Bill could legalize privatization of water
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.