Water firm workers in a lather over renegotiated agreement

JAKARTA (JP): About 100 employees of the city-owned tap water company PAM Jaya held a rally at the City Council on Wednesday to protest a renegotiated agreement between the city administration and two foreign firms.

"We still demand the city administration and the City Council cancel the water management deal with both foreign firms," chairman of PAM Jaya's workers union Amir Tanjung told councilors on Wednesday.

"We do not care about the results of the renegotiation. The water management agreement must be canceled."

The city administration decided to continue the water management deal with Thames Pam Jaya (TPJ) and Pam Lyonnaise Jaya (Palyja) after the renegotiation was completed earlier this month. City councilors also provided their recommendations on the matter.

Amir said the deal contravened Article 33 of the 1945 Constitution, which stipulates that the state is responsible for the management of all vital industries.

The workers said they were not willing to work for either of the foreign firms even though there were reportedly 1,300 positions available.

"They lied when they said that they would accept us as employees," Amir said.

The original water management agreement was criticized because PAM Jaya paid water charges which were higher than the water rate to both firms.

The water rate was set at Rp 2,066 (27 U.S. cents) per cubic meter of water. Previously, the water charge paid to Palyja and TPJ was Rp 2,987 and Rp 2,490 per cubic meter of water respectively.

The renegotiation decided the water charge should be lower than the water rate. Palyja will receive Rp 1,825 and TPJ Rp 1,521.

The council's deputy speaker, Tarmidi Suhardjo, said the renegotiated agreement was final and that both foreign firms made concessions.

"Therefore, there is no reason for the city administration and the City Council to cancel the agreement," he said.

Tarmidi, a councilor from the Indonesian Democratic Party of Struggle (PDI Perjuangan), said the council would summon executives from the foreign firms and city officials on Thursday to obtain firsthand information.

Separately, Governor Sutiyoso vowed to order an investigation into all PAM Jaya executives allegedly involved in Rp 800 billion in graft. The huge losses led to the seeking of foreign investment in the company.

"After the renegotiation, the city administration will soon investigate the corruption cases," he said. (05)