KPC urged to increase land compensation in E. Kalimantan

Wednesday, January 22 2003 - 04:07 AM WIB

East Kalimantan farmers have urged coal miner PT Kaltim Prima Coal (KPC) to delay its plan to carry out coal mining projects on their land until the company increases land compensation, local daily Kaltim Post reported on Wednesday.

On Tuesday, around one hundred farmers from Bengalon district in East Kutai regency, East Kalimantan marched to the East Kutai regent?s office and the regency council compound to air their demand.

The villagers complained that KPC insisted on giving them only Rp1 million (US$=Rp 8,879) for each hectare of their land. They demanded higher amounts arguing that land price must include land tax, and must cover plants on it.

They said they had discussed their case with the company management about six months ago, but so far KPC had not given adequate response.

M Khairul, KPC?s general manager for external & community relations, told Kaltim Post the farmers? demand was groundless because so far the company, and not the farmers, had paid land tax.

He added that some landowners from Bengalon had in fact received Rp1 million for each hectare of their land and that so far the villagers had never complained about land price.

On Tuesday, the protesting villagers met with council members and regency government officials who offered to form a special team to look into their case. The farmers rejected the proposal however. They also rejected another proposal that their land in Bengalon be exchanged with land in other areas.

KPC operates a huge coalmine in Sangatta, East Kutai.

World mining and energy giants Rio Tinto and BP Plc equally own the company. (*)

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