Indonesian Political, Business & Finance News

Minister calls halt to Krui oil palm estate

| Source: JP

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)

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