KEM has to pay Rp 92.9 billion in compensation

PT Kelian Equatorial Mining (KEM) which is now preparing the closure of its gold mine in East Kalimantan has been demanded to pay compensation of at least Rp 92.9 billion to residents living near at its mining site in the province's West Kutai regency, Kaltim Pos reported on Tuesday.

As many as 5,470 villagers in ten sub-districts near KEM's mining location have demanded a compensation of Rp 17 million each for the loss of business opportunities and Rp 2 million each for the use of land by the mining company.

In a meeting which was held recently after the villagers staged massive protests, the local authority agreed to pass on their demand to KEM. However, KEM has yet to make a formal response to the demand.

Villagers said that they would continue to stage a protest until the demand is fulfilled. They promised to avoid anarchy in the protest although during the previous protests, some of the villagers damaged a number of KEM's vehicles and had taken one of the local senior government's officials as a hostage. (*)