Freeport’s recent polemic has attracted various parties’ attention, especially the policy makers. Change of Work Contract (KK) to IUPK along with renegotiation of policy related to share divestment of PT. Freeport Indonesia bring a few questions about who is benefiting from this mining investment. Therefore, on Thursday (9/3), PolGov Research Center and Global Engagement Office of FISIPOL UGM held a public discussion titled “Political Negotiation in Mine Investment: Profit and Prosperity for Who?” Held at Auditorium of FISIPOL Digital Library UGM.
The discussion hosted by Hasrul Hanif (Lecturer of DPP UGM) was also attended by Mukhlis, S.E, Akt. (Tax Manager of PT Freeport Indonesia), Emanuel Bria (Asia Pacific Senior Officer – Natural Resource Governance Institute), Ir. Josaphat Rizal Primana, M.Sc (Director of Energy Resources, Minerals & Mining – Bappenas), and Ermy Ardhiyanti (Coordinator of the Extractive Industry Governance Division – Article 33.
During the discussion, examination about the benefits and impacts of divestment on Indonesia’s economy and welfare are at the core of this discussion.
Mukhlis said the slow process of negotiation since the Year 2009 between the Government of Indonesia and PT. FI because there has been no incentive from the state to the company to quickly disseminate the renegotiation, especially on the points of agreement that hampered legal certainty. In addition, instead of making divestment as the first step of nationalizing the company for the sake of the economy of the country, the divestment in Indonesia has been considered failed because of its inability to produce multiplier effects for the welfare of the people in the region. From the results of the research team of Article 33, Ermy explained that the process of managing a mining company that was divested even led to corruption and rent-seeking at the local government level, rather than encouraging the development of the country’s economy.
This discussion is aimed at exploring perceptions of stakeholders such as Government, corporations, NGOs and academic communities whose hopes can generate alternative discourse and solutions for conflict resolution between PT. FI with the Government of Indonesia. Furthermore, this public discussion is expected to be a lighter for academic developments in the academic community at Gadjah Mada University, especially the Department of Politics and Governance with a focus on resource governance. (Media Team / Irwan)