Freeport's Cosy Indonesia Govt Ties Not Helping End Strike

Freeport says it is trying. Last year alone it spent $155 million on various sustainable development programmes in Papua, including nearly $70 million on community development in one of the country’s poorest regions.

But with gold prices at record highs, and Grasberg having the world’s biggest gold reserves, workers have demanded more than 10 times their current pay of $1.50 an hour. The workers union, which has held pay talks with the firm mediated by government, says Freeport’s relationship with the government is too close and argues that the local authorities are ineffectual.

“The way they let Freeport do things, such as firing people at will, forcing workers on strike to work, hiring new people to do the work are against the manpower law, but Freeport did not get a strong warning for doing so,” said Juli Parorrongan, spokesman for the union.

“The local government is either too spoiled by Freeport’s presence or doesn’t have the ability to manage these resources.”