Jakarta (Antara Bali) - Indonesia is just too big to be bluffed by U.S. mining company PT Freeport Indonesia with threat of international arbitration, an observer said.
"What is to be afraid of. It is not a big thing. A mere company would not shake a nation. We are a big nation and we are not fools," political communication expert Hendri Satrio from the University of Paramadina said.
Indonesia and the United States would not going to war only because of Freeport, he said here on Sunday.
"That possibility is too remote. The United States would not attack Indonesia if the contract of Freeport is not extended. That is a foolish thinking," he said.
He said the government could reject extension of the contract in 2021 if the contract is considered not fair for the country, but don't terminate the contract before that year.
The U.S. mining company which has large copper and gold mines in Papua is seeking to renew its contract which will expire in 2021.
Call for the termination of the contract is growing after the company exploited almost at will the abundant mineral reserves in Papua since 1967.
Observers have said not wanting to get mired in international dispute the government had allowed itself to be dictated by Freeport in contract negotiations.
President Director of PT Freeport Indonesia Maroef Sjamsuddin was quoted as saying the U.S. company might file a lawsuit against Indonesia with an international court of arbitration if extension of its contract was rejected.
Ma'roef made the statement in a transcript of conversation with House Speaker Setya Novanto, who is facing charge of gross violation of ethical code.
Novanto, according to the transcript, allegedly asked for a share in Freeport Indonesia in exchange of support to secure approval for its bid for contract extension.
He allegedly used the name of President Joko Widodo and Vice President Jusuf Kalla to convince Freeport. (WDY)
