'PDAM free to cooperate with private companies'

'PDAM free to cooperate with private companies'

JAKARTA (JP): City Council Speaker MH Ritonga said the
council's approval was not needed for cooperation between the
city-owned water company PDAM Jaya and private firms.

Ritonga ended recent controversy on the issue by saying
because PDAM was a provincial company it was free to develop and
become more profitable "as long as it does not derail from its
main task of serving the people."

Councilors have attacked the water company for its plan to
cooperate with Salim Group's PT Garuda Dipta Semesta, PT
Kekarpola Airindo, which belongs to President Soeharto's eldest
son Sigit Hardjojudanto, French firm Lyonnaise des Eaux and
British firm Thames Water International.

Several days ago Bandjar Marpaung, head of the Council's
Commission D for development affairs, said private sector
involvement in supplying water violated provincial decree No.
13/1992.

He said decree article 45 stated private firms could cooperate
with PDAM Jaya to make products related to water supply and
distribution but could not supply water.

Yesterday Ritonga argued the Council had approved the PDAM
becoming a provincially owned company which was free to pursue
such joint ventures.

"The council is expected to give input, not approval. The
council has the right to monitor the project and to tell PDAM
Jaya if there is distortion," Ritonga said.

Governor Surjadi Soedirdja agreed saying any efforts to
improve public services deserved support.

"Let's see what type of cooperation it will be," Surjadi said,
when asked if the cooperation violated the provincial decree.
(cst/sur)