Friday, June 9, 2017

1) PAPUA PROVINCIAL GOVERNMENT COMMITS TO LOWER UNEMPLOYMENT RATE


2) Freeport Seeks New Mine Deal with Indonesia

3) Papua police to not interfere in Freeport`s labor problem

4) FSC to investigate Korean conglomerate’s palm oil operations in Indonesia
5) Freeport ‘on path’ to new Indonesia mine deal this year, CFO says
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http://tabloidjubi.com/eng/papua-provincial-government-commits-lower-unemployment-rate/


1) PAPUA PROVINCIAL GOVERNMENT COMMITS TO LOWER UNEMPLOYMENT RATE


            Dozens of unemployed Papuan held protest in Manokwari, West Papua Province in 2016 – mediapapua.com



Jayapura, Jubi – Papua Provincial Government through Manpower Office claim its commitment to continue to reduce unemployment, while giving serious attention to providing employment opportunities to the community.
“In 2016, the unemployment rate in Papua is lower, it is because of the availability of employment opportunities where many investments, projects are built to create employment opportunities,” said Head of Papua Province Manpower Yan Piet Rawar in Jayapura on Wednesday (June 7).
The decline in unemployment rate, he said, was carried out through programs implemented by all relevant agencies. Given the role of agencies is very important to provide employment opportunities, especially agricultural sectors in the broad sense.

“The expansion of plantation areas contributes enormously to reducing the unemployment rate,” he said.
“With so many job opportunities to the community, especially local Papuans who mostly low in education, and have not enough skill or high competence,” he added.
Meanwhile, VI Member of State Audit Agency Harry Azhar Azis said the unemployment rate in the last three years fluctuated by 3.99 percent, 3.35 percent and 3.96 percent. Unemployment rate in Papua Province 2016 is lower than national unemployment rate of 5.61 percent.
However, he said, based on Human Development Index (IPM) and Gini ratio, Papua Province in the last three years  are at the bottom, which is 56.76, 57.25, and 58.05 while national level reach 70, 18.
Similarly, the Gini ratio in Papua for the last three years fluctuated at the level of 0.41, 0.42, and 0.39, or lower than the national gini ratio of 0.40.
“This indicates the achievements of human development are low and inequality between rich and poor in Papua still high,” said Harry. (*)

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https://en.tempo.co/read/news/2017/06/09/056883101/Freeport-Seeks-New-Mine-Deal-with-Indonesia

FRIDAY, 09 JUNE, 2017 | 19:30 WIB
2) Freeport Seeks New Mine Deal with Indonesia
TEMPO.COJakarta - Freeport - McMoRan Inc. announced it is seeking a new mining deal with the Indonesian Government to the Grasberg mine in Timika, Papua. The information said by Freeport chief financial officer Kathleen Quirk.
Freeport has resumed its copper exports from the Grasberg mine since April after an outage due to a government dispute over mining rights. The US-based mining giant will boost its production to cover losses during the outage.
Earlier in January, the Indonesian government decided to halt Freeport’s copper exports to push the company to build a smelter, pay new taxes and royalties, divest a 51 percent stake in their operations and relinquish arbitration rights.
Freeport, whose contract will last until 2021 with two 10-year extensions, will only agree to a special permit accompanied by an investment stability agreement that replicates current legal and fiscal certainty.
“We think we’re on a path to be able to get that resolved during this year and that’s our top priority,” Quirk said at a Deutsche Bank conference, as quoted by Reuters on Friday, June 9, 2017.
Quirk said that without the agreement, Freeport is unlikely to continue investing in the country, noting that the company has already spent US$3 billion on a project to transitions Grasberg underground from open pit mining.
In addition, Freeport is still struggling with labor problems. It is contractor-dominated workforce in Indonesia has been reduced to approximately 26,000 workers currently from about 33,000 at the start of 2017.

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http://www.antaranews.com/en/news/111312/papua-police-to-not-interfere-in-freeports-labor-problem

3) Papua police to not interfere in Freeport`s labor problem

7 hours ago | 487 Views
Timika, Papua (ANTARA News) - The Papua Police can solely protect and maintain security in PT Freeport Indonesia in Papua while a strike is ongoing but will not interfere in the companys labor problem.

The solution to the manpower problem should be in line with Law No 13 of 2003 and its derivative regulations, Chief of the Papua Provincial Police Inspector General Boy Rafli stated here, Friday.

The deployment of police personnel around the company is solely to protect it and ensure that thousands of striking workers do not commit actions that could disadvantage others, he remarked.

"There has been a tripartite effort. For the labor problem particularly, there is a clear ruling in the Law on Manpower," he added.

He urged striking workers to abide by the law and to maintain order and security.

Since May 1, 2017, thousands of PT Freeport workers have been on strike following a dispute between the management and its labor union.

As a consequence, PT Freeport and its sub-contract companies have fired more than 2,500 workers.

The Papua Police and Military Command had held an evaluation meeting on measures to secure the company during the strike in Mimika District, Papua, on Thursday.

On Friday morning, Papua Police Chief Rafli, Commander of the Papua XVII/Cenderawasih Military Command Major General George Elnadus Supit, and Commander of the Indonesian Naval Base 11/Merauke Brigadier General Bambang Sutrisno are expected to hold a meeting with the management of PT Freeport Indonesia in Tembagapura, Mimika. 

Meanwhile, a group of workers of PT Freeport Indonesia recently staged a demonstration in front of the Mimika district administration, demanding the government to mediate in their dispute with the management of the mining company.

The striking workers, many of whom have been dismissed after a long absence from work, presented a nine-point demand during the demonstration on Tuesday.

Among the points put forth in the demand is that the government should be responsible for settling the work dispute with the management of Freeport, which has large copper and gold mines in Papua.

They demanded the government and company to immediately reemploy the workers without any sanction. The workers include those laid off on grounds of lack of efficiency.

They also urged the companys management to stop alleged discrimination and criminalization of workers participating in the strike since early May, unilateral dismissal of workers, and intimidation of the leader of the labor union.

The district administration has been urged to facilitate negotiations between the management and workers.

The district administration had already facilitated negotiations earlier between the companys management and the leaders of the workers, but the meeting ended in a disagreement.(*)

Mongabay Series: Global Forests, Global Palm Oil


4) FSC to investigate Korean conglomerate’s palm oil operations in Indonesia
7 June 2017 / Mike Gaworecki


The Forest Stewardship Council (FSC) has announced that it will investigate the Indonesian oil palm operations of Korean agribusiness conglomerate Korindo in response to a formal complaint submitted by environmental group Mighty Earth.

  • The group submitted the complaint to the FSC on May 15, 2017, together with evidence that Mighty Earth said showed the Korindo Group has, since 2013, cleared more than 30,000 hectares (over 74,000 acres) of rainforest for palm oil production in the Indonesian provinces of Papua and North Maluku.
  • “The Forest Stewardship Council (FSC) has formally accepted a Policy for Association (PfA) complaint submitted by Mighty Earth against Korindo Group (Korindo) for ‘Significant conversion of forests to plantations or non-forest use’,” the certification body confirmed in a statement released today.
  • In its Policy for the Association of Organizations with FSC (PfA), the certification body lists a number of “unacceptable forest-related activities” in which companies cannot directly or indirectly engage — essentially giving the FSC a means of protecting its reputation and “ability to deliver on its mission” should a company with certified operations be found to be responsible for unsustainable practices in some of its other operations.


The Forest Stewardship Council (FSC), one of the world’s most influential sustainable forestry certification bodies, has announced that it will investigate the Indonesian oil palm operations of Korean agribusiness conglomerate Korindo in response to a formal complaint submitted by environmental group Mighty Earth.
The group submitted the complaint to the FSC on May 15, 2017, together with evidence that Mighty Earth said showed the Korindo Group has, since 2013, cleared more than 30,000 hectares (over 74,000 acres) of rainforest for palm oil production in the Indonesian provinces of Papua and North Maluku.
“The Forest Stewardship Council (FSC) has formally accepted a Policy for Association (PfA) complaint submitted by Mighty Earth against Korindo Group (Korindo) for ‘Significant conversion of forests to plantations or non-forest use’,” the certification body confirmed in a statement released today. “This complaint falls under the scope of FSC Policy for Association (FSC-POL-01-004) and concerns Korindo Group certificate holders PT Korintiga Hutani, PT Aspex Kumbong, PT Korindo Abadi Asike and PT Korindo Ariabima Sari.”
In its Policy for the Association of Organizations with FSC (PfA), the certification body lists a number of “unacceptable forest-related activities” in which companies cannot directly or indirectly engage — essentially giving the FSC a means of protecting its reputation and “ability to deliver on its mission” should a company with certified operations be found to be responsible for unsustainable practices in some of its other operations. Among the practices the policy prohibits is the “Significant conversion of forests to plantations or non-forest use,” defined as companies converting High Conservation Value Forests or converting more than 10,000 hectares (just under 25,000 acres) of the forests under their control within the past five years.
The FSC policy goes on to state that “Failure of the 10,000 ha threshold does not lead to disassociation per se, but will lead to a case by case investigation by an independent Complaints Panel. In judging the case, the Panel will take into account the local circumstances, the scale of the operation and plans for continued conversion.”
Last year, Mighty Earth commissioned research consultancy AidEnvironment to conduct a satellite analysis of eight Korindo oil palm concessions in Papua and North Maluku, which led to the finding that the company, through a variety of subsidiaries, was responsible for 30,000 hectares of deforestation, as well as nearly 900 fire hotspots.
Burning land to clear it for industrial agriculture operations is illegal in Indonesia, though the practice remains widespread. The fires are responsible for the “Indonesian Haze” that blankets Southeast Asia every year, however, which has prompted the Jokowi Administration to urge local law enforcement authorities to crack down on the practice. Korindo has previously come under investigation over accusations that it systematically used fires to clear a heavily forested region of Papua, though the company denied the allegations.
AidEnvironment detailed its findings about Korindo’s Indonesian oil palm concessions in a report released last September, titled “Burning Paradise.” The research group found that, of the 30,000 hectares of forest destroyed by Korindo subsidiaries, some 11,700 hectares (close to 29,000 acres) were primary forests.
Mighty Earth notes in its complaint that, based on criteria established by the Roundtable on Sustainable Palm Oil, primary forest is considered “High Conservation Value Forest.”
Another of the prohibited activities spelled out in the FSC’s Policy for Association is “Violation of traditional and human rights in forestry operations.” According to the AidEnvironment report, Korindo’s Indonesian subsidiaries have frequently run afoul of this stipulation, as well: “In addition to environmental damage wrought by Korindo, the company has failed to recognize and respect the rights of many indigenous communities who have depended on the forests for centuries.”
Yulian Riza, corporate communication manager for the Korindo Group, told Mongabay that “While we respect the important role that NGOs play in society, unfortunately Mighty Earth’s statements present an inaccurate portrait of our company’s policies and practices. Like all Korindo affiliated companies, Korindo’s palm oil operations are committed to operating in a sustainable manner. We not only comply with all Indonesian laws and regulations regarding palm oil production, but also follow industry practices on sustainable development.”
Riza added that, “As a developer and harvester of local resources and consistent with our values, Korindo realizes that we have a responsibility to operate these businesses with the highest level of integrity.”
Deborah Lapidus, campaign director for Mighty Earth, said in a statement that Korindo’s subsidiaries should lose their FSC certificates until they can prove that they have made their parent company’s sustainability policies a reality on the ground.
“Korindo has not earned the good reputation that comes along with holding FSC certification and has violated the trust of its wood products customers who believed that the certification brought assurances of sustainability,” she said. “We call on the FSC to fully investigate Korindo’s violations of the Policy for Association, and take steps to terminate Korindo’s FSC certificates until it strictly complies with its standards.”
Four of Korindo’s forest products subsidiaries — PT. Korintiga Hutani, PT. Aspex Kumbong, PT. Korindo Abadi Asike, and PT. Korindo Ariabima Sari — could potentially lose FSC certification as a result of the investigation, according to Mighty Earth. “This could put some of Korindo’s timber trade in jeopardy from suspension by buyers seeking FSC-certified products,” the group said in a statement.


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5) Freeport ‘on path’ to new Indonesia mine deal this year, CFO says
Fri Jun 9, 2017 | 4:22am EDT

By Susan Taylor | TORONTO
Freeport-McMoRan Inc, the world's largest publicly traded copper miner, is "on a path" to get a new mining deal with Indonesia this year for its giant Grasberg mine, Chief Financial Officer Kathleen Quirk said on Thursday. 
The Arizona-based company resumed copper concentrate exports from Grasberg, the world's second-biggest copper mine, in April after a 15-week outage related to a government dispute over mining rights. Freeport had planned to ramp up production, which was cut by around two-thirds during the outage.
Freeport shares gained 2.9 percent to $12.06 on Thursday. 
Jakarta halted Freeport's copper concentrate exports in January, under new rules that require miners to adopt a special license, pay new taxes and royalties, divest a 51 percent stake in their operations and relinquish arbitration rights. 
Freeport, whose current contract runs until 2021 with two 10-year extensions, will only agree to a license accompanied by an investment stability agreement that replicates current legal and fiscal certainty, Quirk said.
"We think we're on a path to be able to get that resolved during this year and that's our top priority," Quirk said via webcast from a Deutsche Bank conference.
Without the agreement, Freeport is unlikely to continue investing in the country, she said, noting the company has already spent $3 billion on a project to transitions Grasberg to underground from open pit mining. 
Production from the project, about half complete, is targeted for 2018 or 2019, she said.
The government will meet Freeport next Wednesday for further talks and negotiations could be concluded by October 2017, Teguh Pamuji, secretary general at Indonesia's energy and mining ministry told reporters on Friday.
"The important thing is the substance, which will cover regulations and documents that will make them comfortable and give security for them to operate in Indonesia," he said.
Meantime, Freeport is grappling with labor problems.
Its contractor-dominated workforce in Indonesia has been reduced to approximately 26,000 workers currently from about 33,000 at the start of 2017.

Following the export restrictions, Freeport furloughed some 3,000 workers in the first quarter, Quirk said, sparking a strike and high levels of absenteeism. Freeport later deemed that approximately 3,000 full-time employees and 1,000 contractors had resigned, Quirk said.
Quirk said Freeport is training additional workers and "offering opportunities for those workers that are deemed to have resigned to be able to apply for open positions through contractor companies."
While the union said its strike would extend into June, Freeport has not seen additional absenteeism that would cause it to assume the workers had resigned, she added.
The union, which began a 30-day strike on May 1, said on May 20 that it would extend the strike for a second month. 
(Reporting by Susan Taylor; Additional reporting by Wilda Asmarini in JAKARTA; Editing by Bernard Orr and Jeffrey Benkoe)
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