Jakarta quietly hikes water rates<\/p>\n
The Jakarta Post, Jakarta<\/p>\n
The city administration has secretly increased tapwater rates by
\nbetween 4 and 16 percent, depending on the level of water
\nconsumption and customer classification.<\/p>\n
Jakarta water regulatory board chairman Achmad Lanti said at
\nCity Hall on Tuesday that the increase took effect on Jan. 20 and
\nwas one of the automatic water rate hikes that would take place
\nevery six months for the next five years.<\/p>\n
\"We have decided to raise water rates this year and we will
\ncontinue increasing them every six months for the next five
\nyears,\" Lanti said.<\/p>\n
He did not explain why the water hike was only announced on
\nTuesday, more than 10 days after it took effect.<\/p>\n
Up until Jan. 20, poor consumers paid Rp 500 per cubic meter,
\nwhile well-off consumers paid Rp 9,100 per cubic meter. Under the
\nnew regime, however, the poor will pay Rp 550, an increase of 10
\npercent, while the rich will pay Rp 9,750, or an increase of 7
\npercent.<\/p>\n
Lanti, accompanied by an assistant to the City Secretary for
\nDevelopment Affairs, Hari Sandjojo, and the technical director of
\nPAM Jaya, Kris Tutuko, said the money earned from the hike would
\nbe used mostly to pay PT PAM Jaya's outstanding debts of Rp 938
\nbillion to its foreign partners -- PT PAM Lyonaisse Jaya and PT
\nThames PAM Jaya.<\/p>\n
Palyja, a subsidiary of France's ONDEO (formerly Lyonaisse des
\nEaux) serves customers in western part Jakarta, while TPJ, a
\nsubsidiary of Britain's Thames Water International, supplies
\ntapwater to customers in eastern part Jakarta.<\/p>\n
\"Hopefully, with a slight increase every six months, we will
\nbe able to repay all our debts to the two foreign partners within
\nfive years in 10 installments,\" he said.<\/p>\n
In addition to its debts to the foreign partners, PAM Jaya
\nalso owes about Rp 1.7 trillion to the central government.<\/p>\n
The automatic tariff increase scheme was approved by the City
\nCouncil on July 23, 2004.<\/p>\n
According to Lanti, the regulatory board, whose duties include
\nproposing tariff increases, mediating in any disputes that might
\narise between PAM Jaya and its foreign partners, was also playing
\na role in the negotiations for a new water charge.<\/p>\n
The water charge is the sum of money PAM Jaya must pay to the
\ntapwater operators for treating and supplying water.<\/p>\n
\"Both PAM Jaya and Palyja have reached a consensus to accept a
\nnew charge of Rp 4,450 per cubic meter. Unfortunately, TPJ has
\nrefused to accept the proposed new charge of Rp 3,671 per cubic
\nmeter and has appealed to an international expert to help mediate
\nthe dispute,\" he said.<\/p>\n
Palyja and TPJ plan to connect 5,500 and 4,251 new customers
\nrespectively this year.<\/p>\n
A senior executive with Palyja, Bernard Lafronge, said that
\nhis company planned to invest Rp 551 billion this year, including
\ninvestment in a 148-kilometer long pipeline in North and West
\nJakarta.<\/p>",
"url": "https:\/\/jawawa.id\/newsitem\/jakarta-quietly-hikes-water-rates-1447893297",
"image": ""
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"sponsor": "Okusi Associates",
"sponsor_url": "https:\/\/okusiassociates.com"
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