Palyja analyzes water privatization termination
The Jakarta Post
Private water operator PT PAM Lyonnaise Jaya (Palyja) said on Friday that the firm respected the Supreme Court’s decision to terminate water privatization in the capital.
The court approved on Tuesday a cassation appeal filed by the Coalition of Jakarta Residents Opposing Water Privatization (KMMSAJ) and annulled a verdict issued by the Jakarta High Court that granted the government’s appeal to continue privatization under cooperation between city-owned water operator PT PAM Jaya and its two partners—Palyja and PT Aetra Air Jakarta (Aetra).
Palyja spokesperson Lydia Astriningworo said the company would review the decision while waiting for an official notification. She said Palyja believed the court’s decision would provide legal certainty for investors in Indonesia.
“We are working closely with PAM Jaya, as our partner, to study the consequences of the decision and our actions thereafter,” she said in an official statement.
The court verdict said PAM Jaya was not permitted to seek new private partners to handle tap water operations in the city and that it would have to produce and distribute clean water on its own after the privatization deal ended in 2023.
The KMMSAJ had fought the case since 2013 when it claimed privatization had failed to guarantee an adequate supply of clean, potable water in the capital.
The Central Jakarta District Court approved the lawsuit in 2015. However, a year later, the private firms filed an appeal against the decision with the Jakarta High Court and won. (ecn)
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