Wahyoe Boediwardhana, The Jakarta Post, Malang, East Java
Entrepreneurs say they need assistance to relocate their businesses out of Sidoarjo regency, which has been badly affected by a mud volcano that shows no sign of drying up.
The director of the Malang branch of the central bank, Ridho Hakim, said that the enterprises, which mainly supply goods to Surabaya, are based in the towns of Malang, Pasuruan, Probolinggo and Lumajang.
Access to and from Surabaya has been cut off by the mud, and businesses have experienced huge losses. Some 12 firms are estimated to have lose about Rp 40 billion (approximately US$4.4 million)
Since Mar. 29, the mud has continued to gush from a drilling site owned by Lapindo Brantas Inc., which is partially controlled by the family of Coordinating Minister for People's Welfare Aburizal Bakrie. The mud has affected almost 13,000 families and covered 350 hectares of farmland, as well as residential areas, infrastructure, schools and commercial centers.
Considered among the worst disasters of its type, the debate continues on how far Lapindo is responsible, and on how much of the financial burden the central government should shoulder.
Most enterprises have shifted their markets from Surabaya to other parts of Central Java and West Java, such as Yogyakarta, Bogor and Jakarta.
One businessman in Malang, Unggul Abdinowo, who runs the Bakpao Telo bakery, said up to 40 percent of his customers were in Surabaya. Since the mud affected production and distribution, he said he began selling his bakpao cakes to other provinces.
The Bank Indonesia executive, Ridho, said that only bigger enterprises, with capital of more than Rp 50 million, could relocate their businesses without help.
Malang deputy regent Rendra Kresna said that the regency administration would coordinate with the East Java administration and neighboring local governments on relocating businesses.
The small firms cannot apply for loans, Ridho said, owing to their lack of land certificates.
The local administrations and the National Land Agency (BPN) should process their certificates as soon as possible, he said.
He added that Bank Indonesia was working with the BPN, state-owned Bank Rakyat Indonesia and local administrations to process residents' land certificates, including those of businesspeople.
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