Indonesian Political, Business & Finance News

Special Task Force Sifts Through Remaining Files for Lapindo Mudflow Compensation

| | Source: MEDIA_INDONESIA Translated from Indonesian | Legal
Special Task Force Sifts Through Remaining Files for Lapindo Mudflow Compensation
Image: MEDIA_INDONESIA

The Sidoarjo Mud Control Centre (PPLS) has officially facilitated mediation between representatives of the Lapindo mudflow victims and PT Minarak Lapindo Jaya to break the deadlock in the compensation process that has been dragging on for years. This strategic meeting was led directly by the Head of PPLS, Darwis Daraba, at the PPLS office in Gayung Kebonsari, Surabaya, on Thursday (4/6/2026). This mediation step was taken to conduct a thorough data verification and to find the root of the administrative problems hindering the realisation of payments for residents’ land. The government hopes this meeting will serve as a bridge over the overlapping information and document discrepancies that have been the main obstacles. The Head of the Specific Vertical Work Unit of PPLS, Willem S, stated that all parties are now involved in a Special Task Force (Satgas) formed by the Sidoarjo Regency Government. This task force functions as a neutral mediator to thoroughly dissect administrative constraints, both from the community’s side and the company’s documents. “It is in the Task Force that things will truly be re-verified. Where exactly is the problem, why is it not resolved? We, as mediators between these two parties, must indeed sit down together,” said Willem. He emphasised that the data alignment will refer to official documents from the Land Office (BPN) and official reports that have strong legal validity. The Chairman of the Sidoarjo Lapindo Victims Communication Forum (FKKLS), Akhmad Basuni, revealed that the main obstacle was triggered by a disagreement on value and document differences over files audited by the Finance and Development Supervisory Agency (BPKP). According to FKKLS records, there are still 41 hanging files out of the initial 84 files audited. However, the President Director of PT Minarak Lapindo Jaya, Bambang Prasetyo Widodo (Wiwid), clarified the data. He asserted that the remaining unpaid files currently amount to only 35 files with a value below Rp11 billion. Wiwid also questioned the past performance of the Sidoarjo Mud Mitigation Agency (BPLS), the name prior to PPLS. According to him, Lapindo had once requested state budget (APBN) bailout funds of Rp773 billion, but there was a remainder of Rp54 billion that was not absorbed, even though at that time there were still 84 unpaid files.

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