Amir Tejo, Surabaya – Around 3000 victims of the Sidoardjo mudflow took to the street in Surabaya, East Java Province on Tuesday to demand that PT Minarak Lapindo Jaya, owned by the family of Aburizal Bakrie, the coordinating minister for people's welfare, honor its promise to pay the remaining 80 percent of damage compensation it owed to local residents.
The angry mob tried to break into the office of PT Minarak Lapindo Jaya, the company appointed by PT Lapindo Brantas to deal with the compensation claims, on Jalan May. Gen. Sungkono, Surabaya, but was thwarted by 1,300 police officers deployed to keep order during the rally.
Around 13,000 people have been displaced since the mudflow started in May 2006 and Lapindo has paid only 20 percent of the agreed compensation to residents whose houses and land were submerged by the mud.
In an agreement signed during a meeting between representatives of victims and Lapindo in Jakarta on Dec. 3, the latter agreed to pay the remaining 80 percent of compensation to Sidoarjo residents in monthly installments of Rp 30 million ($2,550), from January 2009. The meeting was also attended by President Susilo Bambang Yudhoyono.
However, Lapindo told representatives of mudflow victims during a meeting in Surabaya on Wednesday that it was unable to pay the required amount.
"I do not have the wherewithal [to do that]. But if the residents agree to accept Rp 15 million [in installments], I'll pay it," said Andi Darussallam Tabusalla, vice president of PT Minarak Lapindo Jaya, who met with residents.
A number of reasons were presented by Andi to account for the company's inability to pay the installments as per the agreement on Dec. 3, including the global economic crisis that has hit the Bakrie business group. The residents, however, flatly refused to accept the offer. They reasoned that the sum of Rp 30 million was decided on in an agreement made by the victims and Minarak Lapindo, a fact also acknowledged by Andi Darussalam.
Residents stood firm on their decision to hold out for the full amount of compensation.
"If they only pay Rp 15 million, of course we'll refuse [the offer]. The Rp 30 million installment was based on Nirwan Bakrie's claim of the amount the Bakrie group was prepared to pay in accordance with the corporate financial situation," said Kus Sulaksono, coordinator of victims representatives.