Kodeco's plantation troubled by locals

Kodeco's plantation troubled by locals

JAKARTA (JP): South Korean company PT Kodeco Group voiced
concerns over troubles caused by villagers on its plantation in
Barito Kuala Regency, South Kalimantan.

Kim Jong Ho, head of the company's branch office in
Banjarmasin, said the company was confused as to how to continue
running the plantation as local people frequently attacked the
company's facilities and plants.

He said the people demanded compensation for the land, which
has been used by the company for seven years, saying the land
belonged to them.

"We really do not understand why the claims were made now,
after it was cleared and could be used for agriculture," Kim
said, adding that the land was far from any residential area and
comprised predominantly peat areas before being developed by
Kodeco.

Ho said Kodeco came to the area on the invitation of the
Barito Kuala administration which wanted the area be converted
into productive land.

At the time, the regent, district and village heads signed an
agreement allowing Kodeco to take over the land for agricultural
projects without any compensation, Ho said.

Under the agreement, the local authorities as representatives
of the people promised not to demand any future compensation.

Now, the people have asked for up to Rp 1.4 billion (about
US$166,600) for compensation, he said.

"How can we get that amount of money, especially in view of
the fact that the land has thus far produced nothing due to its
pyrites content," Ho said.

Pyrites is a mineral containing sulfur and iron and is harmful
to plants.

Kodeco, through its subsidiary, Banjarmasin Agro Jaya, has
planted hybrid coconuts and other crops like soybean, corn and
rice on the plantation covering tens of thousands of hectares of
land.

Kim warned that Kodeco might halt activities as many of its
workers had left the area due to the troubles. (10)