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)