Home Economic Considerance Loss caused by Lapindo mudflow estimated at rp27.4 trillion

Loss caused by Lapindo mudflow estimated at rp27.4 trillion

Thursday, 12 April 2007

(Originally published by Antara in April 12, 2007) Jakarta (ANTARA News) - The National Development Planning Board (Bappenas) has estimated that the losses caused by the mudflow from Lapindo Brantas gas operations in Sidoarjo, East Java, in the past nine months had reached Rp27.4 trillion, consisting of Rp11.0 trillion in direct and Rp16.4 trillion in indirect losses. The result of a preliminary assessment report on Wednesday the figure could rise to Rp44.7 trillion as the potential indirect loss could swell to Rp33.7 trillion. The direct losses covering the May 29, 2006 to March 5, 2007 period actually reached only Rp7.3 trillion, but in view of an infrastructure relocation which had cost Rp3.7 trillion, the amount increased to Rp11.0 trillion. "To assess the damage and losses, a joint team of officials of Bappenas, the provincial and district governments have used a method developed by the UN Economic Commission for Latin America and the Caribbean (ECLAC)," Bappenas` second regional director Suprayoga Hadi said. According to the report, a total of Rp1.3 trillion is needed for emergency response which was borne by PT Lapindo Brantas. A total of 10,426 homes have been inundated by the mudflow and the damage is estimated at Rp2.5 trillion. The losses of public infrastructure such as roads, telecommunications facilities and others could reach Rp6.15 trillion while the loss caused by the relocation of the main infrastructure facilities reached Rp3.7 trillion. According to the report, the loss of social facilties such as school buildings and houses of prayers reached Rp51.7 billion while the loss of other assets, productive economic facilities, including 20 industrial buildings had reached Rp1.51 trillion. Indirect losses caused by the disaster such as loss of opportunities, could reach Rp1.35 trillion. Toll road operattor PT Jasa Marga meanwhile suffered a loss of up to Rp28.78 billion following the closure of the Porong-Gempol toll road because of the mudflow. Twenty companies have also been shut down because of the disaster. A total of Rp2.53 billion in severance pay had been paid out to workers laid off because of the closure of their places of work. The result of an assessment of the Indonesian Farmers` Council the losses suffered by the agriculture sector reached Rp15 trillion due to harvest failures. The Bappenas in its report suggested the government and the House of Reprsentatives to support budget allocations in the revised 2007 State Budget and in the next fiscal year, for the relocation and rebuilding of damaged infrastructure. Bappenas has also proposed a deadline for the settlement of problems caused by the disaster. Comments (0) Subscribe to this comment's feed Write comment Name Email Title Comment Add Comment Copyright 2007. All Rights Reserved.