ECA Watch: International NGO Campaign on Export Credit Agencies
home what are ecas? the problems goals take action! press room about us

Information in: Español - Français - Deutsch - Português - Russian - Japanese - Svenska - Italiano - Suomi

The Problems
*
*
*


view ECA Watch




 

Search ECA Watch



Indonesia

The People's Demands

The people of Rapak Lama, Marangkayu and Terusan have conveyed their demands to UNOCAL Indonesia Company. The demands of the people have been conveyed several times in writing as well as during demonstrations. The demands of the people are as follows:

1. The problem of displacement from farming land and from the town of Semangkok
* UNOCAL must immediately accept responsibility for the displacement from land and the town of Semangkok with compensation for the losses suffered by the people.
* The compensation which must be given is the replacement of fields and houses of the people as well as the damages they experienced from loss income from farming/gardening.
* UNOCAL must construct facilities for drinking water and surface the roads in Rapak Lama with asphalt.

2. The problem of the relocation of Kampung Baru
* UNOCAL must immediately take responsibility by giving compensation for the damages incurred in the relocation and build facilities/infrastructure at Marangkayu.
* The infrastructure and facilities that must be provided are:
a) provision of drinking water
b) asphalting of roads and lanes in Marangkayu

3. The Problem of Setting Boundaries (in gardens and irrigated and rain-fed fields)
* UNOCAL must immediately take responsibility for the setting of boundaries in fields by returning the fields and giving compensation for the damages incurred in the process

* The amount of compensation must be based on the income from the fields that were staked out, counted from the time the boundaries were set.

4. The Problem of Environmental Damage
* UNOCAL must immediately take responsibility for environmental damages by repairing/rehabilitating environmental damage, restoring the environment to its original state, and providing compensation for the losses suffered by the people as a result of environmental impacts.

* The environment that must immediately be restored is:

a) irrigated rice fields so they can be cultivated as before

b) impoundments for fish cultivation, so they can be used again
* The amount and type of compensation which must be provided will be based on:

a) for rice and fish cultivators, in accordance with their income from cultivating rice fields or impoundments, to be calculated starting from the damage to their cultivated areas

b) for fishers, in accordance with their average income from fishing and gathering milkfish fry, calculated from the start of waste disposal into the sea

c) compensation for the death of the people's cattle
* Stop disposing of waste in the sea.
* Construct a buffer area (a cement dike and drainage ditches) around the terminal.

5. The Problem of Social Accountability
* UNOCAL must immediately take responsibility for damage to the roads and the decline in the people's health by:
a) asphalting the connecting roads between Marangkayu and Rapak Lama, Marangkayu and Terusan, the portal road (from Marangkayu to the Bontang-Samarinda road) and the roads in Rapak Lama, Marangkayu and Terusan
b) building bridges on the roads to be asphalted (the connecting bridge between Marangkayu and Terusan)
c) construction of facilities and provision of clean water for the people of Marangkayu, Rapak Lama and Terusan
d) construction of lighting facilities for the communities which do not yet have them, like Terusan, Marangkayu I (Kampung Kutai), and around Rapak Lama
e) construction of health facilities at Rapak Lama and Terusan and improving the health facilities at Marangkayu
f) construction and improvement of irrigation ditches at Rapak Lama, Marangkayu and Terusan

The Long Road Traveled

To struggle for the rights that were violated, the local people have traveled a long road. They have approached various agencies, and have undertaken various actions. But their efforts have always been defeated by the money and power held by UNOCAL and the government. Faith was put in a blockade only as the last alternative to ensure the success of the struggle. But their hope here, too, was obliterated when the officials and security forces gave excessive support for the company. Who knows what other avenues the people must try so that they can be heard and valued as the rightful owners of the disputed area.

Following are the efforts that have been undertaken by the local people to struggle for their rights:

1. They complained to village government officials, then the village head wrote to the sub district head (camat), sending copies to the governor, the regent, the regional assembly, The Agency of Land Affairs (BPN) of East Kalimantan, the management of Pertamina Balikpapan and the management of Terminal Tanjung Santan, in 1986.

2. They obstructed the marking off of land by UNOCAL without prior consultation in 1987. The people's action was considered to disturb the operations of the company, so that the police conducted evictions from land at the request of the company.

3. They continued to cultivate their land which had already been marked off by UNOCAL. The source of income of the people came only from farming so they continued to cultivate even though it was forbidden by the company.

4. They sent a letter of protest to the subdistrict head of Muara Badak with copies to Pertamina Balikpapan in 1990. Pertamina answered by accusing the people of stealing UNOCAL's land and made claims against the people.

5. The presented their case to the Kutai Level II team for "freeing" land and compensation.

6. They brought claims against UNOCAL for polluting the aquaculture impoundments around Muara Kanal from 1993 to 1997. First the farmers sent a letter to the governor concerning the damage to the fish and shrimp impoundments and the failure of the shrimp harvest. On the grounds of these claims teams were sent down from Mulawarman University and from the Kutai government for investigation and research. The results from these two teams concluded that the aquaculture impoundments around the mouth of the canal (H. Bakri) were not fit for shrimp cultivation because they had been polluted. After difficult negotiations UNOCAL was willing to take responsibility provided the accusations and demands were restricted to problems of land transfer and not problems of pollution.

7. They reported the death of the people's cattle in 1994 to the animal Livestock Authority and the Livestock Authority of Kutai examined certain organs of the cattle in the laboratory. The results of the examination indicated that the cattle had died from poisoning.

8. They complained to the management of Terminal Tanjung Santan about the mass crop deaths in 1998. UNOCAL promised to conclude the matter by forming an independent team initiated by the Kutai government. The results of this independent research team were not accepted by the people because they were contradictory to the facts and occurrences in the field.

9. They demonstrated at Terminal Tanjung Santan (1998 and 1999) and at the East Kalimantan Governor's office in 1999. These actions always gave rise to meetings, both directly with the company as well as with all of the relevant government authorities.

10. They arranged a Meeting of Oil/Gas Victims for Kutai district to lay a foundation for solidarity among the victims. The meeting gave birth to a declaration addressed to Pertamina and its contractors as well as the local government (the governor and the regent as well as the provincial assembly) in 1999.

11. They arranged meetings in 1999 at the offices of the Kutai regent, the regional environmental protection agency for East Kalimantan, and the governor, with all parties with authority to resolve the problem and the demands of the people. These meetings could not resolve the issues and demands of the people because UNOCAL was not consistent and did not value these meetings. At each meeting the UNOCAL representative always changed and those who came were not managers with authority to make decisions. None of the decisions taken were ever acted on. At the follow-up meetings, UNOCAL did not acknowledge and unilaterally annulled agreements which had been made.

12. They made statements to the local media about the mass death of rice crops in 1999.

13. Together with JATAM East Kalimantan, they took plankton samples in the rice field irrigation ditches to be tested at the Fisheries Laboratory at Mulawarman University (UNMUL), Samarinda. The results of the test showed several indications that pollution had occurred in the rice fields of Rapak Lama. The samples for the test were taken using equipment and materials from the laboratory of the Fisheries Department at UNMUL. But the results of these laboratory tests were not acknowledged by the Chair of the laboratory in the coordinating meeting to resolve the case of suspected rice field contamination at the office of the East Kalimantan environmental protection agency, because he did not sign the results himself, but his assistant had copied his signature.

14. They complained to the East Kalimantan Food Plant Cultivation Authority in 1999. The agency responded by sending a team to Rapak Lama. The team concluded that the death of the rice plants was cause by the toxic levels of pyrite. But the rice which died was only around the terminal, extending to the higher-level dikes. On the other side of the dikes there was no crop death. Before the construction of the ditch in 1996, these rice fields had all been joined together.

15. They organized a meeting with UNOCAL Pasir Rig and Terminal Tanjung Santan at Terminal Tanjung Santan in 1999.

16. They held a blockade of Terminal Tanjung Santan for six days in 1999.

17. They complained to the regional assembly of Kutai about all of the problems and effects of UNOCAL's activities at Terminal Tanjung Santan in the year 2000. The members of the body promised to carry out a surprise inspection at Terminal Tanjung Santan and to facilitate a dialogue between the people and the company, but these promises have not been carried out.

18. They took samples of the waste water that entered the irrigation ditches and rice fields of Rapak Lama to be tested at the laboratory of Sucofindo's Samarinda branch in 2000. The results of this water sample test showed that several parameters, such as oil, phenol, ammonia, suspended solids, mercury, arsenic, iron, sulfide, pH, COD and BOD exceeded the thresholds for waste water (Kep.51/MenLH/10/95), so that the waste water in the irrigation channels at Rapak Lama could be classed as polluted.

Between Evasion and Arrogance

It is very hard to differentiate between avoidance of responsibility and arrogance on the part of UNOCAL. At every opportunity the company always shows an unsympathetic attitude in responding to the people's demands. A variety of juridical tactics and arguments are always put forward to weaken the people's resistance. This attitude would be reasonable if the demands of the people were excessive or made-up. But so long as what the people complain of is true, such an unsympathetic attitude invites anger, which has in fact existed for the duration of the company's violations.

Following are the responses of the company as recorded by the people in the course of their struggle.

1. In the matter of the "freeing-up" of land and eviction of people from residences, UNOCAL refers to the use of state land so that with only a Construction Use Right permit (No.01, 1975) they have the right to carry out eviction take over the land of the previous community, while according to the Oil and Gas Regulations, each mining activity on the people's land must compensate the people.

2. In problems of environmental damage, UNOCAL always argues about scientific proof and ignores the facts in the field as well as suppresses existing proofs. The results of UNOCAL's Environmental Evaluation Study compiled in 1990, the results of investigations by the office of the National Health Department at Samarinda and the Fiheries Department of Mulawarman University in 1995, state that indicators were found of pollution in the waters of Pantai Santan and the aquaculture impoundments in the area.

3. At every meeting, UNOCAL is always inconsistent, whether regarding the results of agreements or regarding attendance at meetings. UNOCAL always changes its representatives at meetings, and meetings are never attended by management leaders who have a full right to take decisions or make policy. Most of the agreements come to at the meetings are not carried out, or are annulled.

4. UNOCAL has several times gone back on its agreements to hold meetings by not attending at times scheduled together by letter/statement. The agreement of 11 May 1999 to hold a meeting on 18 May 1999 at the Mesra Hotel, was postponed to the 20 May and moved to the regional environmental protection agency office. UNOCAL agreed on 3 November 1999 to hold a follow-up meeting on 4 November 1999, but did not attend. UNOCAL did not attend a meeting on 6 December 1999, although they had agreed to it on 11 November 1999.

5. In confronting the people who did not agree to the re-designation of their land, UNOCAL reported these people to the police as obstructing the operations of the company (TS.20/C3101/90S0). They did the same thing at a demonstration and a meeting at Terminal Tanjung Santan, when more than sixty police (Brimob) were called in.

6. In responding to the people's letters of protest, UNOCAL/Pertamina accused the people of grabbing land without the company's permission, and threatened to make a counter-claim against the people (1184/C3I40/90-SO).

7. UNOCAL accused JATAM East Kalimantan of falsifying the results of laboratory tests so that the University is considering legal action as a result of this falsification (25/05/1999). However, the meeting to resolve the case of suspected pollution of the rice fields at Rapak Lama at the East Kalimantan office of the Environmental Protection Agency (20/05/1999) concluded "The Chair of the Laboratory of the Department of Fisheries at Mulawarman University (UNMUL) never signed the letter of explanation of the research (test results), and asked that UNMUL Samarinda immediately give written clarification" which up until now they have not done. UNMUL never stated that it would take legal action, but at the end of 1999, UNOCAL itself filed a report with the East Kalimantan Police, which was forwarded to the POLRESTA Samarinda (B/2539/XI/1999/Serse, 24 November 1999).

8. A social assistance program was promised to the people around the terminal, but only a small part of it has been carried out. UNOCAL also promised that at the beginning of the year 2000 all of the projects would be started, such as the construction of community health centers, the provision of clean water, and the hardening and asphalting of roads. None of these has been carried out.

9. UNOCAL's responses to news reports about the problems at Terminal Tanjung Santan have tended to twist what really happened and to point the blame at other parties, including the people. A local paper reported that "there is no waste which overflows into the people's rice fields and only oil had been carried into the fields from the remains in some drums which had spilled. And to other parties not to fool the people who were suffering" (Suara Kaltim, 15-02-00). At the time when the waste entered the rice fields, UNOCAL was called to witness and take waster samples from the irrigation ditches together with the people, as is recorded in the "Berita Acara" (report) of the taking of water samples and the sealing of sample containers which was signed by five of UNOCAL's representatives and five representatives of the people.

UNOCAL's Profile

UNOCAL Group undertakes exploration for and exploitation of oil and gas in twelve countries, with its principal operations in Indonesia and Thailand. UNOCAL Group also conducts several activities in the use of oil and gas energy. UNOCAL Indonesia Company, a shareholder (100%) in KPS (Production-Sharing Contract) in East Kalimantan, is directly related to UNOCAL Group, headquartered in California, the United States.

UNOCAL Indonesia has owned five KPS in Indonesia, that is KPS East Kalimantan (UNOCAL 100%), KPS Makassar Strait (UNOCAL 50%, Mobil Oil 50%) at Seno and Merah Besar, KPS Selulu (UNOCAL 80%, Lasmo 20%), KPS Rapak (UNOCAL 60%, Mobil Oil 30%, Lasmo 10%) at Janaka Utara, Bangka, Aton, Nakula, and KPS Ganal (UNOCAL 80%, Lasmo 20%).

The area of the KPS owned by UNOCAL Indonesia is about 20,700 square kilometers off the coast of East Kalimantan, with fifty-three drilling sites and four hundred eleven (411) oil and gas wells. Fields/drilling sites already in production are Attaka, Melahin, Kerindingan, Santan, Sepinggan, Seguni, and Pantai Yakin, with an average daily production of crude oil of 58,651 barrels and natural gas production of 222 million cubic feet (1998). The export destinations for this gas are Japan, Korea and Taiwan.

UNOCAL's offshore drilling locations are divided into two sectors, that is: Northern Offshore East Kalimantan, which is sent to Terminal Tanjung Santan in Marangkayu, Kutai; and the Southern Coast of East Kalimantan, which is sent to Terminal Lawe-Lawe in Panajam, Pasir District. Oil and gas fields in the North operate nine production fields including Attaka field, Melahin/Kerindingan field and Santan. Attaka field forms the largest offshore oil and gas field in Indonesia. The respective distance of these fields from Terminal Tanjung Santan are: Attaka, 15 nautical miles, with an average depth of 200 ft.; Melahin/Kerindingan, 20 nautical miles, with an average depth of 100 ft.

Facilities at Attaka include: a production well and a remote platform, a production platform and a compressor (collecting and shipping), an employee housing facility, transport, utilities, and waste processing facility. Facilities at Melahin/Kerindingan field are a production well and remote platform, collection platform, housing facilities, transport, and utilities.

Besides the two drilling fields mentioned, there is also Terminal Tanjung Santan on land. The terminal touches directly on the people and all their activities. Before the spreading out of the villages, Terminal Tanjung Santan was located in the administrative area of Sebuntal Village, but since 1977 it has become a border area between Sebuntal Village and Persiapan Semangkok Village. The limits of its area are formed by: Persiapan Semangkok in the north, Marangkayu in the south, Rapak Lama in the east, Sebuntal in the west, and Terusan in the southeast.
The primary functions of Terminal Tanjung Santan are: processing oil and gas from Attaka, Melahin/Kerindingan, Santan and its environs; storage of oil and gas, shipment of natural gas to the East Kalimantan fertilizer factory, and export of crude oil and liquid propane. Supporting facilities include an oil processing plant, a gas production facility (Lex Plant), storage tanks, shipping facilities, and waste management facilities.

The principal environmental management activity at Terminal Tanjung Santan is the problem of waste management and the development of a green strip around the terminal. The waste produced by the terminal consists of gas waste materials originating from the remains of excess gas from the gas boot, burned gas, and from the Lex Plant; the second type of waste is the water which is separated from the oil and originates in the oil separators, intermittent drain from the water tank, and water separated by the process of gas purification; the third kind of waste is oil sludge which originates from the settling of the storage tanks; and the fourth is solid waste from packing materials such as drums and crates.

Village Monograph

In the environs of Terminal Tanjung Santan are located two villages which border directly on the terminal: Sebuntal Village, consisting of Marangkayu, the government center for the subdistrict, and Terusan; the other village is Persiapan Semangkok, consisting of Rapak Lama and Tanjung Batu.

Sebuntal Village

Sebuntal Village covers an area of 39,200 hectares, and borders on the north with Persiapan Semangkok Village, on the south with Tanjung Limau, on the west with Barat Perangat, and on the east with the Makassar Strait. It is located 95 kilometers from the provincial government center of Samarinda. The government center for the village is Marangkayu, which is also the government center for Marangkayu subdistrict. Travel time to reach Marangkayu is 2 - hours by land using the Samarinda--Muara Badak--Marangkayu route, or the Samarinda-Perangat-Marangkayu route.

The population of Sebuntal Village consists of 65% Bugis Makassar, 15% Javanese, 10% Torajans, and the rest of Madurese, Butonese, and Minahasans. Of these, 67% make their living by farming, 11% by trade and services, 10% by fishing and farming, 8% are employees and civil servants, and 4% by other means. The principal product of farming is rice. Fishers live in Kampung Terusan, to the southeast of Terminal Tanjung Santan and about one kilometer from the mouth of the canal.

Persiapan Semangkok Village

Semangkok Village covers an area of 185,000 hectares. On the north is Kersik Village, on the south is Sebuntal Village, on the west is Sapari and on the east is the Makassar Strait. The government center for this village is located in Rapak Lama. The distance from Samarinda, the provincial government center, is about 110 kilometers and from Marangkayu about 10 kilometers. Rapak Lama can be reached by land following the Samarinda-Muara Badak-Marangkayu-Rapak Lama route. It is difficult to reach Rapak Lama by land starting from the Muara Badak-Marangkayu-Rapak Lama route because the road is still clay, and in the rainy season, the road between Rapak Lama and Marangkayu is hard to pass with a vehicle.

The population of Semangkok are 90% Bugis Makassar and 10% are other ethnic groups such as Javanese, Banjarese, and Madurese. Farmers growing rice in bounded fields and other crops in gardens make up 80% of the population. 12% are fishers, 5% provide services and 3% are employees and village administrators. The primary agricultural product is rice. Since the 1990s, the farming system has received funding support by the president (Suprainsus=Instructed President Grant) so that Rapak Lama has become one of the Rice Barns (grain bins) of East Kalimantan. The richness of the agriculture is underlined by the fact that the village accomplished Panen Raya (successful harvest within the entire area) for three times (1992, 1993, 1996) and twice received commendations from the Agricultural Authority for Food Crops in East Kalimantan. It won third prize twice in consecutive years (1994 and 1995).


UNOCAL TAILING PIPE FLOODED: RICE FIELDS IN MARANGKAYU CONTAMINATED

Due to heavy rains, another flood occurred in Rapak Lama village, Marangkayu subdistrict, East Kalimantan, in early Friday, 11 February 2000. Unfortunately, just like two years ago, the flood has brought not only rainwater, but also toxic tailing and chemicals from UNOCAL's processing plant. Similar incident two years ago (1998) happened in a much larger scale when a heavier flood caused the company's tailing pipe to overflow and washed its toxic content into local rice fields, which contaminated over 417.5 hectares (Ha) of the locals' rice fields and killed the entire crops. In fact, the contamination was so severe that up to now the said rice fields still have not been able to produce anything. This time, although the flood was not as heavy, it managed to cause the exact same tailing pipe to overflow again, destroyed the bunds (dikes between rice fields) nearby, and washed the tailing and chemicals--spilled out of their containers--into the same rice fields which were still left barren since nothing has not been able to grow out of the soil.

In the afternoon, a local noticed milky-white water with foams and brownish blobs on the surface around the plantation, in its irrigation gutters, and the mouth of the pipe close to UNOCAL factory fence. Half an hour later, the local and Buhaira, Coordinator of LMPLH, the local community organization, took water samples and then contacted the company's PR officer who passed the information to the superintendent. Soon afterwards, company and community representatives gathered and took water samples from five different locations and sealed the bottles--witnessed by all parties involved. Two bottles of samples were taken from each location;one for the company's laboratory and the other given to the community for independent tests. Meanwhile, water kept coming out of the overflowed pipe. In the evening, UNOCAL workers removed the brownish blobs on the surface of the water, yet the water remained milky white with foams. Later, the head of Marangkayu District Police (Kapolsek Marangkayu) and one of UNOCAL's security personnel visited the two damaged bunds and the mouth of the pipe where the tailing-carrying water came out and was heard commenting "regretfully". They were heard to have said, "If only the security have had covered the bunds and the pipe-mouth with sand earlier in the morning, none of the locals would have been able to discover them."

Later at night, documents for the water samples were put together and signed by both the company and the community representatives involved. One important point of the document stated that the samples must be examined in an independent laboratory in compliance to the previous agreement between the company and the community. The next morning, company personnel removed the chemical containers whose half of its content spilled and washed away by the flood. They also removed the broken pipe, which led to the rice fields and covered and levelled the hole with soil.

At the moment, LMPLH with the help of JATAM KALTIM (JATAM East Kalimantan), is still waiting for the results of the samples from a local trusted laboratory. They hope the results will give the community enough hard evidence to have the dispute between them and the company finally settled - for the community's advantage.

The dispute between the community and UNOCAL plus two other oil/gas companies, Vico and Total Indonesie, have started early last year. The community of three subdistricts (Marangkayu, Anggana, and North Samarinda) living on the coast of East Kalimantan have reported that the companies' operations have severely contaminated their environment. Hectares of rice fields, fish/shrimp embankments, and plantations were severely contaminated by the waste of their oil-processing plants. Tailing is dumped in a 100-metre distance from the beach causing the local fisher folks to lose their livelihood since their daily catch smell of oil and unfit for human consumption. Their previously white-sand beach is now brown and the air is filled with the suffocating stench of crude oil.

The community through their local organization, LMPLH (Institute for the Environmentally Concerned Community), and the assistance of JATAM KALTIM (JATAM of East Kalimantan) is currently carrying legal action against the three companies.

Meanwhile, in Jakarta, in a hearing session on February 15, 2000 with the Commission VIII of the Peoples' Representatives Council, Pertamina's Managing Director, Martino Hadianto, revealed the founding of the auditor PricewaterhouseCoopers (PwC) of 159 collusion, corruption, and nepotism projects in Pertamina. He also confirmed that family members of the former president, Suharto, were also involved, yet he refused to give out their names to the press. [E]


1 | 2 | 3 | Previous: The Effects of UNOCAL's Operations in East Kalimantan

Home | What are ECAs? | The Problems | Goals | Take Action! | Press Room | About Us For Questions or Comments, email info_at_eca-watch.org
To report broken links and/or technical difficulties, email webmaster_at_eca-watch.org
View our Privacy Statement