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Halliburton Awarded Massive Gas Project in Papua.

Anglo-American energy giant BP Plc has
just confirmed it will soon start construction on its
massive Tangguh project, which will be one of the
largest gas fields in Asia when it is completed in
2007. Curiously, BP has awarded the contract
for design, procurement, and construction and
commissioning services at Tangguh to Halliburton. Curiously, BP has awarded the contract
for design, procurement, and construction and
commissioning services at Tangguh to Halliburton.
In West Papua, independence
supporters tried to raise the Morning Star flag as
they have done every December 4th in defiance of
Indonesia's colonial occupation of West Papua.

JAKARTA - Five people were shot and wounded and at
least 18 people arrested as 100 police dispersed a
gathering at the Trikora soccer field in Adepura, a
suburb of Jayapura, said John Rumbiak, an
international advocacy coordinator for the Papuan
human-rights group Elsham.

Rumbiak, who is based in Sydney, said an Elsham
human-rights worker who witnessed the demonstration
had been beaten as he tried to photograph the clash.
Two of the event organizers also were beaten by police
while being taken away on a police truck for
interrogation in the city center, Rumbiak, quoting a
report from his colleagues in Jayapura, said during a
phone interview. Another 16 people were being
questioned at the local Adepura police station, he

Early last month Rumbiak warned that increasing
militarization in the province, coupled with
human-rights abuses and persistent demands for
independence, had turned Papua into a "time bomb
waiting to go off". There also have been concerns that
a simmering separatist movement and unrest over
Jakarta's plan to partition Papua into three provinces
could badly impact business and the national economy.
Human-rights groups have called on newly elected
President Susilo Bambang Yudhoyono to improve the
protection of human rights in Papua and elsewhere by
reforming the Indonesian military (TNI), but the
military has already said it will "crush" separatism
in Papua after it has completed its recently extended
offensive in Aceh province.

A day to remember
Wednesday marked West Papua Day, which commemorates
the first West Papuan national congress in 1961,
organized by the then-ruling Dutch as a preparation
for independence. Last week, Indonesian authorities
warned activists not to raise their distinctive blue,
white and red Morning Star flag, or other Papuan
symbols that are against the unitary state of
Indonesia, to mark the separatist movement's 42nd


"The concern is that this is a peaceful demonstration
and from a human-rights perspective it has to be
allowed to take place," Rumbiak said. "It is freedom
of expression."

Rumbiak said the demonstration had been calling on
Yudhoyono to initiate a peaceful dialogue between the
government and independence supporters.

Papua is Indonesia's largest and least-populated
province. It is also one of its wealthiest, making it
a target for manipulation, power-grabbing and
political opportunism by Jakarta. With a population of
only 2.4 million, it is three and a half times bigger
than Java, which has four provinces plus the capital,
Jakarta. Indigenous Papuans claim their rich resources
are continually tapped for the benefit of others, and
their efforts to claim their rights have been met
repeatedly with harsh responses from the military and

The province is home to American mining giant Freeport
McMoRan's gold and copper mines, whose operations are
the cornerstone of Papua's economic importance to
Jakarta. Freeport's open-cut operations at its
concession on the massive Grasberg mine site -
spanning more than 2.5 kilometers in width, and
sitting 4,270 meters above sea level - move 700,000
tons of rock every day. It operates 24 hours a day,
365 days a year. Even at this rate, the deposits of
gold and copper are so large the company's operations
are predicted to last at least another 30 years.

In addition, Anglo-American energy giant BP Plc has
just confirmed it will soon start construction on its
massive Tangguh project, which will be one of the
largest gas fields in Asia when it is completed in

No say from the outset
Papuans claim that the New York Agreement drawn up in
1962 under the auspices of the United Nations to end
the dispute between Indonesia and the Dutch over
Netherlands-controlled New Guinea - the former name
for Papua - was done without consulting them and
without their consent.

Later, in 1969, Indonesia, with US support,
short-circuited a UN-supervised plebiscite on the
sovereignty of the territory and engineered the
seizure of West Papua, the western half of New Guinea,
thereby ensuring that the territory would remain under
Indonesian control.

Previously classified US government documents,
released by the US National Security Archive to mark
the 35th anniversary of this "Act of Free Choice",
show that the US ignored reporting from its own
officials that detailed Jakarta's efforts to rig the

Henry Kissinger, as a board director and retained
consultant for many years for Freeport, was accused of
making personal gains from Indonesian control over
West Papua. The documents show that Kissinger, who was
then US national security adviser, advised former
president Richard Nixon to back the Indonesian
takeover in West Papua.

Halliburton wins contract
Democrats long have accused the current administration
of US President George W Bush of showing favoritism to
Halliburton,Curiously, BP has awarded the contract
for design, procurement, and construction and
commissioning services at Tangguh to Halliburton's. Curiously, BP has awarded the contract
for design, procurement, and construction and
commissioning services at Tangguh to Halliburton's
engineering and construction arm, KBR (formerly
Kellogg Brown & Root) in a 50-50 joint venture
partnership with JGC Corporation of Japan.

Cheney is a key player in the Bush administration's
push to persuade Congress to fund an International
Military Education and Training (IMET) program for
Indonesia. Congress had held up the funds until such
time as Bush could certify that the Indonesian
government and its military were taking effective
measures to investigate an ambush on August 31, 2002,
that killed three Freeport employees, two Americans
and an Indonesian, and wounded 12 others, on the road
leading from Tembagapura to the Grasberg mine.

Congress first restricted Indonesia's IMET funds
following the 1991 massacre of 270 civilians in Santa
Cruz, East Timor. All military ties were then
suspended in 1999, when a TNI-organized militia
ravaged East Timor following the UN-sponsored
independence vote.

Not long after the integrated offensive aimed at
"crushing" Free Aceh Movement (GAM) rebels in Aceh was
launched last year, the Senate Foreign Relations
Committee voted to suspend the IMET funds yet again -
not in censure of Jakarta's mission to crush its own
people, but over the Freeport ambush.

The separatist movement at the other end of the
archipelago from Aceh is spearheaded by a group of
poorly armed independence fighters known as the Free
Papua Organization (Organisasi Papua Merdeka or OPM).
The TNI have always blamed the OPM for the attack near
the Grasberg mine. The day after the ambush,
government forces shot dead an unidentified Papuan
male, whom they claimed was both a member of the OPM
and responsible for the attack.

A police report two months after the ambush found that
the OPM was an unlikely suspect because the group
"never attacks white people". It concluded that TNI
involvement "was a strong possibility".

Earlier killing spawns protection
This was not the first time a Freeport employee had
been shot and killed on the same road. On November 8,
1994, Gordan Rumaropena, a Papuan working for
Freeport, was shot dead while driving along the access
road. The shooting, which both the military and
Freeport blamed on the OPM, was the catalyst for the
company's request for a stronger military presence in
the area.

The result of this was an expanded military operation,
which led to well-documented human-rights violations
against the indigenous peoples living within and
around the concession area.

TNI gets only 30% of its funding from the central
government and makes up the shortfall by its
widespread involvement in businesses, both legal and
illegal. Payments for security services received from
multinationals in the lucrative extractive industries,
such as Freeport's and ExxonMobil's natural-gas
facilities in Aceh, have provided TNI with a
significant source of income.

Freeport paid US$10.7 million in protection money to
TNI from 2000-02, but abruptly stopped the payments
shortly before the ambush. To appease investor anger
and disgust after the meltdown of Enron and WorldCom,
the Bush administration pushed a bill through Congress
that demanded greater corporate accountability. The

ensuing Corporate Fraud Act, implemented on July 26,
2002, required the disclosure of such payments.

TNI commander-in-chief General Endriartono Sutarto,
eventually admitting that his troops were receiving
Freeport funds, which he described as "pocket money",
proposed a new system where troops would only protect
installations deemed to be of "vital importance" to

In late June this year, then-attorney general John
Ashcroft convinced a federal grand jury to indict
Anthonuis Wamang for the ambush. The indictment
identifies Wamang as an OPM commander. Ashcroft's
statement on the killings also cleared TNI of any role
in the attack. His announcement came just one day
after a US congressional subcommittee renewed a ban on
the provision of funds for the IMET program for
Indonesia, prompting claims that Washington was
sacrificing justice for the victims for the sake of
resuming bilateral military ties.

The TNI, theoretically, had a number of motives for
staging an attack. The killing of American citizens
certainly provided a convenient argument to strengthen
its case for the resumption of close ties as part of
the Bush administration's "war on terrorism", or it
could have been an attempt by local commanders to
extort more protection money from Freeport. More
tellingly, the TNI also could have used the ambush to
strengthen its hand in further crackdowns on
separatist organizations in Papua, Aceh and elsewhere.

A tale of three presidents
Five years ago interim Indonesian president B J
Habibie had been under pressure from community, tribal
and religious leaders in what was then Irian Jaya (now
West Papua) to grant the province the same option -
separation from the republic - that he had offered to
East Timor. In early 1999 they called openly for a
referendum on independence, but the House of
Representatives would have none of it, agreeing
instead to Habibie's alternative proposal, to split
the province into three. Later that year the House
passed Law No 49/1999 to authorize the partition.

Under president Abdurrahman Wahid (1991-2001) a
different approach was used to reduce separatist
sentiments in the territory. The province was renamed
Papua, and Wahid opted not to implement the
legislation. He allowed Papuans to fly the Morning
Star flag - the symbol of their independence movement
- and passed legislation granting Papua greater

Wahid's Law No 21/2001 on special autonomy for the
province would have allowed Papuans to manage their
own affairs and receive 70% of oil and gas revenues
and 80% of revenues from natural resources such as
forestry, fisheries and mining (excluding Freeport's
taxes). It was never implemented.

Fearing that special autonomy would be used as a
political vehicle to promote independence, Wahid's
successor, Megawati Sukarnoputri, delayed the
establishment of the Papuan Consultative Assembly
(MRP) and the issuance of necessary government
regulations to enforce the law.

Divide and rule
Worse still, in January 2003 Megawati issued a
controversial Presidential Instruction, No 1/2003, to
enforce Law No 45/1999 on the division of Papua into

three provinces - Papua, West Irian Jaya and Central
Irian Jaya.

Critics said partitioning the province was a ploy to
serve the interests of certain business, military and
political groups in Jakarta, instead of the Papuan
people, and was a ploy by Jakarta to divide and
conquer Papua. Efforts to push through the formation
of West Irian Jaya and Central Irian Jaya provinces
sparked fierce criticism and several deadly clashes.
Extra-judicial executions, disappearances, torture and
arbitrary detention of civilians were reported
throughout 2003.

In early November, the Constitutional Court overturned
the 1999 law, claiming it was unconstitutional, but
the head of the court, Jimly Asshidiqie, said that as
West Irian Jaya had already been established in line
with constitutional requirements, including the
election of local representatives, it should remain a
separate province.

Problem lands in Yudhoyono's lap
In other words, the new province, created as a fait
accompli by a mere presidential instruction, has been
legitimized and Megawati's successor, Susilo Bambang
Yudhoyono has inherited yet another pressing problem
not of his own making, one that could badly impact
business and the national economy.

Indonesia, which has abundant reserves of gas, was
once one of the world's top liquefied natural gas
(LNG) producers but has been struggling lately in an
increasingly competitive market. The Tangguh plant is
expected to produce between 7 million and 8 million
tons of LNG per annum in the first phase of production
and BP has so far secured deals to supply a combined
7.6 million tons of LNG worldwide; to San Diego-based
Sempra Energy, South Korea's K-Power Co and steelmaker
Posco, as well as a plant in China's Fujian province.

The general security situation in West Papua and
Indonesia as a whole is a key factor in winning
long-term gas supply contracts. The simmering
separatist movement, unrest over Jakarta's plan to
partition Papua into three provinces and the
oversupply in the world gas market make the Tangguh
project a higher-risk than most.

New York-based Human Rights Watch has called on
Yudhoyono to improve the protection of human rights in
Papua and elsewhere by reforming the TNI, but the
military has already said it will "crush" separatism
in Papua after it has completed its recently extended
offensive in Aceh.

Yudhoyono won majority votes in Papua during both
rounds of the presidential election and the National
Forum for Human Rights Concerns in Papua (FNKHP),
which he chaired before he became president, has urged
him to support the Papuan people by implementing Law
No 21/2001 on special autonomy for Papua and
reconsider the division of Papua into several

Killing Americans is terrorism
After six months of investigation, a National
Commission on Human Rights (Komnas HAM) fact-finding
team found that both soldiers and police were involved
in serious rights violations in Papua's Wasior regency
in 2001 and Wamena regency in 2003.

The "war against terror" is the ideal cop out for
Washington and its allies to ignore such human-rights
violations, and it appears that the fact that American

citizens were killed in Papua was the deciding factor
in prompting the senators to impose further

Ashcroft and Federal Bureau of Investigation director
Robert Mueller not only blamed the Papua separatists
for the Freeport attack but, astonishingly, claimed
Wamang's indictment was a victory in the "war on
terrorism". Mueller claimed that the investigation
illustrated "the importance of international
cooperation to combat terrorism".

Restoration of military cooperation between the US and
Indonesia seems likely sooner rather than later, but
unless the idea of partitioning Papua is abandoned by
the new government, the gloomy scenario predicted by
Rumbiak could well materialize during Yudhoyono's

Bill Guerin, a weekly Jakarta correspondent for Asia
Times Online since 2000, has worked in Indonesia for
19 years in journalism and editorial positions. He has
been published by the BBC on East Timor and
specializes in business/economic and political
analysis in Indonesia.

Paul Barber
TAPOL, the Indonesia Human Rights Campaign,
25 Plovers Way, Alton Hampshire GU34 2JJ
Tel/Fax: 01420 80153
Email:  plovers@gn.apc.org
Internet:  http://tapol.gn.apc.org
Defending victims of oppression in Indonesia,
javanese proxy forces for empire 14.Dec.2004 23:35

papuan blood for gas

The stakes of the game are the last of the world's oil reserves and "... the Bush administration's "(consolidation of power) to pursue a drastic unlimited militarization of foreign policy on a massive and unprecedented scale required by long-standing elite planning, while crushing domestic dissent and criminalizing legitimate protest."