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Wednesday, October 24, 2012

Taxpayers Still Footing the Bill For Sidoarjo Mud

Jakarta Globe, Markus Junianto Sihaloho, October 24, 2012

A Sidoarjo Mudflow Mitigation Agency (BPLS) officer at the mudflow
in 2011. (AFP Photo)
               
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The 2013 State Budget passed by the House of Representatives on Tuesday suggests that the government will continue to give money to victims of the 2006 mudflow in Sidoarjo, East Java, despite claims that it was the responsibility of private company Lapindo Brantas.

It is uncertain what the final figure is but the government earlier proposed that Rp 2.26 trillion ($235 million) from state coffers be earmarked to the Sidoarjo Mudflow Mitigation Agency (BPLS), an ad hoc agency created to contain the mudflow and handle the victims relocation scheme.

Some of the funds, the government proposal says, will be used to purchase land and buildings outside the areas immediately affected by the mudflow, located in the villages of Besuki, Kedungcangkring and Pejarakan, and nine communities spread around the wards of Siring, Jatirejo and Mindi.

The funds will also be used to relocate residents in 65 community units spread across nine wards and villages, which the government says are all outside of the affected zones.

Money is also earmarked to “rescue the economic and social life” of the community around the impacted area while some funds are directed at efforts to further contain the flow of mud.

The government has already spent Rp 3.26 trillion on the BPLS and this year earmarked another Rp 1.6 trillion.

While refusing to acknowledge that the mudflow was a direct result of its gas drilling activities, Lapindo has agreed to compensate and acquire the land immediately impacted by the disaster.

But Public Works Minister Djoko Kirmanto said in June that Lapindo, a resources company owned by the family of businessman and presidential hopeful Aburizal Bakrie, has only paid Rp 2.9 trillion in compensation out of the Rp 3.8 trillion it was ordered to pay.

House of Representatives Deputy Speaker Anis Matta, who led the plenary session at which the House approved next year’s state budget, refused to comment on why the state is earmarking more money to the disaster.

“Try asking related House commission leaders,” he said.

Opinions are split on the cause of the incident. Many say it was caused by the drilling activities of Lapindo. But the company blamed an earthquake in Yogyakarta, hundreds of kilometers to the east.

On Aug. 15, the National Commission on Human Rights (Komnas HAM) made three recommendations linked to the mud volcano.

Komnas HAM recommended the company complete the purchase of land and buildings now covered by the mudflow; the police find out where responsibility for the incident lies; and the government assist victims through revised regulations.

The incident destroyed hundreds of homes, swamped 720 hectares of land and displaced thousands of people.

Delays in compensation payments have damaged public support for Aburizal, who on July 1 announced his bid for presidency under the Golkar Party banner.

Lalu Mara Satriawangsa, a Bakrie family spokesman, said the Bakries had set aside a large sum of money for compensation. There is speculation that Aburizal will wait until just before the 2014 election to pay, in an effort to boost his electoral prospects.



Satellite picture received from Ikonos Satellite Image on May 29, 2008 shows
the mud volcano and its surrounding area in Sidoarjo, East Java. (AFP/Ikonos
Satellite Image)

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