The Indonesian government has banned a Dutch funding agency, for allegedly supporting Papuan separatists and running a commercial enterprise.
The Jakarta Post reports there are concerns that this sets a bad precedent for the future of NGOs in Papua.
The agency, Cordaid, is one of five foreign funding agencies for Papuan NGOs, and has been involved in social development work in Indonesia for more than 30 years.
The newspaper reports the Social Services Ministry has written to Cordaid saying its breached a principle provision in its agreement with the government.
The Ministry says Cordaid is involved in commercial and political activities by being a shareholder of Bank Andara and sponsoring a community group that supports secessionist movements throughout southeast Asia.
The government has asked Cordaid to hand over its projects to its local partners.