Indonesian Political, Business & Finance News

Tap water management still undecided

| Source: JP

Tap water management still undecided

JAKARTA (JP): City councilors remained undecided on Thursday
over the results of the water management renegotiation between
the city-owned tap water company PAM Jaya and two foreign firms.

"We have to study the renegotiation results before we can
endorse the water management deal. There are still unclear items
that need clarification," councilor Audi I.Z. Tambunan of the
Indonesian Democratic Party of Struggle (PDI Perjuangan) said.

Audi was speaking in a hearing between city council leaders
and Deputy Governor for Development Affairs Budihardjo Soekmadi
and officials of both foreign firms -- Thames Pam Jaya (TPJ) and
Pam Lyonnaise Jaya (Palyja). The hearing reviewed the results of
the renegotiation results.

Councilors Posman Siahaan of the Justice and Unity Party (PKP)
and Chudlary Syafi'i Hadzami of the United Development Party
(PPP), shared the same opinion.

Posman questioned the whereabouts of PAM Jaya's assets before
the water deal management was signed in 1998, while Chudlary
inquired about PAM Jaya employees now working for both foreign
firms.

"I have reports that PAM Jaya's employees have not been fairly
treated. I demand they be given similar treatment as the firms'
other employees," said Chudlary.

PAM Jaya's director Muzahiem Mochtar said it was normal to
find different treatment at the two foreign firms because the
workers were still PAM Jaya employees.

"They will receive equal treatment if they choose to be the
employees of either TPJ or Palyja," he said.

An executive of Palyja, Bernard Lafrogne vowed that both
companies would accommodate PAM Jaya's employees.

"Palyja can hire 1,500 employees of Pam Jaya, while TPJ
another 1,300 employees," he said, while citing that significant
compensations would be provided for those who were unwilling to
do so.

"We can arrange an early retirement plan for those
interested," he added.

Another councilor, Syamsuardi Botan of the National Mandate
Party (PAN) called for an elaboration of the renegotiation
results in a bid to avoid any misinterpretation.

"All the conflicts in the past were because each party had
different interpretations of a clause in the draft agreement.
That's why it's important to have a technical guideline for the
renegotiation results," he said.

Representatives of PAM Jaya's workers union, Amir Tanjung and
Idris Mansyuri, also present at the hearing, kept airing their
disappointment with the renegotiation results.

"The water management deal must be canceled," said Amir.

Meanwhile, Idris threatened to occupy all PAM Jaya's assets
that were now operated by both foreign firms.

"Let's storm and occupy all the assets. We will surely win,"
he said emotionally to the cheers of some 50 PAM Jaya workers
waiting outside the meeting hall.

The water management deal was signed in February 1998 with TPJ
and Palyja and has been the reason for repeated protests by
scores of PAM Jaya employees, members of the workers union.

Some officials, including Governor Sutiyoso, have said that
the union protests were driven by the fact that they could no
longer practice "dirty" business, such as corruption and
collusion.

The city administration and the two firms, however, agreed to
a series of renegotiations of all the disputed items in the draft
agreement. The renegotiation was completed earlier this month.
(05)

View JSON | Print