Indonesian Political, Business & Finance News

AMGM Water Tariff Rises, West Lombok DPRD Warns over Service

| Source: DETIK_BALI Translated from Indonesian | Regulation

The water tariff for PT Air Minum Giri Menang (AMGM) officially takes effect starting March 2026. The West Lombok Regional House of Representatives immediately issued a warning: tariffs may rise, but services must improve.

Chair of Commission II of the West Lombok DPRD, Husnan Wadi, stressed that they would tightly monitor the policy to ensure it does not disadvantage the public.

‘We have asked that services be improved in line with this tariff increase. It must be commensurate with the price paid by the public,’ he asserted, Wednesday (4/3/2026).

He assured that the DPRD would not remain silent if any implementation deemed to harm customers occurs.

‘We will still monitor it. If it increases arbitrarily, we will summon them,’ he said.

Despite the notes, Husnan stated that the DPRD approved the tariff adjustment. He said that increases in production costs and investment needs make the policy hard to avoid.

‘Whether we like it or not, we have to agree. If the tariff increase were not implemented today, all water services and management costs would swell. This increase is only for the middle to upper class, and it is not significant,’ he said.

Deputy Speaker of the West Lombok DPRD, Abu Bakar Abdullah, added that the tariff increase must translate into increased contributions to the region.

‘Along with the tariff increase, the region’s revenue must also rise. But from their data, revenue will rise to up to Rp 15 billion. Last year, it was Rp 13 billion in contributions to the region,’ he said.

He confirmed that the tariff increase process has complied with rules, including through a Joint Decree (SKB) of shareholders (Regent of West Lombok and the Mayor of Mataram), then there is the governor’s decision, and it has also been socialized, that’s important,’ he concluded.

Effective March, payable in April

The AMGM tariff adjustment applies to customers in Mataram City and West Lombok Regency from March 2026 and is payable in April 2026.

The policy is based on the Joint Decree (SKB) of the Regent of West Lombok and the Mayor of Mataram, Number 415.4/68/UMUM/2026 and 60.1.16/37/SETDA/I/2026 dated February 12, 2026.

AMGM’s President Director, Sudirman, explained that the increase applies only to customers in Group II (households) and Group III (institutions and commerce) or the middle and upper class. The increase is around 5 to 8.5 percent, while lower-income customers will continue to pay the old tariff.

‘Technically we call it an adjustment, because what is increased is only for the middle to upper class. About 5 to 8.5 percent. If a customer typically pays Rp 50,000 (per month), going forward it will be about Rp 54,250,’ he said, Tuesday (3/3/2026).

Sudirman said the adjustment is intended to support investments and infrastructure development, while also implementing cross-subsidies for customers.

‘Thus our hope with this adjustment is that some of the problems that indeed require new investment will be resolved and there will be a solution,’ he said.

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