Jakarta Globe, Lenny Tristia Tambun, Mar 25, 2015
City-owned water operator PAM Jaya will now handle water supply to Jakarta exclusively. (JG Photo/Jurnasyanto Sukarno) |
Jakarta.
Two private companies have lost their right to supply water to customers in
some parts of Jakarta after a court ruled in favor of a coalition seeking to
have water privatization struck down.
PAM
Lyonnaise Jaya (Palyja) and Aetra Air Jakarta (Aetra) had their contracts with
city-owned water operator PAM Jaya severed by the Central Jakarta District Court
on Monday, ending an 18-year partnership.
Jakarta
City Council will form a transition team to take over their operations, while
Governor Basuki Tjahaja Purnama has said employees of the two companies could
possibly find employment with PAM Jaya.
“They are
professional workers and we cannot abandon them, we will make preparations so
they can work at PAM Jaya,” Basuki was quoted as saying by Tempo.co on
Wednesday.
Basuki said
he was confident PAM Jaya would be able to manage the capital’s water distribution
without Palyja and Aetra.
The court
ruling ends a controversial experiment in water privatization in Jakarta, and
is a major victory for the Coalition of People Rejecting the Privatization of
Water in Jakarta (KMMSAJ), which filed the lawsuit.
The group
had argued that the sub-contracted water service was too expensive and many
Jakarta residents could not afford it.
The
coalition, which includes the Jakarta Legal Aid Fuundation (LBH Jakarta), and
are opposed to private ownership of water, also said the service provided by
Palyja and Aetra was not up to scratch.
Both Aetra
and Palyja have stated that they would file an appeal.
Aetra’s
Corporate Secretary Pratama S. Adi said that the company was aware that his
company’s contract with PAM Jaya was not favorable to the Jakarta City Council
and it was willing to negotiate.
“We have
been conducting internal consolidation and next week we will file an appeal,”
Pratama said.
Palyja’s
spokeswoman Meyritha Maryanie confirmed the company would challenge the ruling.
“During the
legal process the contract between Palyja and PAM Jaya is still valid,”
Meyritha added.
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