TEMPO.CO, Jakarta - All banks in Timika, Papua have stopped giving non-collateral loans to employees of Freeport Indonesia and its sub-contractors.
Iwan Setiawan, Bank Mandiri's Timika Branch head office, said on Friday they have stopped giving fixed-rate loans since the US miner declared force majeure in mid-February.
He said that Bank Mandiri has provided numerous non-collateral loans to employees of Freeport and its sub-contractors operating in Tembagapura, Mimika. He was unwilling to reveal the amount.
Read: Freeport Indonesia Employees Demand Swift End to Dispute
In a meeting between the banks and Papua Police Chief Insp. Paulus Waterpauw in Timika Wednesday, March 15, Bank Mandiri stated it will not immediately collect debts from Freeport workers—especially those who lost their jobs.
The bank also promised not to seize the assets of debtors with overdue loans.
Not just Bank Mandiri, The Timika branch of Bank Rakyat Indonesia (BRI) Muhammad Yusuf also said they have stopped giving non-collateral loans to Freeport workers. The decision was made based on the suggestion from managers of Freeport contractors and privateers.
Read: Freeport Indonesia to Lay-off Workers Next Week
"We're not confident to disburse loans to employees until there are certainties about Freeport's operation. Since February, we have been selective in giving out loans. By mid-February we decided to stop," he said.
Meanwhile, Bank Papua has stopped lending to Freeport workers since February 20. The total loan owned by Freeport workers to the bank amounts to more than Rp500 billion.
Freeport Indonesia's Vice President of Security & Risk Management Amirullah said that as of March 15 the US-miner has fired 3,340 workers.
ANTARA
