TheJakartaPost
Please Update your browser
Your browser is out of date, and may not be compatible with our website. A list of the most popular web browsers can be found below.
Just click on the icons to get to the download page.
Popular Reads
Top Results
No results found. Please check your search term and try again
Can't find what you're looking for?
View all search results
Popular Reads
Top Results
No results found. Please check your search term and try again
Can't find what you're looking for?
View all search resultsPurbaya raises conflict-of-interest concern in Mandalika SEZ dispute
The case centers on PT Perusahaan Air Indonesia Amerika (PAIA), a foreign investment joint venture backed by investors from the United States, Singapore and Saudi Arabia, which alleged it had been unfairly treated by state-owned firm ITDC.
Change text size
Gift Premium Articles
to Anyone
Share the best of The Jakarta Post with friends, family, or colleagues. As a subscriber, you can gift 3 to 5 articles each month that anyone can read—no subscription needed!
Mandalika: A slice of cultural and environmental heaven hidden in Lombok, West Nusa Tenggara. (Photo courtesy of: indonesia.travel.id)
A
dispute over a foreign-backed water processing investment in the Mandalika special economic zone (SEZ) in West Nusa Tenggara risks undermining investor confidence, Finance Minister Purbaya Yudhi Sadewa has warned.
During a public hearing held by the government’s task force for accelerating economic growth programs at the Finance Ministry on Tuesday, Purbaya criticized what he described as a potential conflict of interest involving tourism state-owned enterprise PT Pengembangan Pariwisata Indonesia, also known as InJourney Tourism Development Corporation (ITDC).
“You invited a foreign contractor to come here, then created a competitor through your own company. That creates a conflict of interest. Investors will inevitably lose or be sidelined. This is not sound business practice,” Purbaya told the hearing.
Read also: Purbaya shrugs off Chinese concerns over permit mess
The case centers on PT Perusahaan Air Indonesia Amerika (PAIA), a foreign investment joint venture backed by investors from the United States, Singapore and Saudi Arabia, alongside state-owned contractor PT Adhi Karya, which alleged it had been unfairly treated by ITDC.
The company operates a seawater desalination plant using reverse osmosis technology in the Mandalika SEZ, located on the southern coast of Lombok Island.
PAIA halted operations after PT ITDC Nusantara Utilitas (ITDC-NU), a subsidiary of ITDC, stopped purchasing water from the company and instead partnered with the local water utility PDAM Central Lombok, as its primary supplier.
