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)