Vico declines to pay compensation to villagers

Oil and gas company PT Vico Indonesia maintained its decision not to pay compensation to protesting East Kalimantan villagers during the latest round of negotiations facilitated by the Samarinda legislative council.

The people of Sungai Siring area in Samarinda has long demanded Vico to pay some Rp 4 billion in compensation after a fire disaster 1997 destroyed their crops. The villagers said that the fire was caused by Vico?s seismic activity in the area.

But Vico external relations manager Syaiful Rachman was quoted by the local Kaltim Post daily as saying that there was no concrete evidence that the fire was triggered by the seismic activity.

Meanwhile, lawmakers urge Vico to pay the compensation at least a portion of what has been demanded by the villagers. They also want to see Vico top officials to seek solution to the problem.(*)