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David Boys of UNSGAB: Water Should be Managed by State

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19 October 2018 15:21 WIB

TEMPO.CO, Jakarta - Jakarta entered a new chapter in managing water supply after the Central Jakarta State Court ruled in favor the people's demand to annul the contract between PT Aetra Jakarta and PT PAM Lyonnaise Jaya (Palyja) on March 25 Maret, as a follow up to the Constitutional Court's ruling that abolished water management by private companies.

Jakarta is not alone, as other global cities have done so in the past. Paris dropped the contract with Palyja's parent company Suez, which had been running the city's water for 25 years prior.

Paris' struggle is probably one that is most successful in returning water management to the public. "The Jakarta city government has a chance to repeat Paris' success," said David Boys, the Utilities Officer of United Nation Secretary General's Advisory Board on Water and Sanitation (UNSGAB) during his visit toTempo last week.

To Tempo reporters, David shared the story on how the France government managed to take over water management from privates. He was accompanied by Transnational Institute Amsterdam's water activist Satoko Kishimoto as well as Nila Ardhianiewho, director of Amrta Institute and Water Supply Researcher, who gave their two cents on how Indonesia, Jakarta in particular, could learn from France. Below is the excerpt as written by Hussein Abri Yusuf.

 

How did Paris successfully took over the city's water management?

Just like in Jakarta, Paris' water management was held by two companies for 25 years since 1984: Compagnie des Eaux de Paris and Parisienne des Eaux—also known as Suez. In 2003, there was a contract renegotiation. The two companies were deemed irresponsible—making only promises of investments. In 2007, The City Council decided that the government should take over the management.  

Through what way?

By purchasing shares. The city administration of Paris compensated the investment and bought the technology and patent.

Did the people of Paris agree to that policy?

At the beginning they doubted it, as there is a myth that privates are better that state. Paris is prove that the myth is wrong. 

When did the government actually take full control of the company?

In 2009. A year later, the government established Regie Eau de Paris to manage the city's water. There were no layoffs as the workers were transferred to the new, government-owned company.

What changed after the government took over?

Tariffs were down by eight percent. The government saved 35 million to 40 million euros (Rp500 billion). And there are now transparencies over the company's finances.

Is what Paris did now a global trend?

David: Yes. This year alone there have been 15 cases.

Satoko: Globally, there are 234 cities taking over their water management from privates. In Indonesia we noted two cases, one of them in Bali's Badung regency.

What does Jakarta need to achieve the same success as Paris?

Nila: Political support. The president must support the governor to take over. According to Governor Basuki Tjahaja Purnama, the government needs Rp4 trillion to do so. Take it! That's cheap, because in other cities in the world the cost could reach dozens of trillions.

Satoko: This is what making Jakarta's water bad. It is smelly and is the most expensive in Asia.

David: Political support is important because in Paris everything started from the government, followed by the City Council. The president of Indonesia must support the governor because it is possible to have interruption from the French government, for example, to have the ambassador summoned by France's Foreign Ministry. 

Do you think Jakarta could have the same kind of success as Paris?

Satoko: It's almost there, because the case has been appealed. (*)



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