Amir Tejo – Tired of waiting for PT Minarak Lapindo Jaya to pay for the damage to their property, thousands of Lapindo mudflow victims in Sidoarjo, East Java Province, staged yet another protest in the province's capital of Surabaya on Monday. They asked President Susilo Bambang Yudhoyono to set an ultimatum for the company to settle their obligation and that the government provide bailout funds to pay for the massive damage inflicted on the residents.
"This issue can easily be resolved if President Yudhoyono is willing to instruct Lapindo to pay the remaining 80 percent of the compensation it owes Sidoarjo residents," said Agus Harianto, a representative of mudflow victims, after a meeting with newly-installed East Java Governor Sukarwo and his deputy, Saifullah Yusuf.
PT Minarak Lapindo Jaya, owned by the family of Aburizal Bakrie, the coordinating minister for people's welfare, was appointed to deal with the compensation claims. PT Lapindo Brantas, another Bakrie company, has been blamed for causing the destructive mudflow though it has consistently denied wrongdoing.
During a meeting facilitated by Yudhoyono in December, Minarak Lapindo Jaya agreed to pay Rp 30 million ($2,550) in monthly installments, starting January 2009. However, the company told the victims last week that the current economic crisis had made it impossible for them to honor its promise.
Toxic mud began flowing from a fissure close to Lapindo's Banjar Panji I oil and gas well near Sidoarjo on May 29, 2006. Since then, more than 600 hectares of villages, industrial and agricultural land has been submerged and thousands left homeless. During a visit to the province last year, Yudhoyono instructed Lapindo to pay 20 percent of the total money owed within ten weeks and the company obliged.
"[Direct instruction] worked at the time, so there is no reason why it will not work [if Yudhoyono chooses to]," Agus said.
The victims also urged the government to set bailout funds to settle the damage, using the victims' assets as collateral. The debts would then be an issue between the government and Lapindo Brantas.
"The residents do not want to deal with PT Minarak Lapindo Jaya anymore," said Suwito, coordinator of the Presidential Decree Supporting Movement. "They always renege on their agreement. They ignored the 2007 presidential decree No. 14 instructing payment, let alone [an] agreement."
The victims also said that if their demand for a bailout fund was fulfilled, they preferred government agencies to act as the paying agent. If the government failed to meet their demands, the displaced victims threatened to boycott the legislative elections on April 9.
"What's the use of choosing a leader if they can't even solve this problem?" Suwito said.
In response to the demands, Sukarwo said he would relay their concerns to Yudhoyono. "I get the gist of the issue. I will report the two demands to the president," Sukarwo said.
However, Sukarwo reminded the victims that even if the central government had the funds to bailout the payment, the decision also had to be made in the House of Representatives.