Pertamina to set up team to end land dispute in Dumai

The state oil and gas company Pertamina will soon establish a special team to settle land dispute with local residents in Dumai, Riau province, the company's spokesman Ramli Djaafar said in Jakarta on Saturday.

Neraca daily reported on Monday that the team, which would include officials from the government's audit agency (BPKP) and commissioners of the state owned oil and gas company, would start their works within the next two weeks. "The establishment of them is expected to find out a fair resolution in the land dispute," Ramli was quoted as saying.

He said that Pertamina had conducted negotiations with the local residents, who recently occupied the state oil and gas company's housing complex in Dumai demanding a fair compensation for about 1,305 hectares of land allegedly unlawfully seized by the company.

Pertamina had agreed to pay the compensation to those who could prove that they were really former owners of the land now used for the housing complex. "But the payment of the compensation would be carried only after the team has verified their claims," he added.

Hundreds of local residents, who claimed themselves as the former owners of the land used for the housing complex, occupied the residential area last week after Pertamina ignored their demand. The protests escalated last Sunday after local police opened warning shots to disperse the protesters. Four of the protesters were shot during the incident but they only suffered minor injuries. (*)