Indra Harsaputra, Sidoarjo – Sidoarjo council members have threatened to close down exploration activity by the company at the heart of Sidoarjo, East Java mudflow disaster unless it resumes payments to the regency.
The mudflow, which has been gushing since May 29 last year, has killed 13 people and injured scores more. Many blame the disaster on exploration by the company, Lapindo Brantas Inc.
Sidoarjo council speaker Arly Fauzi told The Jakarta Post the regency has not been given its share from the company's activities in the regency since 2005.
"We sent our protest to the central government in 2005 but got no response," he said. "And now, Sidoarjo has become a victim of Lapindo's exploration activity," Arly said Friday.
He said the regency used to receive around Rp 2 billion (US$217,391) a year from Lapindo's 22 well explorations in the area. The amount decreased to Rp 45 million in 2004 and nothing in 2005. Based on the council's data, the company's 22 wells in Sidoarjo are expected to raise Rp 1 trillion in income this year.
"If the government doesn't do anything, we'll close down all Lapindo's exploration wells in Sidoarjo. Besides, mudflow victims at Tanggulangin Sejahtera were not given compensation for their losses," Arly said.
The council speaker said he told the central government to share responsibility for the mudflow since the company could no longer afford to compensate for all the damage caused by the disaster.
He accused the central government of not being transparent in its dealings with Lapindo.
President Susilo Bambang Yudhoyono earlier ordered Lapindo to pay Rp 3.8 trillion rupiah in compensation and costs related to the mudflow.
In a related development, hundreds of residents from Tanggulangin Sejahtera housing complex blocked Lapindo's Wunut gas field Thursday night to demand the company compensate them for the damage caused by the mudflow to their houses.
"We've been living miserable lives in shelters and we're tired of protesting. But Lapindo has broken its promise to compensate us for our land and homes. If Lapindo can't provide us with certainty, we can't guarantee some residents won't resort to violence and anarchy," said resident Pudjiono.
Around 7,000 residents from the complex have been living in shelters at Baru Porong market since the area was inundated by the mudflow. The protest ended Friday morning.
Lapindo's East Java manager, Rawindra, said it could only pay compensation for areas directly affected by the mudflow, as previously agreed with a government-appointed team to deal with disaster. The housing complex residents, he added, were not included in the deal.
Meanwhile, a compensation dispute has forced state oil and gas company Pertamina to postpone the construction of a gas pipeline intended to replace one which exploded near the mudflow disaster zone in November last year.
A company spokesman, Toharso, said residents have objected to the construction of the three kilometer pipeline, which is planned to run parallel to the old damaged pipe, because no agreement has been reached on land compensation.
"We've started the construction of 1.6 km of the total three kilometer pipeline but we can't complete it," he told the Antara newswire Friday. The explosion has been blamed on an underground pipeline rupture caused by the Sidoarjo mudflow.