Poor Performance, KPK Asks Anies To Cancel The Plan To Extend The Water Management Contract With PT Aetra

The Governor of DKI Jakarta, Anies Baswedan. (Photo: DKI Jakarta Provincial Government Public Relations)

JAKARTA - The Corruption Eradication Commission (KPK) has asked DKI Jakarta Governor Anies Baswedan to stop the extension of the cooperation agreement (PKS) for drinking water management between PD PAM Jaya and the private sector, PT Aetra.

The person in charge of the DKI Jakarta area at the Korsup Region II Directorate of KPK Hendra Teja said he would propose the Governor of DKI Jakarta to revoke the principle permit for the PKS extension agreement.

"We suggest the DKI Jakarta Provincial Government to wait for this PKS to be completed in February 2023, then hand over its management to PAM Jaya," Hendra said in his statement, Thursday, April 22.

DKI has been cooperating with private drinking water management since 1998 or for 25 years. The water privatization contract period will expire in 2023.

Under the agreement, PAM Jaya only functions as a supervisor. Hendra said the KPK also obtained data that the related private partners were relatively underperforming on 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, the effective distribution of water is only 57.46 percent.

Therefore, the KPK asked Anies not to renew the cooperation contract. This is because, based on input from the Jakarta BPKP Representative, the KPK found the potential for fraud or fraud that could result in losses to PAM Jaya.

"We also suggest that the DKI Jakarta Provincial Government revoke the Governor's Decree Number 25 of 2003 which limits PAM Jaya's duties to only as a supervisor for private partners. This regulation is not in accordance with the DKI Regional Regulation Number 13 of 1992," said Hendra.

Responding to this, DKI Regional Secretary Marullah Matali said that basically the Provincial Government wants to be safe in implementing existing provisions and simultaneously be able to provide the best service to the people of DKI Jakarta.

"I understand that the recommendations submitted by the KPK and BPKP are aimed at providing the best service to the public. These inputs enrich us whether to continue (the cooperation contract) or not," said Marullah.