Murky waters<\/p>\n
Although people are aware the government will increase various
\ntariffs, further burdens for them to bear in this devastating
\ncrisis, some circles still registered strong reactions with the
\nJakarta city administration before it decided on the 25 percent
\nincrease in tap water tariffs early this week.<\/p>\n
The protests emphasized the absence of transparency by the
\nadministration in running the business, charging that there were
\nthus no grounds whatsoever for increasing the rates.<\/p>\n
The Indonesian Consumers Foundation came out strongly in
\ncriticizing the proposed increase, stating that \"such a method is
\na typical solution made by ailing or mismanaged state-run
\ncompanies to rid themselves of their problems without really
\nsolving them\".<\/p>\n
The foundation questioned why city water company PDAM always
\nclaims financial losses because of extensive leakage problems
\nwith its pipes. \"Why don't they fix that problem first rather
\nthan charging customers higher prices?\" it asked.<\/p>\n
The Jakarta branch of the government's Golkar grouping also
\nvoiced objections to the policy because the city administration
\nhas yet to make clear the details of newly forged cooperation
\nagreements with two private companies in the water business,
\nespecially how the projects will be financed.<\/p>\n
Although Golkar's statement does not mention the names of the
\ncompanies, reports say the city administration granted PT Garuda
\nCipta Perkasa and PT Kekarpola Airindo -- both well-connected
\nwith the ruling elite -- the right to join the tap water business
\noutside of a tender bid.<\/p>\n
Reports say PT Garuda, which will work together with Lyonnaise
\ndes Eaux of France, will operate in the western region of the
\ncity, and PT Kekarpola, to work with Thames Water International
\nfrom Britain, will get the eastern region.<\/p>\n
While the city administration still has to answer the
\ncomplaints, Jakarta Governor Sutiyoso has said that the most
\nimportant aspect of the new tariffs is that they will not in any
\nway inflict suffering on poor people because the increase for
\nthem is only between 10.58 percent and 11.42 percent.<\/p>\n
He even said that PDAM had cut rates by 3.85 percent for
\n\"special\" customers like orphanages, dormitories run by
\nnoncommercial institutes and places of worship in an effort to
\nmaintain its cross-subsidy policy.<\/p>\n
He also said PDAM's operational expenses were much bigger than
\nits earnings, and that it would ultimately collapse if this
\ncontinued. \"That's why the new tariffs were established,\" he
\nsaid.<\/p>\n
The explanation is logical enough and could be expected to
\navoid disquiet among water subscribers.<\/p>\n
What the administration needs to take care of today is the
\nproblem that PDAM only reaches 23 percent of Jakartans, and the
\ncompany still has a lot of work to do in improving the water
\nquality. This failure to serve more of the city's residents is
\ncaused by its incapability of installing more pipes to reach all
\ncorners of this sprawling metropolis.<\/p>\n
Through it all, tap water leakage is still rampant. Up to last
\nyear, it reached 53 percent. Some water losses are said to be
\nunavoidable for most water companies worldwide because the
\nproduct evaporates on its way to consumers. But the tolerable
\nproportion is 20 percent.<\/p>\n
Here, the losses are caused by peculiar reasons. Criminals
\nhave their role, as do the age of the pipes, some of which were
\ninstalled before World War II. Some have also been damaged by
\nconstruction activities; PDAM's capability to replace the old
\npipes is limited to 1 percent annually.<\/p>\n
We understand that reducing water losses requires major
\ninstitutional improvements in the operational efficiency of the
\nwater company. To overcome the problem, the city administration
\nneeds to cooperate with the private sector, but it should do it
\nopenly. The administration should understand that lack of
\ntransparency played a major part in causing the crisis we are in
\ntoday.<\/p>",
"url": "https:\/\/jawawa.id\/newsitem\/murky-waters-1447899208",
"image": ""
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"sponsor": "Okusi Associates",
"sponsor_url": "https:\/\/okusiassociates.com"
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