The KMMSAJ also requested that the KPK immediately inform the public about the outcome of a hearing that involved the Jakarta administration and city-owned water enterprise PT PAM Jaya at the KPK on May 10.

“As of now, it’s premature to point fingers at a particular side that might have individuals committing acts of corruption. However, based on the evidences we found, we have narrowed down the number of possible perpetrators to individuals from either Palyja, Aetra, PAM Jaya or the city administration,” said Jakarta Legal Aid Foundation (LBH Jakarta) lawyer Jeanny Silvia Sirait.

The KMMSAJ said the 25 pieces of evidence included financial audit reports from the Supreme Audit Agency (BPK) and the Development Finance Controller (BPKP). In addition, there were a number of state loss estimations from independent auditors (KAP) and an investigative news report published in Tempo weekly.

Jeanny also said that the pieces of evidence had been rejected by a number of members from the affiliated enterprises.

“Basically, the KMMSAJ wants the KPK to take four courses of action: explain in detail what was discussed at the May 10 hearing, investigate the recent state losses incurred because of privatized water management, scrutinize all city administration assets managed by privately owned water operators PT Lyonnaise Jaya [Palyja] and PT Aetra Air Jakarta and ensure that future water management is in accordance with the 2017 Supreme Court ruling,” said LBH director Arif Maulana.

Previously, Jakarta Governor Anies Baswedan formed a water governance evaluation team to assess feasible approaches for the administration and PAM Jaya to implement the 2017 Supreme Court ruling, which ordered PAM Jaya to terminate its partnerships with Palyja and Aetra.

The recommendation to terminate the business collaboration was made on the grounds that the water coverage objective had not been reached in more than two decades and that the administration had suffered financial losses due to its assets being managed by the two private entities.

According to PAM Jaya president director Bambang Hernowo, his company is in the process of modifying the previous heads of agreement (HoA) with Palyja and Aetra into a complete remunicipalization, with PAM Jaya to be the sole operator and supervisor of water management in the capital.

“As of now, Aetra has agreed with the clauses that the city administration and PAM Jaya have proposed in the new HoA, including the amount of compensation. For Palyja, we are still conducting negotiations with them to seek a fair outcome for both parties,” said Bambang to The Jakarta Post on Sunday.

In the past, the water governance evaluation team had considered filing a counterclaim suit on the basis of Aetra and Palyja’s inability to fulfill the water coverage objective, which could nullify PAM Jaya’s obligation to pay hefty compensation to the two private enterprises.

However, Bambang said his company was now leaning toward a meticulous negotiation process to find a compromise that’s favorable to all parties involved.

The current water coverage rate in the city stands at only 60 percent. Meanwhile, the coverage target stated in the water privatization deal of 1997 was for Jakarta to have a coverage rate of 82 percent by 2023.

According to Nurrohman, head of neighborhood unit (RT) 20 in North Jakarta’s Penjaringan district, residents in his neighborhood, spent an average Rp 600,000 (US$42) per month for tap water since they do not have water access from Palyja.

“We have PAM water pipes installed in our houses since eighteen years ago. However, until today, no water has flown through those pipes,” said Nurrohman on Monday.

He estimated that each resident in his neighborhood could save up to Rp 300,000 if they had tap water access.

Nurrohman said he had sent a complaint to the city administration but had yet to receive a reply. (bry)

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