Angry residents occupy Pertamina's Dumai property

Hundreds of angry residents in Dumai, Riau has occupied a housing complex owned by the state oil and gas company Pertamina since Monday after the later broke its promise to pay compensation for the land used for the residential area.

Bennedi Boiman, the chairman of the regency's legislative council, said on Monday that the angry residents took such action because the state oil and gas company showed no good intention to settle their demand.

"The residents came to the residential area because the company failed to settle the problem on the deadline as promised," he was quoted as saying by Antara news agency.

The locals have demanded the company to pay the compensation for around 1,305 hectares of land taken over by the company for the housing complex in early 1990s. The local legislators supported the residents and it then formed a special verification team to seek for a fair settlement of the dispute.

Bennedi said the state oil and gas company agreed with the team's proposal to pay compensation of between Rp 50,000 and Rp 65,000 per square meter to the residents. "Pertamina pledged to settle the problem on July 7, but the company broke its promise," he said.

The news agency, however, did not report the fate the people living in the disputed housing complex. Pertamina's official who is charge with the company's operation in Dumai, was not available for comments. (*)