Police removes road blocks to KPC's facilities

Police has removed the blocks placed by the local villagers on the road leading to the Volvo workshop and the Rescue office owned by coal mining company PT Kaltim Prima Coal (KPC) in Kabo Jaya village, Bontang regency, East Kalimantan.

Kaltim Post daily reported that a platoon of police from the Bontang police station were fielded to remove the road blocks to enable KPC's cars to enter the road.

The road was blocked by the local villagers who called themselves "group of nine and four" who had won the legal battle against KPC over the ownership of the 57-hectare land where KPC had built its facilities.

The police reportedly took the action at the request of the local people who were concerned with the blockade.

Sukiman, one member of the group of nine and four, said the group could understand the police' action but he warned of bloodshed if the police tried to take over the Volvo workshop and Rescue office from them.

The paper said the group have been occupying the facilities for one month.

According to the paper, the land dispute started eight years ago. KPC had offered up to Rp 80 million (US$1= Rp 8,070) in compensation for the 57-hectare land, but the group of nine and four rejected the offer.

KPC then brought to the case to the local district court which ruled in favor of the group of nine and four, demanding the coal company pay Rp 4,000 per square meter or a total of Rp 2.5 billion in compensation for the land.

The villagers demanded KPC immediately pay the compensation but KPC appealed against the district court's verdict.

KPC is equally owned by Anglo-Australian Rio Tinto and British Petroleum. (*)