Pertamina settles land dispute in Riau

State-owned oil and gas company Pertamina has agreed to resolve a land dispute with residents of Dumai, Riau province.

In the era of former president Soeharto, locals were kicked off 300 hectares of land so that Pertamina could construct a shipping yard in the early 1980s, Indonesian Observer reported on Tuesday.

Since the fall of Soeharto in 1998, the locals have been trying to get some compensation, but they received jack.

Pertamina commenced negotiations with 15 representatives of the displaced people in Dumai a few weeks ago, but a mutual agreement could not be reached. Therefore, locals blockaded roads leading to the shipyard, putting it out of action for 10 days.

Dumai Police Chief Lieutenant Colonel Arif Wahyunadi has sent a delegation of local residents, public figures, legislators and lawyers to Jakarta, to meet with central government and Pertamina officials in order to ensure that appropriate compensation is paid.

Pertamina, long regarded as a cash cow for the family, friends and cronies of Soeharto, has in the past been criticized for corruption and for failing to respect the rights of people living in areas near some of its projects.

Ever since the fall of Soeharto, there has been a spate of land-rights claims over property which was arbitrarily seized by state companies and well-connected private developers. Farmers have attempted to reclaim some golf courses by growing crops on them. (*)