Jakarta – Indonesia's defense minister called Friday for an investigation into allegations that a US gold-mining giant paid US$20 million to military commanders guarding its mine on Papua island.
Juwono Sudarsono said defense ministry regulations prohibited any such payments. "It is not allowed for soldiers or their commanders in the field to receive money directly," Sudarsono told The Associated Press.
He was reacting to admissions by military commanders that they had received "support" from foreign companies, including US gold-mining giant Freeport-McMoran Co. (FCX), which operates a massive copper and gold mine in the remote province of West Papua.
The New York Times reported this week that the New Orleans-based company had paid US$20 million to military commanders in the province over the last seven years.
Such payments are seen as encouraging corruption among military commanders, and jeopardize government efforts to bring the powerful military brass – who are still allowed to operate largely independently of the defense ministry's supervision – under civilian control.
On Thursday, a spokesman for PT Freeport Indonesia said the company had broken no laws and dismissed the reports as "old news."
"We have been transparent about our logistical support for the Indonesian security forces," Siddharta Moersjid said in a statement.
"Support for the government security institutions is provided pursuant to government requests for its legitimate requirements and is in accord with our contract of work, applicable laws... and internal procedures."
President Susilo Bambang Yudhoyono has vowed to crack down on endemic corruption that has turned Indonesia into one of the most graft-ridden countries. Since he took office in October 2004, the anti-corruption campaign has netted several high-profile suspects.
On Friday, officials of the Commission for Corruption Eradication said Theo Toemion, a former chairman of Indonesia's investment promotion agency, has been detained following allegations that he misappropriated money earmarked for bringing foreign investors to Indonesia. The allegations involve losses of about IDR30 billion (US$3 million), according to Erry Harjapamengkas, deputy head of the government's corruption watchdog.