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Some lessons from Indonesia…<br />Anti privatization debate, opaque rules and neglected ‘privatised’ water services provis...
Anti privatization debates<br />	Around 868 individuals and 16 non governmental organizations asked the Constitutional Cou...
Anti privatization debates<br />	“These agencies are not contributing to constructive advocacy, but channel their energy i...
Opaque rules<br />	Out of 100 Articles in the Water Law, only one paragraph specifically regulates private sector particip...
Opaque rules<br />	While paragraph 3 of Article 40 of the Water Law reads:<br />    “State Owned Enterprises and Regional ...
Opaque Rules<br />Implementing regulation of the Water Law states:<br />“cooperatives and/or privately owned business ente...
Neglected PSPs: Jakarta vs Bogor <br />
Neglected PSPs: Batam case<br />	A water provider was charged by the competition commission for:<br /><ul><li>discriminati...
abusing dominant position (x)
controlling the production and marketing of goods which results in monopolistic practices </li></li></ul><li>Towards regul...
Towards Regulating PSPs<br />What is a concession?<br />	Several types of licenses: Dispensasi (dispensation), Lisensi (li...
Towards Regulating PSPs<br />Public Service Law<br />Freedom of Information Law<br />Model Regional-By-Law<br />Potential,...
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Steps presentation

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Steps presentation

  1. 1. Some lessons from Indonesia…<br />Anti privatization debate, opaque rules and neglected ‘privatised’ water services provision<br />MohamadMova Al ‘Afghani<br />March, 19, 2011<br />
  2. 2. Anti privatization debates<br /> Around 868 individuals and 16 non governmental organizations asked the Constitutional Court to revoke the Law 7/2004 on Water Resources<br />
  3. 3. Anti privatization debates<br /> “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)<br />
  4. 4. Opaque rules<br /> Out of 100 Articles in the Water Law, only one paragraph specifically regulates private sector participation, paragraph 4 of Article 40: <br /> “Cooperatives, privately-owned business enterprises and the [members of the] society may participate in the undertaking of the development of drinking water provision system<br />
  5. 5. Opaque rules<br /> While paragraph 3 of Article 40 of the Water Law reads:<br /> “State Owned Enterprises and Regional Owned Enterprise are the undertakers of drinking water provision system”  <br /> Is that mean that private sectors are not the undertakers? <br />
  6. 6. Opaque Rules<br />Implementing regulation of the Water Law states:<br />“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)<br />Does this means ‘greenfield’-only projects? What about BOT WTP project in already-served areas?<br />
  7. 7. Neglected PSPs: Jakarta vs Bogor <br />
  8. 8. Neglected PSPs: Batam case<br /> A water provider was charged by the competition commission for:<br /><ul><li>discriminating business entities (x)
  9. 9. abusing dominant position (x)
  10. 10. controlling the production and marketing of goods which results in monopolistic practices </li></li></ul><li>Towards regulating PSPs<br />Differences in Administrative Legal System<br />The administrative Court can Only decide a case: <br />Dismissed<br />Lapsed<br />Rejected<br />Proven: Order the official to revoke, issue or revoke old Decision and issuea new one<br />No ‘Administrative Contract’, no power to modify PSP contract<br />
  11. 11. Towards Regulating PSPs<br />What is a concession?<br /> Several types of licenses: Dispensasi (dispensation), Lisensi (licence), and Konsesi (concession).<br /> 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”<br />
  12. 12. Towards Regulating PSPs<br />Public Service Law<br />Freedom of Information Law<br />Model Regional-By-Law<br />Potential, but need reforms<br />
  13. 13. Thank You<br />

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