Indonesia lowers alert level on Merapi volcano

JAKARTA, July 12 (Reuters) Indonesia cut the alert status of Mount Merapi volcano today one notch from its highest level and said residents who fled the area in May could return to their homes if they wanted.

The volcano in central Java, near the ancient royal city of Yogyakarta, became more active after an earthquake in May struck the area killing more than 5,700 people.

''It can't be said that the situation is 100 per cent secure because it remains at the number 3 level from number 4,'' Subandrio, a senior vulcanologist in Yogyakarta, said by telephone.

''Because the activity has been decreasing, the lava is falling back and for two days hot gas clouds have not occurred.'' Experts had feared a lava dome, building since April due to increased activity, could collapse, generating clouds of gas and lava flows.

''The lava dome is still growing, however its growth is relatively slow,'' added the official, who is in charge of the section monitoring Merapi.

Widisutikno, a disaster official in Yogyakarta province, said people who had left from around Merapi would be given the choice of returning home or staying in temporary shelters.

''The government still has money to give them food,'' the official said, adding that the tourism sector in the region was starting to recover.

Merapi is close to a number of historic sites, including Borobudur, the world's biggest Buddhist monument.

More than 60 people were killed when Merapi last erupted in 1994, while 1,300 died in a 1930 eruption.

REUTERS SHB DS1620