones/Shimlock.
  • Schooling anthias (basslets) at Raja Ampat. Photo: Jones/Shimlock
  • Two bannerfish. Photo: Jones/Shimlock.
  • Even though these animals are from a region just south of Kawe, mantas are often seen at Eagle Rock a Kawe Island divesite. Photo: Jones/Shimlock.
  • A school of fish poses for the camera. Photo: Jones/Shimlock.
  • The sweetlip is a signature species in northern Raja. Photo: Jones/Shimlock

If the numerous islands and countless shoals and reefs of Raja Ampat take the breath away, they only hint at the treasures below. This remote part of West Papua province in Indonesia is the world’s underwater Amazon, the hub of the world’s marine biodiversity, home to 75 per cent of its coral and 1500 fish species, including huge manta rays; epaulette sharks that walk on the sea floor with their fins; turtles and an array of weird and wonderful fish.Yet the vessel that makes the regular trip to and from Townsville does not bring tourists or divers. There are no scientists on board to study this marine wonderland.

Rather, the vessel carries tens of thousands of tons of the red clay soil, rich in nickel and cobalt, which is destined for the Yabulu refinery owned by one of Australia’s richest men, Clive Palmer.

Sediment run-off from mining on Kawe Island.Sediment run-off from mining on Kawe Island.

Conservationists and marine scientists say this mining activity and the prospect of more exploitation puts one of the world’s most precious ecosystems under threat.

As the environment is imperilled, the impact on local communities has been devastating. Once close-knit villages are divided as competing mining companies offer financial inducements to residents for support. And, in a sadly familiar tale for the Papua region, where separatist sentiments linger, the benefits of exploiting its resources are largely flowing outside the region. Derisory royalties go to landowners and minuscule salaries are paid to locals who gain employment.

”I’m appalled by what’s going on,” says Charlie Veron, the former chief scientist from the Australian Institute of Marine Sciences, who has surveyed the region on many occasions.

Sediment from mining.Sediment from mining.

”If you had a rainforest with the most diverse range of species in the world and people started mining there without doing any kind of proper environmental impact study, there would quite rightly be outrage … Well, that’s what’s happening here.”

The vessels sent to collect the nickel and cobalt for Palmer’s Queensland Nickel company dock at Manuran Island, where the mining has continued unabated despite a decree by the West Papua governor, Abraham Atururi, banning all mining activity in Raja Ampat.

”The mining started in 2006. There were protests but the military and police came and they stopped them,” says Yohannis Goram, from Yayasan Nazareth, a local group that opposes mining.

The operator of the mine, PT Anugerah Surya Pratama (PT ASP), has promised environmental safeguards, but according to one local from nearby Rauki village they are ineffective.

”When it rains the sea turns red and sometimes even yellow,” a village elder says in a phone interview. ”The runoff is supposed to go into a hole but they come out [into the sea].”

Yosias Kein hails from Kapidiri, another island near Manuran that claims customary ownership. ”The mining waste damaged the coastal areas and covered up the coral reefs. Besides, it is difficult for people to get fish now. Fishermen in Kabare village, also in Rauki village, saw the waste went down into the seas near Manuran. Now they have to go fishing a bit further to the east or west.”

The strip mining for nickel leaves the landscape barren and the steep cliffs of Raja Ampat’s islands mean heavy rainfall overwhelms the drainage systems and sends the heavy soil into the water.

The impact is twofold and ”really nasty” for coral, Veron says. ”Sedimentation sinks on to the coral and smothers it. But worse is ‘clay fraction’, where very fine particles are suspended in the water, blocking the sunlight.”

Photos taken from Manuran and supplied to the Herald show murky water and dead coral after heavy rain.

PT ASP, based in Jakarta, owns PT Anugrah Surya Indotama (PT ASI), another mining outfit that operates on Kawe Island in Raja Ampat, despite a court order to desist due to a conflict over mining rights with a West Papua-based company.

The ultimate ownership of the companies are a mystery, although West Papua is rife with speculation that senior politicians and military figures have a stake in them. That is easy to understand, as the Jakarta firm seems to have extraordinary pull at the highest levels of government in Jakarta and Raja Ampat.

The rival mining company PT Kawei Sejahtera Mining (PT KSM) is owned by a local man, Daniel Daat. When it began loading its first shipload of nickel at Kawe in 2008, PT ASI, which also claims a mining licence for Kawe, complained. Three gunships and a plane were deployed to stop the consignment and Daat was thrown into prison.

The mines at Manuran and Kawe are guarded by military and police who locals say are on the company payroll. And while 15 mining companies have been pushed out of Raja Ampat after the governor’s decree, PT ASP and PT ASI have stayed.

Korinus Ayelo is the village chief of Selpele, which has customary ownership of Kawe, and supports Daat’s PT KSM. But PT ASI engineered the highly contested elevation of another chief, Benyamin Arempele, who endorsed its right to mine. Repeated legal cases have found in favour of Daat, but PT ASI continues to develop its mine and conduct exploration.

”They are still working today, guarded by the police,” Ayelo says. Villagers who were previously close now don’t talk to each other.

”There’s a distance between our hearts,” he continues. ”The people are uneasy. PT ASI uses the military. There are TNI [armed forces] everywhere. People must face the presence of TNI every day.”

Daat says high level political and military support from Jakarta is behind PT ASI’s continued operations. ”It is impossible to get such support for nothing. I believe the profits from Manuran Island are shared by several parties, parties that support this company. I won this case at the district court, at the provincial court and at the Supreme Court. How great is the Indonesian law system? They are still in Kawe doing exploitation despite the court’s rulings.”

At the very least, the two companies appear to have a cavalier approach to doing business in Raja Ampat. Police documents obtained by the Herald reveal the company allegedly bribed the bupati (regency head) of Raja Ampat, Marcus Wanma, to gain mining licences.

Wanma was paid $36,000 to issue the licences in 2004, and a further $23,270 for ”entertainment” purposes, the report said, citing police interviews with 16 witnesses, including Wanma’s staff and Yos Hendri, a director of PT ASI and PT ASP.

The report finds that about 670 million rupiah (then worth about $122,000) was paid to Wanma in 2004 for nine mining licences and only 197 million rupiah deposited in the regency’s bank accounts.

”The rest of the 500 million was used for the personal interest of [official] Oktovanius Mayor and Marcus Wanma” the report says.

Wanma escaped prosecution and remains the regency head. He has been incapacitated with a serious illness and is believed to be recuperating in Singapore. He was unavailable for interview and Raja Ampat officials declined to comment.

Whether the licences were corruptly obtained or not, the sum paid for them is derisory.

The open-cut mining undertaken on Manuran is cheap and low tech. After clearing the vegetation, workers simply dig up the soil, haul it into trucks and take it to the docks, where it is sent for processing to extract pure nickel, used in stainless steel. The mine’s wharf is nothing more than a tethered barge with no cranes. Costs for the company consist of little more than maintaining about 40 trucks, heavy moving equipment and the simple wharf.

Villagers and employees say most of the mine’s labourers earn between $170 and $200 a month. Customary landowners receive a royalty, but an investigation by the Herald has discovered that it is tiny.

Soleman Kein, an elder from Kapidiri, a village with customary rights over Manuran Island, says a new deal was negotiated last year increasing landowners’ share of the mine’s income from 1000 rupiah (11¢) a tonne to 1500 rupiah a tonne.

An industry expert with knowledge of Raja Ampat’s high-grade nickel laterite ore deposits says PT ASP would have been getting between $US40 ($37) and $US100 a tonne, depending on the fluctuating world price. The average would be about $US60 a tonne, he says.

At that price, a single 50,000-tonne shipload earns the miner $US3 million. The mine at Manuran Island typically sends at least two shiploads a month. On those figures, the locals are getting less than a 0.3 per cent share.

”These companies want a lot of money for not much effort,” says one miner with two decades of experience in Papua. ”They pay as little attention as they can to environmental standards and take the money and get out … The amount the locals get is pitiful.”

Hendri, a director of both PT ASI and PT ASP, pulled out of an interview at the last minute and declined to respond to detailed questions.

But one source intimate with the Manuran operation and the compensation deal says the local government gets another 3000 rupiah a tonne, and a further 2000 rupiah per tonne was devoted to infrastructure. All up, the insider says, about $200,000 has been spent on local villagers in royalties and infrastructure since 2007.

In that period the company has earned more than $150 million from sales, although between 4 per cent and 5 per cent of that revenue should flow back to the central government’s coffers.

Some of the villagers are happy with the arrangement. Soleman Kein is delighted with his new house, paid by the infrastructure fund.

”My house used to be made of sago leaves, but now the company has renovated it, our walls now are made of bricks, we have a roof made of zinc and the interior part of the house is beautifully painted,” he says.

But villagers from Rauki say only 10 of 76 homes promised in 2009 have been built. And disputes rage between clans over who gets the money offered by the company.

”Conflicts emerge because certain groups of families claim ownership of Manuran Island, while others reject their claims,” Yosias Kein says. ”Sometimes, there have been physical conflicts, sometimes an exchange of arguments. The problem is that the company does make some payments but the amount is not equal.”

The squabbles have torn apart what were once tight-knit communities. The simmering discontent is ”like a volcano” that ”will erupt one day”, one Rauki native says.

”Corporations are the ones that get the profits,” says Abner Korwa, a social worker from the Belantara charity who has tracked the mining closely. ”Once the deposit is exhausted, once it is gone, the big corporation leaves and we will be left alone with the massively damaged environment.”

Queensland Nickel has a sustainable development policy that strives for ”minimising our impact on the environment” and commits to ”pursue honest relationships” with communities. The company declined to respond to questions. ”We don’t comment on the business of our suppliers,” says Mark Kelly, Queensland Nickel’s external relations specialist.

Korwa says companies such as Queensland Nickel should not shirk their responsibilities for the behaviour of their suppliers, given they make considerable profits from the arrangement. ”They don’t have to invest too much in Raja Ampat. They don’t have to be troubled by mining concessions, the way business is done here,” he says. ”But they can still get the nickel”.

Oxfam Australia, which runs a mining ombudsman, says there is a clear obligation for companies that process raw minerals to be held accountable for their suppliers.

Oxfam Australia’s executive director, Andrew Hewett, says: ”Australian companies need to make sure that they are only buying minerals from other companies that respect workers’ rights, community rights and the environment. If there’s a good reason to believe that a supplier is causing harm, the company should undertake a thorough assessment.

”If any issues are found, the company should in the first instance work with the supplier to try to rectify the problem. If this doesn’t work, the company should reconsider its business relationship with the supplier.”

Queensland Nickel should be well aware of the issues in Raja Ampat.

It bought the Yabulu refinery from BHP Billiton in 2009 when the mining giant pulled out of Raja Ampat, selling its mining rights for the region’s Gag Island, amid concern about the ecological and social impacts of mining. The simmering discontent is not restricted to the villages around Manuran, but is ripping apart others that have been the custodians of Raja Ampat’s wonders for centuries, nourishing the sea and jungle with animist ceremonies.

For them Raja Ampat – literally Four Kings – was created by eggs that descended from heaven to rest in the water.

Many villagers and conservationists want mining stopped at Kawe and throughout Raja Ampat.

Kawe has huge environmental significance. It is close to the stunning Wayag archipelago of karst limestone pinnacles and hosts 20 world class diving sites, as well as breeding grounds for green and hawksbill turtles, and shark pupping grounds.

Photos obtained by the Herald show earlier mining activity at Kawe led to the heavy red soils flushing into the sea, covering the reefs, a problem that will get worse once full operations resume.

Dr Mark Erdmann, a senior adviser to Conservation International’s marine program in Indonesia, says: ”We are very concerned about the potential for sedimentation and metal deposits to be transported by Kawe’s strong currents and moved up to Wayag and down to Aljui Bay.”

Raja Ampat is theoretically protected by seven marine parks and a shark conservation zone. Controls on illegal fishing are actively enforced, but land-based threats such as mining on nearby islands continues unabated.

Indonesia’s government has recognised the extraordinary habitats in Raja Ampat. It put the region on the ”tentative list” to become a UNESCO world heritage area, like the Great Barrier Reef, in 2005. But the application has stalled due to government inaction. Many suspect that is because it wants to exploit the area’s natural resources through mining and logging.

In a deeply worrying development for conservationists, nickel and oil exploration restarted this year after the local government issued new exploration permits

Raja Ampat’s significance to the world is immense. It is the heart of the famed coral triangle and the strong currents that rush between its islands help seed much of the 1.6 billion hectares of reefs and marine life that spreads from the Philippines across to the Solomon Islands.

”There is tremendous wealth in the natural environment from fishing, pearling and tourism,” Erdmann says, citing a State University of Papua survey that found the long-term benefits from these eco-friendly economic activities outweighed the short-term gains from mining.

”Mining and this precious, pristine eco-system can’t coexist in the long term.”

Read more: http://www.smh.com.au/environment/conservation/chipping-away-at-paradise-20110701-1gv3s.html#ixzz1QrbX0MHv

Freeport: Workers warn management of strike action next week

JUBI, 25 June 2011
The local branch of the union of energy and mining workers at
Freeport-Indonesia announced on Friday 24 June that it had set a
deadline of 4 July for its decision to organise a strike at Freeport.

The intention to take strike action was announced by the chair of the
Freeport branch, Virgo Solossa.

‘We are keeping the door open for the management to recognise our
legitimate demand for talks but if the management makes no response, the
strike will go ahead.’

Since the weekend all the workers on the low-land and high-land company
premises have been wearing black arm bands as a sign of the death of
industrial partnership.which the company has until now praised.

The cause for the strike action is that a number of members of the union
are threatened with dismissal for allegedly being absent from work.

‘This is an act of discrimination and intimidation against our right as
leading members of the union. We have no intention of allowing this to
happen, and give the management until 3 July. If they fail to response,
then any question of industrial partnership will be regarded as
dead.,’said Virgo.

The action will involved the 8,000 workers at the company.

Churches call for revision of contract with Freeport

Bintang Papua, 8 June 2011The Alliance of Churches in the Land of Papua, PGGP, has called on the government to revise the work contract concluded with the mining company, Freeport.

‘The presence of this foreign company in the district of Mimika has not resulted in any improvements in the conditions of the local people,’ said Wiem Maury, secretary of the PGGP. He said that in addition to this,  the very presence of Freeport in the area has always been a very serious problem for the people.

‘The welfare of the people who are the true owners of the rich natural resource continue to be a matter of great concern. Nor is there any guarantee about security in the area either,’ he added..

He said that the call for a revision of the contract was one of 22  recommendations agreed at the Papuan Transformation Conference that took place from 3-5 June this year.

He said that a representative of the government had attended the conference, along with representatives of all the different Christian denominations that are present in both Papua and West Papua.

The purpose of the conference was to try to reach a common perception  between church leaders and the government on the crucial  issues of empowerment of the community, education and spiritual attitudes.

‘The conference also sought to reach a common position between Papuans with regard to the substance of the special autonomy concerning the issue of taking the side of the local communities, their protectiona and empowerment,’ he said.

Another aim was to reach a common approach between the churches and the government , as the centre as well as in the regions.

According to Victor Abraham Abaidata, the secretary of the organising committee of the conference, a decision was taken to set up a team composed of a representative of the government, representatives of all the churches in Papua as well as a representative of the church at the national level.

‘We have already presented the 22 recommendations to the provincial governments and will soon present them to the central governmentl,’ he said.