Water firms pressed to improve service<\/p>\n
Novan Iman Santosa, The Jakarta Post, Jakarta<\/p>\n
Jakartans may have to dig deeper into their wallets as soon as
\nthe city administration and City Council agree on an inevitable
\nhike in tap water charges in the coming months, despite what
\nconsumer groups say is the continuing poor service provided.<\/p>\n
The hike will be an additional burden on some 648,000 tap
\nwater subscribers following the central government's decision to
\nhike fuel and electricity prices, claim the consumer groups.<\/p>\n
However, the city-owned tap water company, PAM Jaya, was quick
\nto defend itself.<\/p>\n
\"The revenue we receive from our customers does not cover
\nproduction costs. The deficit is worsened by the fact that we are
\nsubsidizing subscribers from the lower income groups,\" the
\noperational and technical director of PAM Jaya, Chris Tetuko,
\ntold participants during a discussion with the City Council on
\nWednesday.<\/p>\n
Chris said the cost of water was Rp 3,100 (34 U.S. cents) per
\ncubic meter while water was being sold at only Rp 2,700 per cubic
\nmeter.<\/p>\n
He also said that the subsidy given to the lower income groups
\nreached Rp 120 billion per year while the upper income groups
\ncould only contribute some Rp 20 billion of this under a cross-
\nsubsidy scheme.<\/p>\n
The last time subscribers experienced an increase in water
\ncharges was in October 2001, when the price of water went up by
\n35 percent. Earlier in 1998 there was another hike of some 20
\npercent.<\/p>\n
Other speakers at the discussion were the chairman of the City
\nCouncil's budget commission, Anna Rudhiantina, development
\ncommission chairman Koeswadi Susilo Harjo, and Sudaryatmo of the
\nIndonesia Consumers' Foundation (YLKI).<\/p>\n
Sudaryatmo emphasized that the hike had to be accompanied by
\nimprovements in service and products.<\/p>\n
\"Water quality is still poor while most of the time residents
\nhave to wait very late in the evening to get the water flowing.<\/p>\n
\"Not to mention that the network coverage mostly only reaches
\nthose from the upper income groups. It is very unfair to
\nresidents from the lower income groups,\" he said.<\/p>\n
Sudaryatmo also said that the water pricing policy should be
\nmade accountable by providing all relevant information to the
\npublic.<\/p>\n
\"The process must consider the interests of both consumers and
\nproducers. The subscribers' ability to pay and willingness to pay
\nhave also to be taken into consideration.\"<\/p>\n
PAM Jaya and its foreign partners should improve their
\nperformance before increasing water charges, he added while
\npointing to the fact that the company still lost some 46 percent
\nfrom its water production due to decrepit pipe network and theft.<\/p>\n
PAM Jaya no longer directly produces and distributes tap water
\nto its subscribers as these duties have been delegated to its two
\nforeign partners from England and France.<\/p>\n
Thames Pam Jaya (TPJ), a subsidiary of Britain's Thames Water
\nInternational, serves the city to the east of the Ciliwung River
\nwhile the area to the west is served by PAM Lyonnaise Jaya
\n(Palyja), a subsidiary of ONDEO (formerly Lyonaisse des Eaux).<\/p>\n
Their contracts stipulate that the foreign partners are
\nentitled to increase water charges annually to cover their
\nproduction costs.<\/p>\n
\"Cutting these losses by at least 10 percent could greatly
\nreduce the companies' costs instead of them keeping increasing
\nwater charges,\" said Sudaryatmo.<\/p>\n
Chris said that the foreign partners had managed to reduce
\nwater losses from some 57 percent in 1998 to 48 percent last
\nyear.<\/p>\n
Meanwhile, Palyja spokeswoman Maria Sidabutar said the hike
\nwas needed not only to finance further investment but also to
\nmake up for the high level of inflation over the past five years.<\/p>\n
\"Inflation during the past five years has reached some 150
\npercent while we have only enjoyed price increases of about 50
\npercent.<\/p>\n
\"It is hoped that this year's hike can reduce our burden
\nespecially as there was no hike last year,\" she added.<\/p>",
"url": "https:\/\/jawawa.id\/newsitem\/water-firms-pressed-to-improve-service-1447893297",
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