The government says it will cover compensation payments for victims of the Sidoarjo mudflows in East Java until the responsible company, PT Minarak Lapindo Jaya, is able to pay the funds.
Minarak had promised to pay Rp 1.1 trillion (approximately US$127.6 million) of the remaining compensation by the end of 2012, but seems unable to fulfill that promise.
East Java Governor Soekarwo said the government decided to temporarily cover the payments with bank loans after strong pressure from the mudflow victims for immediate payments.
“We will keep asking [Minarak] to fulfill its commitment,” Soekarwo said on Monday after a Cabinet meeting at the Presidential office in Jakarta to discuss the issue.
Sidoarjo regent Saifulah Ilah added that the amount would cover unpaid compensation money for 13,146 families affected by the mudflow, which emerged for the first time amid Lapindo Brantas Inc. drilling activities in 2006.
He said it had yet to include those for residents of Pejarakan, Kedungcangkring and Besuki villages, who had also demanded compensation.
(Allemachies! “We will keep asking [Minarak] to fulfill its commitment,” the government sais,what about making the buggers pay! this is getting a painful joke for those affected by the mudflow, the owners of PT Minarak Lapindo Jaya are billionaires and loath to part from their money!) Kesas's musings