WATER RESOURCE MANAGEMENT NOW UNDER STATE CONTROL by Fardah

     Jakarta, March 30, 2015 (Antara) -- Two important court rulings were issued in Indonesia earlier this year that established water accessibility as a basic right of the public, rather than giving water the status of a business commodity. 
    In mid February, the Indonesian Constitutional Court (MK) revoked the 2004 Water Resources Law, which paved the way for the state to take over full control of water resources from the private sector and for concessions on water resources for companies that sell water-based products.

         The court has considered law number 7/2004 not in line with the constitution (UUD 1945), taking into account the rights of the state to control the use of water. Therefore, law number 11/1974 on agrarian affairs will be made valid again.

         The MK revoked law number 7/2004 on water resources because it does not meet the six basic principles of water management restrictions.

         These include the public's right of access to water, environmental preservation, supervision and control by the state, and giving priority to state-owned companies to manage water supply. Private companies can manage water supply but with certain conditions.

         The verdict, consequently, bans private monopolies on domestic water resources, and also reinstates the previous 1974 Water Law until a new one is deliberated.

         The state must be firmly in charge of regulating, supervising and managing water.

         Furthermore, Public Works and Public Housing Minister Basuki Hadimuljono has promised to draft a new water resources law to replace the one that the MK revoked, weighing the option of a public-private approach to water management.

         "We will soon issue a government regulation that is based on the 1974 law. We will also establish an implementing body that will be in charge of managing water firms in the planned public-private partnership scheme," the minister noted.

         The second important ruling was issued by the Central Jakarta District Court on March 24, which accepted a lawsuit from the Coalition of Jakarta Residents Opposing Water Privatization (KMMSAJ).       
    The residents claimed that water services coverage was low and water leakage levels were high, while water tariffs grew fourfold since the came into force.

         The citizens sued the president, vice president, finance minister, public works minister, governor of Jakarta, and legislators from the city, as well as water supply companies PAM Jaya, Palyja, and Aetra.

         The court ruled that the government must stop the privatization of water in Jakarta and return the duty of water management to the state.

         Moreover, NGO Kiara hailed the Central Jakarta District Court's ruling that accepted the charge filed by the citizens against the privatization of water in the capital city.

         "This is a victory for the people of Jakarta with regard to their right of access to water," Secretary General of Kiara Abdul Halim said in Jakarta on March 25.

         Kiara joined the Public Coalition Against Water Privatization in Jakarta, which also includes LBH Jakarta legal aid, Kruha, Walhi Jakarta, and the Jabotabek's Women's Solidarity.

         In addition, acting director general of the Public Works and Public Housing Ministry Mudjiadi noted in a statement recently that good water management is crucial to ensure adequate water supply for a year.

         Indonesia has the fifth largest volume of water in the world, which should be managed sustainably for the present as well as future generations, he emphasized.

         The Indonesian government is implementing an integrated water resource management system, including conducting water conservation, the official affirmed.

         The ministry is currently collecting inputs from the public regarding a bill on water management to replace law number 7/2004 on water resources that was revoked by the MK.

         Earlier, the Indonesian Environmental Forum (Walhi) had said that the management of water resources by private companies had led to a water crisis due to slacking controls.

         "We face a water crisis because water management licenses were mostly given to private companies. For example, in cities, permits to use groundwater were given more to private companies," Campaign Manager of Walhi Edo Rakhman stated.

         Water resource management should prioritize the public rather than private sector, he remarked.

         "Our water management policy should have prioritized public interest instead of business ones. It is controlled by private companies," Rakhman pointed out.

         He added that the problem was not shortage of water, but the mismanagement of water supply that leads to uneven distribution in the community.

         The government must evaluate the permits given to private companies to prevent overexploitation of water resources, he stressed.

         This water crisis is a result of the government issuing too many permits to control water to private businesses, he noted.

         Groundwater resource crisis is not the only water-related problem the country is facing; uneven distribution of water to the public is another, he said.

         Had the government implemented sustainable water resource management from the beginning, there would have been no water crisis, he observed.

         "The problem is that the government prioritized giving licenses to private companies to manage water supply. So they manage water resources by their own will," Rakhman stated.

         The government should manage water resources keeping public interest in mind because private companies will prioritize their business interests, he warned.

         However, a recent study revealed that of the 359 clean water supply companies in Indonesia, only 182 are categorized as healthy, while 103 are deemed not healthy enough, and 74, unhealthy.

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(f001/INE/B003)