House Rejects Using State Cash for Lapindo Crisis
Monday, 27 November, 2006 | 18:16 WIB

TEMPO Interactive, Jakarta: Emir Moeis, Head of Budget Committee at the House of Representatives (DPR), does not agree with the government using funds from the state budget for handling the Lapindo mudflows crisis.

“It was not a disaster made by nature. The company did it. So, it must handle the disaster,” said Emir Moeis when contacted by Tempo yesterday (11/25).

Emir has also evaluated that Lapindo Brantas Inc is capable of covering all costs that that have resulted from the mudflow disaster.

Earlier, Vice President Jusuf Kalla said that the government would probably participate in handling the social impacts caused by the mudflows.

However, he reminded that any such fund expenditure must be firstly agreed to by the DPR.

According to Emir, Rp2 billion in funds is now already prepared for disasters.

He has assured that members of the DPR will not agree if this reserve fund is utilized for handling the Sidoarjo mudflow.

“How come a disaster that was caused by an individual or a corporation created must be handled by the state?” he said.

A similar refusal came from National Awakening Party (PKB) Faction.

The PKB Faction has in fact refuted the Sidoarjo mudflow’s being announced as a national disaster.

“The reason is that if it is considered as a national disaster, then it means that the handling would use state budget,” said Nursyahbani Katjasungkana, Deputy Chairman of the PKB Faction at the People's Consultative Assembly (MPR) when declaring the faction's statement at the party's central leadership council's office in Kalibata, Jakarta, yesterday (11/25).

Sidoarjo's Regent Win Hendarso has a similar opinion.
Any regional or central budget funds that have been disbursed so as to handle the case must later be repaid by Lapindo.

“People will be angry (if it is state cash that be used) because many other activities were not budgeted. In addition, the government must still repay debts and its interest amounting to Rp180 trillion,” said this politician of Indonesian Democratic Party-Struggle.

SUTARTO | DIMAS ADITYO | IMRON ROSYID | PRAMONO