TEMPO.CO, Jakarta - The pipeline leak in the Balikpapan Bay, East Kalimantan, has shown Pertamina`s unpreparedness for mitigating the effects of operational failures. The state oil and gas company seemed clueless as to how to deal with the oil leak, now covering 20,000 hectares of water.
The leak began at around 3am local time on March 31, as a result of a fracture in a pipeline transporting crude oil from the Lawe-lawe Terminal in North Penejam Paser Regency to a Balikpapan refinery. The pipeline, laid in 1998, fractured and shifted 120 meters from its original position.
At least 40,000 barrels of crude oil managed to escape, although the leak was repaired a few hours later. There was the impression that Pertamina meant to cover up the incident: an official announcement only came three days later. There was a communications fiasco when a Pertamina Balikpapan official denied the leak, though the mistake was subsequently corrected.
Of course, the ecological impact is horrific: the oil spill covers 34 hectares of mangrove forest in the Kariangau village, a habitat for crabs. Furthermore, around 6,000 mangrove trees and 2,000 seedlings in the Atas Air village, Margasari, are covered in black crude oil.
Organic pollutants from oil spills at sea take a long time to break down. The crude oil spill in Prince William Sound, Alaska, in March 1989, for example, is believed to have only completely vanished 25 years after the incident. The spill was caused by the tanker Exxon Valdez’s capsize, releasing 41,000 cubic meters of oil into the sea.
Greenomics Indonesia estimates that the cost of the environmental damage in the Balikpapan Bay will reach US$8.27 billion, or around Rp111.7 trillion. The minimum estimate was obtained by calculating the economic value of the main components of the maritime ecosystem and mangrove forests.
It has been difficult to conceal indications of negligence. Pertamina says the fractured pipeline was 20 years old. And the oil flow valve did not have a sensor, making it difficult to quickly locate the leak. The location was only determined after divers went 20-26 meters below the surface. We should be concerned when a company of Pertamina’s caliber does not have a safeguard system for operational failures. Besides, the company should not have been using old pipes with non-functional warning systems.
If there is evidence of negligence leading to environmental damage or deaths, the oil company may be prosecuted under Article 99 in Law No. 32/2009 on Environmental Protection and Management. Such a violation carries a penalty of nine years in prison and a fine of Rp9 billion, as well as compensation to the public and the environment.
The government must act resolutely. The first step is to ask Pertamina to take responsibility in dealing with the damage to the marine ecosystem as a result of the oil spill. It may be possible for Pertamina to take action against other parties responsible for the leak in the undersea pipeline-including a ship carrying coal allegedly responsible for dragging the pipe when it dropped anchor.
Presidential Regulation No. 109/2006 on Responding to Maritime Oil Spill Emergencies may be a useful weapon for Pertamina against those responsible for causing the leak. This regulation uses the "polluter pays principle," meaning any guilty shipowner would have to pay compensation to the public and for any environmental damage caused.
The establishment of a joint disaster mitigation team must be prioritized. Such a team must involve the environment and forestry ministry, the maritime affairs and fisheries ministry, the Regional Environmental Control Agency, the National Disaster Mitigation Agency, technical ministries, academicians, environmental NGOs and local communities.
The government’s involvement in dealing with environmental disasters is important, as it may mitigate Coordinating Minister for Maritime Affairs Luhut Pandjaitan’s comment that the leak had already been dealt with and that Pertamina was not in the wrong. The claim was clearly made prematurely as there had not yet been an investigation.
The government can follow the example of the United States in its response to the environmental damage caused by the 2010 explosion of the Deepwater Horizon drilling rig owned by British Petroleum in the Gulf of Mexico. President Obama asked BP to pay a compensation of US$20 billion, or around Rp172 trillion, to the public and to clean up the pollution.
This environmental disaster should spur Pertamina to perform an audit of the safeguard systems in all its undersea pipelines. Additionally, the police must be vigorous and fair in the investigation process. Similar disasters must not happen in the future.
Read the full article in this week's edition of Tempo English Magazine
