3 Reasons for US Political Elite Loyalty To Freeport

3 Reasons for US Political Elite Loyalty To Freeport

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The national interest is one of the reasons underlying the importance of foreign visits between countries conducted by political elites. Indonesia, on April 20, 2017 and received an official visit from the Vice President of the United States (US), Mike Pence. Based on the information summarized by CNBC, it is said that the purpose of Pence's visit to Indonesia is related to the 50th anniversary of ASEAN's anniversary and the commemoration of 40 years of US & ASEAN cooperation. However, many public opinion also linking this visit is a political maneuver of the US Government to mediate the conflict between Indonesia and PT. Freeport Indonesia (PTFI) as one of the American affiliated companies of Freeport Mcmoran Inc.

As is known, PTFI is arguing that the Indonesian government requires a change of business from Contract of Work (KK) to a Special Mining Business License (IUPK) which causes PTFI to pay higher taxes and perform a 51% divestment stake to the Indonesian government.

This caused PTFI to be panicked, as it demanded solving the problem through the arbitration and mass employment reduction issues, but it did not appear to have undermined the Indonesian government in its decision. No endless sense, PTFI allegedly adopted a more elegant approach by using the US political elite.

Pence's visit does not necessarily be fully linked to the ongoing problems between Indonesia and PTFI, but using the approach through the political elite is possible, especially the closeness between Freeport Mcmoran Inc. and the American political elite has become public secret. The proximity is due to the high bargaining position of Freeport Mcmoran Inc. in several ways, such as:

Country income

Cash coffers State is very important in supporting government programs. This led, the American government continues to seek to optimize the revenue of the State by supporting the stable business activities of the corporation.

PTFI, as an affiliated company of Freeport Mcmoran Inc, has huge profits that will greatly affect the State (United States) revenue, especially if PTFI stops to perform only because of contractual problems. As reported by Tempo.com, PTFI's revenues in 2016 amounted to US $ 3.29 billion or Rp. 44 trillion, jumping 24% compared to 2015 which posted a profit of US $ 2.65 billion or Rp 35.3 trillion.


Employment is a very important issue for developed countries like the US. In this case, President Director of Freeport McMoran Inc., quoted from Kompas.com claims that his company as one of the most widely employed people residing in the southern United States.

By absorbing much of the workforce, Freeport Mcmoran Inc. is thought to be contributing significantly to running the government program, instead the US government is also trying to contribute more in addressing issues at Freeport Mcmoran Inc's business scope so that poverty and unemployment rates can continue to be suppressed so that the welfare of the population continues to increase .

Businessman in Trump GovernmentCarl Icahn's position as the 7% shareholder of Freeport McMoRan, and the largest shareholder in the past 1, 5 years, has a huge role in every policy that Freeport McMoRan has taken, especially now that Icahn also serves as a 'Special Advisor' special US President Donald Trump, as quoted in Detik.com. Carl Icahn's strategic position in Freeport's bureaucracy as well as shareholder allows him to freely protect US firms abroad through protectionist policies, and let's not forget that Carl Icahn's election as a special staff is the direct mandate of the President.

From these three reasons it can be concluded that by bombing Freeport is the same as nudging the United States. But this can not be an excuse to relax the government's firmness on the current issues. The current case of Freeport is changing the public presepi tion of long-standing governmental discernment, this assertion is expected to continue and can also be done on other issues so that the dignity and dignity of this nation can also begin to be taken into account internationally.

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