Governor okays PAM Jaya privatization<\/p>\n
JAKARTA (JP): Governor Surjadi Soedirdja has given a green
\nlight to the privatization of the city-owned water company, PAM
\nJaya, but has insisted that the administration set a reasonable
\nprice for the tap water.<\/p>\n
The company's director, Syamsu Romli, said yesterday that the
\ngovernor didn't want the privatization to hurt any party.<\/p>\n
"The governor stressed that the cooperation with a private
\ncompany must not harm public interest, yet it should improve the
\nwater company's services to public," Syamsu said.<\/p>\n
He said that a Memorandum of Understanding between PAM Jaya,
\nthe Salim Group and PT Kekar Plastindo will be signed next month.<\/p>\n
The Salim Group is owned by business tycoon Liem Sioe Liong,
\nalso known as Sudono Salim, while PT Kekar Plastindo belongs to
\nSigit Hardjojudanto, President Soeharto's eldest son.<\/p>\n
Syamsu said that a rise in water rates should be in line with
\nthe guideline, as stipulated in the agreement. PAM Jaya has
\nprojected that, until the year 2000, there will be a one-time
\nrise only.<\/p>\n
"We expect the price will go up in 1997," he added, declining
\nto go into details.<\/p>\n
Next year<\/p>\n
According to Syamsu, the agreements between PAM Jaya and the
\nprivate companies will be signed this year, and the cooperation
\nwill be realized next year.<\/p>\n
"We are still negotiating the total fee percentage for the
\nprivate partners, as well as the total capital the companies will
\ninvest in the project," he said.<\/p>\n
"The private companies will operate and manage all production
\nand distribution facilities owned by PAM Jaya. They will also
\ncollect the rates from consumers," he said, adding that the
\ncompanies will be granted a 25-year concession period.<\/p>\n
PAM Jaya, he added, will be in charge of the planning,
\nprogramming and supervising of the mechanism for the cooperation.<\/p>\n
Syamsu also assured that PAM Jaya will neither lay off, nor
\nfire any of its employees after the agreement is signed.<\/p>\n
Syamsu said that the joint cooperation is aimed at increasing
\ntap water distribution services. The level of water leakages is
\nalso expected to decrease after the involvement of private
\ncompanies in the business.<\/p>\n
In 1994, leakage levels reached 44.84 percent of the total
\nproduction of 344,222 cubic meters. Only 189,879 cubic meters of
\nthe water reached consumers.<\/p>\n
The city administration has vowed to reduce leakages to 30
\npercent.<\/p>\n
At present, PAM Jaya is only able to serve 41 percent of
\nJakarta's 340,949 families.<\/p>\n
"By expanding tap water distribution, we will be able to
\nreduce the excessive use of artesian wells, which is dangerous to
\nthe environment," he said.(yns)<\/p>",
"url": "https:\/\/jawawa.id\/newsitem\/governor-okays-pam-jaya-privatization-1447893297",
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