Jakarta, Kompas: The government is reminded again about the Supreme Audit Agency (BPK) on PT Freeport Indonesia, which has been no clear follow-up until now. The audit results can be considered material for negotiations with the mining company from the United States. Advocacy Manager for Publish What You Pay (PWYP) Indonesia Aryanto Nugroho said the Supreme Audit Agency (BPK) regarding the environmental impact of Freeport’s operations in Papua, including financial matters, cannot be ignored. That is because state officials carried out the audit.
“The government should not give Freeport unlimited tolerance too often, such as granting export permits without considering the progress of smelter construction. Likewise, with the results of the Supreme Audit Agency (BPK), which until now is not clear, “said Aryanto, Tuesday (5/9), in Jakarta.
The results of the Supreme Audit Agency (BPK) of Freeport were announced last April. This audit includes, among others, the use of a protected forest area of 4,535.93 hectares without a lease-to-use area permit from the government. Freeport has not yet obtained an environmental permit for its underground mining operations at a location known as the deep mile level zone (DMLZ). Freeport’s tailings disposal (mining waste) is also considered to have polluted rivers, forests, and the sea. It was also discovered that an excess of payments for disbursing Freeport’s reclamation guarantee was Rp 19.4 billion.
Supreme Audit Agency (BPK) has also found a lack of government oversight of company operations, mainly underground mining operations. Deputy Chairman of Commission VII The House of Representatives from the Golkar Party, Satya Widya Yudha, said the Supreme Audit Agency (BPK) audit results should have been included in the discussion during negotiations the government and Freeport.
Moreover, said Satya, many of the audit results have not been followed up by the government. Regarding Supreme Audit Agency (BPK) findings, PT Freeport Indonesia’s Vice President for Corporate Communication Riza Pratama responded, “The potential impacts of mining activities and their management have been described in the Environmental Management Plan and Environmental Monitoring Plan documents designed to minimize negative impacts and maximize positive impacts.”