DKI Has Not Taken Decisive Attitude To Warn KPK To Stop Water Privatization Contracts, Deputy Governor: We Learned

Deputy Governor of DKI Jakarta Ahmad Riza Patria (Photo: Diah Ayu Wardani / VOI)

JAKARTA - The Corruption Eradication Commission (KPK) recommended DKI Jakarta Governor Anies Baswedan to stop the plan to extend the drinking water management contract between PD PAM Jaya and the private sector.

Responding to this, Deputy Governor of DKI Jakarta Ahmad Riza Patria admitted that his party would include KPK recommendations in the study of the sustainability of water privatization with PT Aetra.

"Regarding recommendations, of course we appreciate and respect. Later the Provincial Government, PAM, and others will learn what is the content of the KPK's recommendation. Why is there such a recommendation, to what extent we win, we each guard," said Riza at the City Hall of DKI. , Central Jakarta, Friday, April 23.

Currently, the DKI Provincial Government is considering whether to continue the 23-year water privatization contract or not. In principle, continued Riza, the Provincial Government of DKI Jakarta wants to ensure that the need for drinking water for the community is maintained and guaranteed.

"Most importantly, we all ensure that the needs of the citizens of Jakarta regarding drinking water must be guaranteed and well maintained," said Riza.

The person in charge of the DKI Jakarta area at the Korsup Region II Directorate of KPK Hendra Teja said he would propose Anies to revoke the principle permit for the extension of the cooperation agreement (PKS) for drinking water management.

"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," said Hendra.

It is known, DKI has been cooperating with the private sector for drinking water management since 1998 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.