Minister Promises to Disburse Lapindo Money before Eid  

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  • TEMPO.CO, Jakarta - Public Works and Public Housing Minister Basuki Hadimuljono promised to compensate the Lapindo mud burst victims in in Sidoarjo, East Java. The Rp872.1 billion fund, he said, will be paid before this year's Eid al-Fitr.

    Basuki is chairman of a committee that steers the acceleration of the compensating process. The team will be in charge of an echelon one technical team that is tasked with making an agreement with PT Minarak Lapindo Jaya (MLJ).

    According to Basuki, a verification by the Financial and Development Supervisory Agency (BPKP) shows that MLJ had paid the compensation fee of 420 hectares of land totaling at Rp2.7 trillion. The verification also shows that there are still Rp827.1 billion of unpaid liabilities.

    Once the government compensates the victims, Minarak Lapindo Jaya is obliged to return the money within a period of four years. MLJ is also required to submit all of the land certificates of the areas affected by the mud burst to the government.

    "If they fail to repay the money in four years, the government will confiscate land," said Basuki.

    ALI HIDAYAT | EDWIN FAJERIAL (SIDOARJO)