Expert: Jakarta Faces Rp18tn Loss from Cooperation with Palyja
11 January 2015 22:42 WIB
TEMPO.CO, Jakarta - Muhamad Isnur, head of case handling division at the Jakarta Legal Aid Institute (LBH) predicted that the Jakarta administration is facing a potential loss of Rp18 Trillion (US$1.5 billion) from water management cooperation with PT Perusahaan Air Minum Lyonnaise Jaya (Palyja) and PT Aetra Air Jakarta that has been set in motion from January 2015 to 2022.
“The Jakarta administration will bear a material loss of Rp200 billion (US$16.6 million) per year,” Isnur told Tempo t Bunderan Hotel Indonesia on Sunday, January 11, 2015.
According to Isnur, water providers Palyja and Aetra will not be able to fulfill its promise to provide directly drinkable water.
“The fact is that the water provided by Palyja and Aetra is dirty, smelly and in a small amount,” Isnur added.
Palyja and Aetra, Isnur continued, should be able to fulfill the agreement to provide clean water for 80 percent of Jakarta residents by 2002. However, to this date, both companies can only provide clean water for 40 percent of Jakarta residents.
The Jakarta adminstration, Isnur added, should be able to take over clean water management from Palyja and Aetra.
“[The government] should not hand over the clean water management to foreign companies. Clean water management should be given back to the local government that represents the people,” he said.
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