Indonesian Political, Business & Finance News

Activists criticize government over water

| Source: JP

Activists criticize government over water

Muninggar Sri Saraswati, The Jakarta Post, Jakarta

Observers criticized over the weekend the water resources bill,
which calls for the privatization of the water sector to some
extent, saying that the decision would threaten the public's
right to clean, affordable water.

"Water is a social commodity, it's not a mere economic
commodity and it is a public right," Budi S. Wignyosukarto, who
heads Gadjah Mada University's Institute for Community Service,
avowed.

Both the government and the House of Representatives (DPR)
must guarantee the people's rights by accommodating their
interests in the bill instead of paving the way for the
commercialization of water, he said.

"Once the government and the House approve water
commercialization, some of the country's citizens will have
difficulties accessing clean and affordable water in the future,"
Budi claimed.

The government, which proposed the bill, has been criticized
for neglecting to understand the social value of water as it
appears to be solely focusing on the economic value of water.

"With such an approach, more Indonesians, particularly farmers
and those from low-income brackets, will have trouble getting
safe water," Budi remarked.

Nila Ardhianie from the People's Coalition for Water Rights,
concurred, saying the government must consider water as a human
right as sought by the United Nations this year.

"It means the government must give the same treatment for
access to water for all citizens," said Nila, asserting that the
current bill favors the private sector rather than common people.

Budi suggested the government impose a tax on water for all
citizens instead of issuing permits for water use, with different
permits for daily use and permits for commercial use.

The first permit could be given to households and farmers
whose farmland is irrigated by existing reservoirs. The second
would be for private companies that utilize water for commercial
use. The fee for the second permit would be more expensive than
that of the first.

Such a stipulation, Budi feared, would possibly harm common
people as the authorities would favor the interests of private
companies.

"It would be fair if the government imposed a tax on water.
The tax rate for households must be lower than that for
commercial use as the latter consumes water to gain profit while
the first is merely for consumption," he said.

Minister of Resettlement and Regional Infrastructure Soenarno
said that his office considered water an economic commodity due
to its scarcity.

He argued that the rates for consumers was not for the water
but for the facilities and investment to turn fresh water into
drinking water.

Soenarno had also confirmed that during the draft process of
the bill the government had "indirectly involved the WATSAL
(Water Resources Sector Adjustment Loan) scheme".

According to the World Bank-sponsored WATSAL document,
Indonesia will get a US$300 million loan if the government
completes its water reform initiative, which includes the
enforcement of a water resource law that allows the privatization
of the water sector.

Several non-governmental organizations allege that certain
international private water utility companies use the World Bank
and other international financial institutions as their vehicle
to lobby for legislation and trade laws to force countries to
privatize their water and set the agenda for debate on solutions
to the world's increasing water scarcity.

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