Get Compensation For Oil Refinery Land, Tuban Residents Buy Luxury Cars

Screenshot from Twitter

SURABAYA - Netizens were shocked by the video recording showing residents of Sumurgeneng Village, Jenu District, Tuban Regency, East Java buying a new car. Residents bought 17 new cars.

Uniquely, dozens of luxury Toyota cars were sent to residents' homes by being transported using towing trucks while being escorted by police escort patrol cars (Patwal).

The video recording, which lasted less than a minute, was busy on social media (medsos) after being uploaded by an account named Datangana to the Tuban Information Network (Jitu) Facebook group with the information "Barokallah and three emoticons with hands looking up". Suddenly the post was flooded with comments.

The residents' action to buy luxury cars was justified by the Head of Sumurgeneng Village (Kades), Gihanto. The car was bought from Surabaya by residents using money from land compensation for the oil refinery project.

"Yes, it's true, residents bought them in groups on last Sunday (14/2). A total of 17 cars were purchased, all of which were Toyota brands," he said, confirmed, Tuesday, February 16.

According to him, the residents bought the new car using money originating from the payment of land compensation for the Tuban Refinery project or the New Grass Root Refinery (NGRR) in the Jenu District area. They have taken land compensation money through the process of determining the consignment at the Tuban District Court (PN).

"The residents have taken land compensation money through consignment and some of the money is used to buy cars," said Gihanto.

Gihanto explained that in this village, there are 176 new cars that have been purchased by residents since they received compensation money for oil refinery land to date. Where, one resident bought 2 to 3 cars using the money.

"There are about 176 new cars purchased by residents, not even used cars. Residents buy with money from the land acquisition for the refinery project. One person buys two to three cars," he said.

In Sumurgeneng Village, there are about 280 residents or land owners who have been affected by the oil refinery construction project. All residents have agreed to sell their land for the construction of the National project.

"All Sumurgeneng residents have agreed to sell their land for the construction of an oil refinery," said the village head who also bought a new white Avanza car.

The compensation price for land owned by residents is around Rp. 680,000 per square meter. The Public Appraisal Service Office (KJPP) has decided to determine the value of land prices belonging to the residents after calculating the price through appraisals. "The price for land compensation here is around Rp. 600 thousand and the highest is Rp. 800 thousand per square meter," he said.

On average, residents of Sumurgeneng Village get compensation money for land for an oil refinery construction project of IDR 8 billion. In addition, compensation received by residents is at least Rp 35 million and a maximum of Rp 28 billion.

"At most, around Rp. 28 billion, those are Surabaya people who have owned land here for a long time," he said.

He explained that 90 percent of residents who get land compensation money for the oil refinery project are used to buy cars. Then, about 75 percent of the residents who received the money bought more land and 50 percent of the residents used it for renovating their houses.

"For very small or minimal businesses. On average they want to enjoy it first," he explained.

Meanwhile, Mulyadi, one of the residents, admitted that his friends had taken or received land compensation money for the oil refinery project. Where, some of the money is used to buy new and used cars.

"Yes, many people buy cars," said Mulyadi.

The oil refinery construction project in Jenu District costs USD 15 billion to USD 16 billion or around IDR 225 trillion (assuming an exchange rate of IDR 14,084, red). This project occupies an area of approximately 900 hectares.

Of the area of land, the total land area of residents affected for this oil refinery project is 529 located in three villages in Jenu District, Tuban. The three villages are Wadung, Kaliuntu, and Sumurgeneng.