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PAM Jaya: debt-free by 2012?
City-owned water operator PD PAM Jaya sees its debts it owes to private partners, PAM Lyonnaise Jaya and PT Aetra Air Jakarta being reduced up to zero by 2012 should the two partners keep failing to meet the latter’s targets, an executive with PAM Jaya said Wednesday
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City-owned water operator PD PAM Jaya sees its debts it owes to private partners, PAM Lyonnaise Jaya and PT Aetra Air Jakarta being reduced up to zero by 2012 should the two partners keep failing to meet the latter’s targets, an executive with PAM Jaya said Wednesday.
“The shortfall was around Rp 900 billion [US$87,762] in 2002. It is Rp 300 billion now and I hope it will be zero by 2012,” PAM Jaya director Haryadi Priyohutomo told The Jakarta Post on Wednesday.
The shortfall resulted from the deficit the company has suffered for not raising the water tariff for years following the economic crisis that struck the region in 1998.
Haryadi said the shortfall in the debt payments from PAM Jaya was gradually reduced by the accumulation of fines. The two private partners would get fined if they failed to fulfil the target of some aspects in their performance, including claim collection and water leakage.
He said after the shortfall was cleared, the partners would be expected to optimize their revenue.
“If they are sluggish, we will have to pay the fine [because PAM Jaya has no debt to them].”
Last year, he said Aetra’s penalty reached around Rp 180 billion while Palyja stood at Rp 160 billion.
Haryadi said among other targets, the two private partners had to accomplish was to collect bills from the customers. Should they fail to collect the bills, they face a penalty by 4 percent of the total unpaid bills.
However, Aetra’s senior manager for corporate affairs, Yosua L. Tobing denied Haryadi’s statement.
“As far as I know, the unpaid bills collection is not included in the performance target indicators that carry along the consequence of fines.”
Palyja’s corporate communications head Meyritha Maryanie said she could not comment on the issue.
Both Palyja and Aetra claimed they had made the proper efforts and payment collection system to deal with the unpaid bills.
Palyja is in charge of the distribution of tap water in the western part of the city, while Aetra is in the eastern part.
The shortfall was around Rp 900 billion in 2002. It is Rp 300 billion now.
