Explain The Reasons For Wanting To Change Perumda PAM Jaya To Perseroda, Pramono: Now Not All Projects Must Be Funded By The APBD

JAKARTA - DKI Jakarta Governor Pramono Anung explained the reason he wanted to change the form of Perumda PAM Jaya's legal entity to a limited company (PT).

According to Pramono, with the change in the status of PAM Jaya's legal entity, the DKI Provincial Government can expand capital participation for regional-owned business entity (BUMD) infrastructure projects in the drinking water service sector apart from the APBD.

"Indeed, in the current era, not all of these projects must be fully funded by the APBD," said Pramono at the Pesanggrahan IPA, South Jakarta, Tuesday, September 9.

In a plenary meeting of the DKI Jakarta DPRD Monday, September 8, a number of factions expressed their rejection of the plan to change PAM Jaya from Perumda to a company in the near future.

They asked for the plan to be postponed due to a number of concerns, such as the issue of water management privatization, and there are still many water service problems by PAM Jaya.

Responding to this, Pramono emphasized that he did it solely to make PAM Jaya more able to develop corporate governance to increase investment.

"Surely the Deputy Governor and I think about this for the good of PAM Jaya. There is no desire at all to make the company make Pam Jaya not good. It will definitely be better and I believe that," explained Pramono.

Yesterday, the DKI Jakarta DPRD held a plenary meeting regarding the plan to change the form of Perumda PAM Jaya's legal entity to the Limited Drinking Water Company Jaya (Perseroda).

In the plenary meeting, all factions expressed their views. It turns out that the factions in the DPRD have not voted for the support for the change of PAM Jaya's legal entity to PT.

Several factions asked the DKI Provincial Government to postpone and review the readiness of changes to PAM Jaya's legal entity, including the PKS, Gerindra, PAN, PSI, and Democrat-Perindo factions.

In the view of the faction, the PKS faction asked for a review before strengthening the change of PAM Jaya's legal entity to become a company. This is because PKS considers that currently PAM Jaya is still facing various serious problems and does not have enough good performance in meeting customers.

"In the condition of the company's performance which has not been good in terms of operating and customer service, it is feared that the change of the company's legal entity to the company will not be able to change the working culture of the company. Meanwhile, it is feared that this change in legal entities will make the company tend to be profit-oriented, which is not supported by service improvements," said a member of the PKS faction of the DKI DPRD, Muhamamd Subki, Monday, September 8.

Then, the PAN faction revealed that it understands that the purpose of changing the status of Perumda's legal entity to a company is to smooth the discourse on the floor on the PAM Jaya public offering (IPO) which is targeted in 2027.

However, PAN reminded that the IPO is a form of company privatization which has serious consequences if the field of duties involves managing natural resources in order to fulfill the lives of very vital people such as clean water.

"Based on the above arguments, with a heavy heart, we, the PAN faction, refuse to approve the change in PAM Jaya status to become a company, before it can be ascertained that people's rights are guaranteed with the necessary laws and regulations," said PAN Faction Advisor for the DKI Jakarta DPRD Bambang Kusumanto.