Relieving Regional Water Companies from Financial Obligations

Davidson Samosir

Minister of Finance has issued Regulation No. 114/PMK.05/2012 on Settlement of State Receivables in Regional Water Companies Originating from Foreign Loans, Investment Fund Accounts, and Regional Development Accounts (“Regulation”).

The Regulation concerns 402 regional water companies (Perusahaan Daerah Air Minum – “PDAM”) that are located throughout Indonesia. Syaiful DEA - Chairman of Perpamsi (Indonesian Water Company Association) reveals that as of June 2012, more than half of its members face financial difficulties. Only 142 members are considered financially healthy by Perpamsi.