Mark Forbes, Jakarta – The Indonesian President, Susilo Bambang Yudhoyono, has intervened in the growing controversy surrounding Papua's giant Freeport mine, warning that continuing, violent demonstrations could scare off investors, and questioning the protesters' motives.

Dr Yudhoyono said he would meet senior ministers to seek a resolution to the crisis surrounding the world's largest gold mine, sparked 11 days ago when tribesmen armed with bows and arrows confronted guards who prevented them searching for gold in Freeport's tailings.

Although the tribesmen lifted a blockade of the mine last weekend, protests in Jakarta and Papua have continued to call for Freeport's closure, linking the dispute to the province's struggle for greater autonomy and benefits from its natural resources.

Together with a deadlock between the state-owned oil company Pertamina and Exxon Mobil over the right to manage a $2 billion offshore oil project, Dr Yudhoyono is concerned his quest for increased foreign investment could suffer.

The causes of the Freeport conflict must be urgently identified and tackled, he said. Funds contributed by Freeport to the local community must be distributed fairly. But he said some elements behind the protests might not be concerned about problems at the mine.

Yesterday's Jakarta Post suggested provocateurs might be trying to drive down Freeport's share price after a government edict that the company sell 10 per cent of its shares locally.

Violent protests could deter foreign investors, Dr Yudhoyono said. "They'll see what is being done to businesses that invested here and it will scare them away." A solution must be found. "If it's about Freeport's funds for community development, then discuss it," he said.

Dr Yudhoyono is facing criticism for failing to implement a deal for greater autonomy for Papua, the scene of a violent, long-running independence struggle.

Protesters have linked Freeport to claims that Jakarta and multinational corporations are environmentally and financially pillaging the resource-rich province. Freeport is Indonesia's largest taxpayer, contributing more than $150 million a year to the state.

Dr Yudhoyono also issued a broadside to Pertamina's management, which is in a six-month stand-off with Exxon over the rights to develop the rich Cepu oil field. He said the state-owned oil firm needed restructuring and had "run slow, half-baked and ineffective".

During a controversial visit to Burma Dr Yudhoyono called on the regime to allow access to regional monitors. He confirmed he did not raise the plight of the imprisoned democracy leader Aung San Suu Kyi and called for Burma to be given time to implement democratic changes.