City Council rejects privatization plans

City Council rejects privatization plans

JAKARTA (JP): The City Council has rejected the municipality's
plan for private firms to cooperate with the city-owned water
company because the administration did not give enough details on
the cooperation.

The council said a lack of detail made it fear private company
participation could affect city water prices, it was disclosed at
a meeting Wednesday night.

City Council deputy chairman H.M. Djufrie, quoting the city
administration's information, said the private firms would have
been in charge of distributing water and billing the customers.

"We fear the private firms would have more authority than the
city, which means they could raise tariffs unreasonably," Djufrie
said.

Muhammad Banang, of the United Development Party faction, said
the cooperation plan had to be more transparent before the
council could approve it.

"As representatives of the people, the council cannot easily
accept plans that could end up in burdening the people," Banang
said.

Golkar faction member Ary Amier Armas asked why the plan was
not submitted to the House of Representatives.

"If the plan comes straight from the central government, then
it should have been submitted to the House of Representatives
instead of the City Council," Ary said.

Although cooperation with private firms aimed to increase
water quality and distribution services, the companies must
guarantee prices would be affordable for everyone, he said.

Meanwhile, the Assistant to the City Secretary, Prawoto
Danoemihardjo, said the city would not let private companies take
control of water management and would like the council's opinions
on the plan.

Earlier, the Ministry of Public Works approved four local and
foreign private companies to join the city-owned water company.

Director of the water company, Syamsu Romli, said the project
would start in June if an agreement could be reached by next
month.

PT Garuda Dipta Semesta, managed by the Salim Group, and PT
Kekarpola Airindo, owned by President's Soeharto's eldest son
Sigit Harjojudanto, planned to carry out the project.

French firm Lyonnaise des Eaux and British firm Thames Water
International would also be involved.

The water company predicted cooperation with the private
sector would increase water quality and distribution services by
up to 49 percent by next year.

It also predicted the city's running water would be drinkable
by 2006. (02)