Palm oil firms bring no direct benefits for W Kalimantan: governor

Pontianak, W Kalimantan (ANTARA News) - The presence of palm oil companies in West Kalimantan has brought no significant benefits to the locals, instead, its operation has damaged roads in the region, West Kalimantan Governor Suratmidji said.

"Recently, Mr President said that palm oil company should build their own road. I told Mr Jokowi, there is no such thing. Instead, they passed the state and provincial road, and damaged them," Sutarmidji said here on Monday.

Despite the claims that West Kalimantan is the largest crude palm oil producer in Indonesia, the provinces budget showed that mining and plantation sector did not give significant contribution to it.

"The state only received 10 percent from palm oil and mine concession in West Kalimantan," he asserted.

The governor took the example of road condition in Sintang district, which are seriously damaged because many heavy-loaded trucks from seven plantation firms passed the road.

Those companies only provided small amount of funds to fix the roads.

"They only give us some Rp20 million, while they have turned the road into porridge. I reject the money," he noted.

The governor has called on the Environment and Forestry Ministry to uphold the law and adhere to procedures regarding to the issuance of license for plantation and mining firms in West Kalimantan.

"A called on the Environment and Forestry Ministry to be firm in providing concession for palm oil plantation firm, especially those in peatland areas," he said, adding that most companies have opened new plantation by burning the land.

Source: ANTARA News

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