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President urges Lapindo to hasten compensation payments

Wednesday, 27 June 2007

(Originally published by Antara in June 27, 2007) Surabaya (ANTARA News) - President Susilo Bambang Yudhoyono has urged PT Lapindo Brantas Inc to speed up the compensation payments to the victims of the company`s mudflow. At a press conference after a meeting held within the framework of the president`s two-day working visit to Surabaya, on Tuesday night, the head of state asked PT Lapindo Brantas to fully carry out the decision laid down in Presidential Decree no 14/2007 on overcoming the problems arising from the mudflow in Sidoarjo. The president said that after two days of a working meeting in Surabaya along with an aerial inspection of the mudflow-ridden areas, it has been decided that PT Lapindo Brantas Inc is required to make compensation payments to 163 families, who home ownership certificates had already been verified by the Sidoarjo Mudflow Handling Team. "Tomorrow morning, the compensation payments to the 163 families would be completed, bringing the total number of families already verified by the team to 522," he said. The President also told PT Lapindo to immediately pay 20 percent in damages to the people for the loss of their land and homes hit by the hot mudflow, in 10 weeks in a row starting from July 1, 2007. "This decision is expected to complete the 20% compensation payments to more than 10 thousand families who had become victim of the Lapindo mudflow," the President said. The President also said that PT Lapindo had promised to make the compensation payments amounting to Rp 100 billion through an escrow account each week. And the payment of the remaining 80 percent of the compensation to the victims would be made one month before their two-year lease expired. The head of state in the company of several cabinet ministers also told the press on the occasion told PT Lapindo which was represented by Bakrie Group shareholder Nirwan Bakie to stick to its commitment to meet its obligation of making compensation payments to the mudflow victims. Nirwan Bakrie on the occasion admitted that many things have yet to be done by PT Lapindo in meeting its obligation of making compensation payments to the victims under Presidential Decree No 14/2007 in full. The meeting was also attended by Public Works Minister Djoko Kirmanto, State Minister of Environment Rachmat Witoelar, State Minister of National Development Planning/Head of the National Development Planning Agency Paskah Suzeta, Minister of Energy and Mineral Resources Purnomo Sugiantoro, Social Affairs Minister Bachtiar Chamsah, East Java Governor Imam Utomo, Sidoarjo district chief Win Hendarso, and Head of the Sidoarjo Mudflow Handling Agency (BPLS) Sunarto. The occasion also saw the signing of the results of a working meeting of BPLS held on June 25 and 26 , by representatives of PT Minarak, BPLS, the East Java governor and the Sidoarjo district head. Comments (1) Subscribe to this comment's feed EJMIC Admin said:   The target 10.000 families has to be finished in 10 weeks (1.000 families each week) is very unrealistic. In our opinion, President should consider carefully the actual situation. Problems arose of payment tardiness is cause by unwell-managed of recording history of land certificates and building permit of both local Government apparatus and residents BEFORE the disaster is happened and not doing anticipating actions from the very beginning of the disaster. So the problems is not solely Lapindo's responsibility. The other two are also contribute to the hindrances. Just our 2 cents. June 28, 2007 Write comment Name Email Title Comment Add Comment Copyright 2007. All Rights Reserved.