News (28)

View all >

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.”

The World Bank is urging the government to promote public-private collaboration

The World Bank is urging the government to promote public-private collaboration to foster “inclusive urbanization.” Stephanie von Friedeburg, chief operating officer at the World Bank Group's International Finance Corporation, “said during the 2018 Annual Meetings of the International Monetary Fund and World Bank that mayors and their local administrations could not face the challenges alone. (…) Von Friedeburg explained, while the government could enforce smarter regulations, the private sector could also finance infrastructure projects through instruments such as green bonds or public-private partnerships.” National Development Planning Board head Bambang Brodjonegoro advocated for “responsive” regulations. “Research organization McKinsey Global Institute director Jonathan Woetzel concurred, saying that technology could be a tool and an enabler to reduce negative externalities caused by urbanization.”

Government seeks more PPP funds

Finance Minister Sri Mulyani Indrawati says the government is pursuing ‘public-private partnerships’ “The Finance Ministry has decided to enhance the role of public-private partnerships (PPP) to boost the construction of public facilities and export financing as it announced on Monday infrastructure projects set to be financed through the scheme. Sri Mulyani, a former WB managing director, assigned four of the Finance Ministry-backed financing firms to help mediate funds from the government and the private sector, and plan their utilization for eight infrastructure projects.”

Documents (9)

View all >

pdf

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

pdf

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.

pdf

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

Multimedia (2)

View all >

video

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.

Case studies (1)

View all >

Cookie preferences

Like many other websites, we use Google Analytics to collect anonymous information about the surfing behavior of our users.