Freeport, Irian Jaya join in reform

New York-listed Freeport McMoRan Copper & Gold and the Indonesian government are hoping to increase the benefits of foreign investment in Irian Jaya.

The Integrated Timika Development Plan, named for the region that will be affected by the project, combines the efforts of government and the foreign private sector. As a result of the plan, Freeport’s subsidiary, P.T. Freeport Indonesia (PT-FI), will increase fourfold its Irianese workforce over the next 10 years and establish a training centre in the area.

The program is being implemented at a time of increasing social unrest in the region. In March, looters and vandals smashed windows and damaged property in Timika and Tembagapura.

PT-FI will dedicate 1% of its revenue for the next 10 years to fund the program. The company has also committed more than US$100 million to other community development programs over the next seven years.