Foreign water firms look for new local partners<\/p>\n
JAKARTA (JP): Foreign water management firms PT Thames Pam
\nJaya (TPJ) and PT Pam Lyonnaise Jaya (Palyja) are seeking new
\nlocal partners, executives of the firms said on Tuesday.<\/p>\n
Executives of TPJ, a subsidiary of British firm Thames Water
\nInternational, and Palyja, a subsidiary of French firm Suez
\nLyonnaise des Eaux, revealed their search for new partners during
\na hearing with the City Council.<\/p>\n
TPJ finance manager Rhamses Simanjuntak said his company was
\nlooking for a local investor to purchase the 5 percent share in
\nthe company currently held by a firm connected with former
\npresident Soeharto's eldest son Sigit Hardjojudanto.<\/p>\n
\"We admit that Sigit still has 5 percent of our company's
\nshares, but he no longer controls the firm,\" Rhamses said.<\/p>\n
He said Sigit, through his company PT Kekar Airindo, purchased
\n20 percent of TPJ in June 1997. Rhamses said Thames, which owned
\nthe other 80 percent of the company, purchased 15 percent of
\nKekar's shares when Sigit resigned as TPJ's president
\ncommissioner in November last year.<\/p>\n
\"Sigit asked us to sell his remaining 5 percent to local
\ninvestors since we, as a foreign firm, are not allowed to hold
\nall of the shares,\" Rhamses said, adding that TPJ was hopeful the
\ncity administration would purchase the shares.<\/p>\n
Palyja commissioner Bernard Lafrogne said he preferred to
\noffer shares in the company to local firms rather than the city
\nadministration.<\/p>\n
\"There will be a conflict of interest if the administration
\nowns shares since the administration should control us,\" Lafrogne
\nsaid.<\/p>\n
He said his firm was negotiating with several local companies
\nto purchase shares in Palyja, refusing to identify the
\nprospective investors.<\/p>\n
Lafrogne said previously 40 percent of Palyja's shares were
\nowned by Lyonnaise, with the remaining 60 percent held by PT
\nGaruda Dipta Semesta, which was controlled by businessman Anthony
\nSalim.<\/p>\n
Garuda Dipta Semesta sold its shares to Lyonnaise in June last
\nyear, he said.<\/p>\n
When asked about allegations Salim's company won its contract
\nwith the foreign water firm through collusion, Lafrogne said
\nLyonnaise elected to work with Salim because his company was
\nextremely strong and professional.<\/p>\n
Deputy Governor for Development Affairs Budihardjo Sukmadi
\nsaid earlier the city administration would not purchase shares in
\nthe foreign water firms.<\/p>\n
\"We have no money. What for? It would be a conflict of
\ninterest,\" he said. (jun)<\/p>",
"url": "https:\/\/jawawa.id\/newsitem\/foreign-water-firms-look-for-new-local-partners-1447893297",
"image": ""
},
"sponsor": "Okusi Associates",
"sponsor_url": "https:\/\/okusiassociates.com"
}