Riau villagers protest Caltex over refusal to pay fair land compensation

At least 30 people held a peaceful demonstration in the front the main office of PT Caltex Pacific Indonesia (CPI) in Rumbai, Riau on Monday to demand the oil giant to pay a fair compensation for the properties affected by the company's canal project.

The residents from the Sebangar village in the Mandau district said that the company's decision to pay compensation of Rp 2,500 for each square meter of their land was not acceptable. "It is impossible for us to accept such amount of money," one of the resident told Riau Pos.

The villagers, as recommended by the head of the Mandau district, demanded Caltex to pay Rp 14,360 as compensation for every square meter of land affected by the oil giant's canal project. The demand was, however, rejected by Caltex.

Residents' protests against Caltex, which produces about 700,000 barrels of crude oil in the province, have become common scenes lately.

In the Simpang Kopar vilage of the Tanah Putih district, residents seeking for jobs have taken over a number of the company's production facilities and vehicles as their protest to the company's refusal to employ them.

The protests, which have taken place for almost two weeks, has settled down.

The company said earlier that the people's protests have caused a cut in the oil giant's crude oil production by between 15,000 and 30,000 barrels per day, In normal condition, the company produces about 700,000 barrels per day. (*)