Vale faces Order to Compensate South Sulawesi Farmers After Pipeline spill damages rice Fields
Jakarta. Vale Indonesia is being directed by the Indonesian 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 incident has resulted 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 about the environmental and economic impact of resource extraction in the region. The government is prioritizing the restoration of affected farmland and ensuring timely compensation for impacted farmers, with the Agriculture Ministry currently verifying the extent of the losses. This situation highlights the critical balance between industrial growth and the protection of agricultural livelihoods in Indonesia.
Deputy Agriculture Minister Sudaryono informed lawmakers during a parliamentary hearing with Commission IV in Jakarta on Tuesday that “30 hectares of rice fields were impacted, leading to failed harvests. The affected area has already been isolated as part of mitigation efforts.”
Sudaryono confirmed that Vale’s management has committed to taking full obligation and compensating the affected farmers, though the total amount of damages is still under assessment. “A team from the Agriculture Ministry will also conduct on-site verification of the losses,” he added.
The government is accelerating coordination between central and local authorities to expedite the recovery process and deliver compensation. South Sulawesi Governor Andi Sudirman Sulaiman previously emphasized Vale’s complete accountability for the leak, citing damage to both the environment and the agricultural sector.
