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The Unfair Cooperation Agreement on Water Privatisation

1 January, 2015
PSI, TNI, Amrta Institute for water literacy, SP-PDAM Jakarta
The Unfair Cooperation Agreement on Water Privatisation
This leaflet on water privatization in Jakarta is the third in a series of four leaflets published by Public Services International, Transnational Institute, Amrta Institute for Water Literacy and Jakarta Water Trade Union.

Privatization of water services in Jakarta has been problematic since the cooperation agreement was signed between PAM Jaya, a state-owned water utility, and the two private operators, Palyja and Aetra. Issues brought about by this document include PAM Jaya’s mounting debts, poor water services and high water tariffs. While the cooperation agreement guarantees the private operators’ profits, it makes PAM Jaya and the residents bear the losses of the private operators’ high costs.

The cooperation agreement on water services privatization was first signed on July 6, 1997 and became effective on February 1, 1998 for a 25-year period. To adjust to the new situation after the political and economic crisis in 1998, the cooperation agreement was amended and restated on October 22, 2001.

The four leaflets can be accessed here:

  1. It is Time to End Water Privatisation
  2. The Impact of Water Privatisation in Jakarta
  3. The Unfair Cooperation Agreement on Water Privatisation
  4. The Reliable Performance of Public Water Services


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