Bill could legalize privatization of water
Bambang Nurbianto and Adianto P. Simamora The Jakarta Post Jakarta
Despite some criticism due to nationalistic and perhaps environmental concerns, the privatization of water resources in the country could soon receive strong legal backing as the House of Representatives prepares to debate the water resource bill.
The bill clearly invites private entities to do business in the once protected water sector, which environmentalists claimed could not only negatively affect the environment but also limit people's access to water.
The participation of the private sector in the water business is stated in a number of articles of the bill.
Article 9, paragraph 1 of the water source bill, for example, says that a water business can be granted to individuals or business organizations for commercial purposes.
Other articles which also give legal support for the privatization of water resources include article 10, paragraph 3, article 46, paragraph 3, article 48, paragraph 1, and article 77, paragraph 1.
The House of Representatives has tasked Commission IV on infrastructure to deliberate the bill, but the deliberation has not yet started.
The bill, nevertheless, drew criticism from one local environmental organization activist, Longgena Ginting of the Indonesian Forum for Environment (Walhi), who said that further privatization of water should be opposed, as it could limit people's access to water.
"We should follow the deliberation process in the House closely. Otherwise we will regret it if the bill is passed into the law as it is because public access to water would then be limited," Longgena, Walhi's executive director, declared on Thursday.
According to Longgena, the government drafted the water resource bill and submitted it to the House following pressure from "international agencies", acting on the behalf of "multinational corporations" and that, in his opinion, surely must be wrong.
Privatization of water is actually nothing new in Indonesia. The Jakarta-owned water company PAM Jaya previously had a cooperation agreement with two foreign private water companies, Thames of Britain and Lyonnaise of France. Then, PAM Jaya sold minority stakes to PT PAM Lyonnaise Jaya (Palyja) and PT Thames PAM Jaya (TPJ).
Longgena said that the entrance of foreign firms into PAM Jaya only resulted in price hikes, but with a little improvement in services.
The critic also alleged that the two companies had not yet expanded water supplies to most of the city's residents, leaving many without access to clean water. Many people, especially those in slum areas, are even forced to buy clean water at much higher prices from vendors.
"More people could suffer if the private sector was given full authority to manage water," Longgena opined.
The bill could also increase expenses for farmers as Article 41, says farmers will be required to pay fees for water usage.
"If this really happens, it will only cause more suffering to our farmers," Longgena stressed.
He urged the House not to even deliberate upon the bill until the country had a law on natural resources which would serve as an umbrella for all laws related to the management of natural resources.
EYEBOX Articles supporting privatization
1. Article 9, Paragraph 1: The concession on the management of water resources can be awarded to individuals and enterprises for commercial purposes and/or fulfilling the needs of their businesses based on the permit issued by authorized officials. 2. Article 10, Paragraph 3: The drafting of water resource management schemes should involve individuals and the business sector. 3. Article 48, Paragraph 1: The government must supervise the quality of services provided by state-owned/regional enterprises, other businesses and individuals as water resource concession holders. 4. Article 76, Paragraph 3: Financial sources to fund water resource management comes from government budgets, private funding and revenue from water management services.