APSN Banner

Bakrie name at stake

Source
Jakarta Post Editorial - October 2, 2006

Efforts to stop the unprecedented flow of hot mud in the East Java town of Sidoarjo are continuing, but truly extraordinary measures are needed to help the more than 3,000 affected families and end the disaster.

President Susilo Bambang Yudhoyono's order to dump the toxic mud into the sea, via Porong River, can be understood when viewed from the perspective of the people of Sidoarjo. Since the mud began to pour out of a PT Lapindo Brantas Inc. gas exploration well on May 29, all measures to contain the sludge have failed. After four months the villages nearest the well have almost completely disappeared beneath the mud. Thousands more people will lose everything if something drastic is not done.

A decision as controversial as dumping the mud into the sea must have been made only after intense debate. This is no doubt why environment minister Rachmat Witoelar eventually reversed his position to support the policy.

Rachmat had originally agreed with environmentalists that dumping the mud into the sea would only do the environment more harm and create new problems. This argument has gained strength as hundreds of dead fish have been found since Lapindo workers started to pipe untreated mud into Porong River earlier this month. Fishermen also are opposed to piping the mud into the sea, concerned it will affect their catch and their income.

The government, however, claims the mud does not contain hazardous substances. It also says it will treat the mud before it is dumped into the sea, hopefully minimizing the impact on the marine ecosystem.

A researcher from the Agency for the Assessment and Application of Technology said the treatment of effluent would cost Rp 5,000 per cubic meter. With around 6.15 million cubic meters covering Sidoarjo as of Sept. 22, just treating the mud would cost Rp 30.75 billion. And that figure is certain to rise with no one sure when the disaster will end.

The government has done its part. It has formed a national team involving several ministries to deal with the mudflow. It also has ordered the resettlement of affected families, and has promised to provide them with jobs.

All of the costs will reportedly be borne by Lapindo, whose general manager Imam Agustino said the company would allocate US$140 million to cover all expenses. Lapindo claims to have already spent $70 million as of mid-September on operational costs and in compensation to victims. Each affected family receives Rp 300,000 in monthly meal allowances and Rp 2 million to rent a house for two years. It remains unclear how Lapindo determined the amount of the payments, or if it will offer more money in the future to help the families restart their lives.

Like tsunami and earthquake victims, all of the residents have to start over from scratch. The difference is that the people of Sidoarjo are suffering from what is likely human error.

A middle-aged woman, therefore, had every reason to cry over her house and all her belongings inside, destroyed by the sea of mud. She recalled how she saved rupiah by rupiah for years to buy the house.

There have been frequent rallies as victims of the mudflow vent their anger at Lapindo's handling of the disaster, prompting police to issue a shoot-on-sight order for anyone attempting to disrupt cleanup work.

Most recently members of Greenpeace Southeast Asia dumped mud taken from Sidoarjo outside the Jakarta office of Coordinating Minister for the People's Welfare Aburizal Bakrie, whose family holds a controlling stake in Lapindo. The protesters demanded Aburizal take responsibility for the disaster.

While Aburizal quit the family business when he took up a government post in 2004, the minister cannot simply wash his hands of this case. He must prove he has done enough to help the mud victims receive adequate compensation and start a better life.

Fair or not, the Bakrie name is at stake with the mudflow. The recent takeover of Lapindo by the Bakrie family-controlled Lyte Limited in the wake of the disaster requires explanation. Despite its new status as a limited company, Lapindo cannot ignore public demand for transparency regarding the handling of the mudflow.

If the disaster lives up to the worst-case scenario, with some experts predicting it could continue for years, the government will have to take more radical measures. If necessary it could freeze Lapindo's assets as collateral against the continuing damage to private property, public facilities and the environment caused by the mud.

Country