Jakarta water rates to increase next month<\/p>\n
Bambang Nurbianto, The Jakarta Post, Jakarta<\/p>\n
Despite criticism of the quality of the tap water supplied by the
\ncity's two water utilities, Jakarta Governor Sutiyoso said water
\ncharges needed to be increased next month in order to cover the
\ncompanies' operating costs.<\/p>\n
"We have not increased the charges for almost three years.
\nThey must be increased starting early in April ... otherwise we
\nwill go bankrupt," he said on Thursday.<\/p>\n
Sutiyoso explained the increases were unavoidable as the
\ncompanies' operating costs were higher than their revenues. He
\nsaid that without the hikes, the foreign partners would be forced
\nto pull out.<\/p>\n
Sutiyoso, however, refused to reveal the amount of the
\nincreases, saying that the new prices were still being calculated
\nby the Jakarta Water Regulatory Board.<\/p>\n
He also failed to state the amount of the losses being
\nsuffered by the utility companies.<\/p>\n
The current price of water in Jakarta averages Rp 2,700 per
\ncubic meter while the cost of production, according to an
\nofficial from city-owned water company PAM Jaya, is Rp 3,100.<\/p>\n
If the plan is implemented next month, it will be the third
\nincrease since PAM Jaya signed contracts with its two foreign
\npartners in 1998.<\/p>\n
Despite what the governor said, in 1998 charges were increased
\nby 20 percent, while in 2001 they were increased by 35 percent.<\/p>\n
Unconfirmed source said that the next hike would be around 40
\npercent.<\/p>\n
Sutiyoso, however, promised that the increase would not
\nadversely affect low-income families as the main target of the
\nincreases was the well-off.<\/p>\n
"A cross-subsidy system will continue to be applied," he
\nstressed.<\/p>\n
PT Thames Pam Jaya, which is a subsidiary of Britain's Thames
\nWater International, supplies customers in the east of Jakarta
\nwhile PT Pan Lyonaisse Jaya (Palyja), a subsidiary of France's
\nONDEO (formerly Lyonaisse des Eaux), serves customers in the west
\nof the city. Both companies supply water to about 650,000
\ncustomers in Jakarta.<\/p>\n
Earlier reports said that since the collaboration agreements
\nhad been signed, the city-owned company has suffered some Rp 700
\nbillion in losses due to -- it claims -- increasing production
\ncosts.<\/p>\n
The agreements between PT PAM Jaya and the foreign companies
\nare to last for 25 years.<\/p>\n
When the agreements were signed, the water companies promised
\nto improve water quality. But many customers are still not only
\ncomplaining about quality, but also interruptions in supply.<\/p>\n
Husna G. Zahir of the Indonesian Consumers Association (YLKI)
\ncriticized the plan to raise charges, saying they should not be
\nincreased until service was improved.<\/p>\n
"Increasing the charges now is unfair as they have not
\nresponded to the public's complaints about bad quality and supply
\ninterruptions," Husna told The Jakarta Post on Thursday.<\/p>\n
Husna also questioned the government policy on water which
\ntreated it as a commodity to be "bought and sold by the private
\nsector."<\/p>\n
She said that under the Constitution, all citizens should have
\naccess to clean water.<\/p>\n
"If the government only takes into account the wishes of
\nprivate investors and treats water as a commodity, then it will
\nbe violating the Constitution," Husna said.<\/p>\n
As any water charge increase needs to be approved by the City
\nCouncil, Husna called on councillors to reject the city
\nadministration's plan.<\/p>\n
According to the regulatory board's chairman Achmad Lanti, the
\ntwo Jakarta water utilities produce about 500 million cubic
\nmeters of water a year, but 49 percent of this is lost due to
\nillegal connections and leakages.<\/p>",
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"sponsor": "Okusi Associates",
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