Tension reigns in disputed area

DENPASAR, Bali: Tension reigns in the disputed Pecatu tourist resort development project near here after unidentified people burned a village security post at midnight Tuesday.

Anxiety has gripped the village after 34 residents refused to surrender their land to the Rp 13.7 trillion (US$5.8 billion) Pecatu Indah Resort controlled by Hutomo Mandala Putra, President Soeharto's youngest son.

The residents said the compensation the company is offering is too low.

They said they believed the burning of the security post, a place where they usually gather, was part of the company's increasing pressure on them to surrender their land.

Six hundred and fifty families have already accepted the compensation and moved from the area. The megaproject requires a total of 650 hectares of land. (22/pan)