Agreement Reached in Palyja Stocks Takeover

The purchase of PAM Lyonnaise Jaya (Palyja) stocks by PT Jakarta Propertindo, one of city-owned enterprises (BUMD), is finally settled after previously hindered by lawsuit filed by Society Coalition to Reject Jakarta Water Privatization. Now, an agreement has been reached about the ways to take over water management in the capital city.

Positive, agreement has been reached . The goal is same, which is to get water management being taken over by the government, or in this case is our BUMD

Jakarta Governor Joko Widodo (Jokowi) acknowledged that Jakarta Provincial Government has reached an agreement with Society Coalition to Reject Jakarta Water Privatization over Palyja stocks takeover. “Positive, agreement has been reached. The goal is same, which is to get water management being taken over by the government, or in this case is our BUMD,” he stated at City Hall, Thursday (4/10).

Palyja Acquisition, for Better Water Management

According to Jokowi, there are at least two ways used to take over Palyja stocks, namely through legal path, which is in accordance to the coalition’s demand, and through business process done by Jakarta Provincial Government. Both ways are ensured will not overlap, so they will search for the fastest way. “The coalition wants legal path, while we want business path. Now the agreement has been reached, it’s only technical,” he said.

Even so, Jokowi informed that there are still some meetings to hold to discuss futher discourse. And from those meetings, he ensures that water management by the government will be easier. “The spirit is that we want the management of earth, water, and natural resources to be ruled by the state and used as well as possible for the people’s needs,” he asserted.

Member of Jakarta Board of Water, Firdaus Ali, told that both legal path and business path will be pursued. Later he will looking for the fastest way to take over stocks before deciding which is the faster way. Thus, the loss in Palyja stocks takeover would not too big. “It has been agreed. We’ll see which has the lowest cost and fastest process. If legal path, it would take two years of time, so the loss will be higher,” he uttered.

With this stocks takeover, Ali added, the contract is automatically abolished. “So, Jakarta Provincial Government will not be sued through international court of arbitration. That is subtle way to abolish the contract,” he said.

Meanwhile, Head of Jakarta Legal Aid Institute (LBH) Advocate Division, Muhamad Isnur, admitted that the goal is the same, which is rejecting water privatization. However, there are still things need to be discussed further. Therefore, he asks Jokowi to cancel the contract first. “Jokowi must be able to take political decision by revoking some policies,” he said.