Legislators back KPC in land dispute with local residents

Members of the legislative council of East Kalimantan's East Kutai regency strongly supported the management of major coal mining company Kaltim Prima Coal in a land dispute with the local residents, Kaltim Post reported on Monday.

"The East Kutai government will suffer a major financial blow if KPC closes its mine and move to other areas," Achmat Supriyantio, a member of the Commission III of the local legislative council (DPRD), said last week.

He said that if KPC closed its mining area, the local government would lose a revenue of at least Rp 15 billion a year. "We certainly can not afford losing this big financial gain," he said.

KPC's management has threatened to close its coal mine in Bangalon, part of coal rich areas in the East Kutai, regency after the local government failed to settle a land dispute with the local residents.

The local government has set a price of Rp 500 per meter or Rp 5 million per hectare for the land to be used for the company's exploration activities. The landowners, however, demanded KPC pay Rp 10,000 per meter or Rp 100 million per hectare.

KPC has agreed to pay a half of the price demanded by the residents but the offer was turned down. The land dispute has triggered massive protests from the resident, who blocked the access road to the company's mining area in an effort to pressure the company's management to agree with their demand. (*)