Govt: mudflow compensation deal final
The Jakarta Post | Sat, 02/21/2009 6:53 PM
The government said Saturday that the new deal for the settlement of compensation for the victims of the mudflow disaster in East Java was final and that it would make sure all parties stick to their commitments.
“The compensation scheme is final, Rp 15 million (US$1200) per month per person. The value is higher that the initial demand. I hope all parties acknowledge this decision,” Social Affairs Minister Bachtiar Chamsyah said, as quoted by state news agency Antara.
Bachtiar guaranteed that the company responsible for the compensation, PT Minarak Lapindo Jaya, would not violate the agreement, the signing of which was witnessed by National Police Chief Bambang Hendarso Danuri.
Technically, he said, Lapindo had reported its financial ability to pay for the compensation to the government and that on Monday state owned Bank Rakyat Indonesia would start disbursing the compensation to the victims.
The company initially agreed to pay Rp 30 million per month to each victim. However, due to repercussions of the global liquidity crisis, the company bailed out from its commitment and instead offered to pay Rp 15 million per month.
“I understand the company’s inability to live up to its initial commitment. It was because of the global crisis,” Bachtiar said. (and)
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