STEPS Water & Sanitation Symposium 2011

1. Some lessons from Indonesia… Anti privatization debate, opaque rules and neglected ‘privatised’ water services provision MohamadMova Al ‘Afghani March, 19, 2011

2. Anti privatization debates Around 868 individuals and 16 non governmental organizations asked the Constitutional Court to revoke the Law 7/2004 on Water Resources

3. Anti privatization debates “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)

4. Opaque rules Out of 100 Articles in the Water Law, only one paragraph specifically regulates private sector participation, paragraph 4 of Article 40: “Cooperatives, privately-owned business enterprises and the [members of the] society may participate in the undertaking of the development of drinking water provision system

5. Opaque rules While paragraph 3 of Article 40 of the Water Law reads: “State Owned Enterprises and Regional Owned Enterprise are the undertakers of drinking water provision system” Is that mean that private sectors are not the undertakers?

6. Opaque Rules Implementing regulation of the Water Law states: “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) Does this means ‘greenfield’-only projects? What about BOT WTP project in already-served areas?

7. Neglected PSPs: Jakarta vs Bogor

9. abusing dominant position (x)

11. Towards Regulating PSPs What is a concession? Several types of licenses: Dispensasi (dispensation), Lisensi (licence), and Konsesi (concession). 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”

12. Towards Regulating PSPs Public Service Law Freedom of Information Law Model Regional-By-Law Potential, but need reforms

13. Thank You