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PrivatisationAlternatives / ReformsPublic-Public PartnershipsFinancing Public Water
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Oct 21 2010
Supplied or written by Nila Ardhianie & Irfan Zamzami

PAM Lyonnaise Jaya (Palyja) entered Jakarta water service as a private partner when the water utility PAM Jaya privatized its water service in June 6, 1997. It is now owned by a multinational corporation Suez Environment, Astratel, and Citigroup. Since then, Palyja has a sole right to serve the west part of Jakarta. More than a decade after that, it’s not hard to see that Jakarta water is not getting better as it was expected when the privatization undertaken.

Jakarta water service concession is basically not designed to deliver service for the poor community. This report shows how the payment system applies the disparity between water charge (money paid by the water utility to private operators) and water tariff (money paid by customers to the water utility). The disparity frequently causes shortfall in the water utility’s side because of the wide gap between them. As the water utility’s debt increases, it is reasonable for the private operators to preferably deliver the service to rich-commercial customer because this group pay higher tariff, so that a high income can be maintained.

September 2010, produced by Amrte Institute for water Literacy and KRuHA-people's coalition for the rights to water

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