PT FREEPORT-INDONESIA’S SUSTAINABLE DEVELOPMENT FRAMEWORK: An Exploratory Study of Kuala Kencana as a Model of a Sustainable Community in West Papua, Indonesia.

Jenkins Macedo
M.S. Cand., Environmental Science and Policy
Clark University

Prof. Stephen McCauley
Assisting Professor of Environmental Science & Policy
Department of International Development, Community, and Environment
Clark University

May 16, 2013


Freeport-McMoRan Copper and Gold Company (FCX) is one of the largest copper and gold mining companies in the world with branches in the United States, Indonesia, Chile, Peru and the Democratic Republic of Congo (DRC). FCX is a founding member and signatory to the International Council on Mining and Metals (ICMM), which regulates and sets specific regulatory guidelines, principles, and standards to foster effective mining operations and to enhance the sustainability of natural resources in local communities, while supplying the world’s economy with precious metals. Freeport-Indonesia, a subsidiary of FCX, implements the ICMM’s Sustainable Development Framework (SDF) and submits annual operational reports through the Global Reporting Initiative (GRI). The ICMM’s SDF includes a commitment to upholding human rights for employees and local communities, while improving environmental sustainability through active cultural engagement with local and indigenous communities. This paper explored in what ways Freeport-Indonesia use the SDF to create Kuala Kencana as a model of a sustainable community in the heart biological diverse eco-regions in Timika, West Papua. The paper builds on secondary data published in reports and from personal observations during four trips in the region between October 2012 and August 2013.
PT Freeport-Indonesia sustainable development initiatives are gear towards biodiversity protection and conservation, environmental reclamation, cultural engagement through active dialogue, microfinance, investment in secondary education, the provision of housing infrastructure for employees and their families, free public health services and the investment and the installation of renewable energy technologies such as biodiesel and solar systems to minimize the company’s ecological footprints.

Key Words: Sustainable Development Framework, PT Freeport-Indonesia, Sustainable Communities, Kuala Kencana, Timika, International Council on Mining and Metals, Global Reporting Initiative, and Environment.

This research report in no way represents the thoughts, authentication, and certification of Freeport-McMoRan Copper and Gold Company, non its subsidiaries PT Freeport-Indonesia, neither are the information herein represent the thoughts or opinions of the International Council on Mining and Metals non the Global Reporting Initiative. The information presented herein are solely based on personal observation during several personal visits to Kuala Kencana, West Papua and informational research based on secondary literature reviews, published reports, grey literatures, media releases, and technical operational reports published online.