PDAM Jaya head investigated for employee protests

JAKARTA (JP): The city inspectorate office is investigating the possible involvement of Rama Boedi, the president of city water company PDAM Jaya, in a series of protests by the firm's employees demanding it end its cooperation with two foreign water companies.

Governor Sutiyoso said on Monday the investigation was conducted by officials from the inspectorate office under his instruction.

Rama Boedi would be replaced if he was found incapable of halting the continuing street rallies by the firm's employees, Sutiyoso said, without mentioning whether he thought Rama was behind the demonstrations.

"I should first obtain proof (of whether Rama is involved) and get more input. That's why I instructed officials from the inspectorate office this morning to investigate the case," he said.

The governor made the remarks after accompanying Coordinating Minister for People's Welfare and Poverty Eradication Haryono Suyono and Minister of Social Services Justika Baharsjah in a discussion with managers of welfare centers at City Hall.

Sutiyoso said he had ordered Rama to stop the ongoing rallies, but to no avail.

"Rama promised (to stop the rallies), but the employees have continued to stage protests over the last month," he said

"I offered to handle the rallies myself, but he prohibited me from doing so."

PDAM Jaya employees first protested on April 8 over salary disparities between PDAM Jaya employees and those working for its two partners -- joint venture companies PT Thames Pam Jaya (TPJ) and PT Pam Lyonnaise Jaya (Palyja) -- who are on a lower pay scale.

Of the 3,000-personnel PDAM Jaya workforce, 200 work at PDAM Jaya headquarters, 1,500 at Palyja, and 1,300 at TPJ.

Rama Boedi recently granted a 45 percent increase in wages and allowances to employees working at PDAM Jaya headquarters, causing resentment among employees with the foreign firms.

But the protesters later demanded the cancellation of the partnership, which they said was illegal.

Rama has said the wage increase was not calculated to foment trouble among employees at Palyja and TPJ.

"Don't ever think that I'm behind all this," Rama said.

According to Sutiyoso, the demonstrators' demands to cancel the business cooperation are irrational.

"We can understand if they demand salary improvements, but I think they are asking too much if they want the (cooperation) cancellation," he said.

Asked whether the demands were made because certain parties could no longer make money through corrupt practices, the governor admitted that such a reason could be behind the rallies. In the past, PDAM Jaya officials were thought to have marked up the value of projects and kept the excess money allotted from the city budget.

"It could be that they face different working conditions, with tighter regulations and higher demands," he said.

Separately, Rama, who attended Monday's working session on water management cooperation led by city council speaker Edy Waluyo, refused to talk with reporters when they asked him to comment on the governor's statement.

Present at the meeting were city secretary for development affairs Ongky Sukasah, Palyja commissioner Bernard Lafrogne and TPJ finance manager Ramses Simanjuntak.

During the session, Rama said TPJ was not yet free of corruption, because a 5 percent stake in the company was still held by Sigit Harjojudanto, son of former president Soeharto.

Simanjuntak admitted that 5 percent of the US$8.2 million TPJ capital was owned by Sigit.

"But after the renegotiation process, we will submit the stake to the city administration," he said.

A member of Commission D for development affairs said the renegotiations should have been completed in May. (ind)