REPUBLIKA.CO.ID, JAKARTA -- A think tank supporting Jokowi-JK Cabinet, Pusaka Trisakti, warned the government that its plan to bail out PT Minarak Lapindo Jaya could turn into "Lapindogate".
"This is a high risky measure for (government of) Jokowi-JK. We admit the good gesture to help victims of Lapindo, but government must think more logic. They have to prioritize the accountability of public funds," Executive Secretary of Pusaka Trisakti, Fahmi Habsyi, said on Saturday, December 20.
He recommended President Joko "Jokowi" Widodo to discuss with Corruption Eradication Commission (KPK) and Supreme Audit Institution (BPK) before the bailout take place.
The bailout is intended to help the victims of mudflow in Sidoarjo, East Java, to get their compensation after the the company failed to fulfill its obligation. In return, the government keep the land certificate worth 3.8 trillion IDR in the affected area as collateral. The land will be seized if the company fails to pay the bailout.
Habsyi said that Minister of Public Works Basuki Hadimuljono as the former chairman of National Team of the Mitigation of Sidoarjo Mudflow (Timnas PSLS) must explain the history and financial condition of Lapindo group to President Jokowi.
"What is the meaning of collateral if they can't pay the loan?" he said.