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SBY wants mudflow victims paid
The President has instructed Lapindo Brantas Inc
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he President has instructed Lapindo Brantas Inc. to speed up the paying of compensation to victims of the mudflow, even though the firm, controlled by the group of the powerful Golkar chairman, is legally not guilty of the disaster.
The statement could be seen as renewing tension between President Susilo Bambang Yudhoyono and Aburizal Bakrie, in the aftermath of strong signs of their coalition falling apart.
During his second visit to the disaster site on Monday, President Yudhoyono inspected a former drilling site where the mudflow was reported to have occurred in 2006.
“The process of paying compensation is ongoing,” he said on the sidelines of the inspection.
“I ask everyone to coordinate to speed up the payment.”
The mudflow started in May 2006 at the time Lapindo Brantas, owned by Aburizal’s Bakrie Group, drilled into the ground in parts of the area. He was then coordinating public welfare minister.
Last year the Supreme Court ruled there was no evidence that Lapindo caused the mudflow, which has displaced 40,000 people from their homes.
In 2008 the government declared the mudflow a “natural disaster”.
One-hundred-and-thirty people affected by the mudflow gathered during the President’s inspection on Monday.
Darmaji, a teacher at SDN Pejarakan elementary school in Jabon district, told journalists mudflow victims were instructed by their superiors to welcome Yudhoyono.
However, resident Sumiatin showed discontent.
“Pak President Yudhoyono, I ask for money, not promises,” she said. “We would like to stage a protest, however we are getting tired. We are also tired of promises from the government and receiving nothing.”
Victims have frequently held rallies in their hometown and in Jakarta.
Andi Darussalam Tabussala, vice president of PT Minarak Lapindo Jaya, which has been appointed to pay compensation, said that compensation payment would be paid by 2012.
He said although Lapindo was declared not guilty regarding the mudflow case, it was committed
to compensating about 40,000 affected residents in 12 villages and subdistricts.
He said that of the 13,237 compensation cases listed in the map of mudflow-affected areas, many were completed. Apart from that, “Forty-one percent of the compensation files are in the payment process,” Andi said.
Minarak’s operational director, Totok Kusdianto, said that as of March 22 this year, the company had spent more than Rp 6 trillion (US$660 million) on repair expenses including technical and property expenses.
The government has also allocated Rp 700 billion from the state budget to compensate victims outside those listed on the mudflow-affected map, as well as infrastructure.
The mudflow has reportedly been embarrassing for the government because Lapindo is linked to the Bakrie Group.
Now Aburizal’s Golkar Party is part of the coalition at the House of Representatives supporting President Yudhoyono.
The political situation regarding the House of Representatives’ inquiry into the Bank Century bailout
had put the coalition to the test.
Golkar, the United Development Party (PPP) and the Prosperous Justice Party (PKS) voted against the coalition government in the House’s final decision on the bailout.
Their position cost the pro-government parties the vote.
It also allowed the House to pass a resolution that declared the bailout was flawed and recommended Vice President Boediono and Finance Minister Sri Mulyani Indrawati face due legal processes for their roles in the controversial policy.
The tax office has also announced it is investigating possible tax evasion by three coal mining firms under the Bakrie group, a move to which Aburizal responded by saying, “I will not be threatened”.
