Who gains from saving nature
Ledger 1 : 33 — For each dollar financing nature-based solutions in 2023, about $33 financed activities harmful to nature. (UNEP)
Cases / Water use · Indonesia · 1998–2026

Jakarta water privatisation

Nature's voice · report
No measurement of the harm done to me here is on record.
Did nature suffer? Not measured.
What the record lacks: 1 none on record · 1 not measured · 3 disputed · 1 unclear See the gaps

From 1998 to 2023 Jakarta's piped-water network was run by two private concessionaires. Indonesia's Supreme Court found the arrangement unlawful in 2017; records differ on what that ruling changed.

44.5% → 59.4%Share of Jakarta's population with piped water, 1998 to 2019
Reported coverage under two private concessions that ran from 1998 to 2023.

Status As of January 2026: private concessions ended in 2023; PAM Jaya aims for full coverage by 2029; records differ on the legal effect of the 2017 Supreme Court ruling.

What?
Jakarta's piped-water network was operated by two private concessionaires from 1998 to 2023; the Supreme Court found the partnership unlawful in 2017. The Jakarta Post
Where?
Jakarta, Indonesia. The Jakarta Post
When?
1998 to 2023 (concessions); Supreme Court ruling 2017; handover reported January 2023. Bisnis.com
Who?
Gained
  • Palyja and Aetra (private concessionaires) — Held the network contracts for 25 years and kept them to the end. The Jakarta Post
  • Suez and Thames, with their Indonesian partners (the Salim Group, and a son of President Suharto) — Partnership in the concession, awarded without a tender, according to ICIJ. ICIJ
Lost
  • Households, hotels and businesses outside the piped network — Used wells or bought water; one family reported paying 20,000 rupiah a day for eight jerry cans. Swissinfo (D. Burkhalter)
Harmed
  • Land and groundwater in North Jakarta — Ground sank about 11 cm a year on average in 2014–2018. MDPI Water
Why?
ICIJ recorded that the concession was awarded without a tender. The Supreme Court found the partnership unlawful in 2017. ICIJ
How?
Through two long-term concession contracts with the city utility PAM Jaya; the utility feared 6.7 trillion rupiah in compensation if it ended them. The Jakarta Post
6 of 6 questions answered from the record

What happened

The record, in order.

Jakarta's piped-water network was operated from 1998 to 2023 by two private concessionaires, Palyja and Aetra, under contracts with the city's water utility, PAM Jaya. According to the International Consortium of Investigative Journalists (ICIJ), President Suharto awarded the city's water without a tender. ICIJ documented that Thames formed a partnership with one of Suharto's sons and that Suez formed one with the Salim Group.

The Jakarta Post reported that piped water reached 44.5% of the population in 1998. A secondary summary gives 59.4% for 2019, and states that the two concessionaires kept their contracts to the end while coverage stayed at about 60%. Households, hotels and businesses outside the network turned to wells.

In 2017 Indonesia's Supreme Court found the arrangement unlawful. One research note says the ruling was set aside in 2018 on procedural grounds. Another record says that PAM Jaya, fearing compensation of 6.7 trillion rupiah if it ended the contracts, restructured them instead. The record does not say whether the contracts changed as a result of the ruling.

Bisnis.com reported on 27 January 2023 that the cooperation with the private operators had ended and that PAM Jaya was ready to operate the service fully. In January 2026 Swissinfo reported that PAM Jaya aimed for full coverage by 2029, which would need about 7,000 km of pipe and one million household connections, and that experts said bans on well-drilling could not be enforced without a network.

  1. 1998Piped network held by two private concessionaires (to 2023); coverage 44.5% of the population
  2. 2017Supreme Court finds the water partnership unlawful
  3. 2018One record says the ruling was set aside on procedural grounds; PAM Jaya, fearing 6.7 trillion rupiah in compensation, restructured the contracts (Jakarta Post explainer, April)
  4. 2019Reported coverage 59.4%
  5. 2023Private cooperation ends; PAM Jaya takes over operation (Bisnis.com, 27 January)
  6. 2026PAM Jaya aims for full coverage by 2029, needing about 7,000 km of pipe and one million connections (Swissinfo, 27 January)

What was said

Claims, in the words of those who made them.

Where accounts differ

Each party's account, side by side, with its source. The record does not settle these points; it shows them.

What did the 2017 Supreme Court ruling change?
Courts
Supreme Court of Indonesia

Found the water partnership unlawful (2017).

The Jakarta Post
Researchers
Research note citing the Jakarta Post

The ruling was set aside in 2018 on procedural grounds.

The Jakarta Post
Press and investigations
Jakarta Post explainer (April 2018)

PAM Jaya, fearing 6.7 trillion rupiah in compensation if it ended the contracts, restructured them.

The Jakarta Post
Did the concessions extend the network?
Researchers
Secondary summary

Coverage rose from 44.5% (1998) to 59.4% (2019) and stayed at about 60% while the two concessionaires held their contracts to the end.

Government and regulators
PAM Jaya

Aims for full coverage by 2029; the network is described as 75% in one report but concentrated in the centre.

Swissinfo (D. Burkhalter)

How it looked

What was shown, beside what was recorded.

Shown

    Recorded

    • Piped water reached 44.5% of the population in 1998; the figure for 2019 is given as 59.4%.
    • The concessions ran 25 years (1998–2023) and the two concessionaires kept their contracts to the end while coverage stayed at about 60%.
    • ICIJ documented that the contract was awarded without a tender, that Thames partnered with a son of President Suharto and Suez with the Salim Group.
    • Supreme Court 2017: the partnership was unlawful. Records differ on the later effect: set aside in 2018 on procedural grounds, or contracts restructured because of a feared 6.7 trillion rupiah compensation.
    • Ground in North Jakarta sank about 11 cm a year on average in 2014–2018; in places up to 26 cm a year in 1991–1997.

    Who gained

    Money that reached nature, beside money that stayed elsewhere.

    Reached nature or the ground

    Not published
    No figure published.

    Gained elsewhere

    Not totalled
    Currency: IDR · Window: 1998–2023. All figures cover the same period. * Estimate built from cited figures.

    Responses on record

    • pam-jaya (January 2026): Aims for full network coverage by 2029, which would need about 7,000 km of pipe and one million household connections. · Swissinfo (D. Burkhalter)

    In court and with insurers

    Every proceeding and every insurer decision on record.

    Lawsuits and rulings

    1. 2017; reported set aside 2018 on procedural groundsOverturned on appeal
      Challenge to the Jakarta water privatisation
      Supreme Court of Indonesia · Civil · Not named in the record → Not named in the record

      The Supreme Court found the water partnership unlawful in 2017. One record says the decision was set aside in 2018 on procedural grounds; another records that the utility restructured the contracts, fearing 6.7 trillion rupiah in termination compensation. The Jakarta Post

    Insurers

    No insurer decision on record.

    What nature saw

    Outcomes measured on the ground, and nature's note.

    Nature's report opens this page. Below: further outcomes measured on the ground.

    Land subsidence, North Jakarta
    ~11 cm/yr
    Average 2014–2018; up to 26 cm/yr in places in 1991–1997 (MDPI Water, 2022)
    Piped-water coverage
    44.5% → 59.4%
    1998 to 2019
    Return of private operators' earnings
    No data
    The research record found no figure

    What we don't know

    Undisclosed, unproven, untried: recorded as data.

    Nature

    • Not measured Harm to nature: The record holds no measurement of harm to nature.

    Accounts

    • Disputed What did the 2017 Supreme Court ruling change?
    • Disputed Did the concessions extend the network?

    Record

    • Unclear Whether the private operators' earnings were returned after the court finding: the research record found no data.
    • Disputed What the 2017 ruling changed: records differ (set aside in 2018 on procedural grounds, or contracts restructured because of a feared 6.7 trillion rupiah compensation).
    • None on record Personal penalties for anyone involved: none recorded.

    Did the harm stop?

    The private concessions ended in 2023 and operation returned to PAM Jaya. The record does not show whether groundwater pumping or subsidence changed afterwards.

    Who paid?

    Households, hotels and businesses outside the network, which used wells or bought water (one Muara Angke family reported paying 20,000 rupiah a day for eight jerry cans); the utility said it feared 6.7 trillion rupiah in compensation if it ended the contracts.

    Sources

    Voices on record: — Company or project— Government and regulators— Courts✓ Press and investigations— Communities and civil society✓ Researchers

    Connected cases

    Related matters, and cases linked to this one through the same organisations, with the role each played in both.

    Science and environment

    Groundwater
    Water held underground in soil and rock, drawn through wells.