PT Vale Indonesia denies land grab claims in East Luwu

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TEMPO.CO, Jakarta – PT Vale Indonesia’s communications manager, Bayu Aji, has denied that the company claims to have seized land from indigenous peoples in East Luwu regency. The claim was contradicted as PT Vale is a state-owned company and is bound by rules and regulations in Indonesia and abroad.

“PT Vale has never taken rights from other parties without their consent,” Bayu Aji told Tempo on Thursday evening, December 15, 2022.

Earlier it was reported that the indigenous Padoe people of East Luwu Regency in South Sulawesi were worried. Indeed, the region’s concession area for nickel mining companies continues to expand. Claiming that customary lands are also beginning to be claimed by mining companies. “We know that our territory was taken over by PT Vale Indonesia when there was a stake (boundary signal),” said Ameria Sinta, a Padoe indigenous woman, met at her home on Saturday August 27, 2022.

Bayu Aji emphasized that his group greatly appreciates and respects the community within the operational area. This is in line with the company’s values ​​of respect for the land and its people. Therefore, he said, PT Vale abides by the laws and confirms the presence of a legal basis. Bayu has also ensured that all land under management and entering the concession has complete legal documents.

Bayu said the special concession area in Sorowako, South Sulawesi covers about 70,566 hectares. This is in line with the amendment to the PT Vale employment contract which was signed on October 17, 2014, following a renegotiation agreement with the Indonesian government.

“PT Vale is reducing the concession area by 70,000 hectares,” Bayu said. “There was no land extension.”

So far, he continued, his group has provided a space for communication with all parties, including indigenous peoples. For example, create interactive communication with stakeholders in the area of ​​operation, from influential people to young people among the inhabitants. The communication model is still carried out today.

“Various communication programs have been carried out to meet the interests of indigenous entities,” he said. Namely Pasitabe, Kedatuan Luwu, Kemokolean Nuha and Mokole Matano. PT Vale will keep its promise to constantly improve the communication model and maintain democratic values, including freedom of expression.

“We (PT Vale) are committed to always establishing a dialogue with all stakeholders in order to find the best solution for all parties.”

Regarding South Sulawesi Governor Andi Sudirman Sulaiman, who is unwilling to extend the employment contract, Bayu said Vale respects the opinion of the governing parties. However, PT Vale would remain committed and focused on meeting the company’s obligations under applicable regulations. This effort is made to keep the investment climate remains in good condition, especially as the company has contributed revenue to the state, central and regional governments.

Bayu gave an example of the total contribution to state revenue of Rs 16.6 trillion over the past 10 years. Additionally, PT Vale’s taxes and fees in 2021 doubled to US$142.9 million or the equivalent of Rs 2.14 trillion.

“We always comply with applicable payment terms and tax regulations,” Bayu said.

Meanwhile, from a community development perspective, he said, PT Vale has been running a community development and empowerment (PPM) program in the minerals and coal sectors since 2018.

Andi Sudirman Sulaiman previously said he refused to extend the employment contract with Vale Indonesia. The reason, he said, is that PT Vale’s contribution in South Sulawesi was still minimal, especially to the environment and regional revenue. “Assessment results, the contribution (Vale) is only 1.98 percent. It’s still minimal,” Andi Sudirman said.

DIDIT HARIYADI (CONTRIBUTOR) | IMAJI LASAHIDO (INTERN)

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