Roundup: Alleged Freeport share scam buzzes Indonesian media

Indonesian media was buzzed by a scandalous scam attempt allegedly involving the nation's House of Representatives Speaker Setya Novanto who asked for share allocation from the United States-based mining firm Freeport McMoran with a promise to support the firm's plan to extend its operation in Indonesia's Papua.

The scam attempt was revealed in a document submitted by Indonesian Energy and Mineral Resources Minister Sudirman Said to the House's Ethics Council (DKP) on Monday.

The document brought in to the council by the minister consisted of wiretapped phone conversations conducted by a legislator, whom he did not give name, with a businessman in relation to the firm's plan to extend its operation in Papua.

In the conversation, the legislator purportedly asked for 20 percent of share allocation, which in return, would give parliament support regarding the firm's plans to extend its operation in Indonesia's easternmost province until 2041.

The document lodged in by the minister was related to his complaint against the legislator who claimed himself of representing the president and vice president to ask for the share allocation from the firm.

In related development, a conversation recording of a meeting between the legislator, the businessman and an executive of Freeport Indonesia, the Freeport McMoran official firm in Indonesia, was also surfaced. The recording was conducted by the Freeport Indonesia executive during the meeting that was held in Jakarta in June this year.

Freeport Indonesia Riza Pratama confirmed on the recording as well as the legislator and the businessman who claimed of representing the president and the vice president in the meeting.

Riza said on Monday they asked for 20 percent share of Freeport Indonesia and 49 percent share of Urumuka hydropower plant project in Papua.

"The conformation statement had already submitted to the MKD. Let's wait for further process. We would entirely let this issue be handled by the government and the existing law in Indonesia," Riza said.

In another development, Indonesian Vice President Jusuf Kalla said that the legislator heard in the recordings leads to House Speaker Setya Novanto. He said that he had personally reprimanded Novanto in a private meeting in his office.

"I reprimanded him, but he was adamant that he was not involved," Jusuf said on Tuesday, adding that he would wait for results of further investigation carried out by the MKD related to the complaint filed in by the minister.

Meanwhile, in his response on the issue Indonesian President Joko Widodo said that everyone must respect the process carried out in the MKD.

"We have to respect the legislative body," the president said on the sidelines of a national-scaled event opening ceremony on Wednesday.

In his defense, Novanto admitted about his meeting with the businessman and the Freeport Indonesia. Speaking in the parliament building on Tuesday, Novanto said that the meeting was "for the good of the people."

Freeport Indonesia is now in the process to extend its operation license in Indonesia until 2041. The existing operation contract of the mining firm that produces gold, silver and chopper ores was scheduled to due in 2021.

Indonesian government demands the firm to divest 30 percent of its share for the state as requested in the existing law for foreign mining firm operating in the country.

Indonesia now controls 9.36 percent share of the firm since its initial operation contract awarded in 1967. Endit