Indonesia Infrastructure Alert - A district court annuls PPP water concessions in Jakarta – now under appeal
16 April 2015
In March 2015, the Central Jakarta District Court (the “Court”) issued a decision which, if implemented, would annul the concession agreements between Jakarta’s public water utility company, PAM Jaya, and two private companies.
The companies, PT PAM Lyonnaise Jaya (“Palyja”) and PT Aetra Air Jakarta (“Aetra”), provide clean water services to western and eastern areas of Jakarta, respectively. Their concession agreements with PAM Jaya – called Cooperation Agreements – were signed 17 years ago and still have eight years until expiry of their 25-year terms.