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Vale Ordered to Pay Damages for Rice Field Losses From Pipeline Spill

Muhammad Farhan
September 16, 2025 | 10:20 pm
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FILE - An employee of Vale Indonesia pours nickel ores into a smelting machine at the company's mining site in East Luwu regency, South Sulawesi, Wednesday, May 27, 2015. (JG Photo)
FILE - An employee of Vale Indonesia pours nickel ores into a smelting machine at the company's mining site in East Luwu regency, South Sulawesi, Wednesday, May 27, 2015. (JG Photo)

Jakarta. The Indonesian government has urged mining company Vale Indonesia to compensate farmers in South Sulawesi whose rice fields were damaged by a recent oil pipeline leak.

Deputy Agriculture Minister Sudaryono said the incident, which occurred near Vale’s mining operations in Towuti district, East Luwu regency, affected about 30 hectares of rice paddies, causing crop failures and financial losses for local farmers.

“Regarding Vale’s pipeline leak, we report that 30 hectares of rice fields were impacted, leading to failed harvests. The affected area has already been isolated as part of mitigation efforts,” Sudaryono told lawmakers during a parliamentary hearing with Commission IV in Jakarta on Tuesday.

He added that Vale’s management has pledged to take responsibility and compensate affected farmers, with the exact damages still being calculated. “A team from the Agriculture Ministry will also conduct on-site verification of the losses,” Sudaryono said.

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He said the government is expediting coordination between central and local authorities to restore the farmland and ensure farmers receive their compensation.

South Sulawesi Governor Andi Sudirman Sulaiman had earlier stressed that Vale must take full responsibility for last month’s pipeline leak, which he said harmed both the environment and the agricultural sector.

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