Finally the government has bailed Lapindo out of Rp 781 Billion Debt

Kompas Thursday, December 18th, 2014

The government has finally bailed out Minarak PT Lapindo Jaya’s obligation of Rp 781 billion in the process of land compensation for mudflow victims in the affected areas. This was decided after Lapindo declared it could no longer afford to pay.

Lapindo stated it did not have the ability to buy the land. It was decided that the government would buy the land," said Minister of Public Works and Public Housing Basuki Hadimoeljono at the Presidential Palace on Thursday (12/18/2014).

Lapindo debt payments will use the postal BA99 (tactical funds) in the State Budget Amendment in 2015. Although the government has bailed Lapindo out, Lapindo still has to settle their obligation. Therefore, the government has seized all assets from Lapindo as collateral,.according to Basuki.

"Lapindo has been given a period of 4 years, if they are able to pay off Rp 781 billion to the government, then the assets will be returned to Lapindo. If this period of time has expired then the collateral will be confiscated," he said.
According to him, this decision has also been agreed upon by the CEO Lapindo Brantas Nirwan Bakrie.. This debt repayment scenario was finally agreed upon by both parties, said Basuki.

Cabinet Secretary Andi Widjajanto revealed the reasons as to why the government intervened in the inability of Lapindo to pay the debt. According to Andi, it was because of the uncertainty experienced by the community for the previous 8 years. He said the residents needed certainty and the state should provide thist at such times.

Andi said the government had not thought to impose sanctions against Lapindo due to inability to pay the debt.
The East Java governor who also participated in the meeting with the President Joko Widodo welcomed the government's decision. According to him, with the Lapindo debt repayment by the government, the corrective action has become the responsibility of the Sidoarjo Mud Mitigation Agency (BPLS) and can now be completed.

( This article from Kompas was “ freely “ translated from Indonesian to English and edited by the IAF overseas correspondent) siK.



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Bailed out? Everybody happy? Certainty for the victoms? Guaranteed by????

No Sir, not everybody, coz' still some victoms are waiting and staring at their empty piring....they wonder when the piring will be filled again with rice, sayur, ikan and sambal.

@ our  IAF overseas correspondent

aka siK.



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