Dec 28 2011
Most water distribution for water users in the island nation of Indonesia has for decades been handled by two companies, PAM Lyonnaise Jaya (Palyja), a subsidiary of Suez Environment (based in France), and Aetra Air Jakarta (owned by a Singapore consortium).
But complaints about water service and rates have been rising in Indonesia, and now the government there is looking at overhauling the country’s water supply and distribution.
The two companies, which service the eastern and western sections of the country, have entered into discussions and negotiations. But they look at the terms and conditions they might have to deal with in different ways. And talks between the two companies have evidently hit a wall.
Meanwhile, a number of activist groups in the country have said the contracts with the companies never should have been allowed in the first place. They note that Indonesia’s 1945 constitution says “water … shall be controlled by the state and used for the maximum prosperity of the people.”