Water firm's president fired for incompetency

JAKARTA (JP): Governor Sutiyoso fired the president of city water company PDAM Jaya, Rama Boedi, saying the latter was unable to resolve the company's internal problems.

Deputy Governor for Development Affairs Budihardjo Soekmadi said Wednesday's dismissal occurred because Rama was too slow in settling a prolonged dispute between employees of the company and the firm's two foreign partners, PT Thames Pam Jaya (TPJ) and PT Pam Lyonnaise Jaya (Palyja).

"Governor Sutiyoso believed Rama was not tough enough to settle the prolonged dispute, which has been ongoing for more than one month," Budihardjo said after a meeting with PDAM Jaya's board of commissioners, which is led by the governor. Rama also was present at the meeting at City Hall.

Budihardjo said Rama was one factor contributing to the sluggishness of the renegotiation of the cooperation agreement between PDAM Jaya and its foreign partners, but he refused to elaborate further.

He said PDAM Jaya's chairmanship would be entrusted to a caretaker team led by Ongky Sukasah, an assistant to the city secretary for development affairs.

"Pak Rama will be assigned as a staff member to the deputy governor for administrative affairs," he said.

Budihardjo denied Rama's dismissal was caused by the latter's alleged involvement in protests by PDAM Jaya employees.

The protests, which began on April 8, were sparked by a salary disparity between employees at PDAM Jaya's headquarters and those working under Palyja and TPJ.

Rama recently granted a 45 percent wage and allowance increase for employees working at PDAM Jaya's headquarters, causing resentment among employees working under the two foreign joint venture companies.

Of the 3,000 PDAM Jaya employees, 1,500 are assigned to work under Palyja, 1,300 under TPJ and the remaining 200 work at PDAM Jaya's headquarters.

However, an assistant to the city secretary who requested anonymity, said the dismissal was caused by Rama's alleged involvement in the protests.

"After being investigated by officials from the city inspectorate office, there are indications that Rama was behind the protests," the source said.

The indications of his alleged involvement include Rp 10 million in financial assistance given by Rama to the water company's labor union to make union membership cards.

According to the source, both Rama and members of the firm's labor union have the same interests.

"It has become a public secret that the cooperation agreement trimmed much of the income of PDAM Jaya employees because under the new management they could no longer make money on the side from 'illegal projects,'" he said. dispute.

Budihardjo said Sutiyoso instructed the caretaker team to settle the prolonged dispute and get employees back to work.

He also said the caretaker team would lead the company until PDAM Jaya's renegotiations with its foreign partners were completed, possibly in July. (ind)