APSN Banner

'Public clean water will get worse'

Source
Jakarta Post - August 2, 2006

Officials and city councillors were angered by the sale of 49 percent of water company PT Lyonnaise Jaya (Palyja)'s shares. Although the France-based company said the decision was made in an attempt to improve its management, many were skeptical. The Jakarta Post asked two activists their views on the matter.

Azas Tigor Nainggolan, is chairman of the Jakarta Resident's Forum in JL. Kalimalang, East Jakarta. He lives with his family in the Matraman area in East Jakarta:

(Governor) Sutiyoso's administration named Palyja and Thames PAM Jaya as water operators for Jakarta because the two firms, with their huge funds and professionalism, pledged to make giving better service to customers a priority.

The story then changed when the administration and the City Council rejected their demands to increase water tariffs in the city a few months ago.

Selling 49 percent of their shares to investors sent the sign that Palyja had given up operating their business Jakarta.

It might be a way to minimize potential financial losses if the administration continues to reject the water tariff increase. I also predict that Palyja will not extend its business in the city after 2008.

Selling the shares also means that the business matters more than public service. There is no investor interested in buying the shares offered by Palyja without seeing their benefits. Once this happens, public clean water will further worsen.

The administration and City Council must seriously study Palyja's move. They must know the exact reasons for the share sale. The administration must also prepare alternatives from now on for substitute operators. Let's give it back to the city operator company (PT PAM Jaya).

Slamet Daryoni, is the executive director of the Jakarta chapter of the Indonesian Environmental Forum (Walhi) in Bukit Duri, South Jakarta. He lives with his family in Bekasi:

We have long opposed the privatization of the water company in Jakarta because it becomes business-oriented and means the public does not have a basic right: access to clean water.

Our recent study in certain areas in Jakarta showed that residents who were customers of the water operators had to allocate 30 percent of their monthly income just to get clean water. They had to buy water from water vendors due to the poor quality of tap water.

I suspect that Palyja wants to wash its hands of the responsibility to upgrade pipe infrastructure. During its eight years of operation, the company has only improved about four percent of the pipe infrastructure from the previous of 48 percent to 52 percent. It shows their lack of seriousness to increase the number of residents who can enjoy clean water.

I hope the water operators and the city administration can take responsibility for their failure to provide residents with access to clean water.

Country