Lapindo Victims May not be Compensated on May

TEMPO.CO, Sidoarjo – The Head of Lapindo Sidoarjo Special Committee (Pansus) Nur Ahmad Syaifuddin, doubted that the Minarak Lapindo Jaya (MLJ) will compensate the Lapindo mudflow victims by May 2013. Earlier, MLJ promised to compensate a total of Rp 786 billion (US$ 80,85 million) losses by May.

The Committee urged the government to immediately allocate the compensation fund in the state budget (APBN) based on the Map of Impacted Area (PAT).

“This year, all victims outside the PAT has been compensated by APBN,” Nur told Tempo on Monday. Nur reminded that the compensation includes the management of areas affected by mud, which, if not addressed properly, will disturbs the mudflow mitigation effort. Currently, the mudflow has reached an alarming condition, as the mud almost surpass the makeshift dam. Nur also stated that the government is working on a regulation to compensate waqf lands and public facilities outside the PAT.

Andi Darussalam Tabusala, the President Director of PT MLI, stated that the company will compensate all victims by May 2013. However, he refused to mention the source of the fund. MLI is believed to have insolvency issues as banks refuse its proposal for credit. “Let’s see in May. We are committed,” he said.

According to MLI data, the amount of losses that must be compensated has reached Rp 3,8 trillion.

DIANANTA P. SUMEDI