Councilor blasts governor over hike in tap water prices<\/p>\n
JAKARTA (JP): A city councilor lambasted Jakarta Governor
\nSutiyoso yesterday over a decree he issued in April allowing a
\ngradual hike in tap water tariffs.<\/p>\n
Lukman Mokoginta, head of the Indonesian Democratic Party
\nfaction, said the decree would just eliminate the City Council's
\nright to be involved in the decision-making process.<\/p>\n
\"The governor has deviated from City Bylaw No. 11 on tap water
\ntariffs.\"<\/p>\n
He said the decree, which gave the city-owned water company
\nPDAM Jaya the right to automatically set new tariffs at the end
\nof every six-month period, contravened the bylaw.<\/p>\n
The bylaw states that the adjustment of tap water tariffs must
\nhave the governor's approval and that PDAM and the city
\nadministration must consult the City Council beforehand, he said.<\/p>\n
\"But the decree has given PDAM and its two private partners
\nthe right to set and increase the tariffs without necessarily
\nasking for the council's opinion on it,\" Lukman said.<\/p>\n
PDAM, which is privately run, has been cooperating with
\nPresident Soeharto's eldest son Sigit Hardjojudanto's company PT
\nKekar-Thames Airindo (Kati) and tycoon Soedono Salim's subsidiary
\ncompany PT Garuda Dipta Semesta (GDS) since February. PDAM signed
\na 25-year cooperation agreement with the two firms.<\/p>\n
Lukman said the decree, which was issued on April 9, allowed
\nthe three companies to independently calculate the tariff
\nelements and set prices in accordance with a formula which was
\nvalidated in the same decree.<\/p>\n
The formula states that the tariff increase per cubic meter is
\nderived from dividing the integrated amount of cost elements,
\nincluding profit shares for Kati and GDS and regional revenues,
\nby the total volume of water sold to customers.<\/p>\n
\"The formula was developed by the companies and then ratified
\nby the governor without the council's consent,\" Lukman said.<\/p>\n
\"Then who would be responsible for checking on them? How would
\nwe ever know that they are being honest and fair in making their
\ncalculations of tariff adjustments in the future?\"<\/p>\n
Lukman said the tariff adjustment scheme served only to
\nbenefit the companies, especially Kati and GDS.<\/p>\n
\"The two have a great interest in it because they invested a
\nlot of money in the project.\"<\/p>\n
An executive from GDS denied yesterday the company's
\ninvolvement in the decree's formula-making process.<\/p>\n
\"We are not involved in determining the tariffs. That's solely
\nPDAM's business. Our responsibility is only to handle the
\ntechnical matters in the operational activities,\" she said.<\/p>\n
Head of Commission C for Financial Affairs Amarullah Asbah,
\nfrom the Golkar faction, did not want to become engaged in an
\nargument over the validity of the formula.<\/p>\n
\"I think it's all right. It was just a product that resulted
\nfrom the agreement and cooperation between PDAM and the two
\nprivate companies,\" he said. \"It could still be assessed by the
\ncouncil afterward.\"<\/p>\n
Amarullah said that it was more important to focus on the
\noutcome of the cooperation between PDAM and the two private
\ncompanies.<\/p>\n
\"We will see later. If the cooperation does not benefit PDAM
\nand the city administration, say if it does not bring more
\nrevenue for the administration, it can be canceled,\" he said.
\n(cst)<\/p>",
"url": "https:\/\/jawawa.id\/newsitem\/councilor-blasts-governor-over-hike-in-tap-water-prices-1447893297",
"image": ""
},
"sponsor": "Okusi Associates",
"sponsor_url": "https:\/\/okusiassociates.com"
}