Indonesian Political, Business & Finance News

Govt, House told to unite over water bill

| Source: JP

Govt, House told to unite over water bill

Muninggar Sri Saraswati, The Jakarta Post, Jakarta

A hydrology observer has suggested that the government and the
House of Representatives heed public demand for a water resource
legislation that provides access to safe and affordable water,
instead of bowing to pressures for privatization.

Wijanto Hadipura, a hydrology and hydrologic engineering
lecturer at Semarang-based Soegijapranata Catholic University,
asked the government and the House to remain vigilant against
external pressures for reform in the country's water resource
management.

"We are talking about people's access to water, which is
considered a basic human right. The government and the House must
prove that they are not dictated by certain international
interests in their attempt to manage water resources," he said on
Wednesday.

He was referring to the World Bank, which has indicated that
it might not disburse the third and last tranche of the Water
Resources Sector Adjustment Loan (Watsal), totaling US$150
million, if Indonesia failed to produce a legislation in line
with a 1999 commitment on water resources policy reform.

The deliberation of the draft bill is hanging in the balance,
mainly due to public opposition of the privatization of the water
sector as is stipulated in the bill, which will make water a
commodity.

Irrigation is another controversial issue, with the bank
insisting that farmers must be empowered to manage irrigation.

The office of the State Minister of National Development
Planning and the Golkar faction and the United Development
faction at the House shared the bank's view.

The Ministry of Settlement and Regional Infrastructure and the
Indonesian Democratic Party of Struggle, on the other hand, has
demanded that the government retain its authority over
irrigation, due to farmers' incapability.

Wijanto questioned the friction within the government
regarding the bill.

"Why do they only think about their own interests? They do not
defend public interests. Why don't they argue privatization,
which is clearly stipulated in the bill?"

The government, he conceded, would face difficulties if the
bank canceled its final Watsal disbursement.

"But, I believe if they can unite, we can bear the burden," he
said.

Nila Ardhianie, a member of non-governmental organization the
Coalition for People's Rights to Water, urged the bank and other
donors to prove they did not invest for the benefit of
multinational water companies.

The World Bank has strongly denied allegations that it has a
hidden agenda to usher in foreign companies to invest in
Indonesia's water sector.

The government signed its commitment with the World Bank on
Watsal in 1999, when it faced severe financial difficulties due
to the prolonged economic crisis.

The loan scheme requires that Indonesia reform its legislation
on water and allow the privatization of the water sector.

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