Wed, 12 Nov 2003

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