Indonesia To File $1.7 Billion Montara Oil Spill Lawsuit In 2023

Indonesia is planning to sue PTT Exploration & Production Pcl for at least 27.4 trillion rupiah ($1.7 billion) in damages next year over the Montara oil spill. This is despite the fact that the Thai company has already reached an initial settlement with farmers in the area.

PTTEP has agreed to pay A$192.5 million to a group of Indonesian seaweed farmers to settle a class action lawsuit brought against the company after the 2009 oil spill at the Montara oil field in the Timor Sea.

The government is seeking a bigger compensation from PTTEP for the damages it caused to coral reef, mangroves and marine life, Alue Dohong, Environment and Forestry Deputy Minister, said on Thursday. He added that they are looking for 4.4 trillion rupiah to fund restoration efforts.

Dohong said in a press briefing in Jakarta that experts are still calculating the total damage costs, which may be bigger than initial estimates. The calculation process has been delayed due to the Covid-19 pandemic.

Purbaya Yudhi Sadewa, who chairs the government’s Montara oil spill taskforce, said that getting a little something first is better than getting nothing at all. He added that once they have a little bit, they will chase a bigger one.