This document discusses issues around water privatization in Indonesia. It notes that several NGOs asked the Constitutional Court to revoke the 2004 Water Resources Law due to concerns about privatization. There is debate around how opaque the rules are regarding private sector participation in water services. While the law allows for some private involvement, the implementing regulations are unclear, such as whether it is limited to new "greenfield" projects. Examples from Jakarta, Bogor, and Batam show problems with neglected private contracts and lack of regulation of monopolistic practices. The document concludes that while laws like the Public Service and Freedom of Information Acts have potential to improve regulation of private sector participation, reforms are still needed for effective oversight.
1 of 12
More Related Content
Steps presentation
1. Some lessons from IndonesiaAnti privatization debate, opaque rules and neglected privatised water services provisionMohamadMova Al AfghaniMarch, 19, 2011
2. Anti privatization debates Around 868 individuals and 16 non governmental organizations asked the Constitutional Court to revoke the Law 7/2004 on Water Resources
3. Anti privatization debates These agencies are not contributing to constructive advocacy, but channel their energy in the redundant debate of anti-privatization by focusing on two specific Jakarta concessions. There are over 324 PDAMs in Indonesia that provide piped-water services to the citizens. Depolarization of public debates must begin. Only then can a mutually enforcing and reinforcing water accountability framework be developed. (A. Regmi)
4. Opaque rules Out of 100 Articles in the Water Law, only one paragraph specifically regulates private sector participation, paragraph 4 of Article 40: Cooperatives, privately-owned business enterprises and the [members of the] society may participate in the undertaking of the development of drinking water provision system
5. Opaque rules While paragraph 3 of Article 40 of the Water Law reads: State Owned Enterprises and Regional Owned Enterprise are the undertakers of drinking water provision system Is that mean that private sectors are not the undertakers?
6. Opaque RulesImplementing regulation of the Water Law states:cooperatives and/or privately owned business enterprise may participate in the development of drinking water provision system in regions which is not yet covered by services provided by SOE or regional SOEs (GR-16, Article 64.1)Does this means greenfield-only projects? What about BOT WTP project in already-served areas?
10. controlling the production and marketing of goods which results in monopolistic practices Towards regulating PSPsDifferences in Administrative Legal SystemThe administrative Court can Only decide a case: DismissedLapsedRejectedProven: Order the official to revoke, issue or revoke old Decision and issuea new oneNo Administrative Contract, no power to modify PSP contract
11. Towards Regulating PSPsWhat is a concession? Several types of licenses: Dispensasi (dispensation), Lisensi (licence), and Konsesi (concession). A concession is an administrative decision which is legally very complex as it contains a set of dispensations, permits and licences followed by some kind of limited governmental authorities to the concessionaires