DKI will immediately consider KPK recommendations for extending water management

Jakarta (medialnews) – DKI Jakarta will immediately review the recommendations of the Corruption Eradication Commission (KPK) regarding the extension of the Cooperation Agreement Contract (PKS) for the management of drinking water in the capital between PAM Jaya and PT Aetra Air Jakarta.

“The KPK recommendation regarding the cancellation of the Aetra extension will be further studied and studied. In principle, the provincial government of DKI Jakarta wants to ensure that the drinking water needs of the community are maintained and guaranteed,” said Ahmad Riza, deputy governor of DKI Jakarta. Patria at Jakarta City Hall on Friday.

So far, said Riza, the DKI provincial government of Jakarta and PAM Jaya have worked with related agencies and private parties as well as with third parties.

As for the recommendations, said Riza, of course her party would really appreciate and respect the DKI provincial government, PAM and others. In addition, it will study the content of the substance and the recommendations of the KPK and the authority of each party.

“We have good relations between institutions, between agencies, but the most important thing is to ensure that the needs of the people of Jakarta for drinking water must be guaranteed and well maintained,” he said.

Read also: KPK monitors plan to extend drinking water management contract at DKI
Also read: Aetra water supply in four sub-districts of East Jakarta disrupted due to leaks

Monitor extension

Previously, the KPK, through its coordination and supervision function (Korsup), monitored the project to extend the PKS contract for the management of drinking water in Jakarta between PAM Jaya and PT Aetra Air Jakarta in order to avoid all potential “fraud“.

“We have an interest in the deal that there is no potential for corruption. We want this deal to be for commercial interests only and for mutual benefit. There should be no loss of the finances of state or region, “KPK Director of Anti-Corruption Activities Entity (AKBU) Aminudin said, statement received in Jakarta on Wednesday (21/4).

The KPK hopes that some parties will not try to take advantage of the moment of the extension of the cooperation contract between PAM Jaya and PT Aetra.

We know that since February 1, 1998, according to the cooperation agreement between PAM Jaya and two private partners for 25 years, the operational drinking water services in the DKI Jakarta region have been fully implemented by the two private partners.

PAM Jaya operates only as a supervisor. Meanwhile, based on contributions from BPKP representatives from DKI Jakarta province, KPK discovered potential for fraudfraud) which may result in losses for PAM Jaya.

Part of the cheating potential is that the scope of work on the contract has changed by over 50 percent. In addition, there are plans to extend the term of the contract for the next 25 years, while the current contract will not expire until 2023.

The KPK also obtained data that related private partners did not perform well downstream, namely the occurrence of leakage rates in the pipes, which resulted in poor service coverage for residents.

Also Read: Addendum to DKI Jakarta’s Drinking Water Privatization Still Under Review
Also read: Extension of 25-year Jakarta-Aetra cooperation still underway

Method “take or pay“With a problematic state downstream, it has the potential to harm PAM Jaya as it is forced to pay 100 percent of the water production from private partners. In fact, the efficient distribution of water is only 57.46 percent.

Therefore, the DKI Jakarta Area Manager at Korsup Directorate for Region II KPK Hendra Teja recommended to the DKI Jakarta Provincial Government to cancel the planned PKS extension between PAM Jaya and PT Aetra Air Jakarta. His party proposed to the governor of DKI Jakarta to revoke the main permit for the PKS extension agreement.

“We suggest the DKI provincial government in Jakarta to wait until this PKS is completed in February 2023 and then hand over its management to PAM Jaya,” he said.

Then, it is recommended that the provincial government of DKI Jakarta revoke Governor’s Decree No. 25 of 2003 which limits the duties of PAM Jaya to supervise only private partners. “This rule does not comply with DKI regional rule number 13 of 1992,” said Hendra.

In addition, the KPK encourages improvements in the downstream sector, especially with regard to pipelines for distributing drinking water to residents in order to reduce the losses suffered by PAM Jaya on the management of the drinking water supply system ( SPAM) previously managed by PT Aetra Air Jakarta.

If PAM Jaya is not able to complete the construction of a new water treatment plant (IPA) so that a private partner is required, the selection of a private partner should respect the principles of accountability, transparency and fair competition. “Obtaining the most cost effective option for PAM Jaya through a competitive bidding process,” said Hendra.

Journalist: Ricky Prayoga
Editor: Sri Muryono
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