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The Bakrie Group and Economic Meltdown in Indonesia

Published online by Cambridge University Press:  07 May 2025

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Part of a continuing series on the impact of the financial and economic crisis on the Asia Pacific.

Back in June 2006 Indonesian environment watchdog Walhi urged the government to shutdown and investigate PT Lapindo Brantas' gas prospecting operation in East Java after a botched drilling operation that caused hot toxic mud to flood surrounding land and to poison local villagers. By mid-2008 some 50,000 people had fled their homes. An international team of scientists who studied the phenomenon is convinced that the mudflow is an “unnatural disaster.” Lapindo, as the article mentions, was then part of the conglomerate owned by Indonesian billionaire and member of President Susilo Bambang Yudhoyono's cabinet, Aburizal Bakrie. Sale of Lapindo in 2006 was widely viewed in Indonesia as an attempt by Bakrie to reduce his financial exposure.

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This is an Open Access article, distributed under the terms of the Creative Commons Attribution-NonCommercial-No Derivatives licence (http://creativecommons.org/licenses/by-nc-nd/4.0/), which permits non-commercial re-use, distribution, and reproduction in any medium, provided the original work is unaltered and is properly cited. The written permission of Cambridge University Press must be obtained for commercial re-use or in order to create a derivative work.
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Copyright © The Authors 2008