Multa Fidrus , The Jakarta Post , Tangerang Tue, 08/05/2008 10:16 AM City
The central government signed a memorandum of understanding Monday with a private company investing Rp 520 billion in tap water provision for five districts in Tangerang regency.
"Due to limited sources of clean water across the country, the government needs to begin collaborating with private investors. This is a creative solution," Public Works Minister Djoko Kirmanto said in Tangerang.
The collaboration with a private company would not be detrimental to the existing tap water utility PDAM Tirta Kerta Raharja, which has supplied clean water to Tangerang locals thus far, he added.
"With a new competitor, PDAM must work harder from now on," Djoko said.
The quality and volume of Java's rivers, including the Cisadane river in Tangerang, has drastically declined, he added.
Djoko said Tangerang regency was a model of collaboration between government and private investors in the provision of clean water. President Susilo Bambang Yudhoyono has given a target date of December 2009 for completion of the project, he added.
"If the water provision project with Acuatico Pte Ltd is successful, collaboration of this kind will be further developed in other regions across the country," he said.
Singapore-based Acuatico will build a tap water installation plant to supply clean water for industries and residents living in Sepatan, Pasar Kemis, Cikupa, Balaraja and Jayanti districts.
Acuatico is expected to provide 3,400 liters of water per second for households and 10,000 liters per second for industries.
Acuatico director Fatah Topobroto said investment in the water production came solely from the company's own capital, not from state or regional budgets.
Construction for the project consists of intake installations, a water treatment plant, pipelines and installation of meters in consumers' homes.
The collaboration grew out of an infrastructure summit initiated by several ministers in the United Cabinet, with the aim of developing regional infrastructure, such as roads, schools, bridges and tap water facilities.
Tangerang regent Ismet Iskandar said the supply of clean water in Tangerang was still inadequate.
"We are very grateful the central government has paid attention to the regency," he added.
Ismet said he hoped the government would continue monitoring the project's implementation.
Acuatico first entered Indonesia's tap water market in January 2007, acquiring 95 percent of the shares in PT Aetra Air Jakarta, formerly PT Thames PAM Jaya.
The 2004 Law on Water Resources first opened the possibility of private investment in water provision, sparking protests from organizations arguing water provision should be in the hands of publicly controlled entities.
In 2005, at least 17 organizations requested the Supreme Court perform a judicial review of the water resources law. The court refused the request in July of that same year.
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