19 August 2020
On 21 December 2018, Indonesian state-owned mining company PT Indonesia Asahan Aluminium, better known as PT Inalum (Persero), formally completed acquisition of part of shares in PT Freeport Indonesia (PTFI). All nationals cheered this happy occasion, as it made Indonesia majority shareholder in one of the world’s biggest gold mining companies. It also marked the increasingly sizeable benefits PTFI has been providing for the nation.
97% of the people this world-class mega project employs are Indonesian nationals from across all corners of the country. Now in 2020, in line with the Republic of Indonesia’s Independence Day theme of “Indonesia Maju” (“Indonesia Advances”), PTFI once again demonstrated corporate support with continuing contributions for Indonesia, including in dealing with the Covid 19 pandemic.
The contributions embodied in varied aspects have become increasingly visible following the Indonesian government, by way of Inalum or MIND ID formally gaining control of 51% of shares in PTFI. PTFI President Director Clayton Allen Wenas, familiarly called Tony Wenas, says the pandemic has compelled all elements of society to adapt to a new normal. This supports the push to advance Indonesia through various aspects, in addition to serving to curb the virus from spreading. “This situation is pushing PTFI to transform itself continuously, both operationally and in terms of the contributions it offers,” he said on Monday (17/8).
The transformations include drawing up more flexible work procedures and rotation system (working from home for employees in Jakarta) and cutting back the number of people on the job in the operation area during a single work period, thereby boosting health and safety protection for employees. “These work procedures and system are allowing our operation to run normally and safely,” Tony said.
In the first semester of 2020, copper production reached 321 million pounds, an increase of 18.88% yoy, with gold production coming at 341,000 ounces, or a growth of 7.91% yoy. Employee productivity similarly increased from the non-operational aspect. “This indicates that the PTFI big family is ready and willing to embrace and adapt to the new normal process,” Tony continued. This is helping PTFI in striving to continue to drive the economy, maintain industry stability, and improve the wellbeing of communities near the company’s operating area. During the pandemic, PTFI is steadfastly maintaining the 29,201 jobs for its employees and those of contractor companies, as well as providing social relief amounting to more than Rp 21 billion for communities near the operating area that are affected.
PTFI also provides healthcare facilities for employees and surrounding communities, among others with rapid and PCR test equipment, more treatment and isolation wards in RS Tembagapura hospital and Kuala Kencana Clinic, and setting up a laboratory RT-PCR testing.
Other support provided include delivery of relief in the form of medical assistance, foodstuffs, and healthcare equipment needed in the handling of Covid-19. More recently (on 7/8), PTFI facilitated delivery of 70 ventilators in assistance from University of Rhode Island (URI), USA for the Papua provincial government. All these initiatives reinforce the magnitude of PTFI contributions to Indonesia’s economy that were made from 1992 to 2019 and that have amounted to US$ 45.8 billion (equivalent to Rp 664.l trillion).
Another US$ 1.73 billion was contributed to realize various programs, ranging from community development and empowerment to building infrastructure such as 3,000 homes plus, and providing electricity for the communities near the company’s operating area.
PTFI is setting aside US$ 15.1 billion (equivalent to Rp 218.9 trillion) in investments to be made from 2019 to 2041 for developing operations and boosting contributions towards advancing Indonesia, in order to meet PTFI’s new target amid the pandemic, of safe and sustainable production. COMPANY VALUES. Tony says a primary factor in PTFI’s successfully maintaining its contributions amid the pandemic is the company’s values, which are fervently upheld by all employees. These values are given the acronym SINCERE (for Safety, Integrity, Commitment, Respect, Excellence).
Tony says PTFI’s long journey over the span of more than 50 years has not been without challenges. Nevertheless, PTFI was able to overcome the challenges. “And in the process achievements were made thanks to our values, to which all employees are adapting well,” he said.
As such, on this 75th anniversary of Republic of Indonesia’s Independence Day, PTFI is strengthening its implementation of SINCERE with a series of virtual activities that will be a constant reminder of the importance of SINCERE, towards ensuring a smooth transformation for PTFI amid the pandemic.
He expressed the hope that the Covid-19 pandemic would be overcome successfully in order to allow production to flourish in a sustainable manner in accordance with PTFI values, Sincere. Rhenald Kasali, Founder of Rumah Pembahan says PTFI’s long journey with numerous challenges encountered is evidence of the strength of the values that have been embedded. “The company’s accomplishments cannot be dissociated from the role played by all employees and their contributions through steadily upholding the SINCERE values and creating a sound corporate culture that supports a conducive working climate,” he said.