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Govt takes over shrimp pond project in Lampung to end lengthy dispute

Following the prolonged conflict between local shrimp farmers in Ramajitu, Mesuji regency, Lampung, and their nucleus company, the government has finally decided to take over the shrimp pond project, which was once billed as the largest in Southeast Asia

Oyos Saroso H.N. (The Jakarta Post)
Bandarlampung
Fri, August 5, 2011

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Govt takes over shrimp pond project in Lampung to end lengthy dispute

F

ollowing the prolonged conflict between local shrimp farmers in Ramajitu, Mesuji regency, Lampung, and their nucleus company, the government has finally decided to take over the shrimp pond project, which was once billed as the largest in Southeast Asia.

According to the terms of the takeover, the project, which was formerly developed under the nucleus estate and smallholders scheme, will be changed into a “minapolitan” concept, or integrated fishery zone.

Under the new concept, the nucleus company PT Aruna Wijaya Sakti (AWS) will no longer be a dominant player. PT AWS may even possibly be ousted from the program and be replaced by the government.

“We cannot just abandon the thousands of smallholders whose livings have for years depended on the shrimp ponds,” Maritime Affairs and Fisheries Minister Fadel Muhammad said in Lampung on Thursday.

Months of conflict between PT AWS and local fishermen had resulted in a number of riots, intrigues and the cutting of electrical supply by the company. It prompted the National Commission on Human Rights to come to Mesuji, and the House of Representatives to summon the company’s spokespeople.

“With the change in the structure, the government will help provide the fishermen with production facilities, including the hatchery facility, the baby shrimps and electricity supplies. We will change the former Dipasena shrimp pond into a shrimp ‘minapolitan’,” said Fadel, adding that the hatchery facilities would be built on the site and not elsewhere.

“I will talk to members of the House of Representatives about the budget for this project,” he said.

To help maintain the production, the ministry has provided the fishermen with 100 generators each with a capacity of 1,500 watts, 20 tons of rice, and Rp 1.5 billion (US$176,500) in cash. As for electricity, a supply of up to an estimated 20 megawatts will be provided by state electricity company
PT PLN from Bukitkemuning, North Lampung.

The former Dipasena shrimp pond had been managed through the nucleus estate and smallholders scheme since 2007. Covering an area of 16,250 hectares, it involved 7,512 fishermen. Since May 7 this year, PT AWS stopped the operation and the electricity supply, arguing that the business climate was no longer conducive.

Fadel said that PT AWS could no longer manage the partnership pattern and that the government had ceased all forms of negotiation with the company. “It’s finished, done. It has collapsed,” he said.

He added that the central government had promised to increase the rice aid for all the fishermen from the current level of 4 tons per month up to 20 tons. It will be provided until all the fishermen successfully return to their business again and are back to normal production.

PT AWS communication division head Tarpin A. Nasri and corporate communications manager of PT CP Prima (the holding company of PT AWS), George H. Basoeki, declined to comment on the change in the partnership status of the shrimp pond.

The pond has been the livelihood for thousands of local fishermen, who previously demanded termination of their employment from PT AWS. It was later dropped on one condition: that PT AWS revitalize the pond so as to increase production and improve the fishermen’s welfare. However, the revitalization was never finished.

The fishermen considered PT AWS to have defaulted on the agreement, with the result that they were unable to make even a basic living. On average, most of the fishermen owe debts of between Rp 80 million and Rp 100 million to the company.

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