Commission approves new tap water rates
JAKARTA (JP): The City Council's Commission C for economic affairs approved on Tuesday new tap water rates which compensate for a zero increase in the case of social institutions with higher prices for basic and mid-range dwellings.
The commission chairman Amarullah Asbah said that the prices for the basic and mid-range categories would be set at between Rp 1,035 and Rp 2,100 (between US 10 and 22 cents), higher than the initial rates of between Rp 1,000 and Rp 2,000 proposed by the city administration.
Concerning other categories of consumer, the commission made no changes to the city administration's proposals.
"We decided to impose a higher increase for categories three and four because they constitute the city water companies' biggest market," Amarullah said, referring to basic and mid-range houses and apartments.
Around 65 percent of the water companies' consumers live in such accommodation.
Governor Sutiyoso had earlier suggested a new rate which would affect all categories of consumer, with the hike being between Rp 5 and Rp 1,800 depending on water consumption.
Under the governor's proposal, the first two categories of customer, which include places of worship, charitable and social institutions, state hospitals and very basic houses and apartments, would have faced an increase of around 6 percent from the current rate of Rp 375 per cubic meter.
Amarullah said on Tuesday that the commission had approved the proposed increases for the other three customer categories.
The new tariffs for luxury houses, embassies, government and military offices, private institutions, colleges and universities, small businesses, luxury apartments, restaurants and private hospitals, which are all grouped in the fifth category, are between Rp 2,500 and Rp 3,500, up from the current Rp 1,660 to Rp 2,475.
Star-rated hotels, nightclubs, banks, service stations, highrise buildings, factories and the vast Ancol recreational park and real estate complex in North Jakarta will have a new maximum rate of Rp 5,200, up from the current Rp 3,650.
The Tanjung Priok port operator, which is classified as the seventh (special) category of customer, will be charged Rp 7,000 per cubic meter, up from the current Rp 5,200.
Amarullah said that each faction on the City Council has been given one week to study Commission C's proposals before the council makes its decision during a plenary session.
Contacted separately on Tuesday, deputy chairman of the National Mandate Party (PAN) faction Tjuk Sudono said that Commission C should only have approved an increase in water rates for the Tanjung Priok port operator.
He said that port operators elsewhere in the world, which serve both domestic and foreign vessels, commonly charge for water in US dollars. The greenback has averaged around Rp 9.500 over the past month.
"The commission should increase the water rates for the port operator to between Rp 14,000 and Rp 15,000 per cubic meter," he said.
With its average monthly consumption of 32,000 cubic meters, Tanjung Priok port is the biggest single revenue contributor to the local water company.
Tjuk said the revenue received from the port operator should be enough to subsidize other customers, particularly those grouped in the lowest categories.
Water company data show that charitable and social institutions consume an average of 195 cubic meters per month.
"Many international ports in other countries are charged between $1 and $2 per cubic meter. We could cover the deficit suffered by the water company by increasing rates for the port," he said. (04)