Archive for July, 2007
Publicly listed agribusiness company PT Bisi International is aiming to raise its net profit to Rp 91 billion in 2007, up 50 percent from Rp 60.7 billion last year, by researching better seeds and improving cooperation with farmers.
“We’re optimistic that the company can raise its sales by about 35 percent because farmers are starting to get interested in our products,” Bisi president Junaidi Sungkono told reporters during a company visit to Kediri and Mojokerto in East Java last week.
Bisi International, which grows and markets corn, rice and vegetable seeds, earned Rp 573.7 billion from sales last year.
The company recorded a 45 percent rise in its net profit and a 48 percent rise in sales in the first five months of this year alone.
Junaidi said that since the company was established in 1983, it had produced and sold 92 superior varieties of corn, vegetables and fruits seeds. But the company distributed only 70 varieties these days, he added.
The sale of corn seeds amounted to 42 percent of company profits, while rice and vegetables seeds contributed 21 percent and pesticides and chemical fertilizers 32 percent.
Junaidi added that Bisi allocated more than Rp 10 billion each year to researching new seed varieties. The firm currently has the capacity to produce 15,000 tons of field crop seeds and 4,000 tons of fruit and vegetables seeds each year.
The company has built 11 experimental farms in North Sumatra, Lampung, West Java, Central Java, East Java and West Nusa Tenggara to test new seed varieties.
“At every site, we’re conducting research and development to produce superior seed varieties with high yields, resistance to plant diseases and easily adaptability to all sorts of land and climate conditions,” said Bisi vice president Thomas Effendy.
To support its ongoing research and development, the company has also built a biotechnology research laboratory in Sumber Agung village, Kediri Regency, East Java.
The number of farmers working to grow the company’s hybrid rice and corn has reached more than 45,000, on more than 15,000 hectares of land. In 2002, just 15,000 farmers used 4,900 hectares to test the crops. Most of the farmers live in areas close to the company’s main facilities in East Java and Lampung.
Junaidi said Bisi had also acquired majority shares in two companies to improve its profitability.
Last December, Bisi International purchased a 54.2 percent stake in PT Tanindo Subur Prima for Rp 50.3 billion and a 99.99 percent stake in PT Multi Sarana Indotani at Rp 11.9 billion.
Multi Sarana, established in 2005 in Mojokerto, East Java, is a pesticide formulation plant that produces more than 30 kinds of fertilizer, insecticide, herbicide, and fungicide.
With the production capacity of 14,000 tons of herbicide per year and 1,500 tons each of granular, liquid and powdered insecticides per year, Multi Sarana controls an 8 percent share of the national pesticide market and 3 percent of the specialty fertilizer market.
Tanindo Subur Prima is responsible for distributing all of Bisi’s products under the “Cap Kapal Terbang” brand.
The Jakarta Post, Kediri
July 11th, 2007
TWO podium finishes and a strong fight for the top sprinter’s green jersey in the Tour of East Java which ended in Surabaya, Indonesia yesterday have the Le Tua Cycling Team thinking of bigger things.
It was 23-year-old Nor Rizuan Zainal (pic) who this time shouldered the responsibility as Le Tua’s main man in the hilly stage race, in which they have usually struggled.
Nor Rizuan grabbed a third place finish in the bunch sprint that ended the gruelling 232km Stage Four from Magetan to Grisik on Saturday, when he held on to the green jersey.
South Korea’s Park Sung Baek of the Seoul City Team took the green jersey back on the final day yesterday, leaving Nor Rizuan in second, while national rider Suhardi Hassan was third in the points classification.
Jelajah Malaysia points classification winner Anuar Manan got another podium finish for Le Tua, when he came third in the final stage yesterday.
“The boys were trying everyday. It was a tough race with long stages, and that showed on the final day (yesterday) when some teams lost all their riders,” said Le Tua coach Johari Nayan.
Four Malaysian teams competed in the Tour, with Le Tua the best performing.
The national team managed a mid-table finish in the team classification but apart from that did not create any impact.
The Petaling Jaya City Council (MBPJ) and Selangor teams also contested the race. The Selangor team of young riders found it too tough and failed to complete the Tour as a team.
By : Arnaz M. Khairul - New Straits Times - Persekutuan,Malaysia
July 10th, 2007
A heavy cloud darkened Sukamade Turtle Beach one evening in Banyuwangi, East Java, in early June.
Stars could be glimpsed occasionally, but they soon disappeared as the clouds rolled across the sky and the beach turned black.
In the darkness, two rangers from the Sukamade Forest Reserve were on duty. They watched over the beach continually, because this is where the endangered and protected marine turtles come to lay their eggs.
The beach is the turtles’ maternity ward.
Sukamade Turtle Beach in Banyuwangi and Puger Beach in Jember used to be the two main locations in East Java favored by sea turtles for laying their eggs.
For some years now, however, the turtles have visited only the Sukamade beach, located 239 kilometers from the East Java capital of Surabaya. Almost every night, a turtle lands on the beach to rest or to lay eggs.
Data collected by non-government organization Indonesian ProFauna Environment reveal that turtle protection laws continue to be violated.
Last year, the Bali Police’s coast guard unit caught two ships carrying hundreds of turtles. The same year, Nusa Tenggara Police also caught one ship trying to smuggle turtles.
Investigations carried out by Indonesian ProFauna also show that the illicit trade covers several different “commodities” made from sea turtles, including their meat, eggs, shells and souvenirs created from their body and carapace.
Puger Beach, along with the Sukamade beach, has been identified as one of the centers of the illegal turtle trade. Others include the Turtle Bay Beach in Cilacap, Central Java; Pangandaran and Pelabuhan Ratu in West Java; Pangumbahan Sukabumi and Samas Beach in Yogyakarta.
Turtle eggs are the most popular commodities traded in this illegal business. Others are turtle oil, turtle shell souvenirs and turtle meat.
It is estimated 1,000 to 2,000 turtles are killed every year, their body parts processed and sold.
The Hawksbill Turtle (Eretmochelys imbricata), the Green Turtle (Chelonia mydas) and the Olive Ridley Turtle (Lepidochelys olivacea) are the varieties most commonly poached.
Turtles are also accidentally caught by fisherman and later killed — a direct violation of Law No. 5/1990.
This legislation is designed to conserve wildlife, natural resources and the ecosystem, and clearly prohibits trade in wild creatures.
The penalty for violating this law is five years in prison and a fine of Rp 100 million (US$11,000).
In Banyuwangi, turtle eggs can be seen for sale at the town market and at the central market of Jajag subdistrict. Traders usually offer eggs for sale early in the morning — and undercover.
This year, the number of turtle eggs on offer has been much reduced.
“It’s already become difficult to get turtle eggs,” said local resident Bambang. “When the eggs are on sale, they are few and very expensive, fetching up to Rp 2,000 (US 20 cents) each.”
To ensure that turtles and their eggs are protected from thieves, forest rangers are continually on watch. Included on their beat is Sukamade Turtle Beach, which is patrolled at night when the turtles land and begin laying.
Patrols usually start around 7 o’clock in the evening and last until dawn.
On June 8, The Jakarta Post accompanied two Sukamade Forest Reserve rangers, Slamet and Jumadi, as they carried out their duties.
In pitch darkness, the two rangers began their shift by negotiating their way through a thick mangrove forest, the only way to reach the turtle beach by land. They then poled across a 20-meter river in a small bamboo skiff.
When they arrived at the edge of the beach, the men divided their duties: one traveled east and the other west for a distance of 3.5 km, their journey illuminated only by moonlight.
One of the standard operation procedures for turtle patrols forbids the use of lights, such as flashlights and matches, because the turtles are sensitive to light.
Turtles approaching a beach will turn back to sea if they spot a light, a sure indicator that a predator is waiting for them — that is, humans. Flashlights are permitted for use only when the turtles have already laid their eggs.
Although many prints were blurred, tracks could be seen in the sand showing where turtles had landed. There were also signs of activity indicating where the turtles had laid their eggs.
“Turtle egg poaching is usually done on a night like this,” said Jumadi. He was right.
Around 3 a.m., the rangers surprised some suspected turtle egg thieves pretending to be fishermen. Eventually, the men had to be released for want of concrete evidence that they had stolen turtle eggs.
“They said they were only planning to fish,” said Slamet. However, this group seen by the Post were carrying a sack and shovel along with their fishing gear.
Although unarmed, the rangers showed no lack of courage. But they admitted they could face difficulties if they were attacked by a poacher carrying a sharp knife or homemade gun.
“You can see for yourself how difficult it is for us in these conditions and darkness,” said Slamet. “If someone starts shooting, how can we shoot back?”
Apart from the difficult field conditions, the rangers are also handicapped by a lack of appropriate equipment. They don’t carry walkie-talkies or other communication gear, so must rely solely on flashlight signals, using a system similar to Morse code.
When a turtle lands on the beach, the officers signal to each other: “Three flashes means a turtle has landed and laid eggs,” said Slamet.
ProFauna chairman Asep R. Purnama said the patrols were not effective. They did not have proper equipment and were not provided with a boat, which meant they could not catch poachers at sea.
“If turtles are stolen at sea, what are the rangers in Sukamade supposed to do? Swim?” asked Asep.
The other problem is that Sukamade beach is accessible by both land, traveling along the shore, and sea, using a boat. Multiple access points thus make it easy for thieves and difficult for guards.
There are also too few rangers to provide adequate protection. Sukamade Beach Reserve covers more than 10 hectares, yet it is policed by only seven people. Five are forest rangers, and two are members of the Forest Ecosystem Protection unit.
“It’s absolutely essential that we have more officials to guard the turtles,” said Asep.
I.D. Nugroho, The Jakarta Post, Banyuwangi
July 10th, 2007
MOJOKERTO, East Java: Greenfield Fresh Milk cyclist Bjorn Glassner of Germany took the lead at the Tour de East Java after winning the 130.8-kilometer second stage from Mojokerto to Pacet on Thursday.
Glassner clocked three hours, 38 minutes and 42 seconds, 22 seconds ahead of second place Crawford David of Giant team. He was awarded the yellow jersey from first stage leader Mehdi Sorabi of Azad University, Iran.
“I will sleep and dream after the race. Tomorrow is another day,” said Glassner, who also took the red jersey as the King of Mountain.
But it was another sad day for national cyclists, who are being groomed for the Southeast Asian Games in Thailand in December. None of them finished in the top 10.
Jakarta Post - Jakarta,Indonesia
July 10th, 2007
Thanks to engineering ingenuity, the once feverish volcano, Gunung Kelud, has been somewhat subdued. Karl-Bernd Kaehlig explains how
Gunung Kelud is a rugged volcano in East Java situated between Malang in the east and the fertile plains of Blitar and Kediri in the west, forming part of the chain of the often active volcanoes so characteristic of Java. Though it is a smaller one with a height of 1731 m, it can be quite ill-tempered. More than 30 eruptions have been recorded so far. The volcano’s oldest record which is incidentally the oldest Indonesian one dates back to 1000 AD. In geological terms, the periods of its inactivity are very short: between 9 and 75 years. The most recent one was in 1990, destroying more than 500 houses by heavy ash fall and killing 32 people, mainly caused by collapsing roofs.
Gunung Kelud’s ill-fame is directly linked to its crater lake which has been and is still worrying the people living on the lower western slopes. In the second half of the 19th century the lake’s volume was roughly an impressive 80 million m3. When torrential rains caused the crater rim to breach at that time, in one big swoop this enormous water mass rushed down the valleys and gullies destroying all and everything in its path.
In effect, the same happened in 1919 when a brief, but very violent eruption expelled the water from the crater lake. A mix of hot volcanic ejecta together with the water formed the lahars. The term lahar is an Indonesian word for a mudflow consisting of debris and rocks of mainly volcanic origin and sometimes reaching a thickness of dozens of metres. Within one hour the 1919 mud avalanche traveled almost 40 km. The devastation was enormous: Around 15,000 hectares of arable land were made barren, at least for some time. Dozens of villages were destroyed and over 5000 people were killed. A dam built in 1905 to protect the population against such foreseen calamity proved to be utterly ineffective. It was just swept away.
So something needed to be done about it. The colonial power at that time decided to drain the crater lake the contents of which was still enormous: about 40 million m3.
Jakarta Java Kini Magazine
July 6th, 2007
JAKARTA: Two warships from the Indonesian Navy’s Eastern Fleet Command — KRI Ki Hajar Dewantara and KRI Teluk Banten — have left the Ujung Naval Base in Surabaya, East Java, for a month-long visit to neighboring Brunei Darussalam and the Philippines, an official said Wednesday.
“Both warships carry a total of 503 personnel, including 192 Navy, Army and Air Force cadets,” Spokesman for the Navy’s Eastern Fleet Command, Lt. Col. Toni Syaiful, said in a media statement.
Tony said that besides promoting Indonesian culture and strengthening relations with the navies of the two countries, the journey would also be used for training purposes for the cadets and will include naval war simulations and navigation exercises.
The two warships left Surabaya on Monday and are scheduled to return Aug. 2.
Jakarta Post
July 6th, 2007
SELLING BRAND MALANG: BUT IS IT MARKETABLE?
Every time he parks outside his central Malang office, Sugiyanto anxiously scans the crowds in East Java’s second major city.
Not because he fears car thieves or street thugs. He’s on the lookout for the people who should be there, but aren’t. And for him that’s a serious concern
For Sugiyanto is Malang’s Mr Tourism, or more officially director of the Tourism Information Centre. What he wants to see are more nonplussed nomads dripping with digital cameras and sweat as they pour over crumpled maps.
Once spotted, these folk from afar are invited into his office for a friendly chat and offers of information in the language of their choice – English, Dutch or Japanese.
Sugiyanto is an energetic multilingual man with a double-barrelled task. He wants his neighbours to realise that incomers mean income – and he wants the footloose to know that Malang has all the right attractions – climate, history, art, handicrafts, culture, beauty and safety.
If this sounds like a cushy number a few more taps on the keyboard should set you straight.
The Centre is really a simple kiosk. It’s well placed close to the famous Toko Oen Dutch pastry shop but the holey floorboard will snap your heels or ankle and the air conditioning is breeze-powered. The welcome is warm – and so are the conditions.
There are some maps and brochures going limp in the sun, but the key promotion, a 28-page color booklet is behind the desk and too expensive to be handed over to casual inquirers. Forget your thirst – the fridge is empty.
International visitors familiar with the lavish presentations of no-expense spared bureaux in other countries will certainly respect the director’s effervescent sales pitch and sound knowledge. But they’ll also sadly conclude from the conditions that Malang isn’t serious about tourism, despite some backing by mayors and regents.
When grand ideas aren’t underpinned by a long-term strategy, a bountiful budget and international expertise, the result is predictable.
Which is no fault of Sugiyanto, a university language lecturer who spends his spare time and cash showcasing his hometown’s qualities. A local furniture company has donated a table and cupboard; the staff have to pay the phone bill. His assistants are students on work experience.
The problem is not that the city’s attractions don’t match Sugiyanto’s rhetoric; in many cases they crown his words.
The difficulty is that few in Malang seem to appreciate the message he hammers: That tourists don’t come like seasonal rains arriving without human involvement. Just because a high government official in a peaked cap fanfares a new Visit Indonesia programme doesn’t mean that Westerners snap to attention, pack their bags and e-mail their travel agent.
Earlier this year the government said it hoped six million foreign visitors would aim for the archipelago, generating US$6 billion. But so far only 3.5 million have fronted immigration desks at Indonesia’s entry points.
Of course terrorism is a factor in the downturn, but it’s not the only issue according to Sugiyanto.
“The US$25 visa-on-arrival charge is definitely an obstacle,” he said. “Most foreigners can spend up to three months in other South East Asian countries and their visas are free. International tourists are confronted with hundreds of choices. Why visit Indonesia when there are so many other quality attractions with no impediments?
“We get about 2,000 foreigners a month in Malang in the dry season, almost all from Europe. Each person spends at least Rp 1.5 million a day on local goods and services. The majority are Dutch, followed by Germans and the French. Very few Australians come here, though we’re next to their Bali playground.
“Then there’s the overall way Indonesia is advertised. Most public servants in tourism departments aren’t there for their expertise. They could be in any agency and can’t be sacked if they don’t perform. We should all be professionals working together to promote Malang as an international brand.”
A good example of the absence of coordination came when Sugiyanto invited this writer to visit the nearby eighth century Hindu temple of Candi Badut. But the gate was locked, the caretaker was out and no one knew the whereabouts of the key.
In a survey of local opinions Sugiyanto has uncovered a disturbing belief: Some think Western visitors will bring their infamous dissolute behaviour and ‘free sex’ into the conservative city. As most are plump matrons and arthritic gramps hesitant about mounting the steps of a tour bus, the idea of importing lascivious lifestyles is ludicrous.
Apart from a non-stop bombardment of local officials and the media, Sugiyanto’s strategy is to involve young people in appreciating Malang and developing pride in their district. Surprisingly few school kids know their city’s history or have visited the sites. (See sidebar).
In a well-publicised public contest, industrial engineering student Wahya Budi Leksono was elected as a youth tourism ambassador last month (Nov). Although his academic interests are more about hydraulics than hospitality Wahya speaks good English and has the self-confidence to approach foreigners alone, a rare quality among East Java teens who think it’s becoming to be bashful.
Another idea packaged by Sugiyanto is for a Tourism Board made up of industry representatives and experts to advise the government. This is the standard overseas model.
Such a bureaucracy-threatening advancement isn’t going to happen overnight, so in the meantime he’s pinning hopes for a visitor revival on a new southern access road to Mt Bromo through Tumpang.
This village is famous for its art and crafts, and in particular the performances at Mangun Dharma where American Karen Elizabeth Sekarum is an established pesinden (singer with a gamelan orchestra).
Till now the standard route to Bromo has been from the north through the coastal town of Probolinggo. Naturally enough Sugiyanto believes his way is shorter, offers more awesome vistas and extra attractions.
All this may well be true – but who will know unless Malang is given some serious money for publicity and a chorus of high-profile figures singing the city’s charms from the same songsheet?
Who hasn’t seen the slogan ‘ Malaysia - Truly Asia’, whether they live in Sydney or Stockholm? Who’s heard of Marvellous Malang?
Sugiyanto and his colleagues are banging a big gong, but the other players are taking a kip.
MARVELLOUS MALANG
Part of the charm of this sedate city is in its late development. It only became popular as a Dutch hill town in the late 19th century so many buildings are well preserved.
Some major streets, like Jl Ijen are tree-lined European style boulevards, little changed from the days of pith helmets and swagger sticks. These thoroughfares retain their residential status and haven’t been destroyed by crass commercial development.
Visitors from Holland often have family links in the city which prospered during the colonial era from plantations of tea, sugar and coffee. Some are open to the public.
Yet paradoxically Malang is also saturated in ancient history. This was the heart of the Singosari kingdom. In the village of that name 12 km north are some extraordinary 700-year-old monuments built to honour Hindu and Buddhist priests.
All the numerous archaeological sites are close by and easy to visit by public transport. While visitors ooh and aah at the chance to run their fingers along Sanskrit chiselled by artisans centuries before Shakespeare sharpened his quill, the locals tend to find it all a bit of a yawn.
They’d rather spend time in artificial recreation parks like nearby Senaputra. Unless you’re a social scientist doing your doctorate on crowd behavior, best not to visit at weekends.
Malang has a population of around 800,000 and a reputation for being an education city with several quality universities. So you’re bound to encounter students everywhere. This gives the place a youthful feel despite the antiquities.
You’ll also fill your flash cards with enough pix of valleys and volcanoes. To the east is the Hindu’s sacred mountain Semeru (Java’s highest peak at 3680 metres), and Bromo-Tengger. To the west is Kawi, which has mystical properties, particularly for the Chinese.
Batu, just 20 minutes higher, is even cooler and blooming; its reputation as a city of flowers is well rooted. Indonesians like the little apples grown here though the leathery varieties don’t suit European palates.
The south coast is a couple of hours away and the journey never boring. Although there are pleasant beaches this is not Kuta and there’s no culture of sun baking in this Muslim area. The attractions are in the fishing villages and rugged coastline.
Malang is about 80 km south of Surabaya and can be reached by train (three hours) or by bus or car in under two if you go early. There’s no air link. One four star and several three star hotels are used to foreign visitors and their funny ways, like wanting hot water in the bathroom and a toilet with a seat.
Contact the Malang Tourist Information Centre on Jl Basuki Rakhmad 6 – phone (0341) 323 966.
(First published in The Jakarta Post 6 January 2006)
© Duncan Graham 2006
July 5th, 2007
By Heru Aspirhanto
PURWODADI, Indonesia (Reuters) - A volcanic mud geyser in Indonesia’s Java island is producing an unlikely source of income for local farmers — “sweet” salt.
The Bledug Kuwu geyser in Purwodadi, west of Central Java’s capital Semarang, has spewed out mineral-rich fluids for centuries, a phenomenon experts say results from geothermal motions deep in the earth.
The geyser contrasts with a destructive mud volcano in east Java near Surabaya that started last year near an oil drilling site and has swamped an area four times the size of Monaco and made thousands homeless.
The Bledug Kuwu geyser is proving handy for four innovative villagers who are turning material from the eruptions into salt.
During the dry season water from a 4.5-ha (11-acre) pool is collected in salt evaporation ponds.
“This salt is different from ordinary salt. It tastes a little bit sweet,” one of the salt farmers, Siyem, told Reuters Television.
One kg of salt costs 2,000 rupiah (22 U.S. cents), more than five times the price of ordinary salt, said Siyem, who works with her husband to produce the salt.
The couple can produce 40 kg of salt a week if the weather permits.
Siyem said she and her husband farmed the land when not making salt, which is only possible during the dry season when the weather is hot enough to evaporate the water.
“We make salt only as a side job, not our primary job,” Siyem added.
During the rainy season, the mud volcano increases its activity, spewing out more fluids.
Bledug Kuwu has also become an attraction among local tourists. Some visitors get a glimpse of the geyser eruptions from as near as 10 meters.
Bledug Kuwu looks like just another muddy pond. But every one or two minutes, the placid water erupts in an explosion of mud, followed by a plume of white steam.
The temperature is mild. Visitors can experience small, frequent eruptions from the mud crater.
Two spots where the geyser regularly erupts are called Mbah (grandfather) Jokotua and Mbah (grandmother) Rodenok. Locals believe these spots are sacred.
Reuters.uk - UK
July 4th, 2007
Coinciding with its 54th anniversary, Bank Indonesia officially launched four programs Monday focusing on the strengthening of micro, small and medium enterprises (SMEs) in the provinces to help accelerate the growth of the real sector.
The programs comprise the establishment of a task force to facilitate the acceleration of regional economies, a pilot project to cluster SMEs based on commodity and geographical groupings, an on-line service providing business data and information, and a visitor center at BI’s headquarters, BI governor Burhanuddin Abdullah said.
They are all part of BI’s commitment to improving the real sector in the regions, especially the role of SMEs, added Burhanuddin.
The task force is tasked with finding solutions to the problems hampering the strengthening of the real sector in different regions.
It’s membership will consist of representatives from BI, provincial leaderships, commercial banks, private companies and academic institutions, and it is expected to function as a mediator and guarantor for SMEs in securing loans from banks.
The task force has already established pilot projects in eight regions, including Medan (revitalization of oil palm and rubber plantations), Bandung (vanilla, corn and rice cultivation), Manado (corn cultivation), Cirebon (cassava cultivation), Pontianak (orange groves), Jambi (palm and rubber plantations), Kupang (seaweed farming), and Purwokerto (goat raising).
As for the pilot projects to cluster SMEs based on commodity and geographical groupings, Burhanuddin said that these were intended to improve the bargaining positions of SMEs.
“SME clusters have been established in six provinces comprising Banten for the promotion of emping mlinjo (rice crackers), West Java for paprika, West Nusa Tenggara for seaweed, Central Java for rattan furniture, East Java for shoes and North Sumatra for cassava.”
Burhanuddin further explained that the on-line service would provide up-to-the-minute information on business in Indonesia via the BI website at www.bi.go.id.
The information service, which would provide both micro and macro information, was expected to help improve the intermediation role of the banks in channeling loans to SMEs.
Lack of capital is one of the many problems facing SMEs, the economic mainstays in most of the country’s provinces, as they attempt to grow their businesses.
The Jakarta Post, Jakarta
July 3rd, 2007
Jakarta (ANTARA News) - The government will propose an additional budget of Rp500 billion to Rp600 billion for the construction of infrastructure that had been damaged by the mudflow of Lapindo Brantas mining company in Sidoarjo, East Java.
“The government has made a request (to the House of Representatives) for additional budget of Rp 500 billion to Rp 600 billion for the rehabilitation damaged infrastructure,” Finance Minister Sri Mulyani Indrawati said at a socialization of the proper management of government accounts at the different ministries and agencies, here on Wednesday.
The minister said that the additional funds would be proposed by the Public Works Ministry through the 2007 revised state budget.
“The funds are for damaged infrastructure rehabilitation. The budget implementation list (DIPA) is in the hand of the Minister of Public Works,” she said.
Mulyani said that based on Presidential Decree No. 14/ 2007 on the Sidoarjo Mudflow Handling Agency (BPLS), the government was responsible for the repair and rehabilitation of damaged infrastructure which affected the people`s life and the national economy such as roads and railway tracks.
“Because of flooding and bing covered by mud, the infrastructure like roads and rail tracks can no longer function, and have to be rehabilitated or relocated. As it now has entered the year 2007, we will propose an additional budget allocation in the revised 2007 state budget to the House of Representatives (DPR) through the Public Works Ministry,” the finance minister said.
On the occasion the minister also said that the government would not bail out compensation funds for the mudflow victims. “There is no bail out fund,” she added.
Previously, President Susilo Bambang Yudhoyono said the government would not lend money for paying compensations to the victims of mudflow from PT Lapindo Brantas operations in Porong, Sidoarjo, East Java.
“Actually there has been an idea of the government to lend money, but it would no longer be necessary, because PT Lapindo Brantas is able to make the payments,” he said at a press conference after a meeting to discuss the handling of the disaster.(*)
Copyright © 2007 ANTARA
July 2nd, 2007
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