Vico reaches agreement with protesting villagers

Oil and gas firm PT Vico Indonesia finally reached agreement on Thursday with the protesting villagers of the Sebuntal area in Kutai regency, East Kalimantan, over land compensation.

The local Suara Kaltim daily reported that after 19 rounds of negotiation, the villagers agreed that Vico would provide Rp 2 billion (US$1=Rp 8,450) in cash as a compensation for the erosion of their agriculture land.

In addition, the company would also develop a new road in the area plus other facilities, and to gradually rehabilitate the eroded soil.

In return, the villagers would stop the road blockade to the Vico Sambera Plant 14 gas facilities.

The villagers initially demanded a higher compensation, while Vico only offered compensation in the form of community development program worth between Rp 1-2 billion.

Meanwhile, Suara Kaltim also reported that Vico was now facing a protest from its security staffs demanding better salary. They've the protest since the past five days. (*)