A groundwater tax?<\/p>\n
The city bylaw on a groundwater tax which was approved by the
\nJakarta administration on Wednesday has provoked concern and
\nquestions among the public. The promotion of the bylaw has
\napparently been inadequate.<\/p>\n
As usual, controversial statements are made by officials
\nfollowing any new policy, and this issuance of the bylaw is no
\nexception.<\/p>\n
A councilor denied the imposition of taxes on groundwater and
\nsurface water constituted an effort to prevent overexploitation
\nof groundwater, and said it had nothing to do with the city's
\nrevenues. Meanwhile, the administration says that imposing the
\ngroundwater tax is \"an attempt to increase city revenues.\"<\/p>\n
The bylaw has a double purpose. Curbing over-exploitation of
\ngroundwater for environmental reasons is of course a must, and
\nincreasing city revenues \"by acceptable means\" for the sake of
\ndevelopment is no sin either. Why, then, should the councilor
\ndeny this?<\/p>\n
Paragraph 8 of Article 1 of the new bylaw stipulates that the
\ntaxes will be imposed on individuals -- read: households -- or
\ninstitutions that use groundwater and surface water, whatever
\ntheir purpose. The amount of the tax, according to Paragraph 2 of
\nArticle 5 of the bylaw, will depend on the amount of water used,
\nbut, according to the bylaw, will range from a 20 percent levy on
\ngroundwater and 10 percent on surface water.<\/p>\n
According to the previous bylaw No. 10\/1998, groundwater is
\nunderstood to mean water that is obtained from the beneath the
\nground's surface and includes water tapped from natural springs.
\nSurface water is water obtained from the surface of the earth,
\nincluding rivers and the sea.<\/p>\n
So it is clear what groundwater and surface water are
\nunderstood to mean, and who the targets of the bylaw are. And
\nonce the new bylaw becomes effective, the use of groundwater and
\nsurface water for any purpose, including for household use, will
\nbe subject to taxes. And yet, the explanation sheet of the bylaw
\nsays households are exempted. The sheet also says that only
\nhouses that are rented out and boarding houses that consume more
\nthan 50 cubic meters of groundwater per month will be subject to
\nthe tax.<\/p>\n
However, Governor Sutiyoso says only industries and hotels
\nthat obtain groundwater from wells with depths of more than 100
\nmeters will be taxed.<\/p>\n
Given that the new bylaw will affect the public, the
\nadministration must give a clear and adequate explanation, and
\nmore detailed information on the groundwater tax, to avoid
\nunnecessary confusion.<\/p>\n
Overexploitation of groundwater in the capital city and its
\nsurrounding areas has caused obvious environmental damage,
\nincluding land subsidence and seawater intrusion for more than 20
\nyears. In 1998, then Jakarta governor Surjadi Soedirdja issued
\nBylaw No. 10 in an effort to curb the overexploitation of water.
\nHowever, violations have continued, which implies the law is
\nbeing poorly enforced.<\/p>\n
A councilor from the Indonesian Democratic Party of Struggle
\nsays the use of groundwater by businesses has got out of hand
\ndespite Bylaw No. 10. The new bylaw is expected to supersede
\nBylaw No. 10\/1998, and in the light of past experience, people's
\nskepticism about its enforcement is understandable.<\/p>\n
The imposition of taxes on groundwater is a prudent policy in
\nterms of saving the environment from further damage, a measure
\nwhich the government has in the past frequently ignored.<\/p>\n
Unfortunately, all state-owned institutions and offices,
\nincluding those of the Jakarta city administration, will be
\nexempted, which is obviously unfair because state-owned
\nfacilities are no less prone to using groundwater excessively.
\nJudging from the fact that groundwater is now a commercial
\ncommodity, taxes should also be imposed on state-owned
\ninstitutions and companies so as to improve environmental
\nawareness among the state officials.<\/p>\n
Whatever the case, the new policy deserves the support of
\nJakarta's citizens because it could help to promote the use of
\ntap water produced by the city-owned tap water company, PAM Jaya.<\/p>\n
The bylaw says groundwater taxes will be higher for those
\nliving in areas reached by the tap water service. This is a good
\nway to promote the use of tap water, but the problem which the
\ndecision makers must answer is that, so far, PAM Jaya has not
\nprovided adequate services to its customers. Therefore, the bylaw
\nshould also include a warning to PAM Jaya to improve its
\nservices.<\/p>\n
So far, only 57 percent of some 8 million Jakarta residents
\nenjoy PAM Jaya's services. The new bylaw deserves our support,
\nbut the administration must make sure the law is properly
\nenforced and the taxes professionally administered. Otherwise
\n\"leakages\" will occur and the public's money will go into the
\npockets of only a handful of people instead of the city coffers.<\/p>",
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"sponsor": "Okusi Associates",
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