"The legal measure planned by Freeport against the Indonesian government will have a boomerang effect on the company. The public will support the government of Indonesia," Juwana said.
Jakarta (ANTARA News) - Freeports threat to bring its legal dispute with the government to the International Court of Arbitration will evoke a sense of nationalism, an international law professor of the University of Indonesia, Hikmahanto Juwana stated.

"The legal measure planned by Freeport against the Indonesian government will have a boomerang effect on the company. The public will support the government of Indonesia," Juwana noted here on Thursday.

Juwana remarked that Indonesian society would recall its history lesson on the Dutch East India Company (VOC). The VOC was able to conquer kingdoms in the archipelago.

"Freeport will be perceived equally by the Indonesian public as a VOC in the digital age. Freeport cannot use threat to lay off employees as a tool to apply pressure on the government. The company also cannot toy with Papuas issues," he affirmed.

Juwana pointed out that the government of Indonesia has offered a way out for Freeport by issuing Government Regulation No. 1 of 2017 on the fourth amendment to Government Regulation No. 23 of 2010 on the implementation of coal and mineral mining business activities.

"The government does not violate the working contract (KK). In fact, Freeport ignores article 170 of Law Number 4 of 2009 on coal and mineral mining," Juwana noted.

State Regulation No. 4 of 2009 changes the status of KK into a special mining business permit.

The Indonesian government headed by President Joko Widodo, who has a business background, will prioritize Indonesias interests.

"Freeport cannot use its government to apply pressure, as its position is not very strong. Other coal and mineral mining companies, who hold working contracts, abide by the regulations that have been applied," Juwana emphasized.

Member of the House Representatives Commission VII Adian Napitupulu had earlier called on coal and mineral mining companies to abide by the regulations that have been applied, including large corporations, such as Freeport.

The governments courage and consistency in enforcing Regulation No. 4 of 2009 that includes divesting 51 percent shares, changing the KK status, increasing the use of domestic products in production processes, developing smelters, and taxation and negotiation access with investors is still within a mutually beneficial framework, Napitupulu added.

The regulation will demonstrate the governments control over Indonesias natural resources and the country, Napitupulu stated.

Indonesia is not against foreign investors, but much like other nations in the world, the country should also get a fair share, Napitupulu remarked.

"If Freeport refuses to accept the governments guidelines and wants to merely continue operating with special benefits that the company has enjoyed in Indonesia for 48 years, then it is reasonable for the government to take a firm stance," he added.(*)

Editor: Heru Purwanto
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