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Privatizing Or Corporatizing?
Oleh:
Sukarma, Risyana
Jenis:
Article from Proceeding
Dalam koleksi:
2nd International Conference on Environment and Urban Management : Indonesia ( Soegijapranata Catholic University, Semarang, 2-3 August 2006 )
,
page RtW-3.
Fulltext:
066 RtW-3 Risyana Sukarma.pdf
(40.23KB)
Isi artikel
Recognizing the pressing need to reform the water resources sector, and the long-standing problems of urban water supply, the Government has issued Law No 7/2004 and Government Regulation (GR) No 16/2005. There was considerable debate before Law No 7/2004 was finally issued. A controversial issue in this new law is privatization in water management. Some felt it violated the right of the people to have access to water, a basic need for human life. The objection to PPP was based on objection to commercialization of water and non transparent PPP contracts in the past. As a matter of fact, public-private partnership (PPP) in water supply has virtually stagnated because water is considered a high risk investment in Indonesia, and there is little knowledge of PPP in local government. During times of slow progress in PPP, the challenge is to reform water utilities so they can provide water to urban communities with sufficient quantity, continuity, and quality. However, it has been known for a long time that most urban water supply facilities in Indonesia are not well managed. Of more than 300 local water utilities (PDAMs), only a few have good performance, which would include low rates of non-revenue water (NRW), high billing efficiency, positive cash flow, acceptable staff ratio, and a water tariff that covers operating costs. In addition to the burden of low managerial ability, most PDAMs also bear huge debts and arrears that hinder their ability to regain financial health. This paper aims at sharing information that addresses some of these challenging issues, by quoting works and studies already carried out in this context. In securing the right to water the urban poor, as the most vulnerable group in urban society, should be provided with access to equal services. The paper recommends that MOF implement PDAM debt restructuring with priority, for PDAM to corporatize its management, and to refrain from splitting its management in the case of a newly created city government, and for local government to establish BLU for managing IKK schemes that can be returned to the PDAM after they gain financial strength. . The paper focuses on the provision of urban drinking water supply and its related issues
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