Indonesian govt to pay $2b compensation for mud volcano victims

From ABC Radio Australia: Indonesian govt to pay $2b compensation for mud volcano victims

The Indonesian government has announced it will use state funding to pay compensation for victims of the country's worst mud flow disaster in East Java.

Since the volcano erupted in May 2006, the mud flow has covered a dozen villages in the Porong district of Sidoarjo, displacing more than 15,000 people and affecting 45,000 households.

Experts predict volcano Lusi will continue to pour out mud for at least 30 years.

Mining company Lapindo has always said an earthquake two days before was to blame for triggering the volcano, but many scientists dispute this claim.

Now, the Indonesian government says it will allocate more than two billion dollars from the state budget for the victims.