5 Ways Freeport Indonesia Participates in Developing Papua’s Economy

22 November 2021

The name PT Freeport Indonesia is not at all unfamiliar to the Indonesian people.  The mining company primarily producing copper, gold and silver is located in the Grasberg area in Papua. Certainly, PT Freeport Indonesia’s presence in Papua is having distinct impacts on the lives of Papuans. One such impact that is the most felt is in the economic aspect, with improvements increasing by the day. PT Freeport Indonesia is not just conducting exploration of natural resources in Papua, it plays a significant part in advancing the region’s economy. Through the many ways and steps taken, Papuans have been enabled to develop, in particular from the economic aspect.   

1. Fishery potential maximized in Mimika Regency 

The diverse potential inherent among Papuans is being maximized by PT Freeport Indonesia towards providing them with increasingly improved quality of life. Among the ways Papuan potential is being maximized is through fishery. In conjunction with the Amungme and Kamoro Community Development Organization (LPMAK) and the cooperative Koperasi Maria Bintang Laut (KMBL), PT Freeport Indonesia drew up a catch fishery program that has been in operation since 2009.  In 2019, PT Freeport Indonesia provided assistance in the form of transportation, marketing, and production facilities. This has empowered fishermen and strengthened the fishery industry in Mimika Regency. 

2. Animal husbandry programs for local entrepreneurs   

PT Freeport Indonesia also provided animal husbandry programs for local businesses in Papua. In its capacity as a business, PT Freeport Indonesia implements Corporate Social Responsibility (CSR) among others through animal husbandry or livestock farming programs. The animal husbandry programs in the villages of Desa Wangirja and Desa Utikini Baru are aimed at boosting the skills of local communities. The farm mentored by PT Freeport in Desa Utikini Baru is named Jayasakti Mandiri. PT Freeport Indonesia funded the program through the partnership fund that is managed by  LPMAK. The program has brought about impressive results. In the span of a day, the Jayasakti Mandiri farm can produce 50 poultry eggs. The eggs meet 30 percent of market demand in Timika and are even delivered to other regencies in Papua.

3. Galvanizing farming and food security programs 

In addition to fishery and animal husbandry, PT Freeport is helping Papua’s economy through farming and crops cultivation. Advocacy and mentoring are provided through transfer of knowledge in crops cultivation. The program makes use of land surrounding homes by planting them with commercial crops. There are at least three crop cultivation programs under the aegis of PT Freeport Indonesia. The first is the Sago Plantation Program conducted in the village of Kampung Nayaro. Through this program landowners bolster food security that remains grounded on local wisdom and resources. PT Freeport Indonesia also established the Lowland Agricultural Program. This program utilizes yards to plant horticultural crops such as vegetables, fruits, and tubers. This program is run in the villages of Desa Wangirja and Desa Utikini Baru. The last program is the Wanatani Coffee and Horticultural Cultivation Program implemented by the highland Amungme people. The focus is on developing community enterprises such as Wanatani Coffee through provision of assistance in the cultivation of crops. 

4. Advocacy and mentoring for MSMEs

All economic development programs launched by PT Freeport Indonesia are by way of sustainable social investment for the Papuan people. As a business, it is not detached and non-participatory towards the community, and this is evident in their providing advocacy and assistance for Micro, Small and Medium Enterprises (MSMEs/ UMKM). PT Freeport and LPMAK together continue to offer comprehensive and thorough assistance and mentoring for fishery, animal husbandry, farming, and food security programs. Advocacy for MSMEs is expected to boost economic activity and a sustainable standard of living for the people of Papua. 

5. Providing loans through Revolving Funds

PT Freeport Indonesia imparts not just knowledge and skills to established businesses. It also opens up opportunities for burgeoning enterprises to develop further, through provision of revolving funds. In conjunction with the foundation Yayasan Bina Utama Mandiri (YBUM), PT Freeport Indonesia offers loans to local entrepreneurs. The loans are offered to those enterprises that are not eligible to seek credit from banks.  The Revolving Fund allows local entrepreneurs in Papua to be educated and knowledgeable about entering into partnerships with banks. As such they acquire an understanding of the procedures necessary to seek financing. Notwithstanding its busy mining activity, PT Freeport Indonesia is not relinquishing its social responsibility to the people of Papua. It is participating in developing the economies of the local population in an actual and regular manner. As such, the people of Papua are receiving benefits to which they are entitled.   

 

http://www.idntimes.com/life/inspiration/fernanda-reza-saputra-1/demi-pembangunan-ekonomi-di-papua-c1c2

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