INDUSTRY AND ENVIRONTMENT
Case Study: Negative Impact of PT. Freeport to the Environment of the Mimika Community in Papua
Group 9
Fiyya Natasha Karenena (07041181823003)1, Indah Purnama Sari(07041181823008)2, Gita Cahyarani(07041281823085)3, Anggina Putri (07041281823230)4, Yuliana Simanihuruk
(07041281823225)5
Student of International Relations Study Program, Faculty of Social and Political Sciences, Sriwijaya University
ABSTRAK
The role of industry in the present is important for a country. The bigger the industry that is run, it will also have a big impact on the country. These impacts can be in the form of positive or negative impact. Industry will have a positive impact on the economic sector by contributing to increasing the country's GDP. However, the industry will also have a negative impact on the environment. Unfortunately, because it has contributed a sizable GDP to the country, making negative impact on the environment is rarely noticed. If this is allowed to continue, it will worsen the damage that has occurred and even effect the sustainability of the life of the community around the industrial location. Therefore, to maintain environmental sustainability, it is necessary to pay more attention to environmental problems resulting from industrial activities.
Kata Kunci: Environment, Industrial Impact, PT Freeport Indonesia
I. INTRODUCTION
Industrial activity is an important part of efforts to increase economic growth. The term industry is often used as part of economic production that is focused on a particular manufacturing process or it can also be interpreted as a place used to process raw materials into materials that are ready for use. The presence of the industry can have both positive and negative impact. The positive impact is in the form of increasing the number of job opportunities available and increasing the standard of living of the community. While the negative impact is that industrial activities can disturb the stability of the environmental ecosystem in the form of environmental pollution due to waste from industrial production.
Environmental pollution that occurs can be in the form of water pollution, water pollution, and land pollution [ CITATION Rid07 \l 1057 ].
The presence of the mining industry, the company PT Freeport Indonesia, has had various impact on Indonesia, especially the people in Mimika Regency, Papua Province.
With the presence of PT Freeport Indonesia, it has helped in terms of community empowerment and has contributed 2.78-9% through product foreign exchange earnings (GDP), this has made PT Freeport Indonesia one of the mining companies that has contributed significantly to economic development in Indonesia. . Although it has a positive impact on the country's economy, in fact PT Freeport Indonesia also has a negative impact on the environment around the mining area. The company has polluted the natural environment there by dumping mine waste (tailing) to the area around the mining site without any treatment being carried out. Tailings toxins and heavy metals from mining waste produced have affected the flora and fauna environmental ecosystem, the death of the function of rivers around the mine site, and contamination of freshwater life due to chemical contamination.
This also affects the health conditions of the people in the area around the river because the river on which their lives depend on has been contaminated by chemicals from the mine waste produced [ CITATION Jan15 \l 1057 ].
From this, it can be seen that industrial activities are closely related to the environment. Where the presence of an industry will have a negative impact on the environment such as environmental pollution, threatened the preservation of flora and fauna, and much more. However, it is unfortunate that there are still many people who do not care about environmental damage arising from these Industrial activities. Many people are more focused on the economic benefits that are obtained than on the sustainability of the environment. In fact, without the existence of an environment such as natural resources that support it, the sustainability of the community and the industry will also be threatened.
Therefore, it is necessary to pay special attention to using existing natural environment facilities so as to minimize the negative impacts resulting from an industrial activity and to maintain the sustainability of the natural environment so that it can be enjoyed for a longer period of time.
II. LITERATURE REVIEW, THEORY OR CONCEPT, METHOD
- Literature Review
1 Name Erni Yoesry
Title Divestasi PT. Freeport Indonesia Journal Name Jurnal Hukum & Pembangunan
Year 2019
Research Result In this research, it explains that PT Freeport Indonesia operates based on a Kontrak Karya (KK) which was signed in 1967 where in this contract the state has no control over management and operational affairs of the company and only receives the royalties that have been agreed upon.
With the divestment of Freeport shares, the Indonesian government can hold 51% shares, which it is hoped that Indonesia can improve state revenues and control over natural resources
Comparison The research were different due to the issues under this study are about PT. Freeport and the specific object are the divestment of the company's shares, meanwhile our research aims to examines PT Freeport and specifically on the company's impact on Indonesia's natural environment
2 Name Tri Ratna Rinayuhani
Title Rational Choice dalam Kerjasama Pemerintah Indonesia dengan PT. Freeport Indonesia
Journal Name Jurnal Kajian Politik dan Masalah Pembangunan
Year 2017
Research Results In this study, it is explained that the cooperation between the Indonesian Government and PT. Freeport Indonesia are considered unable to bring prosperity to the people around the mine from Freeport itself. Many interests of the
authorities and other interest groups influenced the cooperation in the name of national interests. However, the government has not been able to achieve greater benefits in this cooperation
Comparison Differences between studies were due to differences in correlation, this research is about PT. Freeport Indonesia and the government's rational choice for this collaboration, meanwhile our research is to examine PT. Freeport Indonesia and raised concerns about the impact on Indonesia's natural environment.
3 Name AL Muhajir Haris dan Eko Priyo Purnomo
Title Implementasi CSR (Corporate Social Responsibility) PT.
Agung Perdana dalam Mengurangi Dampak Kerusakan Lingkungan
Journal Name Jurnal Ilmu Pemerintahan dan Kebijakan Publik
Year 2016
Research Result In this study, it was found that the implementation of CSR did not go according to the realities in the field so that social, economic and environmental problems still arise.
The company PT. Agung Perdana is still considered unable to carry out his obligations in CSR activities with the minimum achievement and responsibility for environmental damage.
Comparison The studies conducted were different due to differences in actors, this research is about PT. Agung Perdana on the impact of environmental damage, while our research aims to examine PT. Freeport and especially on the impact on damage and issues of the natural environment.
4 Name Satria Sukananda Sukananda dan Danang Adi Nugraha Title Urgensi Penerapan Analisis Dampak Lingkungan
(AMDAL) sebagai Kontrol Dampak terhadap Lingkungan di Indonesia
Journal Name Jurnal Penegak Hukum dan Keadilan
Year 2020
Research Result In this study it was found that the application of environmental impact analysis, Analisis Dampak Lingkungan (AMDAL), is very important and necessary in preventing environmental pollution where this analysis can also be a system that maintains company stability.
AMDAL can be a counterweight to planet, profit and society where it is intended for development, improvement of development and sustainable development tools to decision making at the level of business implementation.
Comparison The studies carried out were different due to differences in issues, namely environmental impact and specifically the urgency of AMDAL, while our research aims to examine PT. Freeport and especially on the impact on damage and issues of the natural environment.
5 Name Uyu Wahyudin
Title Analisis Dampak Keberadaan Perusahaan Tambang Batu Bara Terhadap Kondisi Sosial Ekonomi Masyarakat
Journal Name Jurnal ATSAR UNISA
Year 2020
Research Result This research explains that from an economic point of view, the existence of a coal mining company has not had a positive impact. However, in a social perspective, there is a positive impact. In the economy perspective, economic growth is not too affected by the presence of mining companies because the companies are not tied to the local peoples economy. Meanwhile, from a social perspective, it has a positive impact because the company made an activities such as helping with road repairs, free medical treatment, support for traditional activities and others.
- Theory
“Green Politics Theory”
In this paper, the writer uses the theory of "Green Politics Theory''. This green politics theory has begun to develop in line with the dynamics surrounding environmental issues which are increasingly receiving international attention. Initially only calls to protest coming from a minority of environmentalists, gradually this movement has penetrated the international community. The thinkers of Green Politics Theory (GPT) call themselves as 'The Greens'. This theory has a main focus on ensuring the sustainability of the environment for future generations. Patterson explained GPT through the provision of boundaries between GPT and environmentalism. This environmentalism adheres to a framework that already exists in the midst of political, economic, social, and normative realities in the political world.
This movement seeks to fix environmental problems that occur through these structures. In contrast, green politics actually thinks that these structures are the cause of the emergence of environmental problems., ecocentrism and anthropocentrism are separated in the green politics theory because green politics has ecocentric characteristics and rejects the views of anthropocentrism [ CITATION Yus171 \l 1057 ]. The writer will use this theory to see how Green Politics Theory views the case studies that the writer want to discuss, in this case is the environmental impacts that occur from the existence of the Freeport gold mining operation in Papua.
Method
In this research, the writer used descriptive qualitative method. This method focuses examining phenomena and looking deeper into the substance and meaning of those phenomena. This method is used to answer questions about "What", "Why", and "How." The purpose of using this method is to understand how individuals or communities accept a specified issue so that the researchers get a much more overview or explanation. This type of descriptive qualitative research also aims to describe and provide an overview of the cases.
The writer researched by collecting data or facts from published, printed, or online sources, so that the overview can be factually and systematically structured. In terms of data collection, it can be done through literature study such as journals, books, newspapers, internet, e-books, credible news sources, observations, and interviews either individually or in groups [ CITATION Yon19 \l 1057 ].
III. DISCUSSION
In the current era of globalization, there are two dimensions that occur, the first is the economic and corporate dimensions and the second is the political and state dimensions.
These two dimensions can be seen through the policies made by developed countries that are members of the G-8 which resulted in 3 institutions, namely the International Financial Institutions (IFI's), the World Trade Organization (WTO), and the Multinational Corporation (MNC). Since then, the country of Indonesia as a developing country began to be visited by foreign investors. Investment by foreign investors implies a development prospect for the Indonesian State. This foreign investment can take various forms and one of them is foreign investment through multinational companies. The existence of this multinational company certainly has a positive impact as well as a negative impact on the territory of the country where the company operates. One example is the existence of pollution and damage to the environment which certainly has an impact that threatens human security. One example of a multinational company operating in Indonesia is PT. Freeport Indonesia.
One example of environmental damage that has occurred in the area around PT Freeport can be seen from the Mimika Region in Papua. The impact felt by the Mimika region has become a massive environmental crisis in the Mimika area. The environmental crisis that is most felt is air pollution and water pollution which has an impact on disrupting aspects of human security, especially in environmental, economic, health, food security and others.
PT. Freeport Indonesia is a subsidiary of Freeport-McMoran Copper & Gold Inc. This company is a major international mining company. The company is based in Phoenix, Arizona, United States. PT Freeport, which is operates in the State of Indonesia is based on a work contract that was signed in 1967 which is contained in Law No.11 of 1967. Based on the first work contract, PT. Freeport can manage mining in an area of about 1,000 hectares where the validity period of this work contract is 30 years and then in 1991 the contract was extended back to 30 years. The mining area by PT. Freeport is at the top of a mountain which has an altitude of 4,270 meters with a temperature of 2 degrees Celsius. With the condition
and position of the area like this, it is prone to landslides. This landslide disaster occurred several times in mining areas, namely during the years 2004-2017. However, parties from PT.
Freeport stated that this landslide disaster was purely the result of natural phenomena and not the impact of mining [ CITATION Ame18 \l 1033 ].
In 2017, a report from the Supreme Audit Agency of the Republic of Indonesia calculated that the decades-long operation carried out by Freeport had resulted in losses in the form of environmental damage worth US $ 13.25 billion.1. Based on the report, it was said that PT Freeport Indonesia (PTFI) also committed several violations such as skipping royalty payments, clearing land in protected forest areas and mining underground without environmental permits.2. The BPK Commissioner also said that the mining company also disposed of its waste into the surrounding forest, river and estuary areas3. The BPK also said that PTFI was using protected forest land of 4,535.93 hectares without obtaining a Borrow and Use Forest Area Permit (IPPKH).4.
The case of pollution to the environment caused by the activities of PT. Freeport has continued to line up since 2000 where this mining activity has led to silting of rivers and landslides. This has prompted the NGO Wahana Lingkungan Hidup (WALHI) to release a report explaining the impact of environmental damage by the activities of PT. Freeport and this report are not published to the public. Environmental damage and pollution in the form of water and environmental damage as well as the implementation of PT. Freeport has violated regulations regarding Amdal in industrial areas.
The environmental damage that has occurred has clearly had a major impact on public health and this has been a constant problem in the area around the PT. Freeport. These problems include in the form of deforestation and pollution caused by tailings which are dumped directly into the Agabagong river and then shrink into other rivers. The deposition of
1 Bernadette Christina Munthe. 2018. Indonesian Government Asked to Recalculate Freeport Mine Damage (online) available at https://www.reuters.com/article/us-indonesia-freeport-environment-idUSKBN1KF1I9, accessed on March 16, 2021.
2 Ibid.
3 The Jakarta Post. 2018.Freeport Has Cost $ 13 Billion Losses in Environmental Damage, says CPC (online) available at https://www.thejakartapost.com/news/2018/03/20/freeport-has-cost-13-billion-losses-in-
environmental-damage-says-bpk.html, accessed on March 16, 2021.
4 Fajar Pebrianto. 2018. BPK's Complete Findings on Environmental Damage to Freeport Indonesia (online) are available at https://bisnis.tempo.co/read/1157108/t Discovery-l Lengkap-bpk-soal-kerusak-lingkungan-freeport- indonesia, accessed on March 16, 2021.
tailings into the Aikwa river has caused flooding and destroyed the forest which poses a threat to the city of Timika. In addition, the flood also caused the death of the workers from the company. In addition, this waste threatens the water supply in the area around the company, this is because the waste that is directly disposed of into the river still contains acid rock [ CITATION Ron16 \l 1033 ].
Another impact of dumping waste into this river is the contamination of water for the people in the surrounding area. Residents living in the Mimika area, especially in the Mimika Far East, Agimuka, Alama and Jita Districts which are located close to the Ajkwa River5. This river is directly adjacent to the PTFI sewerage channel and is only separated by an embankment, and at this embankment there is a leak so that hazardous substances from the waste seep into the Ajkwa River.6. This seepage is dangerous for the surrounding population because the Ajkwa River is also used by the community in their daily life to irrigate the land, and because of the presence of harmful substances from the leaking waste, it causes the residents' sago fields to die.7.
Apart from carrying hazardous substances, these leaks also carry particles that cannot dissolve in water. These particles then become deposits in the riverbed or in the surrounding estuaries, such as in the estuary of the Arafura region, these particles form sediment covering an area of 239.6 kilometers.8. In addition, waste particles were also found around the Ajkwa River and around residential areas. One of the impacts of this accumulation of particles is the reduction in river areas, such as the Ajkwa River which previously stretched for 200 meters, currently shrinking to only 5 meters remaining and only experiencing high tides at dawn.9. In addition, company waste contaminating sago fields has made Papuans lose land for their staple food10.
PT Freeport has polluted the environment due to the residual waste from mining in the form of river water, sentiment, the content of dangerous organic waste and others. Not only
5 Tempo.2019. Freeport Waste Disaster (online) available at
https://majalah.tempo.co/read/investigation/157026/malapetaka-limbah-freeport, accessed on March 16, 2021.
6 Ibid.
7 Ibid.
8 Ibid.
9 Ibid.
that, the tailings of PT. Freeport has also polluted the river mouths and contaminated the water. Based on the results of the audit conducted, it was revealed that the tailings disposed of by PT. Freeport is a material that produces acidic liquids that are harmful to aquatic life.
This pollution has violated Law No.7 / 2004 on water sources [ CITATION Ame18 \l 1033 ]. Mining carried out by PTFI in the Papua region not only has a negative impact on the environment but also has several negative impacts on the surrounding community. One of the impacts felt by the Papuan people is the loss of their livelihoods. This is because rivers are polluted, both by harmful substances and accumulated particles that are not dissolved in water, so that people who work as fishermen can no longer go to sea and look for fish.11. Apart from losing their livelihoods, the Papuan people also lost their village due to the disposal of operational waste, this was felt by the residents of Pasir Hitam Village who were forced to leave their village because the area was already surrounded by mining waste and the waste that was disposed of could reach more than 100,000 tons every day.12.
It does not only provide direct harm to the community, especially the Papuan people.
Mining problems caused by PTFI also triggered many community protests. One of them was a protest action carried out by PTFI employees demanding an award for the employees' performance by giving them intensively13. In addition, PTFI employees also demand access to the Schedule Day Off bus, so that they can return to Timika City to meet their families.14. Apart from the protests carried out by its employees, the protest action demanding PTFI was also carried out by Papuan students in Jayapura. The protest, which was attended by approximately 500 students, was held in front of the Papua Provincial DPR office demanding to close down PTFI in the Timika area because it did not provide benefits to the Papuan people.15. These students also stated that PTFI was the mastermind behind the crimes against
11 Nurhadi Sucahyo.2017 Papuan People and the Future of PT Freeport Indonesia (online) available at https://www.voaindonesia.com/a/masyarakt-papua-dan-masa-depan-pt-freeport-indonesia/3763024.html, accessed on March 16, 2021.
12 Richard Solly. 2018.Death and Destruction Caused by Mining in West Papua, But Rio Tinto Denies Responsibility (online) available at https://londonminingnetwork.org/2018/04/death-and-destruction-caused-by- mining-in-west-papua-but-rio-tinto-denies-responsibility/, accessed on March 16, 2021.
13 Irsul Panca Aditra. 2020. Freeport Employees Demo and Block Mining Road in Tembagapura, This is the reason (online) available at https://regional.kompas.com/read/2020/08/24/13484471/karyawan-freeport-demo- dan-blokade-jalan-tambang-di-tembagapura-ini, accessed on March 16, 2021.
14 Ibid.
15 Fabio Maria Lopes Costa. 2017 Hundreds of Students in Jayapura Demonstrate Demanding that Freeport Mine be Closed (online) available at
https://regional.kompas.com/read/2017/03/20/18281571/ratusan.mahasiswa.di.jayapura.demo.tuntut.tambang.fre eport.ditutup, accessed on March 16, 2021.
humanity that occurred in Papua, they also stated that there had been many human rights violations during the 50 years PTFI operated in Papua.16.
As explained above, mining operations carried out by PTFI have had several negative impacts both on the environment and on the community. For the environment, PTFI management's actions to use protected forest land as land for operations can cause further losses such as loss of forest land due to being used as industrial areas. Apart from using the land illegally, waste that is not treated properly and then pollutes the surrounding environment, such as rivers and sago land, endangers both the surrounding animals and the community. Especially sago land that has been contaminated with hazardous substances from operational waste can certainly cause death, considering that sago is a staple food for the people of Papua.
Due to the large number of losses that were felt by and that threatened the Papuan people, this led to the number of protests carried out by the Papuan people, not only from PTFI employees but also from ordinary people. The large number of protests carried out by the community could threaten the stability of security in the area, not only in the Timika area, as the operational center of PTFI but also threatening other areas.
Related to the cooperation between Indonesia and PT. Freeport in the era of President Susilo Bambang Yudhoyono, Freeport saw a change in the 2009 Environmental Law which states that it will take firm action against both individual, group and corporate actors who state clearly that it is prohibited to carry out environmental pollution beyond the predetermined quality standards. During the President Joko Widodo era, PT. Freeport Indonesia finally agreed to divest 51% of its shares to the national side. However, unfortunately two renegotiations during the two presidents with PT. Freeport never included any major problem points, namely regarding pollution and damage to the environment until before the extension of the cooperation contract [ CITATION Net18 \l 1033 ].
IV. CONCLUSION
Environmental issues which are the result of the growing era are starting to become serious concerns in the international world because the conditions are getting worse day by day. Many countries, including Indonesia, continue to struggle to overcome existing
environmental problems due to the presence of modern industries, which unfortunately tend to be profit-oriented with minimal focus on environmental problems that can arise from the existence of these industrial activities. PT Freeport Indonesia is a company engaged in the mining industry, particularly gold mining in the mountainous region of Papua. The existence of mining which has been for decades has clearly had a negative impact on the environment.
An example is the Mimika area which experiences various environmental problems from the presence of gold mining, ranging from water pollution, deforestation, natural disasters, to loss of community livelihoods due to environmental pollution caused by disposal of untreated mining waste. This has generated calls for protests not only from local communities but also from environmental organizations such as WALHI. In line with green political theory, the phenomenon of environmental damage from the mining industry illustrates that it is actually the structures that are created that then have a big role in environmental damage with humans as the main actors. Behind the positive side of modern industry, which is getting more sophisticated from time to time, in fact it also has a negative impact on the environment.
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