New water rates effective from March 1: Sutiyoso<\/p>\n
JAKARTA (JP): Governor Sutiyoso said on Friday the new tap
\nwater rates could be put into effect on March 1, following an
\ninitial approval from the City Council.<\/p>\n
The city administration, he added, is now waiting for an
\nofficial letter from the council endorsing the tap water price
\nhike.<\/p>\n
"As long as the council sends the letter within a week, the
\nnew rates could take effect soon," Sutiyoso told reporters after
\na Friday prayer at the City Hall.<\/p>\n
Sutiyoso was responding to a call from the city water company
\nPAM Jaya's foreign partner PAM Lyonnaise Jaya (Palyja), which
\nasked the city administration earlier in the day to bring the new
\ntap water rates into effect on March 1.<\/p>\n
Palyja president director Pierre Alla said the increase was
\nbadly needed to make up the deficit the water companies were
\nrunning as a result of rising operating costs since 1998. He
\nadded the discussion on the new tap water rates with the City
\nCouncil had ran untroubled.<\/p>\n
"There is no other way than to increase the water rates to
\ncover the rising operating costs," he told a media briefing after
\ninaugurating the use of the company's new 10.6 km pipeline
\nconnecting Pondok Indah and Pasar Minggu areas.<\/p>\n
When asked to comment on a proposal raised by some councillors
\nto increase only the water rate for the Tanjung Priok port
\noperator, Pierre said it could not entirely resolve the company's
\ndeficit problem.<\/p>\n
"It is not enough to cover the company's losses, because the
\nport accounts for only a small part of the total consuming
\nrates," he said.<\/p>\n
Governor Sutiyoso suggested the increase three years ago,
\nafter receiving a report saying that the city water company PT
\nPAM Jaya had suffered losses totaling Rp 300 billion since 1997.<\/p>\n
A leadership meeting of the City Council approved an increase
\nin tap water rates proposed by the commission C for economic
\naffairs. Each of the council's 11 factions will have to endorse
\nthe proposal before the council announces its official approval
\nof the new tariffs.<\/p>\n
The council leaders also suggested that the water tariff
\nimposed on Tanjung Priok port operator be charged in U.S.
\ndollars.<\/p>\n
Commission C proposed that tap water prices be increased
\nbetween 14 percent and 43 percent for all categories of consumer,
\nexcept social institutions and poor customers.<\/p>\n
A cross-subsidy scheme will be applied as a result of the
\nexemption of social institutions and poor customers from the
\nhike.<\/p>\n
The city administration had originally demanded an increase
\nbetween 6 percent and 43.09 percent be imposed on all consumer
\ncategories.<\/p>\n
Palyja, a joint venture with Suez Lyonnaise des Eaux of
\nFrance, services the western areas of the capital, while TPJ, a
\njoint venture with Thames Water Overseas Ltd of Britain, operates
\nthe services in eastern Jakarta. (04)<\/p>",
"url": "https:\/\/jawawa.id\/newsitem\/new-water-rates-effective-from-march-1-sutiyoso-1447893297",
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