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Freeport
confirms allowances for military, police in Papua
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The
Jakarta Post March
16, 2003
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Freeport confirms allowances for
military, police in Papua
Tiarma Siboro and Muninggar Sri
Saraswati, The Jakarta Post, Jakarta
U.S. gold and copper mining company
PT Freeport Indonesia confirmed on Saturday that it had paid the
Indonesian Military (TNI) protection money totaling US$5.6 million
in 2002.
Company spokesman Siddharta
Moersjid said money had been paid on an annual basis since the
company started operating in Papua in the 1970s.
"But we introduced a
comprehensive new approach to security in the area following an
incident in Tembagapura in 1996," he said. He was referring
to the abduction of 13 local and international researchers, an
incident blamed on a separatist group under the leadership of
Kelly Kwalik from the Mapnduma area.
Siddharta said money paid in 2002
was up on the $4.7 million paid in 2001.
The support consists of the cost of
infrastructure, catered food and dining hall costs, housing, fuel,
travel, vehicle repairs, allowances to cover incidental and
administrative costs, and community assistance programs conducted
by the military and police.
The total capital costs for
associated infrastructure for 2002 and 2001 was $500,000 ($400,000
net to PT Freeport Indonesia) and $600,000 ($500,000 net to PT
Freeport Indonesia), respectively.
Freeport's data showed the
government had last year increased the number of security
personnel stationed at the company's mining site from 200 to more
than 2,000 soldiers. The force comprised, among other units,
coastguard at the port, air force at the airport, riot-control
personnel to deal with civil disturbances and both perimeter and
on-site security at the mine and the mill.
"Many were shocked when they
found out that we (PT Freeport) allocated millions of U.S. dollars
to security personnel to guard the company, because they thought
that we gave it in cash.
"But it is not like that
because we allocated the funds to several posts, of which only a
small amount was given to soldiers in cash as allowances,"
Siddharta told The Jakarta Post.
He said efforts to increase
security was due to the government's concern over the mine, which
was considered a "national asset".
Two Americans and an Indonesian who
worked as teachers for Freeport were killed in an ambush near
Timika in August last year. Many have linked the killing to
demands for an increase in protection money. Siddharta refused to
comment on the incident, which is now under investigation.
Separately, Indonesian Military (TNI)
spokesman Maj. Gen. Sjafrie Sjamsoeddin said that only 20 percent
of the funds were given as cash allowances to soldiers assigned to
protect the 2,800-square-kilometer site. Each of them received Rp
350,000 (S39) per month.
"The funds disbursed by PT
Freeport should be seen as supporting funds for soldiers who have
to face hardship while carrying out their jobs in remote areas
like Timika," he said.
According to TNI standards, a
soldier conducting an operation receives Rp 10,000 in daily
allowance plus Rp 11,700 for daily meals, Sjafrie said.
Sjafrie also revealed that the TNI
was paid by ExxonMobile for security in the war-torn province of
Aceh.
Asked why the Indonesian government
did not directly control the distribution of the funds, Sjafrie
said it did not matter because "TNI Headquarters receives
annual reports on the disbursement of the funds for the sake of
transparency".
The TNI has repeatedly complained
about a poor annual budget allocated by the government, which the
military claims accounts for 30 percent of the military's needs.
The funds, TNI says, are far from enough to cover operations in
troubled areas, not to mention to upgrade its equipment.
To fill the gap, the TNI has
demanded it maintain its various business interests despite
mounting public criticism.
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