JAKARTA (Yosefardi) – Cabinet Secretary Andi Widjajanto revealed on Thursday (Dec. 4) that PT Lapindo Brantas, a company owned by Bakrie family, still has obligation to pay Rp1.4 billion of compensation to the victims of Lapindo mudflow in Sidoarjo, East Java, Detik.com reported.
After a meeting with the Sidoarjo Mudflow Mitigation Agency (BPLS), Andi explained that Lapindo’s liability comprises of Rp781 billion compensation to residents and Rp500 billion compensation to employes affected by hot mudflow.
Andi said that the liability paid by Lapindo is accordance to the ruling of the Constitutional Court. The court’s ruling, according to Andi, also ordered the central government to pay Rp300 billion of compensation to Lapindo’s mudflow victims.
The mudflow disaster started eight years ago, on May 29, 2006, occurred at oil and gas drilling location operated by PT Lapindo Brantas Inc., a company controlled by Bakrie Group, a business group owned by the family of Golkar Party Chairman Aburizal “Ical” Bakrie.
Medco Group and Santos Ltd, two partners of Bakrie Group in Lapindo Brantas, have long ago left the company.
Lapindo Brantas later established its subsidiary namely PT Minarak Lapindo Jaya (MLJ) in order to handle the settlement of the compensation to the mudflow victims. (haryantosuharman@yosefardi.com)