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Tony Wenas: Allegations that Freeport costs the state Rp 185 trillion not results of BPK audit

18 October 2018 05:34 AM  Company: []
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JAKARTA. Allegations that PT Freeport Indonesia (PTFI) have cost the country Rp 185 trillion due to mining activities are only estimates and not the BPK RI audit results, said PTFI Executive VP Tony Wenas.

According to him, the estimate came from a study conducted by the Bogor Agricultural Institute (IPB) on environmental problems due to Freeport's activities that have produced tailing waste.

"The Rp 185 trillion loss was based on the calculation from IPB and the land clearing from the opening of the LAPAN satellite. So it is not an audit from the BPK and that is not the recommended BPK to us," Mr Wenas said when met at the House of Representatives building, Wednesday (17/10).

In the Investigation Report (LHP) of PT Freeport Indonesia PDIT KK 2013-2015, it was stated that a study on the results of the calculation of IPB ecosystem services lost due to PTFI tailings based on an analysis of land cover changes in 1998-1990 and 2015-2016 by LAPAN showed a loss of US$13.59 billion or Rp 185.018 trillion.

In the report also explained the details of tailings losses. There are three locations, first at ModADA, the value of the ecosystem which was sacrificed US$786.5 million or around IDR 10.70 trillion. The second location in Estuary with an ecosystem value that was sacrificed US$603.2 million or around Rp 8.211 trillion. And third, located in the Sea the value of ecosystems is sacrificed to US$12.2 billion or around Rp 166 trillion.

The calculation, in the written report still needs to be discussed again by the Ministry of Environment and Forestry, whether in accordance with the existing provisions. In addition, this calculation has also taken into account its influence on the sea location with the calculation of the ecosystem services of Rp 166.09 trillion which still needs to be discussed.

"So don't ask me [whether it is detrimental to the state or not], I also don't know, maybe it was calculated, so I can ask IPB. So that is not an audit finding and is not recommended to us. It also stated that this figure of Rp 185 trillion still had to be consulted with the Ministry of Environment and Forestry. Just look at the report," Mr Wenas explained.

Regarding sanctions given by KLHK to PTFI, Tony said there were 48 points. Of that amount, there were 30 instructions, of which 24 were completed and 6 were still in process.

The recommendation from the BPK contains eight points. Of that amount, Tony claimed to have completed 6 points. That means there are only two more recommendations that have not been finished, namely IPPKH (Permit to Use Forest Areas) and DELH (Environmental Evaluation Document).

"There are eight recommendations for us that I just said. That was [at] the beginning of 2017, and everything was in accordance with the AMDAL and the governor's permission regarding the use of rivers for tailings. There was a permit from the Mimika Regent in 2005, and also SK 431 and when the audit was carried out it was still valid in 2008," he said. (AM/MS)