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Although PSP/PPP is practiced in
Indonesia since several years, only a few exclusive
national sectors, e.g. power generation, transportation
and communication have been supported intensively through
the private sector. Other basic public services like
water supply, waste water disposal and solid waste management
are still handled almost solely by Local Government
(LG) and Local Government owned entities. Despite substantial
government subsidies over the past three decades those
three sectors are in poor state in terms of management,
finances, and performance. Consequently, urgent private
sector participation is required to reform business
structures and management, to inject fresh capital,
to improve quality and quantity of services.
In line with the new Decentralization
Law 22/99 the Central Government (CG) delegates a majority
of its executive power to Local Governments (LG), turning
the CG role from a provider into an enabler. But most
LGs are not yet prepared to recognize the full extent
of their new tasks. Because of a general lack of expertise,
software, technical resources, planning techniques and
monitoring tools most LGs will rely on CG support and
means for years to come.
There is an important role
for PERPAMSI to support LGs and local water enterprises
(PDAM) in their effort to develop PSP arrangements for
more private sector involvement in the design, financing,
construction and operation of water supply facilities
and services to urban communities.
PERPAMSI will mainly focus on two areas
within the PSP field:
1. Provide information to the PDAMs and LG not only
on the possibilities of PSP, but also on the risks and
consequences.
PERPAMSI will promote transparency for all PSP contracts
and public tendering for all larger contracts.
2. Provide information to potential
investors about the opportunities and risks of investing
in the Indonesian water sector.
In order to get a detailed overview
of which private company is working with which PDAM, or has been
working there recently, you may view our PSP Database, containing the following information:
• successful PSP activities (summary of activities,
progress, etc.);
• unsuccessful PSP activities;
• planned PSP activities; and
• potential PSP activities.
The database will be updated every three months and can
only be accessed by Web Members. To log in, click
here. If some
of the data is not correct, please
inform us so that we can make the correction. |
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