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SIDOARJO - The government has set up a permanent team to help communities affected by the mud flow that has swamped entire villages in East Java. A spokesman of President Yudhoyono announced this on Tuesday. Toll roads, railway tracks and factories have been submerged and over 15,000 people are displaced since May last year when the mud started flowing from a 'mud volcano', following a drilling accident in Sidoarjo, near Indonesia's second largest city of Surabaya.
"The new team will continue efforts to rescue citizens, to handle social and infrastructure issues around the disaster areas," said spokesman Andi Mallarangeng to reporters. The Sidoarjo Mud Management Agency, with as chairman a former army general, replaces a temporary team which was installed for seven months and ended their work last week. Mallarangeng said that the team was set up by a Presidential decree and it will have to cover the costs related to the social impact of the disaster, especially outside the swamped area.
However the operator of the well, PT Lapindo Brantas, would pay for stopping and handling the mud flow as well as pay for compensation for those directly affected, according to Mallarangeng. Lapindo has been told by the government to pay 3.8 trillion Rupiah (311,5 million euro). Officials say the cost of the operation will be at least double that.
Lapindo and PT Energi Mega Persada Tbk, which directly controls Lapindo, both dispute the idea that the disaster is related to drilling and also whether Lapindo alone should bear the cost. Energi is owned by the Bakrie Group, controlled by the family of Indonesia's Welfare Minister, Aburizal Bakrie.
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