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Jakarta Post

City wants water takeover to avoid penalties

  • Sita W. Dewi

    The Jakarta Post

Jakarta   /   Sat, March 30 2013   /  02:30 pm

Deputy Governor Basuki “Ahok” Tjahaja Purnama insists that the city administration will seek other options to avoid penalties and other legal consequences instead of canceling the city’s contracts with private water firms.

Governor Joko “Jokowi” Widodo said that contracts would be audited to assess the legal consequences of a city opt out.

The administration wants to take a 51 percent stake in tap-water operator PT PAM Lyonnaise Jaya (Palyja) as Paris-based Suez Environment wants to sell.

In October, Suez agreed to sell its stake in Palyja to Manila Water — a subsidiary of the Philippines holding company, the Ayala Corporation — which has raised the eyebrows of activists, who think the Suez move is a way of dodging their responsibilities. However, the move is on hold until the city administration approves it.

“If we cancel the contracts, we w...