Profile of Pam Jaya and Private Partners in Clean Water Supply Jakartan (Case Study Year 1998-2012)
Abstract
Jakarta as the capital city of Indonesia has the densest population in Indonesia which is experiencing problems in the field of public service provision of clean water. Providing clean water is carried out through a local company, namely the Regional Water Company Region (PDAM) abbreviated PAM Jaya and its aim is to be able to distribute clean water to all the people of Jakarta, in quantity provide water services running for 24 hours, in quality should be in accordance with the Ministry of Health Minister Regulation no.46 of 1990. To improve performance, Pam Jaya had a policy of cooperation with the private sector in the form Public Private Partnership (Agreement of Cooperation / MCC) since February 1st 1998 with Lyonnasise des Eaux France abbreviated PT. Lyonnase Pam Jaya (PT. Palyja) and PT. Thames Pam Jaya (TPJ). From 2003 cooperation with PT TPJ was transferred to PT. Aetra, in the form of concessions in the form of exclusive rights management for 25 years. From this cooperation is expected the private sector can bring a new fund to manage efficiently and can improve performance by better service, but with the water tariff is still affordable by the people of Jakarta. The purpose of this research is to provide an overview of PAM Jaya ’s profile in the provision and management of clean water for all communities in Jakarta, and analyze of cooperation with private partners. This research is descriptive research with a qualitative approach that aims to accurately depict or describe something happening and going on, and could clearly and accurately describe the subject matter of this research, the problem of whether the implementation of the Public Private Partnership Pam Jaya with private partners in the provision of clean water with a case study in 1998-2012. This research was conducted from 2010 to 2012. The collection of data in this research is done by observation, documentation and interview with some informants consist of: 5 Senior Managers PAM Jaya, 10 Managers PAM Jaya and 20 represent customers PAM Jaya (Dormitory, Apartment, Households, Small industries, Flats, Buildings, and Social Institutions). The results showed 1). In 2011, the public private partnership has been running 12 years, the coverage of water supply only reached 62,75% (5,614,632 people in DKI). 2). Provision of water supply often does not flow 24 hours as promised PAM Jaya and even not flow at all. 3). Most customers doubt the quality of water from PAM Jaya so mostly only is used for the purposes of washing and bathing only, for the drinking most switch to bottled water. 4). Water quality in many customers is contaminated by T. Coliform and E. Coli bacteria that are harmful to health and content of Iron and Manganese in the water exceeded the threshold. 5). The composition of employees in the private partners PT. Palyja and PT. Aetra only 20% of employees of PAM Jaya, the remaining 80% of employees of private partners, it violates the provisions of the Employment Agreement. 6). Comparisons of salaries received by employees of PAM Jaya placed on the private partner (second date) still uses the standard PAM while private employees in the private partners with the same level of responsibility to the employees of PAM Jaya had paid a salary in accordance with the standards of the larger private partners. 7). There is no significant technology transfer from the private to PAM Jaya, if there is only a simple transfer of technology.
Keywords: Clean water supply, Public Private Partnership
References
[1] Bhuiyan Shahjahan. 2005. Public Private Partnership for Sustainable Urban Solid Waste Management in Bangladesh, Kazakhstan Institute of Management, Economics and Strategic Research (KIMEP). Kazakhstan.
[2] Biswas Asit, Cecilia Tortajada. 2005. Water Pricing and Public Private Partnership. London: Routledge Group.
[3] Benlow, David, Ian Scott. 1983. Fighting Privatisation: The Struggle for Wandsworth. NUPE/IWC Pamphlet.
[4] Bradford, Neil. 2003. Public-Private Partnership? Shifting Paradigms of Economic Governance in Ontario. Ontario: Canadian Journal of Political Science Vol 36 No 5 Dec.
[5] Burgelman Robert A. 1996. A Process Model of Strategic Business Exit, Implications for Evolutionary Perspective on Strategy. Strategic Management Journal, volume 17 (p: 193-214).
[6] Cunha Rui and Sanford v Berg. 2010. Public-Private, Partnership Contracts: A Tale of Two Cities with Different Contractual Arrangements. Working Paper.
[7] Eugenijus Skietrys, Alvydas Raipa, Edverdas Vaclovas Bartkus. 2008. Dimensions of the Efficiency of Public - Private Partnership, Engineering Economics. 2008. No 3 (58).
[8] Garg Ankur, Varun Kumar and Vaibhav Verma. 2007. Public Private Partnership for Solid Waste Management in Delhi, a Case Study. Delhi
[9] Greve, Carsten. 2003. Public Private Partnership in Scandinavia. International Public Management Review Volume 4-issue 2-2003.
[10] Hood Christhoper. 1995. The New Public Management in the 1980’s Variations on A Theme. London: Accounting Organization and Society, Vol. 20 No. 2/3.
[11] Ikhsan. M and Makhdun Priyatno. 2001. Privatisasi Public Company. Jakarta: STIA LAN.
[12] Kumar Sasi. 2004. Public Private Partnership in Urban Infrastructure, Kerala Calling Feb.
[13] Lewis Mureen and Ted R. Miller. 2000. Public Private Partnership in Water Supply and Sanitation in Sub Saharan Africa., Washington DC: The Urban Institute USA.
[14] Levinson David. 2006. A Framework for Assessing Public Private Partnerships.UK: Edward Elgar Publisher.
[15] Lukman, Sampara. 1999. Quality Management Services. Jakarta: STIA LAN Press.
[16] Rizal Syamsu. 2008. Rights on the State’s Water Resources Associated with Privatisation of Water Management in Indonesia. Disertation. Doctoral Studies Program of Legal Studies, UNPAD Bandung.
[17] Savas E.S. 1987. Privatization, The Key to Better Government. New Jersey: Chatam House Publisher.Inc
[18] Savas.E.S. 2000. Privatization and Public-Private Partnerships. New York: CQ Press.
[19] Savas, E.S. 2005. Privatization in the City, Successful, Failures and Lessons. Washington DC: CQ Press.
[20] Sembel Roy. H.M. 1998. Privatisasi State-Owned Enterprises (BUMN) in Indonesia. Jakarta: Penebar Swadaya Press.
[21] Osmo T Sepalal, Jarno Hukka. 2001. Public Private Partnership in Water and Sewerage Services Privatization for Profit or Improvement of Service and Performance. Public Works Management and Policy vol. 6 No.1.
[22] United Nations Economic and Social Council, 2005, Public Private Partnership For service Delivery: Water and Sanitation. Addis Ababa : Ethiopia Paper, Third Meeting of the Committee on Human De Development.
[23] Victorija Bojovic. 2006. Public Private Partnership as a Last Resort for Traditional Public Procurement, Panoeconomicus 3, (p.299-311).
[24] Wackerbauer. 2005. The Regulation and Privatization of the Public Water Supply and the Resulting Competitive Effect, Munich Research Report.
[25] Walker, James L. 1995. Service Encounter satisfaction: conceptualized. Journal of Services Marketing Vol.9, No. 1, p. 5-14.
[26] Zakharova Str. 2007. Public Private Partnership. Belarus, http://research.by/