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PT Freeport Indonesia and our joint
venture partner have since 1996 committed a portion of revenues for
the benefit of the local community through the Freeport Partnership
Fund for Community Development. Contributions to the partnership
fund were $19 million in 2004, and the total contributions to the
fund approximate $152 million since inception. The partnership fund is administered and disbursed by an organization called the Lembaga Pembangunan Masyarakat Amungme dan Kamoro (LPMAK). LPMAK is managed by a Board of Commissioners consisting of representatives from the local government; Papuan regional leaders; leaders from the Amungme and Kamoro and PT Freeport Indonesia. LPMAK's Board of Commissioners establishes annual budgets for three main development program areas - health, education and village development. The budgets are based on development priorities determined by LPMAK's Board and the projects supported by LPMAK directly benefit the Amungme and Kamoro people and five other indigenous communities in the Mimika Regency - the Dani, Moni, Ekari/Mee, Damal and Nduga people. These groups are represented on the LPMAK board through their community, church and government leaders. The activities of the LPMAK are conducted through program bureaus which also cooperate with local government agencies and other non-governmental organizations. These teams review project proposals submitted in accordance with guidelines and budgets established by LPMAK. These proposals are then reviewed by LPMAK's Board of Directors. LPMAK programs are closely coordinated with the local government to ensure maximum impact in improving the quality of life for residents in the Mimika area. |
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The LPMAK guidelines ensure that project proposals reflect the charitable and development objectives of LPMAK and are subject to financial and audit guidelines. Certain types of activities are strictly prohibited and are not funded, including political activities and projects that do not have a wide impact on the community. Each year an independent auditor issues a report on the LPMAK activities, and regular monthly progress reports are made publicly available to ensure that LPMAK's activities are transparent. LPMAK has made a significant impact on the lives of the local people by funding projects benefiting residents in villages throughout the Mimika area. Examples include hospitals in Timika and Banti which treat thousands of patients each year; the LPMAK education program which has provided scholarships or educational assistance to thousands of Papuan students; and village-based programs which have provided electricity, water, church facilities, and other infrastructure to remote villages in the highlands of Papua. LPMAK is an accountable, professionally managed and successful development program. It is one of the largest, privately funded social development programs in Asia. During 2003-2004, highlights of LPMAK activities included: |
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