ASSESSING PROS AND CONS OF PTFIs IUPK AND THEIR EFFECT ON INDONESIAs POLITICAL AND ECONOMICAL CONDITION USING THE INTERNATIONAL POLITICAL ECONOMY FRAMEWORK

VANESSA CHRISTIANI, Dr. Dedy Permadi

2020 | Skripsi | S1 ILMU HUBUNGAN INTERNASIONAL

The relationship between PT. Freeport Indonesia (PTFI) and the Indonesian Government has long been taking people,s attention through the decades of their cooperation. In which, their relationship has climaxed once the agreement, Contract of Work (CoW), is in due date by December 2021 and they had to work onto a new agreement. Under Jokowi administration, a new agreement was made along with the changes from CoW into Special Mining Business License (IUPK), a license that was inseparable from pros and cons. Thus, this undergraduate thesis seeks to analyze the pros and cons of PTFIs IUPK and how they affect Indonesia,s political and economic condition under the International Political Economy Theory. Its found that the pros and cons were reflected in the articles in the PTFI,s IUPK and once it,s under certain specific category (Jokowi,s agenda, contractual certainty, automatic extension, environmentally friendly, environmental issue, mounting resource nationalism, adding value to the mineral goods, adding jobs, domestic demand), then the effects on Indonesia,s political and economic condition become obvious. The political and economy area become intertwined in here as there are some category where the matter of political and economic could not be subfield to one another. This PTFIs IUPK shows that the new agreement is in favor of the Indonesian Government as there are more pros than cons with various argument concerning its effect on Indonesia,s political and economic condition.

The relationship between PT. Freeport Indonesia (PTFI) and the Indonesian Government has long been taking people,s attention through the decades of their cooperation. In which, their relationship has climaxed once the agreement, Contract of Work (CoW), is in due date by December 2021 and they had to work onto a new agreement. Under Jokowi administration, a new agreement was made along with the changes from CoW into Special Mining Business License (IUPK), a license that was inseparable from pros and cons. Thus, this undergraduate thesis seeks to analyze the pros and cons of PTFI,s IUPK and how they affect Indonesia,s political and economic condition under the International Political Economy Theory. It is found that the pros and cons were reflected in the articles in the PTFI,s IUPK and once it is under certain specific category (Jokowi,s agenda, contractual certainty, automatic extension, environmentally friendly, environmental issue, mounting resource nationalism, adding value to the mineral goods, adding jobs, domestic demand), then the effects on Indonesia,s political and economic condition become obvious. The political and economy area become intertwined in here as there are some category where the matter of political and economic could not be subfield to one another. This PTFI,s IUPK shows that the new agreement is in favor of the Indonesian Government as there are more pros than cons with various argument concerning its effect on Indonesia,s political and economic condition.

Kata Kunci : IPE, political-economy, freeport, head of agreement, Indonesia