Date: Mon, 22 Apr 1996

From: Carmel Budiardjo, tapol@gn.apc.org

Subject: Freeport's offer to Amungme People

Translation as supplied by Freeport, and reproduced unedited with a couple of glaring omissions added. It is quite extraordinary that a major US company cannot produce a more competent translation than this.

WORK PROGRAM OF PT FREEPORT INDONESIA COMPANY TO PARTICIPATE IN THE DEVELOPMENT OF TIMIKA AREA TO MEET THE ASPIRATIONS OF THE PEOPLES

PT Freeport Indonesia Company (PT-Freeport Indonesia) has been in operation since 1971 with the first Contract of Work of 1967 and the second Contract of Work that was signed on December 30, 1991. The agreement regulates both PT FIC's rights within the permitted mining area and PT FIC's responsibilities to the GOI as well as to adjacent people, to include the responsibility of preserving the function of the environment.

We have made a commitment to fulfil all obligations through enforcing government regulations and guidance in every step we take unconditionally.

In fulfilling those obligations we always consult and obtain the guidance of GOI including the provincial government of IRJA as well as involving the leaders and institutions of local people in our area.

However, we also have to admit that there are weaknesses in our efforts to involve the aspirations of the people in our business activities. We realize that it is not easy to understand the customs of this area, most importantly because of the diversity of the cultures which each of them needs attention.

Therefore we have asked expert opinion including from the prominent leaders of native Irianese, to enable us to handle our activities according to the living conditions of the people.

We do that to strengthen various social activities which we have been doing so far from efforts such as: education, skill training and public health, up to activities such as development the economic activity of the people which support our activities in this area. [Actually, based on the Indonesian version,after 'this area' the following should be added: 'in the watershed area of the Kamoro-Aaykwa- Minajerwi-Mawati Rivers - DAS KAMM.]

We do all of these activities not only because those are our obligations, but more importantly because of our high interest in the development of the local people. A developed local society would help us to be more efficient and will enable us to be better in developing this area.

Understanding of the complexity of the problems which relate to the people as reflected on their aspirations which were given to us a month ago, on this occasion PT FIC would like to restate its commitment in supprtoing government's program for the Irian Jaya (West Papua) development, especially in this area. In relation to this, with acknowledgement to the people's aspirations, which we can understand and withing the limit of our capabilities, we would like to address the program that will implemented in this area. These efforts are the improvement of the efforts that we have done in the past, without reducing our comitment [should be, 'obligations'] to the GOI.

Those plans are as follows:

1. In our effort to increase the eduation of people's skilled, as well as to involve people in PT FIC's activities, we will do the following:




a) To increase the recruitment, training and development of native Irianese, especially those who originally from this area, with the emphasis on basic skills and vocational training.

b) Double Irianese employment in the first 5 years and double it again in the following 5 years.

c) Double the number of Irianese holding the supervisory positions in 10 years.

d) Designate certain location within and outside the KAMM watershed as recruitment centers.

e) Increase the number of scholarships for Irianese native students from 100 to 200 students each year.

2. To improve the health program of people's and residential neighbourhood, including transmitted disease, especially malaria, for Irianese natives residing in the KAMM watershed areas. Health facilities officially intended for PT FIC employees at KAMM watershed areas can be used for such purpose and for health improvement of the local people.
3. To support the development of the government's program for Integrated Timika Development Program (ITD) through:




a) Partially support the financing of ITD program, where its management will be done with government and local people, through Project Implementation Unit (PIU) of ITD.

b) Intregrate most of the programs and the "Sustainable Development Department" projects currently underway, into the Integrated Timika Development Program.

c) Serve as a source of technical expertise and financing in development programs under supervision of the Implementing Unit.

4. To give opportunities for the local people to development themselves according to the aspirations, PT FIC shall provide financial assistance as Trust Fund. The trust fund will be channeled in the form of dividends, which shall be entirely managed by the local council. (for 'local council' read in the Indonesian ve rsion, 'lembaga adat setempat' or 'local traditional council')
5. For all the above-mentioned purposes (1-4), PT FIC will provide one per cent (1%) of its gross annual revenue at least for the next ten years to be utilized for the benefit of the people of Irian Jaya (West Papua).
6. To fulfil the needs of our employees from Waa to get access to transportation to the work place, PT FIC will provide two buses and drivers whom will be trained from the local area. We would like to ask people's assistance in managing these vehicles in order for them to give as much benefit for the local people. We also can provide two vehicles to ease communication between prominent leaders, PT FIC and local government.
7. In our efforts to increase more positive interaction between PT FIC and the people, we will do the following:




a) To function PT FIC Security Department appropriately in accordance with the prevailing Indonesian laws.

b) To form a "Community Affairs Department" as a token of PT FIC's active participation in fostering the local people, which serves to collaborate with the local people and with the Regional Government in the development of Timika.

8. Besides that, if it is needed and asked by GOI, PT FIC will assist the GOI in investigating the alleged human rights abuses which told to be happened in our project area.

The above are our plans which will be executed in the near future that will be implemented together with the people and based on the support and guidance of the GOI.

Timika, 13 April 1996

President Director PPT FIC,
Adrianto Machribie