JAKARTA - Perumda PAM Jaya has officially terminated the cooperation contract for water management or water privatization that has been running since 25 years ago with two private partners, namely Palyja and Aetra, as of today.
President Director of Perumda PAM Jaya Arief Nasrudin said the decision to end water privatization was made because the company owned by the DKI Provincial Government no longer wanted to provide clean water to residents to be unbalanced.
Because, as is known, Palyja and Aetra carry out water services oriented to profit. What happens is that water services are not evenly distributed in Jakarta. In addition, PAM Jaya is also noted to have suffered losses because it has to pay its obligations to the private sector. Meanwhile, the coverage of water pipelines in Jakarta also does not increase optimally.
"I don't want another incident to happen 25 years ago. We can't afford what the privatization has done again and water sovereignty has become unbalanced. PAM Jaya is a social responsibility, which is not only a business," said Arief at the PAM Jaya office, Wednesday, February 1.
Arief said that the preparation for the transition period for the full takeover of water services was carried out for the past year. Thus, Arief said PAM Jaya was ready to manage the service completely.
He explained that currently PAM Jaya has ensured that 5 important elements have been fulfilled, namely the availability of full operation organizational structures that accommodate partner employees including positions and positions, the availability of human resources that are ready to carry out full operation, the availability of business processes for managing SPAM that will be run, the availability of systems and applications that are ready to be used for full operation, as well as the availability of operational and service supporting tools and materials.
"We certainly want the transition process and full operational transformation of piped water by PAM JAYA to continue smoothly, but remain in a transparent principle and based on good corporate governance," he explained.
For information, water privatization began in 25 years ago. On June 6, 1997, PAM Jaya signed a water privatization collaboration with PT Garuda Dipta Semesta with Lyonnaise desaux (now Palyja) and with PT Kekarpola Airindo with Thames Water Overseas Ltd (now Aetra).
As of February 1, 1998, PAM Jaya gave a letter of assignment to a number of its employees to be seconded in Private Partners for 25 years, and he will end his seconded status on January 31, 2023, coinciding with the end of water privatization.
After the end of water privatization, the status of the assisted employees will return to PAM Jaya as of February 1, 2023. In addition, 1,097 employees of Palyja and Aetra will officially become employees of Palyja at the same time.
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