Komparta rejects water price hike

Komparta rejects water price hike

The Community of Jakarta Tap Water Subscribers (Komparta)
praises the attitude of British Ambassador to Indonesia Richard
Gozney, who met with Vice President Hamzah Haz to complain about
the losses suffered by Thames Water International. This company
has cooperated with Jakarta's water operator, PAM Jaya, since
1998 by setting up PT Thames PAM Jaya (TPJ). Indonesian
ambassadors abroad should do the same as Ambassador Gozney,
particularly in the case of Indonesian migrant workers.

Regrettably, the head of Jakarta's tap water regulatory board
earlier served foreign interests by indicating the need to raise
subscription rates to avoid protracted deficits. While Ambassador
Gozney referred to an accumulated loss of US$58 million, the
company should make a transparent report.

Is it true that the loss results from a mismatch between the
price and the sale value of water? Can't profit still be secured
by reducing the rate of water leakage, now admitted to reach 61
percent?

In Komparta's view, the present economic conditions in Jakarta
are not conducive to a tap water price hike. The numerous leaks
in distribution pipes should be minimized to 10 percent and PAM
water thefts properly handled. Such cases may harm public
interest and lead to civil and criminal suits, as Komparta is now
doing with its class-action suit at the Central Jakarta District
Court.

The Jakarta provincial administration should review the joint
operation (KSO) with its foreign partner to ascertain its
significant benefits to PAM subscribers. In advanced countries
consumers of public goods are protected, while in Indonesia
water, a vital means of human life, is treated as a commercial
good.

Meanwhile, the presence of expatriates in this field should be
evaluated to determine their role in technology transfer, the KSO
accord of 1998 checked for transparency and the government held
responsible for the fulfillment of this vital need as required by
the Constitution.

SUTA WIDHYA

Chairman, Komparta Public Relations

Jakarta