Commission approves new tap water rates

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)