In a surprising move, Jakarta Governor Joko “Jokowi” Widodo says he wants to cancel the city’s contracts with two private firms for water provision and distribution.

Meeting with representatives of the Coalition of Jakarta Residents Opposing Water Privatization (KMMSAJ) on Wednesday, Jokowi said that officials would audit contracts with PT PAM Lyonnaise Jaya (Palyja) and PT Aetra Air Jakarta and assess the city’s legal options should the decision to annul the contracts be challenged by courts or in arbitration.

KMMSAJ coordinator Muhammad Reza claimed that Jokowi had realized that the contracts were unfair and contained a double-financing scheme that kept the city deep in debt.

“The governor said that even should we [eventually] lose in international arbitration, it would have a different impact if we could win in the national courts,” Reza told The Jakar...