Word: lapindo
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...Nature Argument Lapindo says its drilling plan was approved by the government. "The drilling process complied with mandatory regulations," says company vice president Yuniwati Teryana. "We met the requirements." Teryana offers another explanation for the eruption. Two days before Lusi started, a 6.3-magnitude earthquake shook the city of Yogyakarta, about 190 miles (300 km) to the west of Porong. Lapindo believes that the quake opened natural fractures that allowed the mud to escape. "The mud eruption is caused by a natural phenomenon," Teryana says. That's an opinion shared by Adriano Mazzini, a geologist at the University of Oslo...
...Locals have turned to less orthodox methods. According to one popular story, the Lapindo drilling may have angered a spirit living in a tree near the eruption site. Such beliefs have an enduring appeal in this part of Indonesia, where religion is a syncretic mix of Islam and animism, and Lusi has drawn mystics from Bali and Borneo, who have sacrificed chickens, monkeys and even a cow to mollify the upset spirit. The government's engineering team has tried similar tactics; a spokesman says the group has hired diviners to pray for rain to wash the mud away...
...There's no question about whom the villagers blame for their distress. At a refugee camp in a local outdoor market, where more than 2,000 people live in converted, tarp-covered stalls amid goats grazing contentedly on piles of garbage, graffiti makes their target clear: "Lapindo terrorist," one reads. The company provides food for everyone in the camp, along with services such as a medical clinic and a makeshift mosque. But the villagers are quick to recite a litany of complaints, from the quality of the rations to the health effects of the mud (though the government team says...
...Fueling the refugees' anger is the fear that Lapindo will walk away from its promises. Last September, PT Energi Mega Persada, a company controlling 50% of the Lapindo drilling project and connected to Bakrie, the Indonesian Cabinet minister, attempted to unload Lapindo for $2 to a company based on the island of Jersey but owned by Bakrie's family conglomerate. When Indonesian financial regulators blocked that sale, Energi Mega tried to sell half the beleaguered Lapindo to the Freehold Group, registered in the British Virgin Islands. That deal also collapsed amid controversy. The attempted corporate reshuffling raised fears among many...
...settling the social problems caused by the disaster," says Sonny Keraf, Indonesia's former Environment Minister and head of a parliamentary investigation into Lusi. "They are leaving the people to face the company when it should be acting as a bridge between them." Keraf says that, while he believes Lapindo is acting in good faith, the government's indecisiveness is blunting any sense of urgency. A yearlong police investigation into the eruption has resulted in no indictments or clear conclusions. "It's all about politics," says Ivan Valentina Ageung, head of legal affairs for the environmental group Walhi, referring...