The Politics of Power: Freeport in Suharto's Indonesia

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University of Hawaii Press, 2003 - Business & Economics - 347 pages
Even as Major General Suharto consolidated his power in the bloodletting of the mid-sixties, Freeport-McMoRan, the American transnational mining company, signed a contract with the new military regime, the first foreign company to do so. Today, in the isolated jungles of West Papua, a region that is increasingly restive under Indonesian rule, Freeport lays claim to the world's largest gold mine and one of its richest and most profitable copper mines. This volume is the first major analysis of the company's presence in Indonesia. It takes a close and detailed look at the changing nature of power relations between Freeport and Suharto, the Indonesian military, the traditional landowners (the Amungme and Kamoro), and environmental and human rights groups. It examines how and why an American company, despite such rigorous home-state laws, was able to operate in West Papua with impunity for nearly thirty years and adapt to, indeed thrive in, a business culture anchored in corruption, collusion, and nepotism.

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Contents

Chapter
1
Chapter2
16
Chapter 3
38
Freeport and Jakarta
58
Chapter5
85
Chapter6
115
Chapter7
155
Chapter8
187
Chapter9
220
Chapter10
248
Notes
261
Bibliography
315
Index
337
Copyright

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Page 109 - Branches of production which are important for the State and which affect the life of most people shall be controlled by the State. (3) Land and water and the natural riches contained therein shall be controlled by the State and shall be made use of for the people.
Page 220 - Indonesian army sees itself as quite different from other armies in 63 the world, because it was never created as an instrument of the state, but was itself involved in the creation of the state. Thus the military considers itself the embodiment of Indonesian nationalism. In theory, it remains above the state, and technically does not consider itself answerable to the government of the day, although in theory, the president is supreme commander of the armed forces. Abri's decisive role in the defence...
Page 275 - When we started out attracting foreign investment in 1967 everything and everybody was welcome. We did not dare to refuse; we did not even dare to ask for bonafidity of credentials. We needed a list of names and dollar figures of intended investments, to give credence to our drive. The first mining company virtually wrote its own ticket. Since we had no conception about a mining contract we accepted the draft written by the company as...
Page 273 - Branches of production of importance to the State and which vitally affect the life of the people, shall be controlled by the State. 3. Land and water and the natural riches contained therein shall be controlled by the State and used for the maximum prosperity of the people.
Page 299 - UN and large mining companies to promote the development and implementation of sound environmental and health policies and practices in the production, use, recycling and disposal of non-ferrous and precious metals.
Page 275 - ... was welcome. We did not dare to refuse; we did not even dare to ask for bonafidity of credentials. We needed a list of names and dollar figures of intended investments, to give credence to our drive. The first mining company virtually wrote its own ticket. Since we had no conception about a mining contract we accepted the draft written by the company as a basis for negotiation and only common sense and a desire to bag the first contract were our guidelines
Page xi - ABRI Angkatan Bersenjata Republik Indonesia [Armed Forces of the Republic of Indonesia...
Page 331 - Can the Javanese Do Business?: The Awakening of Indigenous Capitalists in Indonesia." In Leadership on Java: Gentle Hints, Authoritarian Rule, ed. Hans Antlov and Sven Cederroth. Surrey: Curzon Press. 1994. Reich, Carv. The Life of Nelson A. Rorkefeller: Worlds to Conquer 1908-1958. New York: Doubleday, 1996. Rhiannon, Lee. "Feeding the Politics of Drought.

About the author (2003)

Denise Leith has a Ph.D. in politics from Macquarie University, Sydney.

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