Vico faces deadlock over land dispute with villagers
Thursday, May 25 2000 - 03:15 AM WIB
Oil and gas firm PT Vico Indonesia is facing a deadlock in its negotiation with the local Sebuntal villagers in the Kutai regency of East Kalimantan over a land dispute, according to the local Suara Kaltim daily.
The paper said that the villagers demanded Vico to provide a compensation of around Rp 30 billion because the company's operation had seriously damaged the condition of the local agriculture land.
But Vico still insisted that it would only provide a compensation of around Rp 1-2 billion, not in the form of direct cash but in the form of community development program.
Suara Kaltim said that at Wednesday's negotiation session, Vico elaborated its community development program, which only further irritated the local protesters.
The villagers said that Vico had to provide compensation as demanded, and added that a community development program should not be linked to the compensation because the program was an obligation of the company.
The villagers said that they would continue to blockade the road to the Vico Sambera plant 14 until the company fulfilled their demands.
Vico's Saiful Rahman said that the road blockade had not disrupted the company's production, but had somewhat caused difficulties to make a daily control over its oil and gas well facilities in the area.
He said that Vico staffs had now to walk to make the control, instead of using cars.(*)