Residents of Bahodopi district in Morowali, Central Sulawesi, have demanded that nickel producer PT Inco pay them compensation as part of a settlement for their confiscated community lands.

Gathered at a peaceful rally Tuesday, the residents also asked for the Morowali regency administration and the local legislative council to take responsibility for the case, urging them to issue land certificates commensurate with the confiscated land.

The villagers also briefly sealed off Inco's representative office in Lelee village in Bahodopi and blockaded the company's 9-kilometer road to Onepute Jaya village in Bungku Tengah district.

They threatened to extend their blockade until there was an agreement between the residents, Inco management and the Morowali administration. However, their demands were made in vain, with only security guards in the office at the time.

Onepute Jaya village head M. Jalam expressed concern over the refusal by Inco to meet the protesters, despite the residents already informing the company they would be holding a rally there.

The rally was held as a follow-up to a Set. 9, 2008, agreement in Soroako, Southeast Sulawesi, on the settlement of the land dispute.

Central Sulawesi Governor Bandjela Paliudju previously urged Inco to begin tapping the nickel potential in the Bahodopi block as soon as possible., threatening to get the central government to revoke Inco's working contract if it did not do so.

"If, by the end of this year, Inco fails to realize its plan to build a nickel factory in the Bahodopi block, we will invite other investors to replace it," he said.

"Inco would have to give guarantees on ecological conservation.

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The governor made the threat after learning that Inco had reportedly not exploited nickel in Bahodopi in order to focus on its nickel mining in Pomalaa, Southeast Sulawesi.

"Be firm: If Inco doesn't want to build a factory here, please then leave Central Sulawesi," he said.

Muharram Nurdin, a member of the Central Sulawesi Legislative Council, said Inco had to reposition its capital to enable local administrations to have equity shares, to allow local residents to enjoy existing mining assets.

He said exploring and building a factory as soon as possible was not a solution that served the people's interest.

"If we want to help alleviate poverty, let the residents enjoy the resources they possess through the provision of shares," Nurdin said.

However, Wilianita Selviana, director of the Central Sulawesi branch of the Indonesian Forum for the Environment (Walhi), was opposed to Inco's presence at Bahodopi.

She said if Inco insisted on staying there, it would have to give guarantees on ecological conservation and clarity over the local administration's shares.

"If Inco can give the guarantee on the ecological conservation and grant share ownership, then just go ahead. But if not, we will continue opposing it," Selviana said.

When asked for confirmation from Palu, Central Sulawesi, on Friday, Inco spokesman Iskandar Siregar said that because the Bahodopi block did not deal with only one sector, he was still waiting for confirmation from the Morowali branch.

"This is a complex problem. So in order not to create further confusion or misunderstandings, I cannot give further explanations on the case," he said.

He added his refusal to explain was in line with the company's internal policy

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