Old Disaster, New Burden

Public funds should not be used to compensate victims of the Lapindo mud disaster. The presidential decree on this matter needs to be reviewed.

March 4, 2008

THE government is not the cashier of Lapindo Brantas Inc. President Susilo Bambang Yudhoyono's decision to compensate some of the Sidoarjo, East Java, mudflow victims proves that the government is weak when it comes to confronting this company. The President has recently agreed to disburse Rp700 billion, to be taken from the State Budget.

This decision was made during a limited cabinet session last week. The government felt it needed to intervene a

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