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rivate water operators PT PAM Lyonnaise Jaya (Palyja) and PT Aetra Air Jakarta (Aetra) plan to file an appeal against the Central Jakarta District Court'€™s recent ruling banning the privatization of water in the capital city.

Palyja spokeswoman Meyritha Maryanie said Wednesday the firm was surprised and disappointed by the decision of the Central Jakarta District Court.

'€œWe have decided to appeal the verdict. Therefore, the cooperation contract remains in full force and effect until the future ruling,'€ she said.

Aetra corporate secretary Pratama S. Adi said Aetra would also submit appeal documents next week.

'€œMeanwhile, we will continue to invest in water services,'€ he said, adding that the company had allocated Rp 150 billion (US$11.55 million) for investment this year.

On Tuesday evening, judges at the Central Jakarta District Court ruled in favor of the Coalition of Jakarta Residents Opposing Water Privatization (KMMSAJ), ordering an annulment of a cooperation struck between city owned PAM Jaya and the two private water operators that began in 1997 and was set to expire in 2023. The lawsuit was filed with the court in March 2013.

In the verdict, presiding judge Iim Nurohim said the court had granted half of the demands of the plaintiffs.

'€œThe defendants have been negligent in fulfilling Jakarta residents'€™ right to water,'€ he said.

The coalition claimed that Palyja and Aetra had both failed to provide adequate supplies of clean, potable water for Jakarta residents. During the 17 years since the agreement was signed on June 6, 1998, just 60 percent of residents have been piped clean water.

Iim said PAM Jaya had also suffered losses of Rp 1.17 trillion since the cooperation began, because the agreement was skewed in the private firms'€™ favor.

The presiding judge said defendants had broken the law by handing over water operations in Jakarta to private firms.

He said, therefore, that the agreement struck between Palyja and Thames PAM Jaya [now Aetra] would henceforth be null and void.

'€œThe court has ordered the defendants to end the privatization of water in Jakarta and return the operation of water distribution in Jakarta to PAM Jaya, in accordance with Bylaw No. 13/1992 on city owned water operators,'€ Iim said.

KMMSAJ lawyer Arif Maulana said the government and the city administration should immediately take control of water operations in Jakarta.

Commenting on the firms'€™ plan to appeal, Arif said his team was ready to fight the next battle.

Jakarta Governor Basuki '€œAhok'€ Tjahaja Purnama said Wednesday the city administration would be unable to take any such measures since Palyja had decided to appeal the decision.

'€œI hope the process can be resolved as quickly as possible so the problem does not drag on,'€ he said, adding that appeals usually took between two and three years to resolve.

The city administration, through PAM Jaya, previously planned to acquire shares of Palyja in order to improve water services in the capital city.

Ahok went on to say that despite the ruling, the city administration would form a team of experts to prepare for the acquisition. He added that he would also restructure PAM Jaya'€™s management, focusing especially on its leadership.