Water workers protest 'illegal partnership'<\/p>\n
JAKARTA (JP): Some 1,000 protesters of city-owned water
\ncompany PDAM Jaya staged a demonstration at City Hall on Monday
\ndemanding an end to the partnership of PDAM Jaya and its two
\nforeign partners, PT TPJ and PT Palyja.<\/p>\n
Organized by the PDAM Jaya Workers' Union, the protesters
\nargued the partnership violated seven existing laws.<\/p>\n
Protesters, mostly men wearing blue company uniforms, were
\nescorted under the close watch of about 30 riot police.<\/p>\n
Youbert Sianipar, one of the union leaders, said the seven
\nlaws violated included Law No. 1\/1967, which states foreign
\ninvestment is not permitted in the drinking water supply
\nindustry.<\/p>\n
Another violation, Youbert said, was of presidential decree
\nNo. 16\/1994, stating that any state partnership with a private
\ncompany had to go through the process of open tendering.<\/p>\n
\"In this case, there was no open tendering ... the partnership
\nwas a done deal from the beginning,\" Youbert told The Jakarta
\nPost.<\/p>\n
Youbert added that the remaining violations included those of
\nministerial decree No. 3\/1990 and city bylaws No. 13\/1992 and No.
\n11\/1993.<\/p>\n
He said the decree stated that no state company assets could
\nbe given to a private company.<\/p>\n
\"And the bylaws ... they stress that management of the
\ndrinking water business, from production, distribution and the
\ntaking of earnings, has to be done solely by the government,\"
\nYoubert said.<\/p>\n
\"For these reasons, the partnership must be terminated.\"<\/p>\n
Nani Sariati of PT TPJ on Thursday responded to the allegation
\nthat the drinking water sector was closed to foreign investment,
\nsaying this was incorrect.<\/p>\n
Quoting information provided by PT TPJ's lawyer, Richard
\nEmerson, she said the drinking water industry could not be 100
\npercent owned by foreign investors, according to Article 6 of Law
\nNo. 1\/1967.<\/p>\n
\"Under Government Regulation No. 20\/1994, a foreign investor
\nmay own up to 95 percent of the initially issued shares in a
\nforeign investment joint venture company engaged in the drinking
\nwater business,\" she said.<\/p>\n
She said the cooperation agreement between PDAM Jaya and its
\nformer corrupt partners, PT GDS and PT Kati, was \"officially
\nterminated\" and the drinking water business was officially handed
\nover to PDAM Jaya and its new foreign partners, PT TPJ and PT
\nPalyja, in May 1998.<\/p>\n
However, Gary Skelcher, who handles legal matters at PT TPJ,
\nexplained that the division of shares between PDAM Jaya and PT
\nTPJ gave them 80 percent and 15 percent respectively.<\/p>\n
\"The remaining five percent is still owned by PT Kati, but
\n(the company) has no control over it at all,\" Gary said.<\/p>\n
Referring to ministerial decree No. 3\/1990 on total government
\ncontrol over drinking water management, Gary said that PT TPJ
\nmerely managed \"existing assets of PDAM Jaya\", according to
\nclause 13 of the partnership contract.<\/p>\n
\"Ownership remains with PDAM Jaya,\" he said.<\/p>\n
However, clause 14 seemed to contradict clause 13, as it
\nstates: PT TPJ shall have \"exclusive possession\" and use of the
\nexisting assets during the term, and the first party (PDAM Jaya)
\nis not allowed to sell, lease, transfer, dispose of or create any
\nsecurity interest in any existing assets without the consent of
\nthe second party (PT TPJ).<\/p>\n
Meanwhile, 10 of the protesters were received by Deputy
\nGovernor for Development Affairs Budihardjo.<\/p>\n
Amir Tanjung, a member of the founding board of the Workers'
\nUnion, told Budihardjo that PDAM Jaya and its foreign partners
\nhad repeatedly threatened PDAM Jaya workers with \"curt memos\".<\/p>\n
\"They demote us and have even fired four of us without giving
\nany warning, any reason... nothing,\" Amir said. (ylt)<\/p>",
"url": "https:\/\/jawawa.id\/newsitem\/water-workers-protest-illegal-partnership-1447893297",
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