Saturday, November 25, 2006

Lapindo disaster politics

VP Jusuf Kalla indirectly endorsed the idea of state bailout on Lapindo disaster costs. State Minister for National Development Planning Paskah Suzetta said the state budget 2007 could cover part of the costs. Ministry of Finance rejected the idea arguing the President Decree No.13/2006 clearly stated the costs incurred from the mudflow disaster should be the sole responsibility of Lapindo Brantas Inc. But East Java governor Imam Utomo generously lend a hand saying, after a meeting with President Yudhoyono, that the local administration budget could share the costs Lapindo can't take. See, when it comes to state or local administration budget, it's all about politics.

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Anonymous Anonymous said...

I am not understanding this, where is the rationale here ? Isn't Lapindo a privately held company? Is the government of RI included in the shareholder of this company? It is linked to one of the minister, but that does not make it a govt's responsibility...
I'm not saying govt shouldn't care. Istead, they should push Lapindo to pay the whole lot! This is their fault, why Indonesia's budget should suffer ?

November 26, 2006 5:26 PM  
Blogger Big D-Unit said...

Well the problem is there isn't clear-cut evidence that the disaster is fully because of Lapindo's negligence -- and there's no involvement of some sort of natural disaster.

November 28, 2006 3:58 PM  

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