The establishment of three new provinces in Papua is the result of vested interest of the military, political elites as well as foreign and local investors especially in the mining and plantation sectors, critics say. In addition to providing security and stability to the concession area, the creation of the new regions in Indonesia’s easternmost province will facilitate the administration of investors’ licenses.
The House of Representatives (DPR) on June 30, 2022, passed three bills establishing the three independent, autonomous provinces in Papua, namely South Papua, Central Papua and Papua Highland.
House Speaker Puan Maharani of the Indonesian Democratic Party of Struggle (PDIP) said the House supported the establishment of the new three provinces as they were deemed beneficial for Papuans and the development and economic equality of the area.
“The laws on the new provinces will ensure the social and economic rights of the people of Papua. These new provinces will bring about justice and equality in the development of Indonesia,” said Maharani, who is also the daughter of former president Megawati Soekarnoputri.
South Papua province comprises of four regencies of Merauke, Boven Digoel, Mappi and Asmat. Meanwhile, Central Papua covers eight regions: Nabire, Mimika, Paniai, Dogiyai, Deyiai, Intan Jaya, Puncak and Puncak Jaya. As for Papua Highland, it includes nine regencies of Jayawijaya, Pegunungan Bintang, Yahukimo, Tolikara, Central Membramo, Nduga, Yalimo, Lani Jaya and Nduga.
Vested interest on land division
Markus Haluk, Executive Director of the United Liberation Movement for West Papua (ULMWP), believed the establishment of three new provinces was a method of sharing Papua’s land to benefit Jakarta’s political elite, investors, party chairman and retired military elites.
Their sole interest was to collaboratively exploit Papua’s natural resources. The purpose of creating three new provinces is to facilitate investment after the enactment of the revised autonomous law.
“As a result of the special autonomy law revision, the creation of three new provinces will facilitate smooth investment in the exploited areas,” Haluk said in May 2022.
The government now has a legal basis for opening its doors to foreign and domestic investors following the establishment of the new provinces and the incoming appointment of local administration leaders. Under the previous special autonomy law (Law No. 21/2001), Papuan Governor had a wide authority to reject investment and new province creation.
“Many people perceive the incumbent governor of Papua [Lukas Enembe] is in Jakarta to be closely connected to separatist movements, including armed secessionist groups. He tends to protect Papua’s natural resources and prevent further exploitation,” according to a source with close ties to Indonesia’s State Intelligence Agency (BIN).
There are concerns that the original version of the Papua Special Autonomy Law provides too much power and authority to the governor, the Papua Regional Representatives Council (DPRD) and the Papuan People’s Assembly (MRP) in regards to investments and licenses. Local administrations and councils are perceived to having a strong authority that hinders investments. Revising the autonomy law and creating new provinces would minimize the powers.
“The revised special autonomy law will put the authority to issue permits in mining, forestry and plantation sectors back to the government,” said MRP deputy chairman Yoel Mulait.
Elites’ involvement in mining sector
Papua has been famous for its abundant natural resources, including minerals, coal, oil and gas, forestry and plantations.
A coalition of NGOs called Bersihkan Indonesia (Cleaning Indonesia Coalition) reported several gold reserves in the Intan Jaya regency, Central Papua. The Darewo River Gold Project, located along the Darewo geological fault zone, and the Wabu block gold reserve are among them.
According to the report, the Wabu gold block is the most prominent newly discovered gold reserves in Intan Jaya. In April 1990, gold and copper mining giant PT Freeport Indonesia discovered gold in the Wabu block, Intan Jaya regency, at an altitude of 2,200 to 3,100 meters above sea level. It is situated in the Mimika region, approximately 35 kilometers north of the Grasberg minerals district.
Wabu block is part of what was previously known as Block B, an area of 0.5 million acres that Freeport had the rights to explore. According to data from the Ministry of Energy and Mineral Resources, Wabu block has gold reserves of 117.26 million tons.
A report from Amnesty International Indonesia said the government announced plans to develop mining activities in the Wabu block in September 2020. Publicly, the Minister of State-Owned Enterprises said he had sent a letter to the energy ministry, requesting that PT Aneka Tambang Tbk (Antam) develop mining activities in the Wabu block.
Nonetheless, in 2020, Enembe wrote to the energy ministry requesting them to temporarily halt all administrative processes for the Wabu gold block due to security concerns. Armed separatist groups and Indonesian security forces remain in sporadic skirmishes in the restive area.
”Until now, the governor still halts the activity at the block,” said Fred James Boray, head of Papua Energy and Mineral Resources Agency.
In addition to these two unexploited gold blocks, there is the well-known Grasberg and Eastberg concession of PT Freeport Indonesia in the Mimika regency, Central Papua.
According to Ahmad Ashov Birry, a Bersihkan Indonesia Coalition spokesman, Indonesian military elites have substantial involvement in the companies holding mining permits in the Darewo river gold project and the Wabu block. He said at least three mining companies – Antam, Freeport Indonesia and Madinah Qurrata Ain – had concessions in Central Papua and had ties with retired and active generals in the military and police.
“Luhut Binsar Pandjaitan is affiliated to the Darewo project through PT Toba Sejahtera (beneficiary owner). Toba Sejahtera is the majority shareholder of PT Tobacom Del Mandiri, and PT Tambang Raya Sejahtera is listed in the business alliance agreement with West Wits Mining (an Australian mining company) through its Indonesian subsidiary that holds permits for the Darewo River Gold Project, PT Madinah Qurrata Ain,” said Birry, referring to the Coordinating Maritime Affairs and Investment Minister.
Brig. Gen. (ret.) Paulus Prananto is listed as PT Toba Sejahtera’s director and PT Tobacco Del Mandiri shareholder. Tobacom Del Mandiri is responsible for obtaining forest permits and ensuring secure access to the project site. Additionally, Prananto is the majority shareholder, director and commissioner of PT Bytech Binar Nusantara, which owns 30% shares of Madinah.
Both Prananto and Pandjaitan served on President Joko Widodo’s campaign team (Bravo Lima) during the 2014 and 2019 presidential elections. A source at the BIN confirmed that Pandjaitan, a retired general, had been connected in the Darewo River Gold Project.
However, a spokesman for Pandjaitan’s office, Jodi, denied the allegation of the minister‘s involvement in the project. “No, it has been denied strongly every where,” he said. Local media Kompas.com and Katadata.co.id already published a statement by Pandjaitan, denying the accusation.
Among the five companies listed in the Wabu block project are two mining companies owned by the same state-owned mining holding company MIND ID. Antam is one of MIND ID’s subsidiaries.
According to the report, Lt. Gen. (ret.) Agus Surya Bakti and Comr. Gen. (ret.) Bambang Sunarwibowo are commissioners of Antam. Sunarwibowo is still active as BIN’s chief secretary. Lt. Gen. (ret.) Doni Monardo and Lt. Gen. (ret.) Muhammad Munir serve as independent commissioners in MIND ID. Munir is still active as chairman of BIN’s Strategic Analysis Council.
Against military deployment
“Wabu block in Intan Jaya is a project owned by the Indonesian Military (TNI),” Benny Wenda, ULMWP Chairman who is also the Independence of West Papua leader, said in May 2022 through text messages from his home in Oxford, England.
The deployment of the military, the killing of civilians and the displacement of civilians from the area surrounding Wabu block were considered prerequisites for the military’s involvement in the mining operation, local media reported.
The Papuan National Liberation Army (TPNPB) spokesman, Sebby Sambom, said his army had established its headquarters near Papua’s natural resources to protect the sites and promote the well-being of Papuans. According to Sambom, TPNPB has 34 operational command areas in Papua with a total of 2,500 personnel under one command.
The Commission for Missing Persons and Victims of Violence (Kontras) reported that the conflict between TNI and Papua‘s armed separatist group has caused fatalities. Several shootings and violent incidents took place in Intan Jaya between January 2020 and March 2021. A total of 34 people were injured and 24 died in the shootings. The 24 fatalities included seven TNI soldiers, two members of an armed separatist group, and 15 civilians. A large number of people fled to refugee camps and surrounding areas at the same time.
Birry explained although there was no evidence that the deployment of TNI personnel to the Wabu block in Intan Jaya area was a policy imposed by retired generals, the Bersihkan Indonesia Coalition investigation revealed there were establishment of security posts and the deployment of TNI in the area around the mining concession.
“So far, we have identified the deployment of military personnel in security posts near the concessions of Antam, Wabu block and Freeport Indonesia,” he said.
A new regional military command and a regional police force will be established as a consequence of the creation of new provinces. The structure of these commands and teams will range from the provincial level to the village level.
Birry said that establishing a new military and police command in Central Papua will consolidate the deployment of TNI personnel in Papua while simultaneously providing security and protection to mining operations.
Land clearance for oil palm plantation
Oil palm plantation is another popular natural resource in Papua. As the largest palm oil producer, Indonesia has widely spread oil palm plantation in Sumatra and Kalimantan, and is now eyeing Papua land to increase production.
According to the Pusaka Bentala Rakyat Foundation, the Environment and Forestry Ministry has granted permits for land clearance of 1.4 million hectares of forest land to develop oil palm plantation. Around 300,000 hectares have been cleared and planted with oil palm.
Foundation Executive Director Franky Samperante said foreign and domestic investors have cleared the land for oil palm plantations in the three new provinces. South Korea’s Korindo Group and Posco International own 80,931 hectares of land and 39,900 hectares of plantation business licenses in Merauke. Sri Lanka’s Good Hope group has a permit to operate a plantation business on 25,950 hectares of land in Nabire.
The Salim Group, Indonesia’s most politically connected conglomerate during former authoritarian Soeharto era, owns 77,501 hectares of land in Mappi, a region in South Papua. Furthermore, the group has a plantation business license covering 39,500 acres of land in Mimika regency.
Other Indonesian companies invested in oil palm plantations in the new provinces include Hardaya Plantation Group, owned by businesswoman Hartati Murdaya. In total, the company owned 79,210 hectares of land.
“Additionally, more foreign and domestic companies have invested in the oil palm plantation in the new provinces. But the biggest is the Korean and Salim groups,” Samperante said.
Another company that attracts the attention of Papuan activist is PT Internusa Jaya Sejahtera, a subsidiary of PT Agro Mulia. A plantation business license was issued for 18,587 hectares of land to the company. In addition to its concession in South Sorong, the company intends to purchase two other oil palm plantations in Boven Digul.
A Chinese Indonesian businessman closely associated with incumbent Minister of Home Affairs, Tito Karnavian, owns the company, according to Samperante. Karnavian’s name does not appear in the company’s official records. However, according to the testimony of some businesspeople, Karnavian helped smooth the administrative licensing process and also helped to mediate the conflict between the company and local people when he was Papua police chief from 2012 to 2014. Karnavian served as Indonesian Police chief from 2016 to 2019.
“During a land conflict between the company and the locals, one of the negotiators from the company was a police officer. The people knew him well as Tito’s guy. However, it is difficult to prove that,” Samperante said.
A spokesman for Home Affairs Ministry, Benny Irwan, did not respond to a question by Indonesia Business Post on the allegation.
Offering investments in new provinces of Papua
Executive Director of Amnesty International Indonesia Usman Hamid said three ministers and three heads of government institutions endorsed the creation of new provinces in Papua.
According to Papuan activist and politician Natalius Pigai, businesspeople who financed Widodo’s campaign during the presidential elections may have a vested interest in the creation of the new provinces.
As a result of the revision of the special autonomy law, the enactment of the new autonomy region law, and the enactment of the Job Creation Law, the government has been working to encourage investment and eliminate rules and regulations that impede investment.
“This is one of a series of laws aimed at facilitating investment,” Pigai said.
Funding will be available to establish the new autonomous region or province in Papua. Funding for the new areas will come from the State Budget, as stated in the law. However, other sources, including the private sector, may also be available.
“As a result, the money can be obtained through investment, including palm oil and other investments,” said Samperante.
