Fakta to file class action against water charge hikes

Fakta to file class action against water charge hikes

Bambang Nurbianto, The Jakarta Post, Jakarta

The Jakarta Residents Forum (Fakta) will establish a team to
accommodate people who want to join a class action lawsuit
against the city administration and water operators over the 40
percent increase in water rates on Tuesday.

"We are inviting the people to lodge their complaints on the
increase," Fakta Chairman Azas Tigor Nainggolan told The Jakarta
Post Tuesday.

The Jakarta City Council voted Monday night to increase water
charges by an average of 40 percent. It was lower than Governor
Sutiyoso's proposal, which was 45 percent. The proposal was a
response to the requests of water operators.

Before it was increased, water, on average, Rp 3,100 (about 35
US cents) per cubic meter. Now it is Rp 4,340.

The increase was the third since the city administration
signed an agreement with two foreign investors in 1998. The first
was in 1998 (20 percent) and the second was in 2001 (35 percent).

A number of non-governmental organizations say the tariff
should not have been increased before the water operators managed
to significantly reduce water leakage, which is 45 percent of
their total production.

Among them were the Indonesian Consumers Organization (YLKI),
the Jakarta Drinking Water Consumers Community (Komparta), the
Water for All Group and Community Association for Humanity and
Justice (Humanika).

Komparta has also threatened to file a class action lawsuit.

Tigor said those who wanted to lodge complaints could call
(021) 371-5730 or send an e-mail to ISJ@cbn.net.id.

Assistant to the city secretary for development affairs Irzal
Djamal said earlier that the proceeds of the water charge
increase would be used to cover inflation and to pay debts owed
by city-owned water company Pam Jaya. The debts have reached Rp
1.7 trillion to the central government and Rp 630 billion to the
investors.

Since 1998, Pam Jaya has been working with PT Thames Pam Jaya
(TPJ), which is a subsidiary of Britain's Thames Water
International, and PT Pam Lyonnaise Jaya (Palyja), a subsidiary
of France's ONDEO (formerly Lyonnaise des Eaux).

The companies, in 1998, set a target to reduce leakage from 60
percent to 30 percent within five years.

The agreement was restated in October 2001 but did not clearly
stipulate targets to reduce leakage. It also still places Pam
Jaya and the City Administration in a very weak position.

The weak position of Pam Jaya, for example, was seen from its
loan to the investors. The loan was a cumulative figure of
shortfalls between the water charges from the operators and water
prices sold to the consumers.

So far the water charges from the operators were higher than
the water prices sold to the public.