Reaction mixed to water tariff hike plan<\/p>\n
JAKARTA (JP): City-owned drinking water company PDAM Jaya's
\nproposal to raise water tariffs by up to 12 percent got a mixed
\nresponse yesterday.<\/p>\n
The City Council's deputy speaker Ade Surapriatna fully
\nsupported the proposal, but Indonesian Consumers Foundation
\nchairwoman Tini Hadad strongly opposed it.<\/p>\n
Water prices are very cheap here, Ade said. \"So the plan to
\nraise the water tariffs is acceptable as long as it is calculated
\nbased on rising production costs and not on the basis of
\ninflation. And the tariffs should be stabilized because water is
\nan essential need for people.\"<\/p>\n
However, Ade reminded PDAM about its duty to give social
\nservices to the public.<\/p>\n
\"Despite the privatization of PDAM, the company still has an
\nimportant social function in that the prices of water must be
\naffordable for everyone. So the public interest must come first,\"
\nhe said.<\/p>\n
\"It's okay for PDAM to ask for the rise in the tariffs, but
\nthe hike must be calculated properly. For instance, the hike of
\nwater tariffs for commercial needs must be higher than those for
\nhouseholds,\" Ade said.<\/p>\n
It would be better if the hike was focused on business and
\ncommercial sites rather than on domestic houses and social
\nservice buildings, he said.<\/p>\n
The Director of PDAM Jaya, Rama Boedi said Tuesday that the
\nproposal to raise tap water tariffs was made because charges had
\nto be adjusted to take into account rising inflation and
\nproduction costs over the past two years.<\/p>\n
\"The hike proposal also covers subsidies for social service
\nbuildings,\" Rama said, adding that the distribution of revenue
\nwould be arranged to reduce the burden on low-income people.<\/p>\n
Tini, however, said that PDAM should not propose any water
\ntariff increases due to the abundant complaints sent to her
\noffice about the company's poor service.<\/p>\n
\"Many people are questioning the lack of service and the
\nlimited availability of PDAM water supply,\" she told The Jakarta
\nPost yesterday.<\/p>\n
\"I object to the hike proposal. PDAM has to reorganize its
\nmanagement and services first before thinking about raising the
\ntariffs,\" she said.<\/p>\n
Tini underlined the importance for the city administration to
\nmaintain existing tariffs and give subsidies, especially to poor
\npeople.<\/p>\n
\"Don't just think about raising the tariffs, but think more of
\nthe people,\" she said.<\/p>\n
According to Tini, there are several problems that must be
\nresolved by PDAM.<\/p>\n
\"One of the most talked about is water leakages. These may
\nwell continue because the leaks are caused partly by collusion
\nbetween consumers and the firm's officials. This kind of practice
\nmust be stopped,\" she said.<\/p>\n
Tini's remarks were echoed by Ade, who said: \"Many small
\nhouses are developed into big and luxurious ones, but the owners
\nstill pay for water under the small-household classification,\" he
\nsaid.<\/p>\n
Ade urged PDAM to re-evaluate tariff classifications in many
\nresidential areas to base them on proper user qualifications. \"It
\nwill increase the city's revenue from tap water charges as well,\"
\nhe added.<\/p>\n
Both Tini and Ade agreed that the privatization of PDAM would
\nencourage the firm to improve its performance, management and
\nservice.<\/p>\n
\"But don't just believe the private investors' promises. The
\ncity must not lose its control of determining the tariffs so as
\nnot to affect the public interest,\" she said.<\/p>\n
Last June, PDAM Jaya signed a 25-year cooperation agreement,
\nwhich will be effective from next January, with private investors
\nto manage water treatment and distribution.<\/p>\n
They include PT Garuda Dipta Semesta of the Salim Group, owned
\nby tycoon Sudono Salim, and PT Kekarpola Airindo, owned by Sigit
\nHardjojudanto, President Soeharto's eldest son. (07)<\/p>",
"url": "https:\/\/jawawa.id\/newsitem\/reaction-mixed-to-water-tariff-hike-plan-1447893297",
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