Minarak backs down from mudflow compensation deal

PT Minarak Lapindo Jaya said Wednesday that it could not fulfill its obligation to pay the remaining 80 percent compensation to the mudflow victims in Sidoardjo under the Rp 30 million (US$2,550) a month installment scheme that was agreed upon on Dec. 3.

“To tell you the truth, we are incapable of doing that,” vice president director Andi Darussalam Tabussala said in his explanation to representatives of the mudflow victims who came to his office for clarifications on the compensation payment.

Andi said the company could only afford to pay Rp 15 million per month to each of the victims.

Deeply disappointed by Andi’s response, the victims threatened to launch another rally in Jakarta just like what they had been doing for a couple of times last year.

“As long as Minarak cannot pay Rp 30 million per month, we will go to Jakarta,” victim coordinator Kus Sulaksono said. (and)