End of Water Privatization in Jakarta to Influence Global Trends

 
Robert Sidauruk, Kartini L Makmur
 
Although controversial, the end of water privatization in Indonesia, is being acknowledgedby a number of national and international organizations. Decisions of the Constitutional Court and the Central Jakarta District court, both of which put an end to water privatization, are expected to trigger changes to global trends on utilizing water.
 
Fiona Dove, Executive Director of the Transnational Institute, highlighted the fact that the decisionstake the stance thatwater privatization does not have a sustainable economic and social contribution to society. The decisions, according to Mrs. Dove, should become a turning point for current water resource privatization at the global level.
 
“Global society has acknowledged that water privatizations is a complete failure and must be changed,” said Mrs. Dovelast Friday.
 
Mrs. Dove is also optimistic that the decisions will bring to an end water privatization practices that have been implemented for years throughout the world. The decisions are set to be discussed at the upcoming World Water Forum in South Korea, as an alternative solution for abolishing water privatization.
 
“Now we just have to wait for the world leaders and stakeholders to hold the World Water Forum,” explained Mrs. Dove.
 
Rosa Pavanelli, Secretary General of the Global Trade Union Federation,takes particular note of the decision of the Central Jakarta District Court that cancelled the contract between the Jakarta government and two private water companies, PT PAM Lyonnaise Jaya and PT Aetra Air to supply water to the public in Jakarta.Mrs. Pavenelli contends that the permeation level in Jakarta has reached 50% yet the water supply by private companies is far from what was expected.
 
“The price of water has always been increasing since the privatization was implemented. In Jakarta, the price of water has reached IDR 7,000 per m3, equal to three times the price of water in Surabaya which is managed by a regional state owned enterprise”, said Mrs. Pavenelli.
 
Mrs. Pavenelli sees that the Constitutional Court has declared water privatization as illegal, supporting the viewthat the water privatization practice designed by World Bank and Asian Development Bank is misguided.
 
“Not only should we stop but also prevent privatization of natural resources and sanitation, including in India and Nigeria,” said Mrs. Pavenelli.
 
Further commenting on the issue, Nila Ardhianie, Director of Amrta Institute for Water Literacy, said that water privatization in several cities in the world such as Paris, Berlin, Budapest, Buenos Aires, has indicated that privatization has failed to introduce new investment into the business and worsened welfarenesslevels.
 
 The decisions may now act as a catalyst for the government and related stakeholders to develop better public facilities in Jakarta. Mrs. Ardhianie also believes that the people of Jakarta may still be able to access public utility assistance from domestic and foreign entities that is provided without aiming for profit.
 
“The management of water resources in Jakarta is now with the governor,” said Mrs. Nila.
 
(hot/kc)
 
Robert Sidauruk, Kartini L Makmur
 
Although controversial, the end of water privatization in Indonesia, is being acknowledgedby a number of national and international organizations. Decisions of the Constitutional Court and the Central Jakarta District court, both of which put an end to water privatization, are expected to trigger changes to global trends on utilizing water.
 
Fiona Dove, Executive Director of the Transnational Institute, highlighted the fact that the decisionstake the stance thatwater privatization does not have a sustainable economic and social contribution to society. The decisions, according to Mrs. Dove, should become a turning point for current water resource privatization at the global level.
 
“Global society has acknowledged that water privatizations is a complete failure and must be changed,” said Mrs. Dovelast Friday.
 
Mrs. Dove is also optimistic that the decisions will bring to an end water privatization practices that have been implemented for years throughout the world. The decisions are set to be discussed at the upcoming World Water Forum in South Korea, as an alternative solution for abolishing water privatization.
 
“Now we just have to wait for the world leaders and stakeholders to hold the World Water Forum,” explained Mrs. Dove.
 
Rosa Pavanelli, Secretary General of the Global Trade Union Federation,takes particular note of the decision of the Central Jakarta District Court that cancelled the contract between the Jakarta government and two private water companies, PT PAM Lyonnaise Jaya and PT Aetra Air to supply water to the public in Jakarta.Mrs. Pavenelli contends that the permeation level in Jakarta has reached 50% yet the water supply by private companies is far from what was expected.
 
“The price of water has always been increasing since the privatization was implemented. In Jakarta, the price of water has reached IDR 7,000 per m3, equal to three times the price of water in Surabaya which is managed by a regional state owned enterprise”, said Mrs. Pavenelli.
 
Mrs. Pavenelli sees that the Constitutional Court has declared water privatization as illegal, supporting the viewthat the water privatization practice designed by World Bank and Asian Development Bank is misguided.
 
“Not only should we stop but also prevent privatization of natural resources and sanitation, including in India and Nigeria,” said Mrs. Pavenelli.
 
Further commenting on the issue, Nila Ardhianie, Director of Amrta Institute for Water Literacy, said that water privatization in several cities in the world such as Paris, Berlin, Budapest, Buenos Aires, has indicated that privatization has failed to introduce new investment into the business and worsened welfarenesslevels.
 
 The decisions may now act as a catalyst for the government and related stakeholders to develop better public facilities in Jakarta. Mrs. Ardhianie also believes that the people of Jakarta may still be able to access public utility assistance from domestic and foreign entities that is provided without aiming for profit.
 
“The management of water resources in Jakarta is now with the governor,” said Mrs. Nila.
 
(hot/kc)
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