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Lapindo Lost at International Arbitration

Lapindo Brantas Incorporated, the company that is the center of attention in the mudflow case in Sidoarjo, East Java, lost to PT Medco Brantas in a trial at international arbitration.

Independent drilling expert, Robin Lubron, passed on this report to the deputy attorney general for general crimes, Abdul Hakim Ritonga, when accompanying mudflow victims. ““The decision was made several months ago,”” said Lubron yesterday (14/7).

Lubron explained that according to a prosecution report, Medco Brantas had warned Lapindo to be careful when drilling. He went on to mention 14 matters that were ignored by Lapindo when drilling. These included drilling spots too close to people’s homes, equipment that was not insured, and no protection on the cutting edge of drills.

Lubron said Lapindo had broken technical rules. “”Hence Lapindo should pay all the damages,”” he said.

In an edition last June, Tempo magazine covered violations made by Lapindo during its operations. One of these was about warnings from Medco to Lapindo about installing a casing on drills to anticipate a possible leakage but this was ignored.

Lapindo spokeperson, Yuniwati Teryana denied the decision from international arbitration agency as Medco is no longer a Lapindo shareholder. “”There was arbitration, but there was no follow-up and this was agreed to,”” said Yuniwati yesterday.

Medco Energy Corporate Secretary, Sisca Alimin, said that they had nothing to do with it anymore. ““I do not know about it because Medco is no longer a shareholder,”” she said yesterday.

RINI KUSTIANI | ANTON SEPTIAN | DIAN YULIASTUTI | SETRI

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