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Trade agreements put our right to water at risk

Trade agreements like the Regional Comprehensive Economic Partnership (RCEP) are designed to make it easier for foreign multinational corporations to invest and do business. In doing so, they put the rights of citizens and workers second to profits. Read an Op-Ed by Abdul Somad, president of PSI affiliate Jakarta Water Workers’ Union (SP PDAM Jakarta).

Source: PSI

Jakarta’s remunicipalization plan raises hope for better water service

Jakarta’s remunicipalization plan has raised hopes for better water service. “The remunicipalization plan is part on the city’s efforts to achieve 82 percent tap water coverage by 2023. The realization of this target has been slow because of the previous agreement with the private operators. Tap water coverage today sits at 59.4 percent, a sluggish increase from 44.5 percent in 1998. Activists and the public alike have long demanded remunicipalization. Although Jakarta’s plan is still underway, Badung regency in Bali has found success after ending its 20 year partnership with private firms in 2012, according to remunicipalization global tracker website remunicipalisation.org.”s.

Source: The Jakarta Post

Bank Indonesia Governor has asserted that private infrastructure financing could boost growth to 6.5%

Bank Indonesia Governor Perry Warjiyo has asserted that private infrastructure financing could boost growth to 6.5%. “‘If infrastructure financing is sourced from private companies, foreign capital will enter,’ he added. ‘This is [part of] the BI and OJK’s [Financial Services Authority] concrete steps toward narrowing the current account deficit, while at the same time, boosting growth in the medium and long terms,’ said Perry.”

Documents (9)

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Critical Review of Jakarta Water Concession Contract

The process of Jakarta water privatization involved corruption and collusion, to exploit economic profit through the influence of political power. It is not surprising that later the private operators’ performance is not satisfactory. On the other hand, the contract is too advantageous for the private operators: it enables the private operators to gain high profit while being practically free from business risk, enables the performance standard to be flexibly adjusted, puts the water utility into termination trap, and causes prolonged problem of unclear workers’ status. If the current contract is continued, it harms the water utility, workers, and the citizen of Jakarta. Amrta Institute and Public Services International

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No Pro-poor Agenda in Jakarta Water Concession

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 Amrta Institute for Water Literacy and KRuHA-people's coalition for the rights to water

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The sale of Palyja and Aetra: The two companies that supply drinking water in Jakarta

Since 1997, the supply of drinking water in Jakarta has been entrusted to two private operators — PT PAM Lyonnaise Jaya (Palyja) and PT Aetra Air Jakarta (Aetra). Palyja, whose majority of shares are owned by the French company Suez Environment, manages the water distribution in the West and South of Central Jakarta, while Aetra, owned to 95% by Singapore-based Acuatico, handles the Eastern and Northern parts of Central Jakarta.

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Jakarta Water Labor Union's Rally December 2010

In December 2010, hundreds of water union workers in Jakarta (Indonesia) protested against the privatisation of water services in the city. The workers demanded an end to contracts with private foreign companies Suez and Thames on the grounds that they have not brought their promised investments and service improvements, and have worsened labour conditions for workers.

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