Caltex blockade ends in Riau<\/p>\n
Tom Wright
\nDow Jones
\nJakarta<\/p>\n
PT Caltex Pacific Indonesia, the country's largest crude oil
\nproducer, said on Friday that operations had returned to normal
\nat its facilities in Riau province after a three-day blockade by
\nlocal villagers.<\/p>\n
Caltex, which is a unit of U.S.-based Chevron Texaco Corp.
\n(CVX), said the villagers began blocking the roads around one
\nsmall crude oil field Monday, demanding Caltex improve the roads
\nin the area. The protesters dispersed on Thursday after police
\nintervention, Caltex said.<\/p>\n
The company said in a statement that it lost only 5,400
\nbarrels in crude production due to the blockade, a small amount
\ncompared with its daily average output in Riau of 630,000 barrels
\na day.<\/p>\n
Caltex has faced numerous disruptions to production in Riau
\nfrom locals that have complained for years that they see little
\nof the benefits from the extraction of natural resources in the
\narea.<\/p>\n
Decentralization laws two years ago - an attempt by the
\ncentral government to buy off the country's most restive
\nprovinces and keep the country in one piece - have stoked
\ndiscontent among villagers.<\/p>\n
Part of the problem is that decentralization laws have given
\nhuge new powers to the provincial government in Riau, by handing
\nit greater control over revenues from natural resources.<\/p>\n
Critics of the decentralization law say much of this money is
\nspent on prestige products, or is corrupted, leaving little to
\nimprove the life of villagers.<\/p>\n
In its defense, Caltex says it has improved the infrastructure
\nin Riau province, including building roads, schools, and a sports
\nstadium.<\/p>",
"url": "https:\/\/jawawa.id\/newsitem\/caltex-blockade-ends-in-riau-1447893297",
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"sponsor": "Okusi Associates",
"sponsor_url": "https:\/\/okusiassociates.com"
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