Water Privatization, City Loses Rp 1.1 T

Water privatization in the capital city that has been done since 1998 through two operators, PT Aetra Air and PT PAM Lyonnaise Jaya (Palyja), has been deemed detrimental to Jakarta Provincial Government. If the loss was accumulated, its amount reaches Rp 1.1 trillion.

The loss would reach Rp 18.2 trillion if the cooperation remained continued until 2022

Jakarta Legal Aid Institute (LBH) Director, Febi Yonesta, said that amount of loss was since 1998 to 2012. “ The loss would reach Rp 18.2 trillion if the cooperation remained continued until 2022 ,” she stated in the discussion of ‘Heading to Reliable and Affordable Water Management for Jakarta Residents’ which held in Joeang Building, Menteng, Central Jakarta, Thursday (4/17).

According to Yonesta, the problem broke out during initial contract in the era of former Indonesian President Suharto, in which the cooperation contract valid up to 25 years. When Jakarta Provincial Government filed for rebalancing or contract renegotiation, there was no deal, particularly with PT Palyja.

Palyja Acquisition, for Better Water Management

In the contract, there is a rule about the amount of compensation from PAM Jaya to the private operators. Per cubic meter of water, PAM must pay Rp 7,000, while the water tariff paid by residents to PAM Jaya is only Rp 1,000. That means, PAM Jaya should bear Rp 6,000.

Yonesta also assessed that all this time, the government does not dare to stop the contract with the private sectors in the management of raw water in Jakarta. “The contract is unbalanced and contains various issues that weaken Jakarta Provincial Government, or in this case is PAM Jaya that serves as the holder of people’s sovereignty to manage the water,” she asserted.

Meanwhile, PAM Jaya Director, Sri Kaderi, said that to reduce the loss, Jakarta Provincial Government has planned to buy PT Palyja’s shares. The acquisition is targeted to be done this year. “We're in the stage of due diligence or feasibility study,” he told.

Kaderi also disclosed that for the mean time such plan is focused to PT Palyja only. But, it is possible similar thing would also be imposed to PT Aetra, but after PT Palyja’s acquisition is done. “Indeed, there are plans. But, we’ll do it one at a time. For PT Palyja, we hope it could be finished this year,” he uttered.