SBY extends Lapindo mud flow team working term

President Bambang Susilo Yudhoyono has decided to extend the working term of the national taskforce coping with the mud flow at Lapindo Brantas's exploration well in Sidoardjo, East Java by one month to give the company more time to settle the compensation to villagers affected by the disaster.

The decision was made by the President during a limited cabinet meeting at the State Palace on Thursday. The President also met Nirwan Bakrie who represented the majority shareholders of the company and East Java Governor Imam Utomo, Sidoardjo regent Win Hendrarso following the cabinet meeting.

Speaking to reporters following the meeting, Minister of Energy and Mineral Resources Purnomo Yusgiantoro said that Nirwan who represented the majority shareholder of Lapindo agreed in the meeting to speed up the process of the compensation payment to the villagers.

Lapindo will spend at least Rp 3.8 billion (US$=Rp.9,150)to finance the land compensation, but their disbursement has been stalled because the verification process on the ownership of the land affected by the mud flow has not been completed.

Additional funds of about Rp 4 trillion will be needed for the reconstruction of infrastructure facilities damaged the massive mud flows from Lapindo's exploration well in Sidoarjo, East Java. These funds will be provided by the government. (*)