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Kalla seeks to reassure victims of mudflow

Source
Jakarta Post - November 29, 2006

Tony Hotland and Ridwan Max Sijabat, Jakarta – While victims of the devastating mudflow in East Java continued a public protest, Vice President Jusuf Kalla issued reassurances Tuesday that they would be compensated for their losses. Kalla said PT Lapindo Brantas Inc. and other companies believed to be responsible for the disaster would live up to their obligations.

"Don't worry. They will not flee the country or escape from their responsibility to pay the expenses over the Lapindo mud case," he said in Jakarta.

Residents rallied again Tuesday in Sidoarjo regency, where mud has been gushing from a gas exploration site since late May.

"The Bakrie and Panigoro families are respected and have true nationalism," Kalla said, referring to the owners of Lapindo.

The gas block is shared by Lapindo, which owns 50 percent, PT Medco Energi Internasional with 32 percent, and international oil firm Santos with 18 percent.

Lapindo is wholly owned by Energi Mega Persada, which is controlled by the family of chief welfare minister Aburizal Bakrie. The Panigoro family owns 50.7 percent of Medco.

On Tuesday night, the environment commission at the House of Representatives demanded that Lapindo and the government immediately pay compensation to the victims.

At a hearing with the national team handling the mudflow disaster, the commission said the government and Lapindo must swiftly resolve the many social problems triggered by the disaster.

The meeting was marred by interruptions from lawmakers, who voiced their anger at the national team for failing to deal with the problems more quickly.

In attendance were team chairman Basuki Hadi Mulyono and Maritime and Fisheries Minister Freddy Numbery, who is on the team's steering committee.

In Sidoarjo, at least 75 people representing the victims waited at the local administration building. They demanded a negotiated settlement on compensation involving the residents, Basuki, Sidoarjo Regent Win Hendrarso, local legislative council speaker Arly Fauzi and Lapindo general manager Imam P. Agustino.

A decision on compensation is expected Friday. "We will remain here until a settled decision from Lapindo in Jakarta is released because we have a collective commitment to stay," protest coordinator Moch. Toha was quoted as saying by Antara.

He said the residents would stage bigger demonstrations until they got the compensation they were seeking.

The flood of hot mud has forced at least 12,000 people to flee their homes.

Residents' representatives and other stakeholders have released a list of demands. They want a cash-and-carry system to compensate for their costs, and they want Lapindo to make a written commitment to compensate for the social and economic impacts of the disaster. They are also demanding that payments be set at Rp 1.5 million (US$164) per cubic meter for buildings, Rp 1 million per cubic meter for residential land, and Rp 120,000 per cubic meter for rice fields.

The Vice President said Lapindo's stakeholders would also have to pay an estimated Rp 1.3 billion to construct a planned new turnpike to replace the now inoperable Porong-Gempol toll road.

"Spending Rp 1.3 billion is nothing for the (Bakrie and Panigoro) families and I am sure of their financial capacity to relocate the turnpike," Kalla said.

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