Development of Contract Work System

The 1st Generation of CoW was successful in every way. Since 1967, Freeport Indonesia has been carrying out a continuous program of exploration and development, and today the mine is the largest mine in the world. It produced, by 1994 approximately 28 million tonnes of copper and 2,700 tonnes of gold, from a most remote and underdeveloped part of the world, Irian Jaya. For the year ending 1997, Freeport’s production was 57,663,55 kilograms and in 1998 total production exceeded 91,044,97 kilograms.

The Company has recently negotiated an additional CoW in the adjacent area. From this CoW alone, Indonesia has all these years benefited from taxation and royalties, import taxes, income taxes, exports, foreign earnings, ancillary transactions such as supply of equipment, transportation, food, as well as transfer of technology, employment, skills training and experience for its nationals. All this just from one operating mine.

From subsequent CoWs, four companies from the 2nd Generation are today producing, as are two from the 3rd Generation and five from the 4th Generation CoWs. In 1997, these other Contracts produced 28,664.99 kilograms of gold, and in 1998 the production increased to 31,095.29 kilograms. 12 The direct and spin-off benefits would also be immense.

Of the other CoWs signed, one from the 3rd Generation, 20 from the 4th Generation, five from the 5th , 62 from the 6th , and 38 from the 7th are at various stages of development. At the minimum, all explorers have invested millions of dollars in exploration work. Over and above this, even the 96 terminated, and the 34 postponed CoWs, the involved companies would have invested a not insignificant amount of money in exploratory and survey work, and many sectors of Indonesian industry and government would have derived at least some form of benefit from this investment.

Today, the Indonesian mining sector stands at a near collapse. What happened? Where was the turning point? It is now agreed that in the first Generation CoW, the Government had given away the farm. But the subsequent 2nd and 3rd Generation corrected the “wrongs”, so why was there a need to go overboard? The lesson was clear when in the 3rd, all the excessive requirements such as the mining companies being subject to the general tax regulations and the addition of windfall tax obligations, and the very serious requirement of having to transfer 51% equity to Indonesian partners were included.

This occurred at a time when metal prices were depressed and resulted in a not so enthusiastic response from the international mining community. Consequently the Government had no choice but to revise the 3rd to come up with the new 4th Generation CoW, and that is when investment started flowing again. (mobile jaw crusher Indonesia)

In the mid 1980s, with the introduction of the 5th Generation CoW, activity picked up as did metal prices, and from this juncture Indonesia enjoyed a fantastic run of exploration and investment activity. By 1992 the mining industry was booming in Indonesia. However, more changes were made. With the introduction of the 6th Generation CoW, the mining community in Indonesia began a series of dialogues to work with the Government in avoiding the introduction of excessive regulation including the new tax and royalty schemes and additional bureaucratic requirements. In 1994, assessment of Indonesia’s achievements over the preceding 25 years was attributed to:

1. Indonesia’s mineral prospects, 2. The Government’s open door policy for foreign investment in exploration and mining, 3. The CoW system, 4. The country’s political stability and economic development since 1967, and 5. The international environment, and limited competition from other countries.
Sabung Ayam
pembebasan irian barat

operasi pembebasan irian barat dari penjajah belanda dan sekutunya dan berhasil direbut oleh tentara indonesia berkat perjuangan dan doa rakyat indonesia..

Sabung Ayam