Council irked by water scheme

Source: The Jakarta Post 29/6/2004

TANGERANG: Tangerang Council members reprimanded the administration for its decision to let tap water company PDAM Tirta Kerta Raharja go on with a partnership initiative with an Australian investor without consulting them beforehand.

"Regent Ismet Iskandar cannot decide on such a collaboration of a regental enterprise with a third party without first consulting us, because it concerns public interests," councillor Muin Busni said on Monday. The regent recently signed a Memorandum of Understanding (MOU) between the water company and the Australian company -- the name of which has not been disclosed -- to repair the Cikokol water installation under Tangerang municipal jurisdiction and to increase its supply.

Another councillor, Sys Abdulgani, said the council had summoned Ismet to clarify his actions. "We also need to know about the credibility of the foreign investor," he said.

Separately, PDAM Tirta spokesman Anda Suhanda said the Australian investor had channeled the capital via private water company PT Tirta Kencana Mandiri. "The MOU is now a week old, but the partnership has yet to start because we're still awaiting a green light from the council," he told The Jakarta Post from Yogyakarta.

According to Suhanda, the partnership included a cancellation clause, while the MOU would automatically expire if the council rejected it.