Home Company Efforts Lapindo makes advance payments to mudflow victims

Lapindo makes advance payments to mudflow victims

Thursday, 28 June 2007

(Originally published by Antara in June 27, 2007) Jakarta (ANTARA News) - PT Minarak Lapindo Jaya said it was making advance payments to all mudflow victims whose certificates had been verified, a spokesman of the company said on Wednesday. "Today the advance payments are being made. Thus, all the 507 verified certificates of the mudflow victims are in the hands of PT Minarak and have been paid for," Vice President of PT Minarak Lapindo Jaya, Andi Darussalam Tabusala, said. He said at least his company had fulfilled its responsibility. "We will resume transactions as soon as we receive other certificates that had been verified by the Sidoarjo Mudflow Handling (BPLS) team," Andi added. Earlier, President Susilo Bambang Yudhoyono gave PT Lapindo 10 weeks to settle the 20 percent advance compensation payments to the mudflow victims. In order to smoothen the payments, the president had asked the company to prepare Rp100 billion. "The amount is set in line with the certificate verificaction process being carried out intensively by the team every week. I hope it would complete the advance compensation payments to 1,000 families," he said. In the meantime, PT Lapindo in a press statement said that the mudflow affected areas, except Perumtas I housing complex which consists four villages, covered 121.2 hectares of land, 434 hectares of rice fields and 501,000 square meters of buildings. It said that the funds for the compensation payments were estimated at put at Rp3.4 trillion. Of the 522 certificates worth Rp159.5 billion that have been received and are salable, 338 worth Rp81.5 billion have been bound under a sales transaction, the 20 percent advance payments have been made. In the meantime, the 20 percent advance payments valued at Rp15.6 billion for a total of 184 plots of land worth Rp78 billion will be made as soon as the the plots of land have been verified. It was expected that the company would receive other certificates worth Rp270 billion for verification. For the affected Perumas I areas, the compensation payments are estimated at Rp885 billion for 6,733 damaged houses. Comments (2) Subscribe to this comment's feed EJMIC Admin said:   We believe term down payment is more appropriate used in this case, since the scheme of payment divide into 2 phases; 20% as down payment after administrative documents verified and the 80% remaining will be paid 1 month before the 2 years lease compensation is due. Besides, these payments is already paid behind expected schedule. June 28, 2007 syamsul said:   i do believe too July 04, 2007 Write comment Name Email Title Comment Add Comment Copyright 2007. All Rights Reserved.