Ika Krismantari, The Jakarta Post, Jakarta
The government will set aside at least Rp 2.5 trillion (about US$275 million) from the national budget to reroute infrastructure facilities that have been damaged by the mud volcano disaster in Sidoarjo, East Java, a senior official said here Wednesday.
Energy and Mineral Resources Minister Purnomo Yusgiantoro said the government, under a presidential decree issued April 8, would cover all the costs of the relocation of the mud-affected infrastructure.
Some Rp 800 billion would be spent on rerouting an expressway, Rp 300 billion on the rerouting of main roads, Rp 250 billion on the rerouting of a gas pipeline, Rp 450 billion on the rerouting of a rail line and Rp 700 billion on land acquisition, said Purnomo, who is also a member of the supervisory board of the newly established National Sidoarjo Mudflow Mitigation Agency.
Public Works Minister Djoko Kirmanto, who chairs the supervisory board, said that the amounts involved could change in line with the real cost of the rerouting work.
However, he said that he had proposed to the finance minister that at least 50 percent of the money be paid out in advance to finance land acquisition for the rerouting of the infrastructure facilities.
"We are hoping to start building the facilities by the end of this year," Djoko said after a ceremony to officially inaugurate the new agency, which was set up to replace the national mudflow mitigation team.
Djoko said that the new agency would focus on reinforcing the containment embankments to prevent the further spread of the mud.
According to the presidential decree establishing the new agency, Lapindo Brantas Inc., the operator of the gas field, which has been widely blamed for causing the disaster, will only be liable for compensating the residents of Porong whose lands and homes had been inundated by the mud up until March 22, when the latest figures on the damage caused by the disaster were released.
According to the decree, the government will be responsible for covering the cost of damage and dislocation arising after March 22.
Based on the latest figures, Lapindo will have to pay compensation to more than 13,000 families in Porong that have been displaced for almost a year by the mud.
Previous figures provided by the team in December 2006 said that 6,000 families in four villages would be eligible to receive compensation.
The new decree also states that Lapindo will be responsible for paying for the efforts to stem the mudflow and for the construction of a spillway to the Porong river.
Djoko said that the cost of constructing the spillway would amount to Rp 500 billion.
Mud has been spewing out of the ground since May 29 last year, inundating homes, roads, factories and rice fields.
The government has estimated that the cost of relocating key infrastructure facilities from inundated areas and compensating those affected by the mudflow disaster will amount to more than Rp 7 trillion.
The government will set aside at least Rp 2.5 trillion (about US$275 million) from the national budget to reroute infrastructure facilities that have been damaged by the mud volcano disaster in Sidoarjo, East Java, a senior official said here Wednesday.
Energy and Mineral Resources Minister Purnomo Yusgiantoro said the government, under a presidential decree issued April 8, would cover all the costs of the relocation of the mud-affected infrastructure.
Some Rp 800 billion would be spent on rerouting an expressway, Rp 300 billion on the rerouting of main roads, Rp 250 billion on the rerouting of a gas pipeline, Rp 450 billion on the rerouting of a rail line and Rp 700 billion on land acquisition, said Purnomo, who is also a member of the supervisory board of the newly established National Sidoarjo Mudflow Mitigation Agency.
Public Works Minister Djoko Kirmanto, who chairs the supervisory board, said that the amounts involved could change in line with the real cost of the rerouting work.
However, he said that he had proposed to the finance minister that at least 50 percent of the money be paid out in advance to finance land acquisition for the rerouting of the infrastructure facilities.
"We are hoping to start building the facilities by the end of this year," Djoko said after a ceremony to officially inaugurate the new agency, which was set up to replace the national mudflow mitigation team.
Djoko said that the new agency would focus on reinforcing the containment embankments to prevent the further spread of the mud.
According to the presidential decree establishing the new agency, Lapindo Brantas Inc., the operator of the gas field, which has been widely blamed for causing the disaster, will only be liable for compensating the residents of Porong whose lands and homes had been inundated by the mud up until March 22, when the latest figures on the damage caused by the disaster were released.
According to the decree, the government will be responsible for covering the cost of damage and dislocation arising after March 22.
Based on the latest figures, Lapindo will have to pay compensation to more than 13,000 families in Porong that have been displaced for almost a year by the mud.
Previous figures provided by the team in December 2006 said that 6,000 families in four villages would be eligible to receive compensation.
The new decree also states that Lapindo will be responsible for paying for the efforts to stem the mudflow and for the construction of a spillway to the Porong river.
Djoko said that the cost of constructing the spillway would amount to Rp 500 billion.
Mud has been spewing out of the ground since May 29 last year, inundating homes, roads, factories and rice fields.
The government has estimated that the cost of relocating key infrastructure facilities from inundated areas and compensating those affected by the mudflow disaster will amount to more than Rp 7 trillion.
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