JAKARTA (Yosefardi) – The administration of President Joko “Jokowi” Widodo has been criticized for its policy to bailout Rp781 billion liabilities of Bakrie Group’s Lapindo to the mudflow victims in Sidoarjo, East Java.

Under the bailout scheme, Bakrie Group is given four years to repay the government or the government will seize the company’s assets should they fail to repay.

Fahmi Habsyi from the Trisakti Study Center (Pusaka Trisakti) said President Jokowi supposedly asked the opinion from the Supreme Audit Agency (BPK) first before deciding to provide a Rp781 billion loan to PT Minarak Lapindo Jaya (MLJ). “It is dangerous for Jokowi-JK in the future as it can be a Lapindogate,” Fahmi warned, as quoted by Aktual.co on Friday (Dec. 19).

As reported earlier, the government has urged Bakrie’s Lapindo to pay Rp1.4 billion of the company’s liability to the mudflow victims. According to Cabinet Secretary Andi Widjajanto, the Rp1.4 billion liabilities of Lapindo comprises of Rp781 billion compensation to residents and Rp500 billion compensation to employes affected by hot mudflow.

Andi Darusalam Tabussala, CEO of PT Minarak Lapindo Jaya, however, said the company refused to pay the liabilities due to its financial problem.

The mudflow disaster started eight years ago, on May 29, 2006, occurring at oil and gas drilling location operated by PT Lapindo Brantas Inc., a subsidiary of Bakrie Group controlled by the family of Golkar Party Chairman Aburizal “Ical” Bakrie.(haryantosuharman@yosefardi.com)