'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)