East Luwu Government and PT Vale Collaborate to Ensure Fair and Transparent Solutions for Affected Communities

East Luwu, September 6, 2025 - Recovery efforts following the oil pipeline leak incident in Towuti District on August 23, 2025, continue to prioritize transparency, fairness, and collaboration. On the 14th day of the emergency response, the East Luwu Regency Government and PT Vale Indonesia Tbk (PT Vale) presented a comprehensive solution framework to affected residents, covering impact classification, compensation schemes, and an extension of the emergency response period.

The public briefing was held in two sessions: the first with residents of Lioka Village at the Towuti Subdistrict Office, and the second with representatives from Langkea Raya, Baruga, Wawondula, Matompi, and Timampu Villages at the East Luwu Regent's Office on Friday, September 5.

East Luwu Regent Irwan Bachri Syam explained that a joint assessment team-comprising technical agencies, the Regional Disaster Management Agency (BPBD), subdistrict officials, and PT Vale-had been deployed since day one. The assessment identified impact categories including rice fields, plantations, fish ponds, poultry, livestock, fishing activities, and water wells, with severity levels ranging from low to high. A compensation mechanism was formulated to ensure fairness and certainty for affected residents.

As part of the comprehensive recovery effort, the Regent also announced an official extension of the emergency response period until September 12, 2025, to allow for the completion of oil residue cleanup in the field. "God willing, we will see this through to completion. PT Vale has reaffirmed its commitment, and we will continue striving to meet the community's expectations with the best possible solutions," he stated.

Lioka Village Head Yuliana expressed optimism about the proposed compensation scheme. "This is a wise decision by the Regent and PT Vale. Our community feels reassured knowing there is clarity and continuity for their livelihoods. We hope the follow-up actions will be carried out cleanly and transparently," she said.

Timampu Village Head Samsul echoed similar sentiments. "Many farmers delayed harvesting due to concerns over contamination. Now, with this clarification, they have the confidence to proceed. I've advised residents to harvest and store their crops with peace of mind," he explained.

PT Vale's Director and Chief of Sustainability & Corporate Affairs Officer, Budiawansyah, emphasized the company's support for the agreed-upon mechanisms. "We are committed to strengthening collaboration with the East Luwu Government and all stakeholders to implement the proposed solutions. Our guiding principles are clear: fairness, transparency, and responsiveness to community needs," he affirmed. Budiawansyah added that the company's actions go beyond corporate responsibility, forming part of a long-term, safe, and sustainable solution. PT Vale is also prioritizing a science-based approach to resolution and recovery.

PT Vale's Head of External Relations, Endra Kusuma, noted that recovery efforts extend beyond compensation. "Our commitment has remained unchanged since day one: to address community concerns with the best possible solutions. In addition to compensation, we've engaged independent experts to conduct regular assessments to ensure no lingering social, health, or environmental impacts," he concluded.

The collaboration between the East Luwu Government, PT Vale, the Regional House of Representatives (DPRD), police, military, and local communities has been instrumental in ensuring a fair and comprehensive recovery process. The extension of the emergency response period until September 12, 2025, underscores the collective commitment to seeing the recovery through, enabling Towuti to heal and its residents to resume their lives with confidence.