Documents (9)

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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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Water Privatisation and Remunicipalisation: International Lessons for Jakarta

This report provides background to the current court case and public debate about the privatised Jakarta water concessions. It seeks to provide international empirical experience concerning privatisation and the role of public sector in water services, in the framework of water as a human right. It uses this experience to identify distinctive features of the Jakarta contracts, and to discuss parallels between the experiences in Jakarta and in the rest of the world. Finally, it offers conclusions in relation to the possible future of water services in Jakarta.

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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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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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