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Batam retracts remunicipalization promise, appoints private tap water firm
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Moya Indonesia operates tap water services in eight cities of Indonesia, including in part of Jakarta through Acuatico Group, which controls 95 percent of the shares in PT Aetra Air Jakarta. (Shutterstock/-)
B
atam Indonesia Free Trade Zone Authority (BP Batam) has appointed private water company PT Moya Indonesia to operate the city’s drinking water system as the current contract with private water company PT Adhya Tirta Batam (ATB) is coming to an end after 25 years.
The announcement comes despite BP Batam previous pledging to return the city’s drinking water system into public hands, in pursuant of Law No. 17/2019 that stipulates that the government should take a more active role in providing drinking water to the public. The term for undoing privatization in city water services is called “remunicipalization”.
The handover was made official in a signing ceremony between BP Batam and Moya at BP Batam headquarters on Sept. 14, attended by BP Batam head Muhammad Rudi and Moya CEO Mohamad Selim.
Moya Indonesia is part of Moya Holdings Asia, which is controlled by Singapore-based Tamaris Infrastructure. According to a report in The Straits Times, billionaire Anthoni Salim controls Tamaris.
Moya Indonesia operates tap water services in eight cities of Indonesia, including part of Jakarta through Acuatico Group that holds 95 percent of the shares in PT Aetra Air Jakarta.
Muhammad Rudi, who is also the Batam mayor, said that, despite ATB’s contract ending only on Nov. 14, BP Batam had already taken steps to take over drinking water services previously operated by ATB.
“Within six months before the contract ends, we [BP Batam] have to determine who will operate Batam’s drinking water system, so we held a tender on who can do so,” Rudi said on Sept. 14.
