Articles Discussion


COW PT Freeport Indonesia (PTFI) will expire in 2021. The giant mining company based in the United States continues to lobby government in order to extend his contract until 2041.
Judging from the economic aspect, there are trade-offs the government extended the Freeport Contract of Work. Anything?
Director General of Mineral and Coal, Bambang Gatot Ariyono trying to expose it in a public discussion entitled "Profit and Loss Considering the Freeport Mine Permit Renewal," in Megawati Institute, Jakarta, Thursday (21/01/2016).
According to him, if the government made the extension of the Contract of Work PT Freeport Indonesia, the loss is as follows:

Control of the mine is still in foreign
The recording of investments that are not transparent
The preference for domestic goods and services 

"The disadvantage is that control of the mine is still on the part of foreigners, so that operations controlled by foreign parties and can affect other aspects such as security and social services, then it is possible the recording of investments and other financing were not transparent and is not controlled properly, prioritizing goods and services in the country remains less noticed by Freeport, this is not in line with Article 24 of the Contract of work Nawacita, "said Bambang.

Observers Mining Simon Sembiring said that if the state-run copper mine then the benefits will be greater country.
"If managed on our own benefit is greater, if we are lucky replaced by big, we can manage our own natural resources a lot of benefits," said Simon, when talking with, in Jakarta, Tuesday (11/10/2015).
Simon added that if the state gains greater. So the impact of all there will be great as well. It is believed that this move will have an impact on the welfare of the people, besides uuga on repairing the country's economy.
"If we get a good economy means the country is getting stronger, that's for sure him there," said the former Director General of Mineral and Coal them.
Simon said, with former mine manages US-based mining company by our own people can also increase the use of domestic products so many business opportunities that create employment.
"We can control the increasing use of domestic products, the same now as Antam has its own mines," he concluded.

 Meanwhile, if the agreement is continued government CoW, they will benefit. Its advantages as follows:
Still there are potential benefits from government spending, investment, no lay offs in the thousands.
multiplier effect
Economy and regional development continues
Increased membership of TKI
"If KK is continued, the government would still be able to benefit, namely spending on goods in the country amounted to US $ 1.2 M / year, investment amounted to US $ 1.4 M / year, 22 732 people are laid off, operations and production runs according to the rules
, local business development can be carried out, the cycle of economy and regional development can be done in a sustainable manner, the transfer of technology can be optimized, and the improvement of labor skills through the program Indonesianization Indonesia, "Bambang details.

He said, when Freeport stopped operations it will cause Termination (PHK), and areas that are in the Freeport mine in Timika and its surroundings that is going to die. For there is no circulation of money as long as this occurs.

"If you stop for just one month, there will be a complicated issue, because 94% of the money spinning there is Freeport, it will become a ghost town," he said.

In addition, this Freeport contract renewal advantage of the technical aspects, among others:

Will be produced 71 million tonnes of concentrates (2021-2041)
Potential revenue of US $ 3.77 billion
"The advantage of the technique is optimized aspects of potential reserves that can be mined, there will be 71 million tons of concentrate from years 2021 to 2041, did not delay in potential revenue from production fees of US $ 3.77 billion, rehabilitation (reclamation and mine closure) will run continuously, but its loss does not occur if continued optimal knowledge transfer to local workers, "said Bambang.

red = contra
green = pro
brown = contra-arguments and reasons
blue = pro-arguments and reasons

according to me, both of pro-side and contra-side have many good reason and arguments.
I agree if the contract is extended because if a contract is terminated for granted, will certainly deal with national arbitration.

Indonesia also does not have the technology to manage the Freeport mining underground mining. In addition, it will turn off economic activity in Timika, Mimika and Papua for 94% of the money in circulation comes from business activities pertaining to Freeport.

I do not agree if the contract is extended because the Minister in deciding on the extension of the contract with PT Freeport before, only guided by government regulation (PP), "Minister of Energy and Mineral Resources in the contract extension Freeport must follow the rules of law, therefore, I ask the Minister of Energy and Mineral revision of contractual agreements with Freeport has been made
further, that the Indonesian government has been pretty well with Freeport that has a lot of wealth drain mines in Indonesia, precisely in Papua earth.
Gains have been obtained very great. While the contributions made to Indonesia compared to the destruction of nature in Papua, and kindness to Indonesia are not comparable.
Indonesia's generosity among other things, permit the export of concentrates Freeport once every six months.
Therefore, do not be fooled by the canal continues to Freeport. It is time we take a stand, mine in Papua managed by Freeport Indonesia that belongs to the people must be able to benefit greatly from the results of the mine.

these are the solution:

The government has set up at least 18 demands to Freeport, which also included the aspirations of the local government. Among these processing and refining in the country, divestment, the use of local labor, land area, and others.

"For us give a solution, it continued with the new requirements. Hence the 18 demands of the new government. So when walking, a lot of things that benefit the country," added Said.