Got Money From Pertamina, Tuban Residents Bought Pajero Sport Cars, Etc. Indef: Better To Buy Livestock

Illustration (Photo: Unsplash)

JAKARTA - Land acquisition for an oil refinery construction project in Sumurgeneng Village, Jenu District, Tuban Regency, covering an area of 21,410 meters has made residents of Sumurgeneng Village, Jenu District, Tuban Regency, East Java become billionaires. After receiving payment, they bought the car together.

Not long ago, the arrival of 17 new cars in the village went viral. Not all cars were sent. This is because the number of cars bought by residents was 176 units. In fact, one house has bought two to three new cars, from the Mitsubishi Pajero Sport, Toyota Fortuner, to the Toyota Innova Venturer.

The number of affected residents reached 280. They agreed that their land would be sold for a national project. Pertamina pays in the range of IDR 600 to IDR 800 thousand per meter. In fact, there were residents who received compensation of up to IDR 26 billion.

Director of the Institute for Development of Economics and Finance (Indef), Tauhid Ahmad said buying a car was the right of the Tuban residents. However, he said, it would be unfortunate if the money from the land compensation payments was used to buy two to three units of cars.

Pajero Sport. (Photo: Doc. Mitsubishi Motors)

According to him, when Pertamina gave the money, an understanding should also be given to the people who accepted how the money could be useful in the future. Supposedly, the large budget issued by Pertamina can be used for investment purposes.

"It would be better if the money is used to buy something in the productive sector. Whether it is for buying livestock, (so that) they can work to get a higher profit. It is not prohibited to buy a vehicle, but don't spend it on the consumption sector. Spare the money," he said, when contacted by VOI, Thursday, February 18.

Pertamina pays compensation for people's land in the new grass root refinery (NGRR) oil refinery construction project referring to Law Number 2 of 2012 concerning Land Acquisition for Development for Public Interest.

The law states that the form of compensation for community land affected by national projects cannot only be given in cash. This is owed in Article 36 of Law Number 2 of 2012, which reads:

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"Compensation may be given in the form of, money, land replacement, resettlement, share ownership, or other forms agreed by both parties."

Pertamina has provided financial management training to Tuban residents

Long before the viral action of buying cars by Tuban residents who became billionaires from compensation for oil refinery land, PT. Pertamina (Company) had provided assistance and fund management training to residents affected by the construction of the Tuban Refinery, East Java.

The activity which took place on Wednesday, March 4, 2020, was given specifically to 50 residents of Wadung Village, Jenu District, Tuban Regency, East Java. The hope is that the community will be able to manage funds originating from profit compensation for the construction of the Tuban refinery wisely and precisely.

The activity was also attended by the Airlangga University Community Service and Development Institute (LPPM), Jenu sub-district head, representatives of village heads, RT (Neighbourhood Association) and RW (Community Association) in areas affected by the construction of the Tuban Refinery.

Senior Supervisor of CSR and SMEPP Pertamina MOR V Rusminto Wahyudi said that in this assistance the community was given understanding and knowledge about Pertamina's Corporate Social Responsibility (CSR) and community economic empowerment, especially for land-owners whose land was affected by the construction of the mega project.

"In the initial mentoring, we gave out socialization and continued with the practice, so that residents would better understand what CSR is and how to get it," said Rusminto, as quoted from Pertamina's official website, Friday, February 19.

Activities at Pertamina's Factory. (Photo: Doc. Pertamina)

Rusminto said Pertamina would find solutions for the community, including farmers who did not want to change their professions after being replaced by Pertamina for the construction of refineries.

"This meeting will be followed up with communication and socialization so that residents can quickly compile a CSR program according to the needs in the field. Pertamina ensures that this CSR must be on the target directly to the recipient," he said.

Meanwhile, Acting Manager of Pertamina CSR Audy Arwinandha Nasution said there was a need for understanding and training in fund management for the community. This is to anticipate that the people who receive money for the benefit of the land can manage their finances wisely and appropriately.

Furthermore, Audry said, this financial management training was conducted by Pertamina together with LPPM Universitas Airlangga.

"Pertamina is collaborating with LPPM Universitas Airlangga in financial management training and assistance. This financial management assistance will be sustainable and the goal is for the public to manage their finances wisely and appropriately. As long as refinery residents need it, Pertamina always gives the best because it has been assigned by the state," Audy stated.

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