?Forum? rallies against Medco, demanding land compensation

Dozens of people from Pelawai, Musi Rawas regency, South Sumatra held a rally at national oil and gas company PT Medco EP Indonesia?s headquarters in Pancoran area of Jakarta, demanding the firm to pay compensation for their lands.

The demonstrators, who claimed to be members of the Forum of Pelawai People?s Resistance, accused Medco of having failed to pay compensation for their lands which are now part of the company?s South Sumatra Extension block.

Medco?s senior manager external relations Aditya Mandala told Petromindo.Com over the phone that the demonstrators? allegation was baseless, insisting that the firm had fully paid the compensation.

?We fully paid the compensation in 1986,? he said.

The block was originally owned by American firm Stanvac, while the lands claimed by the villagers were categorized as state lands. After a negotiation with the villagers together with the local government and BPPKA, a division at state owned oil and gas company Pertamina in charge of foreign contractors, Stanvac finally paid the villagers an amount of compensation for ?the loss of potential revenue from plants cultivated on the lands?.

Aditya said Medco and the villagers were recently about to reach an agreement to settle the dispute but the villagers finally refused to agree due to ?intervention? by certain people.

?The case is being examined at the Musi Rawas District Court and the firm is waiting for the final decision by the panel of judges. If the court rules in our favor, we shall file a defamation lawsuit,? Aditya said. (Godang)