INDONESIAN ENERGY COMPANY WILL PAY MOST OF MUDSLIDE COSTS

A mud eruption in Indonesia that overwhelmed a large area of agricultural land and forced 12,000 villagers to flee their homes has landed Indonesian company Lapindo Brantas, part of Energi Mega Persada, with a US$106m bill this year, although the company has not admitted responsibility for the eruption. Energi director Faiz Shahab said that insurance would cover just US$27.5m of the losses — $25m from Tugu Pratam & Konsorsium, and $2.5m from AIU Indonesia. Last month Energi said that it planned to sell its shares in Hong-Kong based Kalila and Pan Asia Enterprises, which between them own 100% of Lapindo Brantas, to Bakrie Oil for just $2.