Unocal agrees to compensate villagers with CD
Friday, October 13 2000 - 04:00 AM WIB
Energy company Unocal Indonesia Company, a subsidiary of American firm Unocal Corp. has agreed to compensate villagers of Marangkayu, Kutai district, East Kalimantan for their farmland allegedly polluted by the company's waste, local daily Kaltim post reported.
The paper said the company voiced its readiness to compensate the villagers in a meeting on Thursday with the province's council.
Unocal noted however it would not provide cash, but community development programs to the villagers as a compensation for the alleged damage of their farmland.
The council summoned the company to the meeting following a Sunday raid launched by the local police to end the two-week-long blockage by the villagers of the company's facilities. The villagers set up the blockage to pressure the company to pay compensation for their farmland.
A number of villagers were injured during the raid, when the police opened fire on them.
Company senior geophysicist Suta Vijaya, accompanied by company external affairs supervisor Samsulistyo, told the paper that the company would not give cash to the villagers because it ran counter to international business ethics.
"The headquarters would not accept it that we give them cash. Furthermore, the company is not required to compensate the villagers from the legal point of view. The measure is only aimed at maintaining good relations between the company and the villagers," Vijaya said.
He noted however the community development program to be provided by the company could be worth more than the amount of cash demanded by the villagers.
"We suggest them to list their project proposals. Be it cattle, farming and plantation projects," he said.
Vijaya and Samsulistyo said Unocal wanted to open a new chapter in its relation with the villagers. (*)