Home Goverment Going Between Govt not to lend money for paying compensations to victims of mudflow disaster

Govt not to lend money for paying compensations to victims of mudflow disaster

Wednesday, 27 June 2007

(Originally published by Antara in June 27, 2007) Surabaya (ANTARA News) - President Susilo Bambang Yudhoyono said here on Tuesday the government would not lend money for paying compensations to the victims of mudflow from PT Lapindo Brantas operations in Porong, Sidoarjo, East Java. "There has indeed been an idea of the government to lend money, but would not be necessary, because PT Lapindo Brantas is able to make the payments," he said at a press conference after a meeting to discuss the handling of the disaster. He said Lapindo had a cashflow and financial capability to make the compensation payments in the already set period for the purpose. "So far Lapindo was willing to meet the obligation. We will see its implementation and firm commitment of Nirwan Bakrie (Lapindo`s owner)," he said. At a press conference attended by several cabinet ministers and PT Lapindo`s shareholders, the President called on the people and all the relevant parties to give an opportunity to Lapindo to meet its obligation. "I believe Lapindo has the capability and is serious to meet its obligation," he said. The President also called for a smooth verification of the land and home ownership certificates of the victims to avoid payment delays. He said besides compensation funds from Lapindo and funds from the national budget for rehabilitating infrastructure in Porong, the government also received Rp10 billion from a number of businessmen engaged in the energy sector and state-owned energy companies to reduce the burden and suffering of the victims. The President called on East Java governor Imam Utomo and Sidoardjo district head Win Hendarso to use the funds well for improving loan and saving enterprises and the victims` skills. He meanwhile called against politicizing the case. "I called on all parties not to worsen the already adverse situation by making the case a political commodity, but to avoid it so that the people would feel they are being helped," he said. The President and a number of cabinet ministers had held various meetings for the past two days to discuss the compensation payment that victims had so far complained of being too sluggish. The President made an aerial inspection of the location affected by the mudlfow on that day. He said he had deliberately net met the victims living in the disaster site because he had already visited them twice come time ago, and had also recieved their representatives at his residence in Cikeas, Bogor, West Java, on Sunday. Comments (0) Subscribe to this comment's feed Write comment Name Email Title Comment Add Comment Copyright 2007. All Rights Reserved.