The status change is intended to enable PAM Jaya to become a public company and launch an Initial Public Offering (IPO).
“The governor’s intention to raise PAM Jaya’s status to go public is in line with regulations and does not violate any provisions,” said Ahmad Husni, Secretary of the South Jakarta District chapter of the Islamic Students Alumni Association (KAHMI), in Jakarta on Tuesday.
The transformation of a regional-owned enterprise into a local limited liability company is permitted under Government Regulation No. 54/2017 on Regional-Owned Enterprises and Law No. 40/2007 on Limited Liability Companies.
Jakarta Governor Pramono Anung said that as a Perseroda, PAM Jaya would gain greater flexibility in resource management, partnerships, and investment opportunities.
On January 3, 2022, the Jakarta Provincial Government signed a memorandum of understanding with the Ministry of Home Affairs and the Ministry of Public Works and Housing (PUPR) to accelerate piped water service coverage in Jakarta by 2030. The target was later advanced to 2029.
To meet the goal, Pramono asked PAM Jaya to speed up service coverage and expand water infrastructure projects.
Several major investment projects requiring significant funding remain unfinished, including efforts to reduce non-revenue water and the construction of provincial water treatment plants in Cilandak, Muara Karang, Condet, and Hutan Kota II.
Given budget limitations in the Jakarta Regional Revenue and Expenditure Budget (APBD), which must also fund other priority programs, the provincial government proposed changing PAM Jaya’s legal status as a strategy to attract non-budgetary funding.
Pramono said the move also aims to improve PAM Jaya’s performance, efficiency, effectiveness, and competitiveness.
PAM Jaya has since declared its readiness to enter the stock exchange and launch an IPO.
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Translator: Primayanti
Editor: Arie Novarina
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