Mud disaster still up in the air nearly two years later

Indra Harsaputra and Stevie Emilia
The Jakarta Post/ Sidoarjo, Jakarta

It has been nearly two years since the mud started gushing out of a gas exploration drilling site in Sidoarjo regency, East Java, erasing a number of villages from the face of the map. Since then, there is only one thing for certain -- the disaster is unstoppable.

Since it first struck on May 29 last year, the calamity has forced thousands of people from their homes, made thousands of workers lost their jobs, put companies out of businesses and required other companies to spend more money either to relocate or transport their products.



The company at the heart of the disaster, Lapindo Brantas Inc., has paid some compensation to affected residents but its hard to put a value on the misery of having to find a new home, as well as a livelihood.

President Susilo Bambang Yudhoyono has ordered the company to complete paying out the first tranche of compensation by the end of the year, but the reality might not be so straightforward.

The President has also set a target for completing relocation of the affected infrastructure, which it is estimated will cost some Rp 2.1 trillion, by the end of next year.

But the relocation plan might be hard to be carry out, as well. The residents have been blamed for slowing down the relocation of various infrastructural facilities -- including a turnpike, railway line and gas pipeline -- by demanding high prices for their land.

"People are asking for high prices that will to be accede to as the land and building prices should refer to the estimates made by the independent team," complained Sidoarjo Regent Win Hendrarso.

The residents affected by the relocation plan in Jabon village, for instance, were demanding Rp 120,000 per square meter of their rice fields. This is similar to the compensation paid by the company to mudflow victims. On the other hand, the government is only willing to pay Rp 100,000 a square meter.

"I'm not sure the land acquisition problem can be solved by the end of this year. But I will not use a repressive approach. I will approach residents and remind them that the infrastructure relocation is crucial for Sidoarjo's economy and future," Win said.

Under the plan, the infrastructure will be relocated to the west side of the mud volcano, and will require a total of 132 hectares of land in 15 villages in Sidoarjo and Pasuruan regency.

Of the relocation funds, Rp 2.11 trillion of which came from the state budget, Rp 450 billion is to move the railway line, Rp 700 billion for the turnpike, Rp 300 billion to build a highway, Rp 60 billion for the gas pipeline, Rp 600 billion to pay for land acquisition and Rp 4.5 billion for overall relocation design work.

Altogether, the total losses caused by the mud volcano are estimated at Rp 7.6 trillion. Apart from relocation, it has cost Rp 612 billion to construct a canal to channel the mud to the sea, Rp 70 billion for operational expenses, Rp 50 billion to channel the mud to the Porong River, Rp 300 billion for dam construction and another Rp 4.2 trillion to cover social, housing and land losses.

Even then, this massive sum did not include the Rp 3.5 trillion in cash compensation paid by Lapindo, and the some Rp 40 billion in losses suffered by 12 companies located near to the mud volcano source and other companies whose distribution and service chains were disrupted when the mud cut the main Porong highway.

Phone company PT Telkom reportedly has suffered Rp 20 billion in losses as a result of the mud volcano.

The company's public relations manager in East Java, Djati Soegiarto, said that this did not include the loss of 7,500 customers, or another Rp 750 million per month.

Apart from the slow progress in land acquisition for relocation purposes, Sidoarjo Mudflow Mitigation Agency head Sunarso blamed slow payments out of the national budget as another problem hampering infrastructure relocation.

He said the money had only been disbursed in early December, and had to be spent by mid December. He added that his agency had proposed the extension of the budget-spending deadline to April next year.

"The late (funding disbursement) makes us unsure whether the infrastructure relocation project can be completed next year as targeted by the government. But if the government wants it completed in 2008, we're ready as long the money is there," Sunarso said.

The slow progress with the relocation plan means that businesses and residents are left further out of pocket.

The cutting of roads forces public transportation passengers to spend extra money and time while traveling through Porong, while each company has to spend some Rp 10 million per month on extra fuel when distributing their products.

"The extra cost reduces the company's profit," said a businessman in Malang regency. "We also run the risk of consumers losing their trust due to late delivery."

Train passengers are risk when passing the area as the mud has warped the track and left it open to subsidence, leaving railway company PT Kereta Api with no other option than to order train drivers to slow down to 5 km per hour when passing the affected area.

The victims are still there. Of the 12,777 affected families, 96 percent of them have received the first tranche of 20 percent compensation from the company, while the rest, more than 638 of them, are still taking shelter in Pasar Baru market in Porong.

"We have rejected the 20 percent payment since the money is not enough to start a new life in a new place.

"We are demanding 50 percent and will remain here until our demand is met," said 45-year-old Sumainah from Renokenongo village.

Syafrudin Ngulma Simeulue of the National Commission on Human Rights' mediation sub-commission said the commission had found strong indications of human rights violations

He said the violations were especially apparent in the Porong market shelter as the people had been deprived of housing, health, education and a decent living.

"We want to know who is responsible for these human rights violations, especially ones related to environmental rights as provided for by the 1997 law and the 2007 law on people's economic, social and cultural rights," Syafrudin said.

He admitted, however, the finding the party responsible would not be easy due to the unclear status of the disaster -- whether it was a natural disaster or industrial disaster.

"The unclear nature of the disaster complicates the issue of finding who is responsible," he said.