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ity-owned water operator PD PAM Jaya will acquire private water operator PT PAM Lyonnaise Jaya (Palyja), stepping in for city-owned property developers PT Jakarta Propertindo (Jakpro) and PT Pembangunan Jaya who were previously slated to carry out the acquisition.

Governor Basuki '€œAhok'€ Tjahaja Purnama said the acquisition should take place sometime before the end of June.

'€œWe'€™ve decided that PAM Jaya will buy Palyja'€™s shares [...] Hopefully, the process can be completed in June,'€ Ahok announced at City Hall on Friday.

He said the administration made the decision because the Coalition of Jakarta Residents Opposing Water Privatization (KMMSAJ) rejected the plan for Jakpro to acquire Palyja.

The KMMSAJ filed a lawsuit in November 2012, demanding the court annul the cooperation between PAM Jaya and two private firms '€” Palyja and PT Aetra Air Jakarta (Aetra). The lawsuit alleged the cooperation failed to guarantee an adequate supply of clean, potable water in Jakarta. The case is still ongoing at Central Jakarta District Court.

'€œThey [KMMSAJ] would only drop the case only if PAM Jaya acquired Palyja,'€ Ahok said.

Meanwhile, city secretary Saefullah said PAM Jaya would need to implement major structural reforms before acquiring Palyja.

'€œWe will assess all directors and commissioners in the firm and replace those who need to be replaced,'€ Saefullah told The Jakarta Post.

Separately, PAM Jaya president director Sriwidayanto Kaderi said his company was ready to process the acquisition.

'€œWe have started talking with French company Suez Environnement and PT Astratel Nusantara,'€ he said, referring to the shareholders of Palyja.

Sriwidayanto said his company would continue the process that had been initiated by Jakpro and Pembangunan Jaya.

'€œThe due diligence has nearly been finished. We only need to make some adjustments,'€ he said.

He added that Jakpro previously estimated that the acquisition would cost around Rp 1 trillion (US$80 million).

He said his company would borrow the funds from city-owned Bank DKI and he would hire more professionals in an effort to improve management.

Sriwidayanto said he would also propose a settlement with the KMMSAJ so the lawsuit could be dropped immediately.

Previously, Jakpro and Pembangunan Jaya had been unable to finalize the acquisition as Palyja was embroiled in the court battle.

KMMSAJ lawyer Arif Maulana said the coalition would meet with both PAM Jaya and the city administration to see whether their proposal was consistent with the coalition'€™s demands.

'€œOur stance is clear. We demand the termination of the contract between PAM Jaya and both private firms '€” Palyja and Aetra,'€ he said.