Francine Widjojo, a prominent member of DKI Jakarta DPRD Commission B, has vehemently rejected Governor Pramono Anung’s controversial proposal to alter the legal status of PAM Jaya. The plan seeks to transform the regional public company (Perumda) into a regional limited liability company (Perseroda) as a precursor to an Initial Public Offering (IPO).
Widjojo contends that this proposed change constitutes a blatant form of privatization for a Regional-Owned Enterprise (BUMD), an action she asserts is strictly prohibited by existing regulations. She emphasized, “Privatization is forbidden for BUMDs specifically tasked with managing public interests, such as the essential provision of drinking water.”
Delving deeper into her legal arguments, Francine pointed to Article 8 and its explanatory notes within Government Regulation (PP) No. 54 of 2017. This regulation unequivocally prioritizes the establishment of Perumda for the explicit purpose of delivering public benefits, thereby banning the privatization of BUMDs operating in vital sectors. She further highlighted that the article’s explanation explicitly defines “provision of public benefits” as encompassing drinking water supply services, underscoring the critical nature of PAM Jaya’s role.
Furthermore, Widjojo cited Article 118 letter b of the same Government Regulation, which firmly reiterates the prohibition of privatization for BUMDs assigned specific tasks for public interest. “PAM Jaya was established to provide drinking water for Jakarta’s citizens, and as such, it must not be privatized,” Francine firmly declared, reiterating her unwavering stance.
Beyond the legal infringements, Francine also drew attention to the immediate and tangible repercussions for citizens should this plan proceed. “Our primary concern,” she stated, “lies with the water tariff policy, which could directly impact the livelihoods of Jakarta residents.”
She specifically recalled the controversial PAM Jaya tariff hike earlier this year, which she deemed problematic and unjust. The Governor’s decision, she explained, mandated an increase in drinking water tariffs, despite the fact that the water supplied by PAM Jaya is essentially clean water, the quality of which frequently draws complaints from residents. As a case in point, apartment dwellers were subjected to an exorbitant tariff increase of up to 71.3 percent after being reclassified into the commercial customer category. This critical issue, Francine stressed, remains unresolved by PAM Jaya, and protests from citizens to City Hall have reportedly been met with silence, adding to public frustration.
Citing the Academic Manuscript for the Proposed Change in PAM Jaya’s Legal Form, Francine further highlighted concerning indications that the water company would become increasingly profit-oriented, potentially at the expense of public service. “The academic manuscript itself even suggests that this approach could help PAM Jaya become ‘more profit-oriented’,” she revealed, signaling a potential shift away from its core mandate of public welfare towards commercial gain.
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Summary
Francine Widjojo, a prominent member of DKI Jakarta DPRD Commission B, has strongly rejected Governor Pramono Anung’s proposal to change PAM Jaya’s legal status to a limited liability company (Perseroda) as a precursor to an Initial Public Offering (IPO). She argues this transformation constitutes illegal privatization of a Regional-Owned Enterprise (BUMD) specifically tasked with managing public interests like drinking water. Widjojo cited Government Regulation No. 54 of 2017, which prohibits privatization for BUMDs in vital sectors and prioritizes public benefits.
Beyond legal infringements, Widjojo expressed concern over the potential impact on water tariff policies, recalling a previous “problematic and unjust” hike by PAM Jaya despite ongoing water quality complaints. She also highlighted that the academic manuscript for the proposed change indicates PAM Jaya would become “more profit-oriented.” This shift could potentially prioritize commercial gain over its core mandate of public welfare for Jakarta’s citizens.