PTBA pays too low compensation to landowners

The low level of the compensation payment paid by state owned coal-mining company PT Batu Bara Bukit Asam (PTBA) has impeded the company?s expansion program. With compensation payment of only Rp 900 (US$=Rp 8,500)) per meter, many land owners have refused to surrender their land for the company?s mining areas, local newspaper Sriwijaya Pos reported on Tuesday.

Rusli Amin, a leader of one of youth organizations in the province, said that with such low compensation, it would be difficult for the landowners to let their properties to be used for coal mining operations.

In addition, the exclusive rights awarded to PT BA to control all the coal mining concession in the area has also discouraged new investors from entering the coal production, he said. "Although there are investors, they cannot enter coal production activities due to PT BA?s monopoly," he added.

However, Darmansyah, the head of the mining office of the Lahat regency, said that the charge that the company had been given a monopoly in the coal production was not totally true. "Any investors are allowed to carry out coal mining activities outside PT BA?s concessions," he said.(*)