PAM privatization plan queried<\/p>\n
JAKARTA (JP): A city councilor yesterday urged the Jakarta
\nadministration to inform the council of its plan to invite
\nprivate firms to manage the city water company, PAM Jaya.<\/p>\n
The chairman of the council's commission B for economic
\naffairs, Sahala P. Sinaga, said the city administration had not
\nyet submitted a formal notification about the plan to the
\ncouncil.<\/p>\n
\"I think it is important for the administration to inform us
\nabout the plan, because we need to know who is the investor and
\nwhat type of cooperation is involved,\" Sahala said after visiting
\na water distribution center in Cilincing, North Jakarta.<\/p>\n
Sahala said the city council could form a special committee to
\nstudy the plan if the administration gave it adequate
\ninformation.<\/p>\n
According to PAM Jaya, the cooperation's memorandum of
\nunderstanding would be signed in November and production would be
\nexpected to start in May next year, he said.<\/p>\n
\"We don't oppose the cooperation, but it would be better if we
\nknew the cooperation's details,\" he said.<\/p>\n
Sahala said cooperation with private investors could help
\nincrease tap water production to 40,000 liter per second. This
\nrate would be reached by 1998, he said.<\/p>\n
Currently, PAM Jaya produces 18,000 liters per second and the
\ncompany can serve only 430,949 families out of the 1,640,380 in
\nJakarta.<\/p>\n
The plan to invite local investors is aimed at improving the
\ncompany's performance: increasing tap water production, reducing
\ntap water leakages and expanding the distribution of tap water in
\nJakarta.<\/p>\n
Earlier this month PAM Jaya said it planned to cooperate with
\nthe Salim Group, owned by conglomerate Sudono Salim, and PT Kekar
\nPlastindo, owned by President Soeharto's eldest son Sigit
\nHarjojudanto.<\/p>\n
Governor Surjadi Soedirdja said the cooperation will not cause
\nthe price of tap water to rise because the city administration
\nstill had the right to set the price and would set an affordable
\nprice.<\/p>\n
According PAM Jaya's projections, the price of tap water will
\nincrease only once and not for another four years. However, one
\ncompany's officials predicted \"tap water prices would probably be
\nraised in 1997.\" (yns)<\/p>",
"url": "https:\/\/jawawa.id\/newsitem\/pam-privatization-plan-queried-1447893297",
"image": ""
},
"sponsor": "Okusi Associates",
"sponsor_url": "https:\/\/okusiassociates.com"
}