Tue, 23 Sep 2003

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.