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Posted By: komparta

Posted On: Feb 14, 2004
Views: 863
Law A Delayed Victory

No. 23/IV/Februari 10 - 16, 2004

Law

A Delayed Victory

A Jakarta court has ordered the Jakarta local government to postpone
its plan to hike drinking water rates. A victory for the residents?


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FOR the past seven months, Mistia has been denied access to drinking
water from the Jakarta Drinking Water Company (PAM Jaya), although
she has continued to pay her water bills. Mistia and other residents
of the Pekojan area in Tambora, West Jakarta, have been forced to
buy drinking water from street vendors at a far greater expense.
Last week TEMPO met with Mistia, who said that she was relieved that
the Jakarta Government had been ordered to improve the quality of
their service to consumers. "I heard that we won," said Mistia.

Two weeks ago, the Central Jakarta District Court upheld a class
action lawsuit filed by the Community of Jakarta Drinking Water
Consumers (Komparta) on behalf of Jakarta's residents. Chaired by
Justice Andriani Nurdin, the presiding judicial panel ordered
Jakarta Governor Sutiyoso to postpone the intended hike in water
rates until the quality of service to consumers has been improved.

This is the first case that Komparta has won a class action against
the government. In a breakthrough case, consumers of natural gas won
a lawsuit against state-owned oil and gas company Pertamina,
objecting to hikes in the price of natural gas. Ironically,
Pertamina has not executed the verdict and the prices of natural gas
have continued to rise. Komparta may experience the same fate. So
far, there have been no signs that Governor Sutiyoso intends to
execute the court verdict. "I will study the verdict first," said
Sutiyoso.

Komparta filed its lawsuit against Jakarta Governor Sutiyoso and the
Jakarta Regional House of Representatives (DPRD), nine months ago.
Together, Sutiyoso and the Jakarta DPRD had decided to periodically
raise water rates every six months. The first stage of this plan
involved a 40 percent hike, which took place in April 2003. The
second stage of the plan involved a 30 percent price hike, which
took place in January 2004.

In its lawsuit, Komparta asked the court to order the postponement
of the next intended price hike, arguing that the previous price
hikes had not resulted in any improvement in the quality of service
to consumers. Komparta also asked that the 40 percent price hike
brought into effect in April 2003 be revoked.

The judicial panel upheld Komparta's first request, ordering
Governor Sutiyoso to postpone the decision to hike drinking water
rates. Justice Andriani Nurdin said that the Jakarta Government
should have first organized a socialization program to inform the
public of the intended price hike. The court also ruled that the
Jakarta Government was obligated to protect the public interest in
having access to clean water.

However, the panel rejected Komparta's second request that the April
2003 price hike be revoked. The court ruled that the Jakarta
Government had not done anything illegal in deciding to raise the
price. According to the court, no loss had actually been incurred at
the time that the lawsuit was filed.

Komparta's legal attorney, JJ Amstrong Sembiring, said that he was
pleased with the court's verdict. But, Sembiring said that he was
disappointed by the court's verdict on Komparta's second request to
have the April 2003 price hike revoked. He said that he would file
an appeal against this part of the verdict. "Over 2.3 million people
in Jakarta who rely on clean water from the PAM water source, object
to the price hike," said Sembiring.

The Jakarta Government also said that they would appeal the verdict.
Jakarta Legal Bureau Chief, Deded Sukandar, said that there were no
legal grounds for postponing the decision to raise drinking water
rates. He also denied that the Jakarta Government had not socialized
the plan, showing TEMPO a handful of newspaper clippings.

In the meantime, Jakarta's residents continue to pay the raised
drinking water rates. According to PAM Jaya President Director,
Didit Haryadi, Governor Sutiyoso has not annulled the policy yet and
so PAM Jaya is bound by the original agreement. "The policy already
accounted for the public's purchasing power," said Haryadi.

It seems that Jakarta's residents will have to wait for a decision
of permanent legal force before they can enjoy cheaper drinking
water. This also depends on victory at the appellate court and on
case review. "This is the difficulty in filing a suit against price
hikes," said Daryatmo from the Indonesian Consumers Foundation
(YLKI).

Juli Hantoro, Edy Can, Multazam, TEMPO News Room








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