In line with the values of PT Vale Indonesia Tbk (PT Vale)—which emphasize open dialogue, transparency, and respect for community rights—the company acknowledges and respects all constructive expressions of public concern aimed at achieving fair and sustainable solutions.
Following the Marine Fuel Oil (MFO) pipeline leak incident in Towuti on 23 August 2025, PT Vale has consistently implemented response and recovery measures from the first day of the incident, working in close coordination with the East Luwu Regency Government, the Regional Leadership Coordination Forum (Forkopimda), the Indonesian National Armed Forces (TNI), the National Police (Polri), and relevant technical agencies.
As part of its social responsibility and compliance with applicable laws and regulations, PT Vale has collaborated with the local government to design an impact‑mitigation and compensation framework for communities in five affected villages: Lioka, Baruga, Matompi, Langkea Raya, and Timampu.
This process has been conducted in a measurable, transparent, and data‑driven manner, through on‑site assessments, joint verification, and oversight by the Oil Pipeline Leak Response Task Force, appointed by the Regent of East Luwu. A symbolic handover of the first phase of compensation was carried out on 2 October 2025, witnessed directly by the Regent and community representatives.
As part of its transparency commitment, PT Vale has conducted community outreach and socialization sessions on the compensation mechanisms in four affected villages—Lioka (5 September), Matompi (7 October), Timampu (8 October), and Langkea Raya (15 October 2025). Outreach in Baruga Village is scheduled to follow once the full impact categorization framework has been jointly finalized.
PT Vale recognizes that some community members continue to seek further clarification regarding the proposed compensation scheme, particularly in Matompi and Timampu Villages. Accordingly, the company remains open to continued dialogue with the local government and Forkopimda, to ensure that all concerns are considered objectively, inclusively, and constructively.
In response to the public demonstration on 23 October 2025, PT Vale respects the community’s right to peacefully express its views and reiterates its commitment to ongoing dialogue facilitated by the local government. This engagement is intended to ensure that the distribution of compensation funds proceeds promptly, accurately, and in full compliance with applicable regulations.
In parallel, PT Vale will conduct additional water quality assessments at several impacted locations as part of its continued commitment to protecting and restoring environmental quality.
PT Vale carries out all operational activities in accordance with the principles of prudence, regulatory compliance, and respect for human rights. The company adheres to its Code of Conduct and is guided by the UN Guiding Principles on Business and Human Rights (UNGPs) to ensure that all actions reflect social responsibility, transparency, and sustainability.
