Riau officials regret Caltex?s slow responses to local people?s demands

The troubles caused by the local people to the oil operations of PT Caltex Pacific Indonesia (CPI) in the Riau province resulted from the slow responses of the American company to the local people?s demand for land compensation and job opportunities, several governmental officials of the province said on Tuesday.

Caltex should give quick and adequate responses to the demand in order to end the troubles, they said..

?I regret the fact the CPI has slowly handled the local people?s demand for land compensation and jobs at the company. Should the company have paid attention to the demands, I believe, the current problems between the company and the public would not occur,? the head of the Rimbo Melintang district Tugiman Marto, told reporters during the press tour to CPI?s Bangko field.

CPI was organizing the tour to allow a number of Jakarta-based reporters to get a closer look at the troubles experienced by the oil company.

Local people also demand CPI improve its community development program to help raise the welfare of the local people.

?Honestly speaking, the community development programs that has been carried out by CPI have really brought much benefits to us. This year, the community development programs are targeted at education, fishery and agricultural sectors.

?But, CPI should also develop the capability of local human resources,? the secretary of the Tanah Putih district, Abdul Wahab, said.

According to CPI?s official Sudjatmiko, CPI focuses its community development on three priorities, that is the enhancement of the local communities? welfare, education and revenue.

CPI has allocated US$5 million per year for the community development programs at all its operating areas, according to him.

CPI has been hit by a series of troubles, including blockage by the locals, labor strikes, and equipment theft, over the past several years amid the breakdown of law and order following the resignation of former President Soeharto in the middle of 1998. Such troubles rarely happened during Soeharto?s era, during which the government was never reluctant to take strict measures to protect foreign investors

The decentralization program aimed at allowing the regions to gain greater revenue from the development of their natural resource, which was implemented starting early this year, has also emboldened many people in the regions to pressure investors in their respective areas to share their profits. In many occasions, the protests launched by the local people turned into anarchy.

CPI?s president Humayunbosha recently said the company?s oil output had dropped to 660,000 barrels per day from around 740,00 bpd several years ago, due to various disruptions, including troubles caused by the local people.

The company has also lost million of dollars worth of equipment due to theft, according to CPI officials.

CPI, which is equally owned by American firms Chevron and Texaco, accounts for about half of Indonesia?s oil output.

When asked about the police actions to protect CPI?s operations from blockage and theft, head of the Tanah Putih police Hazrin said the local police had done their utmost to tackle the problems, but they could not do much due to the lack of personnel and the wide operating areas of CPI.

Hazrin also said the police was still facing difficulties to find the brains behind the rampant theft of CPI?s equipment.

Head of the Tanah Putih military post Hasugian also said the local military members were facing difficulties to find the criminals. (Godang)