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Just kidding, minister Luhut says over Freeport shakedown scandal
Jakarta Globe - December 14, 2015
Appearing before the House Ethics Council, which probing Setya's conduct, Luhut claimed that since the government has no intention of renewing Freeport's contract beyond 2021, Setya's request for Freeport to divest its shares through him must have been a joke.
"Why would anyone ask for shares?" Luhut told the Ethics Council, suggesting that Freeport's contract might not be extended and the company's assets would then belong to the Indonesian government.
"So it is impossible that Setya is trying to control [the distribution of Freeport] shares. I see Setya's remarks as nothing more than a joke," Luhut explained.
Setya and oilman Muhammad Riza Chalid said Luhut would advocate on Freeport's behalf, saying that Luhut is a close friend of James R. Moffett, the founder and chairman of Arizona-based Freeport-McMoRan, Freeport Indonesia's parent company.
Luhut, a retired army general, admitted that he met Moffett in 2012 to discuss possibilities of him overseeing security in Freeport's Grassberg mine in Papua but denied that he had become close with Moffett ever since.
Luhut added that he has been advising President Joko Widodo against allowing the contract negotiations to take place before 2019.
"Novanto and Riza mentioned my name and made it appear that I could influence the president [to bring forward the contract discussions]" Luhut told the House Ethics Council.
"But instead I sent out a memo to the president advising him not to. If [Joko] makes a wrong decision and one that goes against rules and regulations, then politically it will lead to a backlash against the government," Luhut added.
Luhut also reiterated his displeasure at Sudirman for going public with the recording. "The case needs to be settled without creating this much controversy. I am merely reminding [Sudirman] to not overreact," Luhut said.
Unlike the president, Luhut said he is not mad at Setya and Riza for saying that he could influence Joko to side with Freeport: "I have no interest in the [contract renegotiation] issue. I'm not mad. Everything is under control," he said.
The plot thickens
Setya is accused of soliciting a 20 percent stake in the copper and gold miner in exchange for speeding up the miner's contract extension negotiations with the government before the scheduled 2019 start date.
It is alleged that the request was made during a meeting in June with Freeport Indonesia chief executive Maroef Sjamsoeddin, who secretly recorded the meeting.
Luhut's name comes up no fewer than 60 times in the recording, with Setya and businessman Riza telling Maroef that they could get Luhut to change the president's mind on the Freeport renegotiation bid.
The House Ethics Council was supposed to also hear Riza's testimony but the oilman has snubbed calls to appear before the tribunal on Monday.
"We have received no official notification [to explain Riza's absence]," House Ethics Council member Syarifuddin Sudding said, adding that the council will determine later whether it should involve the police.
This is the second time Riza failed to appear for a hearing, which means the council could enlist the help of the police to bring him in the third time. National Police Chief Gen. Badrodin Haiti said last week that Riza had left the country and the businessman was likely "hiding in an Asian country."
However, Badrodin also said it would be difficult for Indonesia to seek extradition of Riza from any country as the ongoing inquiry is done by an ethics tribunal and not part of a criminal investigation. He could therefore not be formally charged with any crime at this point.
Source: http://jakartaglobe.beritasatu.com/news/just-kidding-minister-luhut-says-freeport-shakedown-scandal/.
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