Minister calls halt to Krui oil palm estate

JAKARTA (JP): Minister of Forestry Djamaloedin Soeryohadikoesoemo has asked PT Karya Canggih Mandiri Utama to stop developing its oil palm plantation in Krui, West Lampung.

"The company should stop all its activities until we are sure that its operation does not hurt local residents or damage protected forests," he said Tuesday.

According to earlier reports, Karya Canggih's 25,000-hectare oil palm estate had encroached on locals' plantations and protected forests.

The minister said he had asked forestry officials in Lampung to investigate whether Karya Changgih's estate had overlapped with locals' plantations or protected forests.

The minister said the government had never allowed a company to open up protected forests, and that if Karya Changgih had broken the rule, its license could be revoked.

There has been a reported dispute between the company and locals about land prices, with locals accusing the company of breaking its promise not to cut Shorea javanica trees near their villages.

Most of West Lampung's people, including those in Krui, make their livings by selling resin from Shorea javanica trees.

"This complexly is Karya Canggih's fault because it chopped the shorea trees which does not comply with the Lampung governor's instruction earlier this year to preserve all Shorea trees," he said.

The minister said the company should first settle all its problems with locals before developing the area. (04)