Protests against water deal deplored

JAKARTA (JP): A minister expressed concern on Friday over endless protests by employees of city tap water company PDAM Jaya demanding the cancellation of joint water-management deals with two foreign companies.

State Minister of Investment/chairman of the Investment Coordinating Board Hamzah Haz said that to cancel the agreements between PDAM Jaya and Thames Water International of Britain in a joint venture Thames Pam Jaya (TPJ), and Lyonnaise des Eaux of France in a joint venture Pam Lyonnaise Jaya (Palyja), was not easy given that they were international deals.

"Canceling the agreements will only give a bad impact to the national economy as it will show there is no legal certainty here," he said after witnessing the signing of a contract agreement between TPJ and 12 members the Jakarta chapter of tap water contractors held at Le Meridien hotel, Jakarta.

He said that foreign investment was badly needed in the country as it had dropped sharply recently.

PDAM Jaya employees, especially those posted at Palyja and TPJ, have staged continuous rallies since April 8 against the joint managements.

The contract agreement signed on Friday comprises a Rp 15 billion project for the installation of 100 kilometers of new pipes.

TPJ sales and marketing manager Nani Sariati said that the contract was the first part of a project to be carried out in 17 packages, including installation of secondary and tertiary pipes within TPJ's operational areas in Pulomas, Pulogadung and Klender, all in East Jakarta. (ind)