Local residents disappointed in mining companies
Local residents disappointed in mining companies
JAKARTA (JP): Security conditions have again cast a shadow
over the business climate in the country after local residents
turned their anger against multinational resource companies
operating in Riau and East Kalimantan.
Riau Deputy Governor for People's Welfare Rustam S. Abrus said
on Monday dozens of residents of Sintong village, Bangko district
in Rokan Hilir regency, Sumatra had been occupying five oil rigs
belonging to PT Caltex Pacific Indonesia, a subsidiary of
American-based oil firm, since Saturday over disappointment with
the company's failure to employ them.
"The resentment came out due to unemployment. The people were
angry because Caltex rejected them, so they attacked the
company," Rustam said.
He said the company had sparked animosity among local
residents due to its preference for outsiders.
However, he regretted the incident, saying that the company,
which produced 30,000 barrel per day from the rigs, could suffer
big losses.
"Although the company has not yet reported the incident we
would help solve the dispute," Rustam was quoted by Antara as
saying.
He said his administration is now preparing a bylaw which
would oblige foreign companies to employ local residents.
Hundreds of students attacked the company's office and set
fire to several vehicles early this year to demand a fairer
revenue sharing from oil exploitation in the province. Caltex
produces about 800,000 barrel of crude oil, more than half of
Indonesia's daily crude oil production.
Meanwhile, spokesman for PT. Caltex Pacific Indonesia Poedyo
Oetomo said the company is still negotiating a settlement with
the residents.
"It's impossible for the company to employ all local
residents," Poedyo remarked.
Separately, East Kalimantan Police denied that 24 residents of
Marangkayu district, Kutai regency, were injured when police
dispersed residents who blocked an access road to PT Unocal coal
mine company in Kutai.
"It's not true. Only three people were injured, and no one was
detained," the police spokesman Supt. Faah Sumarno said on
Monday.
He said one of the people suffered wounds in his left leg
because of a rubber bullet, while the others had minor injuries.
He said the people had committed a crime and endangered public
interest.
The police seized four molotov cocktails, and several
traditional weapons, including an axe, spears and 14 arrows, from
the people during the clash on Sunday, he said.
Meanwhile, Unocal's spokesman Samsulistyo said the company is
still negotiating with the residents who demanded compensation
over land appropriation.
"We have offered compensation worth Rp 1 billion in community
development program. We have agreed about it," Samsulistyo.
The residents, who have blocked the road for almost two weeks,
still claim their land was damaged because of the company's
operations. (jun)