Sri Mulyani Claims Lapindo Debt Of IDR 773.38 Billion, Cash!

One of the areas in Sidoarjo, East Java, which is submerged by Lapindo mud. (Photo: Doc. Head of Earthquake Information and Tsunami Early Warning at BMKG Daryono)

JAKARTA - The Ministry of Finance (Kemenkeu) is making efforts to pay debts from PT Minarak Lapindo Jaya in cash. However, this cash payment is not the only option offered by the ministry led by Sri Mulyani Indrawati.

The Ministry of Finance's Director General of State Assets, Isa Rachmatarwata, said that cash payment is the main option the government wants. Although there are other options being considered to resolve this issue as well.

"They want to hand over the assets, we are exploring it. We will see which assets, the assets of the affected areas that are offered, we will see," he said, in a virtual discussion, Friday, December 4.

According to him, his party would agree if the value was equal. However, if this is not sufficient, the government will take other means, including payment in cash, which is the main option.

"Cash payment is still the main option for us," he explained.

Currently, the government, said Isa, has consulted with the Attorney General's Office and the Supreme Audit Agency (BPK) to resolve the Lapindo case. It's just that he was reluctant to reveal in detail what steps the government would take.

"But the point, the essence is that we want to progress by trying various ways so that Lapindo's obligations can be fulfilled," he said.

According to Isa, Lapindo is known to offer its land assets as payment of its debts to the government. However, payment of debt with assets (asset settlement) cannot be done just like that because the value must be calculated first.

"So we will see it, we will evaluate it, if there is a value, it is enough, no problem, we will take it too. But if it is not sufficient, we want other methods including what we always ask for now is cash payments, "he said.

For your information, Lapindo Brantas Inc and PT Minarak Lapindo Jaya have not fulfilled their obligations to pay off debts to the government. In fact, in the agreement signed in July 2015, it was stated that the debt must be paid off in July 2019.

Lapindo only carried out its obligation to pay the last installment in December 2018 with a value of IDR 5 billion. In fact, Lapindo's total debt is IDR731 billion as principal debt. Coupled with an interest rate of 4 percent, the total will be around IDR 773,382 billion.