KPK Kisses Potential For Corruption In The Plan To Extend Anies' Water Privatization Contract With Aetra

JAKARTA - The Corruption Eradication Commission (KPK) through Coordination and Supervision (Korsup) has detected the potential for corruption in the plan to extend the water privatization contract between the Governor of DKI Jakarta, through PD PAM Jaya and the private sector, PT Aetra.

This is because KPK's Director of Anti-Corruption for Business Entities (AKBU), Aminudin, said that there was a potential for fraud or fraud that could result in losses to PAM Jaya from the extension of the cooperation agreement (PKS) for drinking water management.

"We have an interest in the agreement that there is no potential for corruption. We want this agreement to be solely for the benefit of business and mutual benefit. Do not let state or regional finances be harmed," Aminudin said in his statement, Thursday, April 22.

Aminudin hopes that certain parties will not try to take advantage of the moment of the extension of the cooperation contract between PAM Jaya and PT Aetra.

It is known that the DKI Jakarta Provincial Government has cooperated with water privatization for 25 years since 1998. This PKS contract will expire in 2023.

"So far, drinking water operational services in the DKI Jakarta area have been fully implemented by two private partners. Meanwhile, PAM Jaya only functions as a supervisor," said Aminudin.

From this, potential regional losses emerge. Some of the potential for cheating is that the scope of work on the contract has changed by more than 50 percent. In addition, the plan is to extend the contract duration for the next 25 years, while the current contract will only expire in 2023.

The KPK also obtained data that the related private partners did not perform well in the downstream side, namely the occurrence of pipe leakage rates which resulted in low service coverage to residents.

"The take or pay method with problematic downstream conditions has the potential to harm PAM Jaya because it is obliged to pay 100 percent of water production from private partners. In fact, effective water distribution is only 57.46 percent," said Aminudin.

Previously reported, DKI Jakarta Governor Anies Baswedan issued Governor Decree No. 891/2020 on the approval of the cooperation addendum between the regional drinking water company DKI Jakarta and the Limited Liability Company Aetra Air.

The Governor's Decree was rejected by the Coalition of Communities Against the Privatization of Jakarta Water (KMMSAJ). The coalition suspects that the Kepgub Kepgub is the entrance to the extension of water privatization with PT Aetra.

However, this was denied by DKI Jakarta Deputy Governor Ahmad Riza Patria. Riza claims that until now there has been no decision to extend the water management contract. "Not yet, not that far," said Riza, some time ago.