REPUBLIKA.CO.ID, JAKARTA -- PT Freeport Indonesia was asked to pay compensation for environmental damage caused by mining waste in Ajkwa River. Director of Indonesian Resources Studies (Iress), Marwan Batubara, said the amount of compensation was 5 billion US dollars as ever mentioned earlier by Coordinating Minister for Maritime Affairs and Resources, Rizal Ramli.

Marwan explained, if the compensation could be paid by Freeport, Indonesian government no longer need to think about sources of funding to take over the state right of Freeport shares of 10.64 percent. The shares were not yet offered by the company from the US.

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He doubted if Jokowi-JK government dared not to extend the operation of PT Freeport Indonesia. Even so, Marwan proposed a solution that the government would not get a big loss if Freeport was still operated in Papua.

"This as an alternative if the government doesn't want to stop Freeport ," said Marwan, in a discussion in Cikini, Jakarta, Saturday (5/12).

Marwan supported the government's move to change the contract to be a permit. If the contract of work (COW) changed into Special Mining Permit (IUPK), the government has a stronger bargaining position.

"It said the government want to own shares up to 51 percent in 2021, the government want to get 6 to 7 percent royalty, and the government want Freeport to compensate environmental damage to 5 billion US dollars," Marwan explained.

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