Caltex refuses to pay compensation to Riau farmers
Friday, January 19 2001 - 04:00 AM WIB
Oil giant PT Caltex Pacific Indonesia has stopped that the third stage of the compensation payment to a group of farmers in Rantau Bais in the Rokan Hilir regency, Riau after another group of farmers in the regency claimed that they were the rightful owner of the land now being used by the oil company. Riau Pos reported on Friday.
Caltex spokesman Djati Susetya said in Pekanbaru on Thursday that the compensation payment would be stopped until Rantau Bais farmers settled their difference with the Sawit Permai farmers.
Caltex has agreed to pay a compensation payment to Rantau Bais farmers for the land it used. The daily did not specify the amount of the compensation payment but it said that the first and second stage of the compensation payment had been settled.
The daily did not also explain why the Sawit Permai farmers could hinder the compensation payment process.
The local government and legislators are finding a solution to the problem. The legislators recently held a hearing with the local agrarian office but the meeting failed to find a solution. (*)