Ada Pertanyaan? Hubungi Kami 
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Ada Pertanyaan? Hubungi Kami Christina Desy, Fathan Qorib
Due to the revocation of Law No. 7 of 2004 on Water Resources by the Constitutional Court, the government is currently preparing a new policy framework on water management. One policy being drafted into the government regulation on water resources management is a prohibition on foreign investment from participating in the water management business.
Rachmat Hidayat, a representative for Communication Forum of Water User Inter-Associations, however, has expressed that foreign investors must not be discriminated from conducting water management businesses in Indonesia. He referred to the recent Minister of Public Works and Public Housing Circular Letter No. 04/SE/M/2015 on Water Utilization Permits and Private-Public Cooperation Agreements for Pipeline Drinking Water Supply Following Constitutional Court Decision No. 85/PUU-XI/2013 (“Circular”).
According to Mr. Hidayat, the circular sets out six principles on water management in ensure conformity of water management activities with the 1945 Constitution. First, water management must not disturb nor abolish people’s right over water. Second, the state must protect people’s rights over water as one of their human rights.
The third principle is water management must be in line with environment preservation. Next, water management is a vital source over which the state has an absolute control. The fifth principle provides that water management must be prioritized for state and regional-owned enterprises.
Finally, if all of these principles are satisfied and there are still sufficient water resources, the private sector may then participate in water management activities but under strict terms and conditions.
“These principles still enable water management by the private sector for which there are no further stipulations on the prohibition of foreign investors,” concluded Mr. Hidayat.
Supporting Mr. Hidayat’s statement, Mohamad Mova Al’Afghani, Director of the Center for Regulation Policy and Governance, said that the circular letter does not differentiate between domestic and foreign private sector entities. In conclusion, foreign investors should not be restricted from conduct businesses related to Indonesian water resources.
“Indonesia may be deemed to violate certain international treaties on investment if such provisions apply,” added a concerned Mr. Al’Afghani.
In response to this matter, Sigid HD Pramana, Head of Sub-Directorate of Water Resources Management, says he welcomes the concerns of all stakeholders and promised to take them into consideration in finalizing the draft regulations, especially the draft regulation on water resource management.
For more information on the Circular, see ILB No. 2631
(hot/kc)
Christina Desy, Fathan Qorib
Due to the revocation of Law No. 7 of 2004 on Water Resources by the Constitutional Court, the government is currently preparing a new policy framework on water management. One policy being drafted into the government regulation on water resources management is a prohibition on foreign investment from participating in the water management business.
Rachmat Hidayat, a representative for Communication Forum of Water User Inter-Associations, however, has expressed that foreign investors must not be discriminated from conducting water management businesses in Indonesia. He referred to the recent Minister of Public Works and Public Housing Circular Letter No. 04/SE/M/2015 on Water Utilization Permits and Private-Public Cooperation Agreements for Pipeline Drinking Water Supply Following Constitutional Court Decision No. 85/PUU-XI/2013 (“Circular”).
According to Mr. Hidayat, the circular sets out six principles on water management in ensure conformity of water management activities with the 1945 Constitution. First, water management must not disturb nor abolish people’s right over water. Second, the state must protect people’s rights over water as one of their human rights.
The third principle is water management must be in line with environment preservation. Next, water management is a vital source over which the state has an absolute control. The fifth principle provides that water management must be prioritized for state and regional-owned enterprises.
Finally, if all of these principles are satisfied and there are still sufficient water resources, the private sector may then participate in water management activities but under strict terms and conditions.
“These principles still enable water management by the private sector for which there are no further stipulations on the prohibition of foreign investors,” concluded Mr. Hidayat.
Supporting Mr. Hidayat’s statement, Mohamad Mova Al’Afghani, Director of the Center for Regulation Policy and Governance, said that the circular letter does not differentiate between domestic and foreign private sector entities. In conclusion, foreign investors should not be restricted from conduct businesses related to Indonesian water resources.
“Indonesia may be deemed to violate certain international treaties on investment if such provisions apply,” added a concerned Mr. Al’Afghani.
In response to this matter, Sigid HD Pramana, Head of Sub-Directorate of Water Resources Management, says he welcomes the concerns of all stakeholders and promised to take them into consideration in finalizing the draft regulations, especially the draft regulation on water resource management.
For more information on the Circular, see ILB No. 2631
(hot/kc)