Foreign water firms look for new local partners

Foreign water firms look for new local partners

JAKARTA (JP): Foreign water management firms PT Thames Pam
Jaya (TPJ) and PT Pam Lyonnaise Jaya (Palyja) are seeking new
local partners, executives of the firms said on Tuesday.

Executives of TPJ, a subsidiary of British firm Thames Water
International, and Palyja, a subsidiary of French firm Suez
Lyonnaise des Eaux, revealed their search for new partners during
a hearing with the City Council.

TPJ finance manager Rhamses Simanjuntak said his company was
looking for a local investor to purchase the 5 percent share in
the company currently held by a firm connected with former
president Soeharto's eldest son Sigit Hardjojudanto.

"We admit that Sigit still has 5 percent of our company's
shares, but he no longer controls the firm," Rhamses said.

He said Sigit, through his company PT Kekar Airindo, purchased
20 percent of TPJ in June 1997. Rhamses said Thames, which owned
the other 80 percent of the company, purchased 15 percent of
Kekar's shares when Sigit resigned as TPJ's president
commissioner in November last year.

"Sigit asked us to sell his remaining 5 percent to local
investors since we, as a foreign firm, are not allowed to hold
all of the shares," Rhamses said, adding that TPJ was hopeful the
city administration would purchase the shares.

Palyja commissioner Bernard Lafrogne said he preferred to
offer shares in the company to local firms rather than the city
administration.

"There will be a conflict of interest if the administration
owns shares since the administration should control us," Lafrogne
said.

He said his firm was negotiating with several local companies
to purchase shares in Palyja, refusing to identify the
prospective investors.

Lafrogne said previously 40 percent of Palyja's shares were
owned by Lyonnaise, with the remaining 60 percent held by PT
Garuda Dipta Semesta, which was controlled by businessman Anthony
Salim.

Garuda Dipta Semesta sold its shares to Lyonnaise in June last
year, he said.

When asked about allegations Salim's company won its contract
with the foreign water firm through collusion, Lafrogne said
Lyonnaise elected to work with Salim because his company was
extremely strong and professional.

Deputy Governor for Development Affairs Budihardjo Sukmadi
said earlier the city administration would not purchase shares in
the foreign water firms.

"We have no money. What for? It would be a conflict of
interest," he said. (jun)