Our Commitment to Minimizing Social and Environmental Impact
On 23 August 2025, an oil pipeline leak occurred in Lioka Village, East Luwu Regency, South Sulawesi. PT Vale immediately activated its Emergency Response Group (ERG) and coordinated with government authorities, community representatives, and relevant agencies to contain and mitigate the incident.
Three phases of crisis management
Respons
Respons
Respons
PT Vale Indonesia Tbk expresses deep concern over the pipeline incident that occurred in Lioka Village, Towuti Subdistrict. We understand that this situation has affected both the environment and the lives of the surrounding community. As part of our responsibility, we have initiated a comprehensive recovery plan that addresses environmental and social aspects, with the primary goal of ensuring safety, sustainability, and reassurance for the community.
Environmental Recovery
Pipeline Area: The affected pipeline area has been secured and cleaned. Oil booms and oil traps have been installed to prevent further spread, and containment ponds have been built to collect residual oil.
Ecological Restoration
Flora: Assessment and restoration of affected vegetation are underway.
Fauna: Wildlife monitoring is being conducted to ensure habitats remain safe.
Waste Management: Recovered oil and contaminated materials are being safely stored and processed in PT Vale’s licensed hazardous waste facility, in accordance with environmental standards.
Land Management: Soil testing is ongoing. Remediation techniques, including bioremediation, will be applied to restore land health and usability.
Social Recovery
Agrarian Support
Rice Fields:PT Vale is working closely with local governments and farming communities to assess the condition of affected rice fields and provide support through soil recovery, replanting assistance, and livelihood protection.
Non-Rice Fields: Other agricultural lands are also being evaluated to ensure all affected livelihoods are considered.
Public Facilities
Access: Roads and pathways to affected areas are being repaired to ensure safe access for residents and recovery teams.
Irrigation Channels and Dam: PT Vale is inspecting and cleaning irrigation channels and nearby dams to ensure they remain safe and functional. Structural assessments are being conducted, and any necessary repairs will be coordinated with local authorities.
This recovery plan reflects PT Vale’s commitment to assure the community that recovery efforts are thorough, collaborative, and focused on long-term sustainability. We are working hand-in-hand with local authorities and residents to ensure that life in Towuti continues safely and steadily.
Photo: PT Vale Indonesia Tbk
Response Phase
Response measures included securing the affected area, deploying oil booms and containment systems, conducting environmental monitoring, and managing recovered oil and contaminated materials in compliance with regulations. Land remediation and bioremediation were also undertaken where necessary.
Photo: PT Vale Indonesia Tbk
On August 23 at 07:30 WITA, one of PT Vale Indonesia Tbk’s pipelines sustained damage in Lioka Village, Towuti District, East Luwu Regency. In response, the company promptly activated its Emergency Response Group (ERG), following the government’s declaration of emergency response status from August 23 to September 5.
Initial mitigation efforts included identifying the leak source and the first impacted areas—Point 1 and Point 2, both located in Lioka Village. A containment pond was immediately constructed at the leak site, and oil recovery and cleanup operations commenced in the affected river area.
- Hulu: Isolasi pipa yang bocor, Pengerasan jalan, NDT (thickness, penetrant), instal tangga, housekeeping absorbent, penyedotan MFO.
- Titik 1: Pembersihan MFO di irigasi, penyedotan pond, mobilisasi fuel truck.
- Titik 2: Pembersihan & penyedotan MFO ke truck.
- Titik 5: Cleaning area, mobilisasi trashbag, perbaikan pompa.
- Titik 6: Penyedotan & pengangkatan drum.
- Titik 7: Bersihkan minyak, angkut drum/trashbag, pasang boom baru.
- Titik 8 & 9: Pembendungan MFO, penyedotan di sekitar boom.
The Task Force has undertaken a series of coordinated response actions across multiple locations to mitigate the impact of the pipeline incident:
- Upstream Area: Isolation of the damaged pipeline, road reinforcement, non-destructive testing (NDT) including thickness and penetrant inspections, installation of access ladders, absorbent housekeeping, and MFO (Marine Fuel Oil) extraction.
- Point 1: MFO cleanup in irrigation channels, pond extraction, and mobilization of fuel trucks.
- Point 2: MFO cleanup and extraction into transport trucks.
- Point 5: Area cleaning, trash bag mobilization, and pump repairs.
- Point 6: Extraction and removal of drums.
- Point 7: Oil cleanup, drum and trash bag transport, and installation of new containment booms.
- Points 8 & 9: MFO containment and extraction around the boom area.
Cleanup efforts in the six affected villages—Lioka, Langkea Raya, Baruga, Wawondula, Matompi, and Timampu—showed tangible results. The Monitoring and Environmental & Social Impact Assessment Team began documenting affected land, while access routes to handling points were repaired and cleaned. EON was used to remove oil residues from riverbanks. Further steps focused on continued investigation, contaminated soil cleanup, installation of information boards at affected points, and daily recovery progress reports monitored directly by the East Luwu Environmental Agency.
Recovery Phase
Following the completion of cleanup activities in the affected area in November 2025, PT Vale continued its recovery efforts. One key initiative focused on restoring agricultural production.
As of Aug 20, 2026
91,14%
compensation settlement processed
88,75%
grievances and complaints are followed up on and resolved
Recovery Phase
Following the completion of cleanup activities in the affected area in November 2025, PTVI continued its recovery efforts. One key initiative focused on restoring agricultural production following the oil pipeline leak, which had impacted rice farming activities. This program was implemented in response to community concerns regarding potential declines in rice productivity and quality resulting from the incident.
PTVI remains committed to addressing every grievance seriously and responsibly through the Company's established grievance resolution mechanism. All concerns are handled in a transparent, fair, participatory, and accountable manner.
To support agricultural recovery, the Company has collaborated with the East Luwu Regency Government, the Towuti Agricultural Extension Center (BPP Towuti), and the Bogor Agricultural University (IPB). Together, they are implementing agricultural restoration programs in several areas, including Lioka, Baruga, Langkea Raya, Matompi, and Timampu villages.
Fotógrafo: xxxx
Recovery Phase
Following the completion of cleanup activities in the affected area in November 2025, PTVI continued its recovery efforts. One key initiative focused on restoring agricultural production following the oil pipeline leak, which had impacted rice farming activities. This program was implemented in response to community concerns regarding potential declines in rice productivity and quality resulting from the incident.
PTVI remains committed to addressing every grievance seriously and responsibly through the Company's established grievance resolution mechanism. All concerns are handled in a transparent, fair, participatory, and accountable manner.
To support agricultural recovery, the Company has collaborated with the East Luwu Regency Government, the Towuti Agricultural Extension Center (BPP Towuti), and the Bogor Agricultural University (IPB). Together, they are implementing agricultural restoration programs in several areas, including Lioka, Baruga, Langkea Raya, Matompi, and Timampu villages.
The agricultural production recovery program
- The agricultural production recovery program implemented following the oil pipeline leak that affected irrigated rice farming areas is part of the resolution of community grievances regarding concerns over potential declines in rice productivity and crop quality resulting from the incident.
- To support the recovery of agricultural production, the Company is collaborating with the East Luwu Regency Government, the Towuti Agricultural Extension Center (Balai Penyuluhan Pertanian/BPP), and IPB University (Institut Pertanian Bogor). Together, these partners are implementing agricultural recovery initiatives in several affected areas, including the villages of Lioka, Baruga, Langkea Raya, Matompi, and Timampu.
- PT Vale remains committed to addressing every grievance seriously and responsibly through the company's established grievance resolution mechanism. All concerns are handled in a transparent, fair, participatory, and accountable manner, ensuring that affected stakeholders have a meaningful opportunity to be heard and engaged throughout the process.
A. Impact Compensation Settlement
Since the first day of the oil pipeline leakage incident, the Company has remained committed to providing solutions and taking responsibility, including the transparent settlement of impact compensation through the involvement of relevant stakeholders. The process has been carried out through the following stages:
- Identification and Verification of Affected Assets, conducted by an integrated team comprising PT Vale Indonesia, the East Luwu Regency Government, the Towuti Sub-district Fisheries Extension Center (BPP), and representatives of the respective village governments.
Period: 25 August 2025 to the end of October 2025. - Development of the Compensation Scheme, involving relevant regional government agencies.
Date: 2 September 2025. - Socialization of the Compensation Scheme and Payment Process, conducted in each affected village.
Period: 7-15 October 2025. - Finalization and Adjustment of the Scheme based on community feedback.
Date: 7 November 2025. - Establishment of Village-Level Administrative Verification Teams to assist community members in preparing the required supporting documents, including identification cards, bank account information, land ownership documents, and other administrative requirements.
Date: 10 October 2025. - Implementation of the Compensation Payment Mechanism, marked by the symbolic handover of compensation by the Regent of East Luwu.
Date: 2 October 2025. - Monitoring and Evaluation.
Identification and verification of affected assets
Development of the compensation scheme
Development of the compensation scheme
Socialization of the compensation scheme and payment process
Socialization of the compensation scheme and payment process
Symbolic handover of compensation
B. Compensation Payment Progress
- As of 20 August 2026, the compensation settlement process has reached 91.14% completion, and the Company remains committed to achieving 100% completion.
- Categories of affected assets include:
- Rice fields
- Fish ponds
- Plantations/gardens
- Capture fisheries
- Fish trap (bubu) fisheries
- Agricultural businesses
- Livestock
- Lake fish vendors
- Ornamental fish businesses
- Household wells
- Agricultural wells
- Integrated rice-fish farming fields (mina padi) - Affected asset categories that have achieved 100% compensation payment completion: Capture fisheries, fish trap (bubu) fisheries, lake fish vendors, ornamental fish businesses
- Village with 100% compensation payment completion for all affected assets: Pekaloa village
C. Key Challenges and Resolution Efforts
- Unclear Land Boundaries and Ownership Areas
To address differences in land boundary claims among community members, PT Vale has facilitated field measurements using GPS technology to clearly define the boundaries of each landowner's property. - Administrative Documentation Requirements
PT Vale, in collaboration with the Government, established village-level support teams to assist community members in preparing and completing the required administrative documents. - Disagreement with Compensation Values
Some community members did not agree with the compensation scheme and therefore declined the compensation offered by PT Vale Indonesia. To address these concerns, a series of meetings and dialogues were conducted to understand stakeholder aspirations and seek mutually acceptable solutions between the Company and the affected communities. - Lack of Agreement Between Landowners and Cultivators
PT Vale accommodated separate compensation payments for landowners and cultivators in accordance with community aspirations, based on written agreements defining the proportion of entitlements allocated to each party. However, in some cases, landowners and cultivators were unable to reach an agreement. In such situations, PT Vale and the respective village governments took the initiative to facilitate mediation and support the parties in achieving a mutually acceptable resolution. - Internal System Migration Constraints
During the final stages of compensation payments, PT Vale was undertaking an internal system migration that temporarily affected the payment process. This issue has since been resolved, and compensation payments for the remaining eligible affected assets have resumed.
D. Grievance Resolution
As of 20 August 2026, the Company has followed up on and resolved 88.75% of grievances and complaints received.
The resolution of all compensation-related grievances remains ongoing in accordance with the Company's established grievance handling mechanism, which has been communicated to relevant stakeholders.
For any reports, complaints, concerns, or feedback related to the process, please reach out to the grievance hotline through the WhatsApp contact number provided below.
0811 4430 1679
PT Vale also offers an anonymous reporting mechanism through the Vale Whistleblower Channel (VWC). Please click here to access the VWC platform.
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News and Update
News and update
Sustainable Recovery: Safeguarding Lake Towuti’s Ecosystem Through Water Quality Testing
PT Vale continues its post-incident recovery efforts following the oil pipeline leak in Towuti District, East Luwu Regency, with a strong emphasis on scientific integrity and collaborative action. On the 19th day of the response, the Company has shifted its focus to ensuring the preservation of water quality in Lake Towuti—one of the region’s most vital environmental assets. More >>
Fotógrafo: xxxx
PT Vale continues to implement recovery measures following an oil pipeline leak with an open, science-based, and collaborative approach. The company’s primary focus is ensuring safe water quality in the surrounding areas while advancing a transparent, measurable, and auditable recovery process. More>>
PT Vale continues its post-incident recovery efforts following the oil pipeline leak in Towuti District, East Luwu Regency, with a strong emphasis on scientific integrity and collaborative action. On the 19th day of the response, the Company has shifted its focus to ensuring the preservation of water quality in Lake Towuti—one of the region’s most vital environmental assets. More >>
As part of this ongoing engagement, on 27 October 2025, PT Vale once again convened an open public dialogue, facilitated by Irwan Bachri Syam, Regent of East Luwu, alongside representatives of the East Luwu Regency Government and the Regional Leadership Coordination Forum (Forkopimda). More>>
To date, four villages in Towuti District—Lioka, Matompi, Langkea Raya, and Timampu—have received socialization sessions regarding the compensation disbursement mechanism. One additional village, Baruga, will be included following the finalization of the impact categorization framework. More >>
PT Vale chas confirmed significant progress in the post‑incident response following the oil pipeline leak in the Towuti area. Of the 11 response sites identified since the first day of the incident on 23 August 2025, six sites have now been fully remediated, with no visible oil residue remaining in water flow areas. More>>
PT Vale continues its post-incident recovery efforts following the oil pipeline leak in Towuti District, East Luwu Regency, with a strong emphasis on scientific integrity and collaborative action. On the 19th day of the response, the Company has shifted its focus to ensuring the preservation of water quality in Lake Towuti—one of the region’s most vital environmental assets. More >>
The joint team has intensified environmental recovery efforts through a data-driven scientific approach. Air quality monitoring has been conducted based on community reports submitted to the Complaint & Information Post. More>>
East Luwu Regency Government and PT Vale presented a comprehensive solution framework to affected residents, covering impact classification, compensation schemes, and an extension of the emergency response period. More >>
Twelve days after the oil pipeline leak incident in Towuti District, recovery efforts have entered a new phase. What began as emergency response measures in the initial days has now evolved into a more structured recovery process. More>>
In the wake of the oil pipeline leak in Towuti District, East Luwu, residents of Molindowe Hamlet in Lioka Village and Timampu Village faced a clean water crisis. More >>
An incident can be both a test and a turning point. For PT Vale Indonesia Tbk (PT Vale), the oil pipeline leak that occurred in Lioka Village, Towuti District, on August 23, 2025, marked a pivotal moment to demonstrate that recovery is not merely about addressing impacts—it is about rebuilding trust, solidarity, and a shared spirit of resilience. More>>
Five days after the oil pipeline leak incident in Lioka Village, Towuti District, the spirit of community solidarity has become a driving force in the recovery process. Not only technical teams and government officials, but also local residents have voluntarily stepped forward. More>>
On the third day following the incident, PT Vale Indonesia Tbk reiterated its full commitment to respond swiftly, transparently, and responsibly to the situation. More>>
The oil pipeline leak incident in Lioka Village, Towuti District, East Luwu Regency, on Saturday, August 23, 2025, stands as a powerful reminder that the spirit of mutual cooperation is key to overcoming crises. More >>
Grievances & Information Center
PT Vale Indonesia has opened a Grievances & Information Center at the Towuti Subdistrict Office to support affected residents.Community members can directly submit questions, feedback, or reports in person.
📞 You can also reach us via our hotline: 0811-4430-1679
💬 We welcome reports, suggestions, and feedback
Towuti Recovery Plan: Restoring Nature, Supporting Communities
As part of our responsibility, we have initiated a comprehensive recovery plan that addresses environmental and social aspects, with the primary goal of ensuring safety, sustainability, and reassurance for the community.
PT Vale Indonesia Tbk expresses deep concern over the pipeline incident that occurred in Lioka Village, Towuti Subdistrict. We understand that this situation has affected both the environment and the lives of the surrounding community. As part of our responsibility, we have initiated a comprehensive recovery plan that addresses environmental and social aspects, with the primary goal of ensuring safety, sustainability, and reassurance for the community.
Environmental Recovery
Pipeline Area: The affected pipeline area has been secured and cleaned. Oil booms and oil traps have been installed to prevent further spread, and containment ponds have been built to collect residual oil.
Ecological Restoration
Flora: Assessment and restoration of affected vegetation are underway.
Fauna: Wildlife monitoring is being conducted to ensure habitats remain safe.
Waste Management: Recovered oil and contaminated materials are being safely stored and processed in PT Vale’s licensed hazardous waste facility, in accordance with environmental standards.
Land Management: Soil testing is ongoing. Remediation techniques, including bioremediation, will be applied to restore land health and usability.
Social Recovery
Agrarian Support
Rice Fields:PT Vale is working closely with local governments and farming communities to assess the condition of affected rice fields and provide support through soil recovery, replanting assistance, and livelihood protection.
Non-Rice Fields: Other agricultural lands are also being evaluated to ensure all affected livelihoods are considered.
Public Facilities
Access: Roads and pathways to affected areas are being repaired to ensure safe access for residents and recovery teams.
Irrigation Channels and Dam: PT Vale is inspecting and cleaning irrigation channels and nearby dams to ensure they remain safe and functional. Structural assessments are being conducted, and any necessary repairs will be coordinated with local authorities.
This recovery plan reflects PT Vale’s commitment to assure the community that recovery efforts are thorough, collaborative, and focused on long-term sustainability. We are working hand-in-hand with local authorities and residents to ensure that life in Towuti continues safely and steadily.
Fotógrafo: xxxx
Frequently Asked Question
Q: Is the oil pipeline leak in Lioka Village harmful to the environment?
A: PT Vale acknowledges the public’s concern regarding the environmental impact of the pipeline incident. As an initial mitigation step, we have installed oil booms and oil traps to prevent further spread of the oil. In parallel, we are conducting water and soil quality testing to ensure environmental risks are properly managed. PT Vale remains committed to sustainable operations that prioritize environmental preservation.
Q: If my rice field is contaminated by the oil leak, where can I report it?
A: PT Vale has established a Complaint & Information Post at the Towuti Subdistrict Office. We also welcome reports, suggestions, and feedback via our hotline at 0811-4430-1679. We are committed to keeping the public informed and engaged throughout the response process. Transparency is key to collaboration between the government, community, and company.
Q: What is PT Vale’s responsibility regarding the oil leak affecting local farmland?
A: PT Vale recognizes that rice fields, land, and water are vital to community livelihoods. We acted swiftly to mitigate the incident and ensure the continuity of daily life. We continue to engage in open dialogue with local government and affected residents to address the situation collaboratively.
Q: What actions has PT Vale taken to prevent environmental damage from the pipeline leak?
A: Upon receiving the report, PT Vale promptly activated its Emergency Response Group (ERG) to manage the incident, ensuring the safety of workers, the community, and the environment. The ERG has installed oil booms and oil traps, and is conducting site cleanup and securing the affected area.
Q: What caused the pipeline to leak?
A: The leak is suspected to have been caused by land movement. The ERG is continuing its investigation, while mitigation efforts are underway to ensure the well-being of the Lioka community.
Q: How large is the affected area from the pipeline leak in Lioka Village?
A: PT Vale is currently assessing the extent of the affected area. We are committed to ensuring community well-being by providing a Complaint & Information Post at the Towuti Subdistrict Office, as well as a Medical Post and Public Kitchen to support impacted residents.
Remediation
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