The rich to pay more, the poor less for tap water<\/p>\n
JAKARTA (JP): The city-owned drinking water company, PDAM
\nJaya, plans to increase its tariffs for wealthy customers but
\nlower fees for the poor and welfare organizations, an official
\nsaid yesterday.<\/p>\n
Director Rama Boedi said that the new tariff will be
\nimplemented as of next month, pending approval from the
\nmunicipality.<\/p>\n
\"The tariff for the big consumers will be raised by 6 to 40
\npercent, while for the small ones it will be reduced 2 to 5
\npercent,\" Rama said after a meeting with Governor Sutiyoso and
\nprivate investors to discuss the city's water treatment and
\ndistribution management.<\/p>\n
Rama said the largest consumers were those who had luxury
\nhouses, commercial businesses or were from the industrial sector.<\/p>\n
Consumers living in modest houses and buildings used for
\nsocial and public services -- such as religious houses, hospitals
\nand orphanages -- generally used less.<\/p>\n
He denied that the plan was merely a way of increasing the
\nwater tariff, which he said had not been increased since the
\n1995\/1996 fiscal year.<\/p>\n
Instead, the plan was a method of cross subsidization.<\/p>\n
\"The plan is not aimed at burdening people,\" he said.<\/p>\n
Many people on high incomes have been taking advantage of the
\ncurrent tariff, which is subsidized by the government, he said.<\/p>\n
\"This is unfair. So, we think it would be better to get more
\nfrom the rich while at the same time helping the poor.\"<\/p>\n
And the proposed tariff would also help PDAM Jaya finance some
\nof its pipeline installations and meet \"adjustments to inflation
\nrates and the cost of production that has been rising over the
\npast two years\", he said.<\/p>\n
PDAM Jaya's current tariffs per cubic meter of water for
\nsocial service buildings are set at between Rp 390 (15 U.S.
\ncents) and Rp 930; small houses Rp 390; luxury houses Rp 1,845;
\ncommercial businesses between Rp 1,350 and Rp 3,100; and the
\nindustrial sector between Rp 1,175 and Rp 5,050.<\/p>\n
Rama said the water company decided to issue new tariffs
\nfollowing a significant hike in water rates by state-owned
\nJatiluhur Authority Company, which supplies water to Jakarta.<\/p>\n
He said the company has raised its tariff from Rp 25 to Rp 35
\nper cubic meter.<\/p>\n
\"The hike is due to the commencement of operations of its new
\nwater pipelines from Kalimalang in East Jakarta to Pejompongan in
\nCentral Jakarta.\"<\/p>\n
PDAM Jaya supplies water for up to 50 percent of Jakarta's
\npopulation of more than nine million, he said.<\/p>\n
Among investors attending yesterday's meeting were Sigit
\nHardjojudanto and Fachry Thaib, the owner and director of PT
\nKekarpola Airindo respectively.<\/p>\n
In cooperation with French firm Lyonnaise des Eaux and British
\nfirm Thames Water International, Kekarpola and another private
\ncompany -- PT Garuda Dipta Semesta of the widely diversified
\nSalim Group -- have been given priority to manage water treatment
\nand distribution in eastern and western Jakarta, respectively.<\/p>\n
\"The agreement will be effective as of next month,\" Fachry
\nsaid.<\/p>\n
Under the agreement, the investors plan to inject Rp
\n3 trillion for the first five years of the 25-year profit-sharing
\nscheme.<\/p>\n
After five years, the joint venture is expected to reduce
\nwater leakage -- due to old pipes and customer pilferage -- from
\nthe current 53 percent to 35 percent, Fachry said.<\/p>\n
But he predicted that during the early stages of the first
\nfive years there would be numerous complaints from customers.<\/p>\n
\"It's because we will change and repair most of the pipeline
\nnetwork, meaning that it could cause water pressure to drop and
\nthe water will probably be a bit dirty.<\/p>\n
\"But we will try our best to eliminate the problems.\" (edt)<\/p>", "url": "https:\/\/jawawa.id\/newsitem\/the-rich-to-pay-more-the-poor-less-for-tap-water-1447893297", "image": "" }, "sponsor": "Okusi Associates", "sponsor_url": "https:\/\/okusiassociates.com" }