Mandala Citra, Beatle to build pure water project<\/p>\n
JAKARTA (JP): PT Mandala Citra, owned by businessman Hutomo
\n(Tommy) Mandala Putra, and Beatle Corporation of the United
\nStates, will develop the Umbulan pure water project in East Java
\nwith an investment of US$500 million.<\/p>\n
The American embassy was quoted by the Bisnis Indonesia daily
\nas saying over the weekend that the East Java provincial
\nadministration had approved a proposal from Mandala Citra.<\/p>\n
"The two companies are waiting for approval from the Ministry
\nof Public Works to start the project," the embassy said in a
\nstatement.<\/p>\n
Rachmadi B. Soemadhijo, the director general of housing,
\nplanning and urban development at the ministry, however, said his
\noffice had not received a request from the East Java provincial
\nadministration on the project's new investors.<\/p>\n
"We haven't received any request about the new investors. The
\nprovincial administration is possibly working on its proposal and
\nmay soon present it to the ministry," he said.<\/p>\n
The water project at the Umbulan spring is aimed at supporting
\nthe industrialization of Madura island.<\/p>\n
The Umbulan spring -- which discharges 4,000 liters of water
\nper second -- was offered to private sector developers 10 years
\nago.<\/p>\n
Many private companies expressed interest in the project, but
\ndue to a disagreement with the government over water prices, they
\nbacked off.<\/p>\n
Among the companies initially interested in developing the
\nUmbulan spring were PT Bimantara Sitiwisesa, the Bakrie Group, PT
\nHimpurna Ruba and PT Krakatau Engineering.<\/p>\n
Balance<\/p>\n
The American embassy said that East Java Governor Basofi
\nSoedirman hoped the ministry would approve Mandala Citra's
\nproposal.<\/p>\n
"This project is urgent. Delaying it means denying the East
\nJava community drinking water," insisted Basofi.<\/p>\n
Minister of Public Works Radinal Moochtar earlier said the
\nwater project was to only support the industrialization of Madura
\nand could not be used for other purposes.<\/p>\n
"Investors interested in developing the water project should
\nnot expect to use the water for other purposes. It is only for
\nindustrialization," he said.<\/p>\n
The last investor -- before Hutomo Mandala Putra -- known to
\nbe interested in the project was the Ciputra Group.<\/p>\n
The director general of the housing, planning and urban
\ndevelopment, however, said acceptance of Ciputra's plan was still
\nuncertain. "It will depend on the water tariff proposed by the
\ngroup," he said.<\/p>\n
Radinal said that the developer of the water project should
\ngive priority to public interest by minimizing water prices.<\/p>\n
"I understand that private companies want to get big profits
\nbut they should also take into account the social aspect of the
\nproject," he noted.<\/p>\n
The government has said it might cut water subsidies, which
\nwould increase the price of water by up to 25 percent.<\/p>\n
"We will cut the subsidy to strike a balance between the
\ninterests of the government, which gives priority to social
\naspects, and the interests of the private sector, which gives
\npriority to profit," he said. (13)<\/p>",
"url": "https:\/\/jawawa.id\/newsitem\/mandala-citra-beatle-to-build-pure-water-project-1447893297",
"image": ""
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"sponsor": "Okusi Associates",
"sponsor_url": "https:\/\/okusiassociates.com"
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