The
Coalition of Jakarta Residents Opposing Water Privatization is an
inspiration for activists around the world. Jakarta’s story exemplifies
the threat of privatized water as well as the courage and ability of
communities to draw the line in favor of human rights over corporate
profits.
Last week, Jakarta’s governor
announced
his intention to cancel the Indonesian city’s private water contracts.
Returning Jakarta’s water to public control will require vigilance and
commitment from the community and its representatives. But the
persistent and creative organizing that has brought the city to this
point gives great cause for optimism.
Reclaiming Jakarta’s water will be a victory with global impacts. For
millions of residents the stakes are no less than their most precious
common resource. Victory here will also be a major setback for water
privateers and institutions like the World Bank promoting this failed
model.
Fifteen years too long: a water privatization nightmare
In 1997 and 1998, water systems in Jakarta and in Manila, Philippines
were similarly privatized under pressure from creditors led by the
World Bank. Both Southeast Asian cities were divided into east and west
zones, with separate corporate contracts for each. Together, Manila and
Jakarta brought over 14 million new “customers” to private water. Like
Jakarta,
the consequences in Manila have been devastating, especially for the poor and vulnerable.
In Jakarta, people’s rights have been systematically violated. Water
users have faced challenges typical of private water: limited access,
intermittent quality and service and the third highest prices in Asia.
To ensure universal access to water, operators must maintain and invest
in infrastructure. But under private control, Jakarta’s water revenues
have been diverted to support corporate profits.
That’s why Jakarta’s residents have taken action, petitioning
lawmakers and the courts for justice. They have also taken to the
streets in
direct protest
of water profiteering. A citizen lawsuit challenging the legality of
the water privatization is currently underway; Indonesia’s 1945
Constitution mandates public control of water in the common interest.
And the tide began to turn for Jakarta in October 2012. Suez
Environnement announced it would sell its controlling share of the west
zone corporation. Public and regulatory pressure and resistance to
further rate hikes had pushed the corporation to withdraw from Jakarta
at last.
Reflecting the public sentiment, the director of the public water
authority called on the governor to repurchase the water utility and
manage the system for the public interest.
Corporate cronyism
But Suez executed the sale almost immediately -- without even waiting
for legally required approvals -- to Manila Water Corporation (MWC):
the very corporation that manages half of Manila’s water. MWC was
created and backed by the World Bank, which retains an ownership stake
through its private investment banking arm. The World Bank has used its
clout as creditor and advisor to the Philippine government and architect
of the privatization to nurture its investment. The resulting plan has
created artificial profits for MWC to the detriment of public health,
equity and the human right to water in Manila.
This illegitimate transfer from Suez to MWC deprives Jakarta
officials of a critical opportunity. The current contract runs until
2022; terminating early can be difficult and costly. A repurchase could
allow a smoother return to public control.
Not only that, an MWC takeover in Jakarta would make the World Bank
part owner of that utility as well. Equity ownership gives the World
Bank a financial stake in ensuring that the system is run for a profit.
As the largest external source of funding for water in developing
countries, the World Bank has an obligation to avoid such a glaring
conflict of interest. Development assistance for water must be governed
by public authorities with the mandate and expertise to make locally
appropriate choices for public and planetary health and well-being.
This is why Corporate Accountability International’s campaign to
Challenge Corporate Control of Water stands with the activists in Jakarta, and also poses a direct
challenge to the World Bank.
This powerful institution must stop driving the global corporate-water
grab, divest its investments in private water and ensure that its funds
support water access for all.
A call to action
Jakarta residents have been clear and consistent in demanding
termination of the private contract. A sale to Manila Water will not
solve the problem of profiteering and neglect. The photo above depicts a
World Water Day (March 22) protest at City Hall, with posters calling
for an end to private water, a halt to the sale to MWC and a reminder
that “Women Should be at the Center of Water Governance.”
The World Bank has supported water giants like Suez to expand. It has
also created and nurtured a new generation of water privateers into
transnational status in their own right.
But the people’s commitment to management of water for the public
interest is undeterred. The creative and hard work of Jakarta activists
stands as a lesson and inspiration to us all. The governor’s recent
announcement is a not only a victory for Jakarta but an affirmation of
the axiom attributed to Gandhi: “When the people lead, the leaders will
follow.”
Please support the work of
KRuHA
(the people’s coalition for the right to water) by sending messages of
solidarity to the officials whose contact information follows. Call on
them to exercise their due authority by blocking the sale to Manila
Water and instead returning Jakarta’s water to public control.
Send your messages to:
Ir. Joko Widodo, Governor of Jakarta
Email:
dki@jakarta.go.idTwitter: @jokowi_do2
Ir. Basuki Tjahaja Purnama, MM, Vice Governor
Email:
btp@ahok.orgTwitter: @basuki_btp
Suharto, Sh. Mhum, head of Central Jakarta District Court
Re: Citizen Lawsuit, Case No. 527/pdt.G.2012/PN.JKT.PST
Email:
info@pn-jakartapusat.go.id
Shayda Edwards Naficy is the director of the campaign to Challenge Corporate Control of Water.
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