E

nergy and Mineral Resources Minister Sudirman Said will report to the House of Representatives Ethics Council several politicians who allegedly demanded shares and projects from a local unit of US mining giant Freeport McMoRan in exchange for helping the firm extend its contract to mine the world'€™s biggest gold deposit in Papua province.

After meeting with President Joko '€œJokowi'€ Widodo on Friday, Sudirman said the politicians told Freeport executives that the President had demanded part of the shares.

'€œThe politicians are selling the President'€™s name as though he has demanded free shares,'€ he said.

'€œAs the politicians are members of the House, I will immediately consult on the matter with the House'€™s Ethics Council,'€ he said, refusing to name the politicians.

Sudirman'€™s allegations came to light in mid-October after he indicated that certain Cabinet members and politicians with no management authority in the mining sector had allegedly lobbied Freeport to help the firm secure the extension in exchange for a certain amount of shares in PT Freeport Indonesia.

He also alleged the politicians had demanded they construct a power plant in Freeport'€™s concession and that the company would later be required to purchase the electricity supplied by the plant.

Freeport has been seeking the government'€™s approval to extend its contract, which is set to expire in 2021. The extension request would guarantee its planned US$18 billion investment in underground mining and a copper smelter.

Problems, however, have emerged because Freeport'€™s request goes against a 2010 government regulation on mineral resources and coal operations. The regulation stipulates that any extension application can only be lodged, at the earliest, two years prior to the expiry of a contract.

If Freeport complied with the regulation, it would only be able to apply for the extension in 2019, when Indonesia will hold both legislative and presidential elections and issues related to Freeport could be politically sensitive due to the company'€™s long-standing stigma as a symbol of US business imperialism in Indonesia.

Sudirman told The Jakarta Post in mid-October that Jokowi met with Freeport'€™s board chairman and founder James R. Moffett in early October to warn the latter that Freeport should not take offers from any individuals, outside those authorized in the sector, claiming to be able to help the firm secure the continuity of its operations.

Sudirman'€™s crusade to stamp out corrupt politicians has also expanded into providing crucial information to the Corruption Eradication Commission (KPK) in its investigation into a graft case involving Hanura Party legislator Dewie Yasin Limpo.

Earlier on Friday, Sudirman was summoned by the KPK as a witness in relation to the problematic construction of a micro-hydro power plant in Deiyai regency, Papua.

According to Sudirman, his ministry had never allocated funds for the plant'€™s construction, adding that he had rejected a proposal to have the project included in the ministry'€™s budget for next year.

'€œThe proposal was rejected because it did not meet the requirements,'€ he said.

Dewie, a member of the powerful Yasin Limpo political dynasty in South Sulawesi, was allegedly caught accepting S$177,700 (US$127,000) in bribes from businessman Setiadi Jusuf in Jakarta last month.

Dewie, a member of House Commission VII overseeing energy, has been detained in the case. (foy)