A wild west frontier on Sumatra’s east coast; The Pekanbaru-Dumai Road

Abstract

With the introduction of Keputusan Presiden 55/1993, oil drilling is no longer defined as a common good for which people can be forced to give up land. [...]since 1993, Caltex no longer receives land through government mediation, and must negotiate the price directly with the owners.8 There is considerable room for haggling and the price varies from time to time, place to place, and sometimes neighbour to neighbour. After the Caltex road has been made and access to forest resources has been improved, land prices soar. [...]plots of land along Caltex roads are popular objects for speculation. Whenever a Caltex road crossing a plantation is opened, local people have easier access to the trees, and theft of oil-palm kernels and rubber increases. Villagers usually make their own connection to the operational road quickly. Since roads are vital to loggers, they are a popular target to use as 'hostages' whenever a conflict arises between villagers and a company.