KPC agrees to pay land compensation to end dispute with villagers
Monday, February 12 2001 - 04:15 AM WIB
Coal giant mining company PT Kaltim Prima Coal (KPC) has agreed to pay around Rp 10 billion (US$1=Rp 9,500) in land compensation to end the long land dispute with the Bengalon villagers in Sangatta area, East Kutai regency, East Kalimantan.
The local Jaya Post daily reported at the weekend that the compensation was Rp 1 million per ha of land.
The Bengalon villagers have demanded the compensation, claiming ownership over part of KPC's mining site.
Land dispute has recently become the number one problem in provinces and regencies outside Jakarta following the introduction of new democratic environment in the country. This has created jitters among investors.
The paper said that the villagers welcome the land compensation arrangement.
"We are satisfied, but please pay it immediately, because we have been waiting for quite a long time," said Asikin, a senior village member.
But Jaya Post also said that KPC may be facing another land dispute with a different group of villagers, claiming ownership on the other part of the company's site.
The paper said that the local East Kutai administration is also facing similar problems over plans to develop the administration's new headquarters complex.(*)