The family of two victims of a self-immolation act in eastern China's Jiangsu Province have reached a compensation agreement with the local government, a government spokesperson said Friday.

Last Saturday, a farmer, Tao Huixi, died and his father was injured after they set themselves on fire to protest the demolition of their pig farm in Huangchuan Township, Donghai County.

The 900,000-yuan (131,772 U.S. dollars) compensation is for both the demolition and the farmer's death, the elder brother of the victim, Tao Huixiang, told Xinhua by telephone Friday.

Tao Huixi's body will be cremated Friday, according to the agreement.

The compensation is not for the costs of medical treatment for the injured father who is still in hospital.

Tao Huixiang said he was not optimistic about his father's condition, and that if his father dies, more compensation might be needed.

Li Baofu, spokesman for Donghai County government, admitted the township government had handled the demolition inappropriately, adding that Zhou Wenjun, the head of the township, has been suspended from his work post.

Tao Huixi's pig farm and the houses of five other villagers were due to be torn down to make way for a highway in Huangchuan Township.

The houses of the five other villagers were demolished before the highway project construction started in the second half of 2009.

But Tao Huixi had refused to accept the 75,000 yuan (11,000 U.S. dollars) compensation offer from the township government.

Tao said the compensation offer was inadequate and refused to move, despite several negotiation attempts.

Tao Huixi locked himself and his 92-year-old father in their house and set themselves on fire when township government workers arrived to?pull down the house last Saturday, according to the statement.

By the time government workers had broken into the house to save them, Tao Huixi had already died.