Vale faces Order to Compensate โSouth Sulawesi Farmers โAfterโฃ Pipeline spill damages rice Fields
Jakarta. Vale Indonesia is being directed by the Indonesianโข government to provide compensation to farmers in South Sulawesi following a recent oil pipeline leak that devastated approximately 30 hectares of rice paddies in East Luwu regency’s Towuti district. The โincident has โฃresulted in widespread crop failure and financial hardship for local agricultural communities.
The spill, which occurred last month near Vale’s mining operations, underscores growing concerns โคabout the environmental and economic impact of resource extraction in the region. The government is prioritizing the restorationโ of affected farmlandโข and ensuring timely compensation โคfor impacted farmers, with the Agriculture Ministry currently verifying the extent of the losses. This situation โhighlights the critical balance between industrial growth and the protection of agricultural livelihoods in Indonesia.
Deputy Agriculture Minister Sudaryono informed โlawmakers during a parliamentary hearing with Commissionโข IV in Jakartaโค on Tuesday that “30 hectares of โrice fields were impacted, leadingโค toโค failed harvests. The affected area has already been โฃisolated as part of mitigation efforts.”
Sudaryono confirmed that Vale’s management has committed toโฃ taking full obligation and compensating the affected farmers, though the total amount of damages is stillโค under assessment. “A team from the Agriculture Ministry will also conduct on-site verification โof the losses,” he added.
Theโ governmentโข is accelerating coordinationโ between central and local authorities to expedite โthe recovery process and deliver compensation. South Sulawesi Governor Andi Sudirman Sulaiman previously โฃemphasized Vale’s complete accountability โขfor โขthe leak, citing damage to bothโ the environment and theโ agricultural sector.