Ahead Of Terminating The Water Privatization Contract, PAM Jaya Forms A Transition Team

JAKARTA - The Water Supply Company (PAM) Jaya will terminate the water privatization cooperation contract with two private companies, namely PT Aetra Air Jakarta and PT PAM Lyonnaise Jaya in January 2023.

PAM Jaya President Director Priyatno Bambang Hernowo said that the termination of this contract had been agreed in accordance with the cooperation agreement signed on June 6, 1997.

To prepare for the end of water privatization, Hernowo said that his party would form a clean water management transition team.

"To get to January 2023, we will form a transition team. This transition team will focus on five clusters," Hernowo told reporters, Monday, December 6.

The first cluster, the transition team will focus on assets. After the contract ends, Aetra and Palyja's assets will be taken over by PAM Jaya.

"At the end of the cooperation, the assets will return to PAM Jaya," he said.

In the second cluster, the team will process business matters such as the production and service of clean water to residents, which were previously run by the two private partners. Then, the third cluster will focus on human resources.

"The fourth cluster is related to the legal aspect, the legal aspect of transferring water management as a whole. The fifth cluster focuses on the main source," said Hernowo.

He explained that this transition team was created with the aim of ensuring that when there was a takeover of water service management, residents who became customers would not be disturbed as much as possible.

"We hope that this way we can ensure that the transition process can run well, ensure that the service, in the end there will be no gaps. Furthermore, Hernowo emphasized that partners also cannot demand the infrastructure that has been built to provide services for drinking water customers. Moreover, this collaboration uses a financial projection basis, so they have made a project budget plan when they want to start a business.

"The basis is financial projection. So how much investment must be invested by partners during the 25 years of cooperation. For their own investment, the two partners together have been around Rp. 4 trillion," he explained.