State plantation firm suffers huge losses

State plantation firm suffers huge losses

JAKARTA (JP): The state plantation tobacco company in
Jenggawah, East Java, has suffered more than Rp 1 billion
($440,000) in losses through fires and vandalism as a land
conflict in the area heightens.

Minister of Agriculture Sjarifudin Baharsjah disclosed the
losses yesterday after meeting with executives from PTP XXVII,
the state tobacco company, at his office.

Asked about how the company plans to cover the losses,
Sjarifudin replied "Like any other company, it will have to
recuperate its losses through hard work."

Violence erupted on Monday again despite calls for calm from
the local military command. The violent land dispute began last
week when angry farmers raided the company's office and ransacked
its contents.

On Monday, seven PTP XXVII warehouses were burned to the
ground. Local villagers simply watched, refusing to help
extinguish the fire, according to reports from the area.

Minister Sjarifudin said yesterday he had asked the plantation
executives not to be provoked by the latest incident, and urged
them to cooperate fully with local security agencies in trying to
resolve the matter.

The government, he added, fully supported PTP XXVII on the
issue, insisting the presence of the company benefits the locals.

The conflict erupted last week after the farmers learned that
the government had extended the leasehold of the land, which they
have been tilling, to the plantation company.

The farmers have grown tobacco for seven months of every two
years in return for the right to till the land.

Sjarifudin said the farmers are reaping benefits from the
arrangement because they have complete liberty in running their
plot for 17 months. "And even in the seven months when their land
is used to plant tobacco, the farmers are recruited as
employees."

He pointed out that the plantation company does not ask for
anything in return for renting out the land for 17 months.
(pwn/emb)