A TOXIC mud spill spurting from gas well in eastern Java has been declared a national disaster by the Indonesian President, Susilo Bambang Yudhoyono.

Thursday, April 26, 2007


1.Just Compensation for the 10,000 people who have lost their homes, lands, livelihoods and who suffer from health problems caused by the mud flow. At the moment, the displaced live under appalling conditions in evacuation areas. There are reports that Lapindo is paying displaced residents a measly amount of $35 a month for living expenses, while offering about $550 to families to cover two years' rent.

2) Public access to real information. Lapindo never revealed company data used during the drilling operation nor the area’s geological composition and the risks involved in this particular operation. In the same manner, there was an obvious failure of government oversight and regulation in ensuring that such drilling operations do not result in disasters like the one we are witnessing now. Instead of downplaying the impacts of this disaster, concerned government agencies should be made to account for this tragic regulatory failure.

3) Containment and Mitigation measures should be established. The Indonesian government must force Lapindo and the large conglomerates who own it (Bakrie Group, Santos of Australia and Medco Group) to get the best available expertise and develop the best mitigating solutions to limit the impacts of this disaster to human life and the environment. Furthermore, warning systems and response scenarios must be developed immediately in anticipation of the coming rainy season, which is likely to aggravate the current situation

4) Rehabilitation Fund should be established by the large conglomerates who own Lapindo. They would have raked in massive amounts of money had they not bungled this oil drilling operations. This disaster will have long-term impacts to people’s livelihood and the environment. This rehabilitation fund should also cover remediation and restoration costs of the mud flow’s impacts on the river, marine and water ecosystems in the area which are now likely to be affected as well. Of course, in the end no money can ever compensate for this irreversible damage to the environment.

5) Demand Full Accountability and Liability from Lapindo and Minister Bakrie. It is utterly shameless for the minister to distance himself from the disaster when his corporate group owns the controlling shares of this operation. Mr Bakrie, who heads the Social Welfare ministry, did not even ensure proper evacuation and care for the 10,000 affected people. The government must force Mr Bakrie and Lapindo (and shareholders) to shoulder all costs concerning evacuation, compensation, containment and rehabilitation. Ultimately, taxpayers’ money must not be used to deal with the disaster caused by one of the largest industrial conglomerates in Indonesia. Otherwise, the Indonesian public is forced to shoulder the burden for a calamity brought about by the irresponsible actions of the company.

“The Lapindo mudflow disaster stands out as an iconic example of a corporate crime, demonstrating how irresponsible activities by big business continue to wreak havoc on the environment and people’s lives. Corporations are rewarded with overgenerous opportunities and rights to profit from the exploitation of the environment. At the first sign of trouble, they tend to take flight leaving their legacies of suffering and degradation behind. The Lapindo disaster is a classic example of this trend,” Hidayati added.

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