Made Arya Kencana, Denpasar – Residents in Jimbaran, Bali, are suing a son of former President Suharto for Rp 212 billion ($23.3 million) over a land deal in Pecatu village.
In the opening session on Friday at the Denpasar District Court, the plaintiffs' lawyer, Made Arjaya, said it had been more than 15 years since the deal and residents were still waiting for promised compensation.
In October 1995, the Bali government signed a deal with developer Bali Pecatu Graha, owned by Hutomo Mandala Putra, who is better known as Tommy Suharto, to swap parcels of land.
The company received 123 hectares of land located in the famous beach district of Jimbaran from the Bali administration. In exchange, Pecatu Graha provided the government with 186 hectares of farmland in other parts of the island.
According to the deal, the plaintiffs said, Pecatu Graha was required to rebuild the homes of displaced farmers and provide them with 200 square meters of farmland each.
"The residents, who are mostly farmers, have not fully been granted their rights, while Bali Pecatu Graha has built numerous facilities in the area, including resorts, condominiums, hotels, discotheques, golf courses and water parks," Arjaya told the court in his opening statement.
The plaintiffs are also suing Bali Governor Made Mangku Pastika, as a representative of the Bali administration, for failing to monitor the progress of the compensation efforts.
The company, Arjaya said, had offered some compensation for the displaced villagers, "but the amount given was not in line with the agreed terms."
He said Pecatu Graha still owed residents Rp 151 billion in compensation for their land, Rp 54 billion for lost crops and Rp 6.2 billion for the loss of their homes. The people of Pecatu village are also seeking Rp 20 billion in punitive damages.
The court, presided over by Judge Istiningsih Rahayu, is scheduled to hear opening arguments from Pecatu Graha and the Bali administration when the trial resumes next week.
Lawyers for the company and the Bali administration declined to comment after Friday's hearing, saying that they were still studying the plaintiffs' demands and arguments.