TEMPO.CO, Jakarta - The Padoe indigenous community that resides in the East Luwu Regency, South Sulawesi, remains apprehensive as the concession permit for a local nickel mining company continues to expand. Reports suggest their indigenous land plots are being claimed by the mining firm.

“We are aware that our region is being claimed by PT Vale Indonesia as there are stakes [common sign to signify land ownership],” said Ameria Sinta, a resident of the Pade community at her house on August 27.

According to official records, the nickel mining company has 70,566-hectare concession rights at the Luwu Regency.

Ameria claimed that the mining company never communicate with or even met with local indigenous residents although the company operates in areas within the Padoe customary land area such as Wasuponda, Towuti, Wotu, Nuha, and Malili subdistricts.

Ameria also claimed that there was no compensation offered by the company to locals who own the land and that locals are not able to fight the scale of expansion of the company. As locals continue to farm their land, she said, representatives from the mining company would warn them about the impending expansion.

“Farmers would eventually be under pressure because of this,” she recalled.

It is also reported that the nickel mining company will use the plots of land to build a golf course and camping ground for company workers.

Balambano Village resident Lukman (48) admitted that PT Vale had seized his one-hectare land plot without his knowledge and without compensation.

Lukman claimed that both the government and PT Vale opened any communication with the locals. "From the work contract, they claim this is their land," said Lukman. "One-sided claim," he added.

Company Track Record

Mining Advocacy Network (JATAM) coordinator, Melky Nahar, asserted the bad track record shown by PT Vale in carrying out mining activities. In 2016, people protested the company in Sorowako, East Luwu Regency over claims that the mining company arbitrarily seized their customary land.

Then in March 2022, the same people protested again over the same allegation but protesters were thrown into prison. "All environmental and humanitarian crimes committed by Vale have never been prosecuted," said Melky.

PT Vale operates under a work contract that was amended on 17 October 2014 and will remain valid until December 28, 2025, with a 70,566-hectare concession area in East Luwu Regency, South Sulawesi.

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South Sulawesi Forum for the Environment (WALHI) Director Muhammad Al Amin said that since the initiation of the concession area, the local indigenous community had never been involved, which has triggered numerous social conflicts to date.

Amin highlighted the crucial livelihood of locals that depend on farming. “The people’s farms and forest areas are now considered within PT Vale’s concession area,” said Amin.

He called for the government to conduct a thorough evaluation of the nickel mining firm’s activities in the East Luwu region, especially considering the company plans to extend its work contract in 2025.

Vale Denies Snatching Land Plots

PT Vale communication head Bayu Aji on Thursday denies allegations that the company seized the lands of the East Luwu customary community. He insisted that the company remains transparent and is bounded by Indonesian and international laws.

“Vale never took away from those who rightly own it,” said Bayu Aji to Tempo on December 15.

He made it clear that the communities within the company’s operational areas is highly respected, which he said aligns with company values that respect the environment and the people who live in it. Bayu said that all the land plots the company manages, which includes concession lands, have complete legal documentation.

The special concession in Sorowako, South Sulawesi spreads across 70,566 hectares which were ratified under the amended work contract on October 17, 2014, was the result of a deal and renegotiation with the Indonesian government.

“In fact, Vale reduced 70,000 hectares of concession areas,” said Bayu. “The PT Vale work contract did not add new areas of land.”

In terms of the South Sulawesi provincial government’s reluctance towards extending the company’s work contract, Bayu said Vale highly respects the opinions of others but will remain committed and focused on fulfilling the company’s obligation according to the law. This is done to maintain a positive investment climate.

He defended that the mining company has contributed to state income, both central and provincial governments.

He pointed out a total contribution to state revenues amounting to Rp16.6 trillion over the last 10 years. Furthermore, PT Vale's taxes and fees in 2021 had almost doubled to US$142.9 million, or the equivalent of Rp2.14 trillion.

"We always comply with the payment terms and applicable tax regulations," said Bayu.

DIDIT HARIYADI (CONTRIBUTOR)

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