Hundreds of farmers disappointed with KPC

Some 600 farmers in Sangatta, East Kutai district, East Kalimantan, have been disappointed with coal mining giant PT Kaltim Prima Coal (KPC) which had declined to pay some Rp 3.3 billion (US$ = Rp. 11,200) in land compensation, the local Kaltim Post daily reported.

The paper quoted Abdul Rais, the legal consultant for the farmers, as saying that KPC had taken over more than three thousand hectare of the local farmers' land for its mining activity.

Abdul said that the problem had actually been resolved via the mediation of the local legislature and administration, but until KPC declined to make the payment because the company insisted that it had paid the compensation to other farmers group.

But he said that the group of people which had received the compensation was not the real owners of the land, adding that many of them had been included in other similar cases. He suspected that there was a manipulation involving insiders.

Abdul said that the Council and the East Kutai administration had agreed to continue to help resolve the problem and would arrange a talk with KPC. He said that a final outcome was expected to be made in May.

KPC is also currently under strong pressure to immediately divest up to 51 percent of its shares to the East Kalimantan administration.(*)