City water company sets price increase at 10%

JAKARTA (JP): City-owned water company PDAM Jaya has downgraded its planned increase of tap water tariffs from 12 percent to 10 percent.

PDAM Jaya director Rama Boedi said the plan was revised after the city's secretary assistant for economic and development affairs, Prawoto Danumihardjo, suggested that the water tariff increase should be no more than 10 percent.

On Aug. 26, Rama announced that PDAM Jaya intended to raise the tariff because the firm was unable to cover its operational costs.

Prawoto also suggested that the price rise should be imposed on certain customers, such as the owners of luxury houses and commercial sites.

"The hike won't affect low-income people because they will still receive government subsidies for their small houses, just like social service premises," Prawoto said late last month.

According to Rama, the new tariffs are expected to come into effect in January next year.

However, the final decision on the increase would be in the new governor's hands, he said.

"We have not decided anything because the proposal is still being reviewed by the new governor," he said, adding that tap water tariffs have not been increased since the 1995/1996 fiscal year.

Rama said the hike was not designed to burden people.

"On the contrary, we need it to install new pipelines," he said. "The rise is also necessary to take into account inflation and production costs that have risen over the past two years."

PDAM Jaya currently supplies water to up to 50 percent of Jakarta's 9.5 million citizens, Rama said.

The company hopes to raise its number of customers from 396,707 this year to at least 602,451 by the year 2000.

"And we will try our best to satisfy the needs of our customers," Rama said. "PDAM Jaya sticks to its objective to make water available and affordable for everyone."

Water tariffs for social service buildings, including orphanages, prayer houses and hospitals, are currently set between Rp 390 (11 US cents) and Rp 930 per cubic meter, depending on the consumption rate.

Tariff for households are set between Rp 390 (for small-scale users in cheap houses) and Rp 1,845 (for major consumers in luxury homes). Commercial rates are between Rp 1,350 and Rp 3,100 and industries are charged between Rp 1,175 and Rp 5,050.

On Friday, city councilor Amarullah Asbah of Commission C for financial affairs said that PDAM Jaya lost at least Rp 1.1 billion per year in water leakages.

Water pilferage along tap water pipelines throughout the city was the most likely cause of leakage.

"There are some people who break water meters or pipelines on purpose," Amarullah said. "They steal water and sometimes collude with officials."

During this year alone, PDAM Jaya has 2,476 listed cases of water leakage.

"If people are caught stealing water, PDAM usually imposes a fine, which is equal in cost to the water that has been stolen," Amarullah said.

"But I think the sanction is too soft," he said. "PDAM Jaya should impose tougher penalties for water thieves." (07)