Council OKs water price increase

Council OKs water price increase

JAKARTA (JP): All 10 factions at the City Council have given
in-principle approval for an increase in tap water rates proposed
by the commission C for economic affairs, a councillor said on
Wednesday.

Secretary of the commission C, Azis Boeang, told reporters the
initial endorsement was given in a meeting between leaders of the
factions on Monday.

Official approval is now being sought from each faction before
the council submits the draft of revised tap water prices to the
city administration, Azis said.

"In principle the factions unanimously agreed with the
commission to raise the prices, except for social institutions
and poor customers where a cross-subsidy scheme will be applied,"
Azis said.

He added that the meeting also recommended the water tariff
imposed on Tanjung Priok port operator be charged in US dollars.

"Surplus gained from the tariff increase will be used to cover
the city water company's debts, which have reached Rp 355 billion
(US$37.6 million)," Azis said.

After lengthy discussions with the city administration, as
well as the city's water company PAM Jaya and its foreign joint
venture partners Thames Pam Jaya (TPJ) and PAM Lyonnaise Jaya
(Palyja), the commission C recommended tap water price increases
between 14 percent and 43 percent earlier this month.

The city administration had proposed an increase between 6
percent and 43.09 percent be imposed on all consumer categories.

Azis said the council would ask the city water company and its
foreign partners to improve services and facilities in exchange
for the tariff rise.

The council, Azis added, also expected the companies to
fulfill its promise to provide drinkable tap water by 2007.

"If they fail to meet their promises they deserve heavy
punishment," Azis said. (ima)