Operators need to reduce water leakage, YLKI says<\/p>\n
Bambang Nurbianto, The Jakarta Post, Jakarta<\/p>\n
The Indonesian Consumers Foundation (YLKI) has urged the city's
\nwater operators to focus on the reduction of water leakage and
\nother losses to curb high operational costs, rather than
\nburdening customers with price increases.<\/p>\n
\"If the leakage rate is still high, it would swell operational
\ncosts of the operators, which use various chemical substances in
\nproducing the water,\" YLKI executive Daryatmo told The Jakarta
\nPost on Tuesday.<\/p>\n
Daryatmo said that water leakage contributed significantly to
\nthe companies' financial losses, as they had high production
\ncosts in processing the water, including buying raw water and
\nvarious kinds of chemical substances.<\/p>\n
However, he said that a review of the leakage rate was part of
\nthe agreement signed in 1998 between city water operator Pam Jaya
\nand its foreign partners. The agreement was revised in 2001.<\/p>\n
\"The operators should also be able to reach the target of
\nreducing the leakage to 35 percent by the end of 2002,\" Daryatmo
\nadded.<\/p>\n
Since 1998, the city's clean water consumers have been served
\nby two companies: PT Thames Pam Jaya (TPJ), which is a subsidiary
\nof Britain's Thames Water International, supplies customers in
\nthe eastern areas of Jakarta; PT Pam Lyonnaise Jaya (Palyja), a
\nsubsidiary of France's ONDEO (formerly Lyonaisse des Eaux),
\nserves customers in the western parts of the city.<\/p>\n
Data jointly issued by TPJ and Palyja, however, showed that
\nTPJ could decrease their water loss from 57.6 percent in 1998 to
\nonly 43.5 percent in December 2002 and Palyja, from 61 percent to
\n43.3 percent.<\/p>\n
Commenting on investors' threats to withdraw from the
\nagreement if the city administration failed to increase water
\nprices, Daryatmo explained that the water operators relied upon
\ntwo financial structures: initial cost recovery and loan
\ninstallments.<\/p>\n
\"It is unfair, as when they borrow money, they do not discuss
\nit with the public; but when they have financial problems, they
\nburden the consumers through a price adjustment,\" he added.<\/p>\n
Meanwhile, TPJ Communication & External Relations Director
\nRhamses Simanjuntak denied that the raised price would be used to
\npay its debts. He said the price adjustment was necessary to make
\nback their initial cost of investment, so that they could make
\nfurther investments.<\/p>\n
\"The adjustment to the water price is needed to cover
\ninflation, which has caused increases in electricity, chemicals
\nand manpower, as well as investment costs,\" he said in his
\nstatement.<\/p>\n
Rhamses revised his previous statement for possible pulling
\nout from the agreement with the city if there is no price
\nincrease, saying his company would maintain its commitment to the
\nproject in Jakarta.<\/p>\n
\"Even during the economic crisis and political instability,
\nTPJ's commitment was tenaciously maintained. As such at present
\nwe have no intention to pull out from the project,\" he added.<\/p>\n
He said since the cooperation began in 1998, TPJ had invested
\nover 434 billion rupiah, and was planning to invest a further 208
\nbillion rupiah in 2003.<\/p>",
"url": "https:\/\/jawawa.id\/newsitem\/operators-need-to-reduce-water-leakage-ylki-says-1447893297",
"image": ""
},
"sponsor": "Okusi Associates",
"sponsor_url": "https:\/\/okusiassociates.com"
}