Indra Harsaputra, Sidoarjo – Mudflow victims from a housing complex in Sidoarjo, East Java, snubbed a promise of relocation by the central government, continuing their demand for cash compensation Friday.
Meanwhile, the government-appointed national team in charge of the disaster says the company that many accuse of triggering the mud volcano, Lapindo Brantas Inc., must continue paying all associated costs. The team's working term has been extended for one month while a new authority is formed to manage the mud disaster.
Refugees from the affected Tanggulangin Sejahtera housing complex have been denied the cash compensation offered to residents of four villages. The government is instead promising to relocate them and provide them with house rent.
Resident representative Agustinus said they insisted on cash compensation. "I can't guarantee chaos won't erupt in Sidoarjo. Residents have been patient enough," he warned on Friday.
The complex's residents earlier staged massive protests, blocking main roads in the town, disrupting traffic and disturbing economic activity.
Sidoarjo Regent Win Hendrarso said it was decided during a Cabinet meeting Thursday night chaired by President Susilo Bambang Yudhoyono that residents from the Tanggulangin housing complex would be given relocation plus compensation.
He said "relocation plus" meant that besides being given new homes in a complex provided by Lapindo, the residents would be offered incentives, such as writeoffs of their remaining house loans at the flooded complex.
"But the incentives are not being detailed yet. Under the plan, the incentives will be announced to mudflow victims on Monday," he said.
Meanwhile, the national team has demanded Lapindo pay for their work for the next month.
"Until now, the national team has spent Rp 1.5 trillion (US$163 million), while Lapindo set aside a budget of Rp 1.3 trillion. So there's not enough money. We want Lapindo to continue paying the costs to deal with the mudflow until the end of the team's one-month term," team spokesman Rudi Novrianto said Friday.
Lapindo's vice president of human resources and public relations, Yuniwati Teryana, said all of the Rp 1.3 trillion has been spent to deal with the mud volcano.
She said based on the company's calculations, $154 million, or $14 million more than the amount budgeted, had been spent as of March this year.
The amount, she said, included service orders, purchase orders, contracts and other agreements.
"The Rp 1.3 trillion budget to deal with the mudflow and provide social assistance has been counted since the first move was made to deal with the mudflow, not since the team started working," Yuniwati said Friday. The team was established on Sept. 8 last year.
However, Rudi said Lapindo should not worry since the team would continue its work.
He said most of the money, or 60 percent, went toward building a relief well, which cost US$90,000 a day. It also paid for a Rp 23 billion spillway and for the concrete balls currently being used in an effort to stem the mudflow.
In addition to the technical work, he said the money was used to pay displaced people's living costs at Rp 300,000 each per month. The money has been distributed since June last year.
Since the mudflow gushed out of Lapindo's gas exploration site on May 29 last year, it has forced more than 12,000 people out of their homes.