LEGAL PROJECT ASSIGNMENT

(CORPORATE LAW)

by:
LIVELYHOOD TONGGO TUA SINAGA
(017202000012)
Lecturer:
YUDISAPUTRA BETAUBUN

Issue:
Sidoarjo Hot Mud Flood or Lapindo Mud or Sidoarjo Mud, is an event that erupts hot mud at
the drilling site of Lapindo Brantas Inc, a company founded under the laws of the state of
Delaware, United States of America. The incident occurred in Balongnongo Hamlet,
Renokenongo Village, Porong District, Sidoarjo Regency, East Java, since May 29, 2006. The
hot mudflow inundated and damaged settlements, agriculture and industry in several
surrounding sub-districts, and affected economic activity in East Java.

Rule:
In this case there are several penalties that can be given, namely based on Article 63 of the
Criminal Code which contains “If an act is included in more than one criminal law, only one
of those rules is imposed; if they are different, they are imposed which contain the most
severe principal criminal threats", then the sanctions imposed on the perpetrators of the above
crimes are the criminal provisions contained in Article 42 paragraph (2) of Law no. 23 of
1997, the maximum imprisonment of 3 (three) years and a maximum fine of Rp.
100,000,000.00 (one hundred million rupiah).

Applications:
1. There was an inappropriate drilling violation by PT. Lapindo Brantas Inc. Drilling is
not in accordance with the regulations stipulated in Law Number 11 of 1967
concerning Mining Principles.
2. Cause a lot of impacts and losses for humans and nature.

Conclusion:

The Lapindo Mud incident is a hot mudflow incident that occurred at the Lapindo Brantas
drilling site, precisely in Balongnongo Hamlet, Renokenongo Village, Porong, Sidoarjo, East
Java. The Lapindo Mud incident has occurred since May 29, 2006 and has resulted in various
physical losses, such as inundation of residential areas around the drilling site which are
increasingly widespread, besides that, agricultural and industrial areas are also inundated with
mud. PT. Lapindo through PT. Minarak Lapindo Jaya until May 2009 has made various
efforts to solve this problem, such as giving money in exchange for land for the community,
as well as building a dike at a cost of 6,000,000,000,000.00 (six trillion rupiah).