Mud volcano in Sidoarjo, East Java is probably the largest man-made disaster in Indonesian history. Lapindo’s negligence and reckless drilling have cost Sidoarjo citizens their homes and occupation, and after almost a decade of screaming for compensation, victims of Lapindo mud flood may heave a sigh of relief.
The government and PT Lapindo Brantas (Lapindo) have reached an agreement regarding the compensation payment last Friday. This measure is a follow up from President Joko Widodo’s mandate to the Acceleration Team for Sidoarjo Mud to settle the compensation as fast as possible.
The agreement to pay the compensation was signed by Minister of Finance Bambang Brodjonegoro and Lapindo’s top executives Tri Setia Sutisna as well as Andi Darussalam. Nirwan Bakrie, Lapindo’s owner also attended the event.
The government will pay the compensation to the victims via the Sidoarjo Mud Mitigation Agency (BPLS) with allocated fund of approximately IDR 781 billion, and must be paid back by Lapindo within 4 years after the agreement, with 4,8% interest rate.
Should Lapindo fail in paying back the loan, the government will take over Lapindo’s collateral (lands and buildings)—approximately valued at IDR 2.7 trillion.
Minister Brodjonegoro and Minister of Social Affairs, Khofifah Indar Parawansa will visit Sidoarjo to ensure the payment of compensation. Entitled parties will receive the allocated fund disbursement as of this week via the BPLS.
“It is fair to say that this is a holiday gift for the people who are affected by the mud. We hope to have integrated measures to rebuild Sidoarjo in the near future,” said Minister Brodjonegoro.
Mud volcano in Sidoarjo, East Java is probably the largest man-made disaster in Indonesian history. Lapindo’s negligence and reckless drilling have cost Sidoarjo citizens their homes and occupation, and after almost a decade of screaming for compensation, victims of Lapindo mud flood may heave a sigh of relief.
The government and PT Lapindo Brantas (Lapindo) have reached an agreement regarding the compensation payment last Friday. This measure is a follow up from President Joko Widodo’s mandate to the Acceleration Team for Sidoarjo Mud to settle the compensation as fast as possible.
The agreement to pay the compensation was signed by Minister of Finance Bambang Brodjonegoro and Lapindo’s top executives Tri Setia Sutisna as well as Andi Darussalam. Nirwan Bakrie, Lapindo’s owner also attended the event.
The government will pay the compensation to the victims via the Sidoarjo Mud Mitigation Agency (BPLS) with allocated fund of approximately IDR 781 billion, and must be paid back by Lapindo within 4 years after the agreement, with 4,8% interest rate.
Should Lapindo fail in paying back the loan, the government will take over Lapindo’s collateral (lands and buildings)—approximately valued at IDR 2.7 trillion.
Minister Brodjonegoro and Minister of Social Affairs, Khofifah Indar Parawansa will visit Sidoarjo to ensure the payment of compensation. Entitled parties will receive the allocated fund disbursement as of this week via the BPLS.
“It is fair to say that this is a holiday gift for the people who are affected by the mud. We hope to have integrated measures to rebuild Sidoarjo in the near future,” said Minister Brodjonegoro.