Tuesday, January 30, 2007

Lapindo raises The White Flag

Lapindo Brantas Inc says Rp1.3 trillion is the maximum amount of compensation it can provide to all parties hurt by hot mudflow in Sidoarjo, East Java, Tempointeraktif.com reported. Pardonez Mois. Indonesian people (220 million) are invited to enjoy the hot mud treatment in Porong for Rp25,000/pac (minus Adam Air one way ticket!).
"If the amount of costs increased with higher number of people affected by the mudflow, we can't provide above the approved amount at Rp1.3 trillion. That's our maximum capability. Beyond that, we'll fully hand over to government," said Yuniwati Teryana, VP for human resources & relations at Lapindo Brantas Inc.
So far, Lapindo had disbursed Rp39 billion of compensation to 3,320 families. The maximum amount mentioned by Lapindo is well below the losses of Rp7 trillion estimated by some NGOs.
It's increasingly clear, all of us would have to underwrite the cost of a catastrophe which, according to the latest study, was merely caused by improper drilling operation and nothing to do with earthquake that hit Yogyakarta as claimed by certain groups.
Regarding the costs, initially government declared all costs should be Lapindo's full responsibility. "If they ask government's money, we'll reject," VP Jusuf Kalla said in September.
But in late November, things started to shift when president SBY declared the hot mudflow as disaster. "The state should start to take care," Energy Minister Purnomo Yusgiantoro quoted the president.
But we have different figures here. From my archieve, Lapindo should start to pay compensation of Rp1.3 trillion on January 5, 2007 till March 2007. Another Rp2.5 trillion of compensation should also be paid by Lapindo, starting March 2007. So, what Lapindo really wanted to say with 'Rp1.3 trillion is our maximum capability'? Who will bear the remaining Rp2.5 trillion? State budget?
How about Minister of Public Works' statement that Lapindo should bear the cost of relocating the toll road (Rp1.3 trillion) or compensation claim from 29 factories (Rp327 billion), exporters who have to pay additional cost of Rp1 billion/day due to the closure of the turnpike, or PT Telkom's claim of Rp18 billion?
Let's refresh our memory with Bakrie Family's statement early on that they won't walk away from the liabilities of Lapindo. Lapindo is owned by Bakrie Family and we shall not let Lapindo say, "that's it, take care this shit, we have no more money!" when we know exactly the family is sitting over billion USD worth of assets, right? What's the difference with Soeharto/IMF style of massive banking bailout in 1998-2002?
Considering what Bakrie Family will do, I think they've started to sell shares in some of its listed affiliates, and on the other end buyers are waiting to grab hot money as well. My fellow taxpayers will only get 'hot mud' treatment! Hope you enjoy, Merci Bocoup!

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Anonymous Anonymous said...

May God forgive their sins of these wrongdoings....(if they are aware of it...)

January 31, 2007 1:46 PM  
Anonymous Anonymous said...

this is typical... T.I.I (this is indonesia...)

February 08, 2007 6:51 PM  

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