Rano Karno Boasts The Change Of Perumda PAM Jaya To PT Not Looking For Profit Semata

Deputy Governor (Deputy Governor) of Jakarta, Rano Karno (doc DKI Provincial Government)

JAKARTA - Deputy Governor of DKI Jakarta Rano Karno answered the doubts of a number of factions from the DKI Jakarta DPRD regarding the plan to change the status of the legal entity Perumda PAM Jaya to a limited liability company (PT).

The DPRD questioned the DKI Provincial Government's in-depth study before officially turning Perumda PAM Jaya into a company. Because, it is feared that it will raise the issue of privatization of clean water management for Jakarta residents.

"The change in the form of PAM Jaya's legal entity is not just to pursue profit, but to strengthen governance, increase efficiency, and expand the coverage and quality of clean water services fairly and sustainably," Rano said in a statement, Tuesday, September 9.

Rano emphasized that public services remain the main mandate of PAM Jaya and will ensure that the principle of public service is a priority through binding performance contracts, the implementation of public service obligation (PSO), and the determination of fair water rates.

On the one hand, Rano admits that he agrees that a thorough financial study, governance, risks, and sustainability must be drawn up.

"This transformation will be carried out based on realistic technical roadmaps, supported by strong regulations, as well as through periodic evaluation to ensure its impact is measurable and effective," he explained.

PAM Jaya's plan to take the floor on the exchange with an initial public offering (IPO) is the reason for changing the company's legal entity to PT. Rano ensures that if it has been listed on the stock exchange, all partnership options or additional capital remain under the control of the DKI Provincial Government.

"According to the mandate of the legislation, the majority of the shares are still owned by the DKI Jakarta Provincial Government. Until now, there has been no agenda to release PAM Jaya's share ownership to the public or the private sector," explained Rano.