The Sidoarjo Mudflow Handling Agency (BPLS) has reduced the amount of mud being channeled to the Porong River in East Java, thus risking the collapse of an embankment at Glagaharum village.

The embankment, initially 11 meters high, has since sunk by 4 meters, with the mud now lapping less than a meter below its brim.

The deteriorating situation has been blamed on the BPLS's decision to cut the company responsible for the disaster, Lapindo Brantas Inc., some slack as it pleads "declining financial ability" to cover the operational costs of pumping the mud out.

BPLS spokesman Achmad Zulkarnaen said Saturday the eight pumps, which channel away a total 50,000 cubic meters of mud daily, were now being run 18 hours a day, from the previous 24 hours, to make the costs "more efficient" for Lapindo, which claims it has been hit by the global economic crisis.

"Besides saving on costs, the decision will also prevent the pumps being damaged," Achmad claimed.

He added it would take a month to repair the damaged embankment.

But without immediate measures, concerns have arisen that the embankment could continue sinking due to "ground movements", despite still being able to contain the mud.

"The device we have is only able to detect the condition up to 50 meters deep underground in the embankment area," Achmad said.

"Whereas the ground movements causing the embankment to sink could be centered hundreds of meters underground."

Lapindo spokeswoman Yuniwati Teryana said that despite its financial difficulties, the company remained committed to continuing channelling the mud into the Porong River, as instructed by the President.

Ahmad Husain, a mudflow victim who lost his house in Balongbendo village, warned there could be more victims because of the continued spread of the mud, which the BPLS was "working too slowly" to contain.

"The BPLS should think of other ways to mitigate the fallout, given its available budget," he said.

He also demanded Lapindo speed up compensation to more than 12,000 families hit by the disaster.

The mudflow, which began spewing out at 126,000 cubic meters per day on May 29, 2006, has sunk 11,241 buildings over 641 hectares, as well as 362 hectares of farmland.

The President issued a decree in 2007, ordering the mud to be disposed of into the Porong River, with Lapindo liable for the entire operational costs.

Lapindo claims it has so far spent Rp 6.1 trillion (US$600 million) on compensation and mudflow mitigation.

Environmental activists and oceanography expert Mukhtasor have said channeling the mud into the river would harm the river ecosystem and affect fishermen's catches in Pasuruan and shipping in the Madura Strait.

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