Freeport contract to be reviewed, if proved "corrupt"

Coordinating Minister of Economy, Finance and Industry Kwik Kian Gie said the government would only renegotiate or review the contracts awarded to foreign investors, including the one awarded to copper and gold mining company PT Freeport Indonesia, if the awarding of the contracts indicated corruption, collusion and nepotism, Kompas daily reported.

Kwik said Saturday in Rome that corruption, collusion and nepotism made the contracts unreasonable.

"I have yet to study Freeport's contract. The renegotiation is possible, if the contract is proved corrupt and reasonable," Kwik said while accompanying President Abdurrahman Wahid in his world tour.

Kwik warned that any violation of the contract by the government would discourage foreign investors from entering Indonesia.

Kwik also said the government would consult with international law experts on how the Indonesian government should deal with unreasonable and unfair contracts.

Meanwhile, chairman of the Indonesian Chamber of Commerce and Industry Aburizal Bakrie, who was also accompanying the President in his tour, said the security of contract was one of the issues which always surfaced during the talks between Indonesian businessmen and foreign investors during the President's tour.

Aburizal said the foreign investors doubted Indonesia's consistency in honoring contracts.

The foreign investors however appreciated the government's move to renegotiate the power contracts awarded by state electricity company PT PLN out of court.

Aburizal said PLN's case is different from those of Freeport and gold mining company PT Newmont Minahasa Raya.

"What will the investors say if we violate their contracts," Aburizal said. (*)