An escalating series of protests beginning in late February and on-going through March targeted U.S. resource companies operating in Indonesia. Freeport Indonesia and its Grasberg mine in Papua province was the initial target of protests, which turned violent when protestors killed three policemen and an air force officer in the Papuan capital, Jayapura, on March 16. Three days later, a Newmont Mining exploration camp on Sumbawa island was raided and burned. The camp is located 60 km from Newmont's Batu Hijau copper and gold mine. Warning of the impending attack allowed evacuation of workers before the raid took place. Operations at Batu Hijau were not impacted. Also on March 19, 1,500 protestors in Java mounted a demonstration against ExxonMobil and a newly signed agreement with the government relating to management of the Cepu oil field.
Motivation for the protests could be found in a complex mix of complaints. In Papua, members of a provincial independence movement were thought to be targeting Freeport as a means of undermining the national government. Freeport is Indonesia's largest taxpayer. In Papua and elsewhere, environmental NGOs have been vocal in their opposition to large, foreign-owned mining operations; and throughout Indonesia, protestors have complained that the government is not returning sufficient portions of resource-related income to local communities.
Indonesia's defense minister Juwono Sudarsono said on March 20 that the March 16-19 protests appeared to have been coordinated. Other government spokespeople offered assurances that the government would honor its contracts with foreign investors and would protect their operations. Specifically, Indonesian President Susilo Bambang Yudhoyono said the government would not close down Freeport's mining operations, despite loud demands for such closure from some protestors.
The protestors appeared to have some momentum on their side going into late March. Resolution of the issues involved did not seem to be imminent; and the likelihood of additional demonstrations in weeks and perhaps months to come appeared likely.
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