Water privatization must not neglect poor

JAKARTA (JP): Privatization of water services must not lead to poor people being denied clean and healthy water, State Minister for the Environment Sonny Keraf warned local administrations on Tuesday.

Water privatization was the greatest concern of nongovernmental organizations around the globe following last year's world water forum in The Hague, Sonny said.

While this concern should be taken into account, it did not mean private companies should be banned from being involved in providing tap water.

"Privatization should not restrict access to clean and healthy water to those who have money, neglecting people who are poor," Sonny was quoted by Antara as saying.

Jakarta tap water company PAM has been involving foreign investors in its business since last year in efforts to boost income and resources.

Its joint venture with Thames Water Overseas Ltd. of Britain services eastern Jakarta, while another joint venture with Suez Lyonnaise des Eaux of France services the capital's western areas.

The City Council has approved a rise in tap water tariffs but exempted social institutions and poor customers. Governor Sutiyoso, however, has yet to issue a decree allowing the new rates to take effect.

To avoid the possibility of privatization leading to profits being put before people, Sonny said local government should maintain control over tap water management.

He also proposed a cross-subsidy system under which rates for wealthy customers would be increased to ensure clean water for the disadvantaged.

"There must be a certain proportion of water provided for the poor and people who cannot afford to pay for clean water," Sonny said. (amd)