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Jakarta Post

Lapindo compensation to be disbursed soon

Housewife Salamah, 51, of Siring village, Porong district, Sidoarjo, East Java, smiled as she and other residents displaced by the Lapindo mudflow were assured that their remaining government compensation would be handed over soon

Wahyoe Boediwardhana (The Jakarta Post)
Sidoarjo, East Java
Wed, July 15, 2015

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Lapindo compensation to be disbursed soon

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ousewife Salamah, 51, of Siring village, Porong district, Sidoarjo, East Java, smiled as she and other residents displaced by the Lapindo mudflow were assured that their remaining government compensation would be handed over soon.

Social Affairs Minister Khofifah Indar Parawansa promised on Tuesday to hand over compensation directly to Salamah, who has been waiting for nine years to receive a remaining Rp 45 million (US$3,461) for her property measuring 120 square meters, from a total of Rp 290 million in compensation.

According to Khofifah, of 3,337 documents from affected residents who have yet to receive their remaining payments, only 1,127 documents have been verified by a team formed by the Sidoarjo Mudflow Mitigation Agency (BPLS).

'€œAround 2,200 remaining documents are expected to be completed by July 31, 2015 at the latest, which will be followed by an announcement of seven days to anticipate the possibility of inaccurate data,'€ said Khofifah in front of hundreds of Lapindo mudflow victims at the Sidoarjo regency office.

She has urged victims to be proactive in addressing all outstanding administrative requirements.

Khofifah, who attended the event together with Public Works and Public Housing Minister Basuki Hadimuljono and Finance Minster Bambang Permadi Soemantri Brodjonegoro, urged the displaced people hampered by administrative drawbacks to report immediately to the head of the appointed verification acceleration team.

Affected residents are expected to receive funds through their respective Bank BRI accounts around Aug. 10, 2015. Should there be documents which have not been verified, compensation will be disbursed in a second stage.

Meanwhile, Basuki warned people against taking advantage of the fund disbursement.

'€œThe compensation process has been strengthened with a presidential decree, Budget Execution Document [DIPA] and loan agreement between the government and PT Minarak Lapindo Jaya [MLJ]. The money belongs to the displaced residents,'€ said Basuki after handing the government-PT MLJ agreement to the BPLS.

PT MLJ is a unit of a holding group belonging to business tycoon Aburizal Bakrie, which is responsible for paying compensation for land engulfed in the mudflow.

The Lapindo mudflow, which allegedly began at the mining site of Lapindo Inc. in Sidoarjo on May 29, 2006, affected around 800 hectares encompassing 15 villages located in three districts.

Thousands of residents living in the area were displaced and forced to take shelter.

Earlier, the government agreed to give a bailout loan of Rp 781 billion to allow PT MLJ to compensate the victims.

Both Khofifah and Basuki said in front of affected residents on Tuesday that the bailout fund had been disbursed and was currently at the state treasury awaiting complete documentation from victims.

On the same occasion, displaced resident Nanik Arifah, 48, of Sumberbendo, Porong, Sidoarjo, expressed her relief. Although the funds would not be disbursed before Idul Fitri, she expressed her gratitude.

'€œI'€™m still grateful although the funds will not be disbursed before Idul Fitri. I'€™ll seek loans for Idul Fitri, and then repay them after the funds have been transferred,'€ said Nanik, who claimed she was still short of Rp 200 million in compensation.

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