Golkar wants delay for water rates hike

Golkar wants delay for water rates hike

JAKARTA (JP): The city chapter of the Golkar political
grouping is demanding a postponement in an increase in tap water
tariffs until details of cooperation between the city water
company PDAM Jaya and two private companies are made clear.

The chief of Golkar's Jakarta chapter, Tadjus Sobirin, said
over the weekend the private firms had not transferred their
equity to the city administration as required.

"The companies have not fulfilled their obligation but they
have begun to enjoy the profits," he told the media.

"Everything about the cooperation should be transparent.
Remember that PDAM Jaya belongs to the people because the money
comes from them."

The two firms are to invest Rp 3 trillion (US$375 million)
during the first five years of the 25-year profit sharing scheme.

The increase in tap water tariffs went into effect on April 1
and was announced last week, two months after the signing of the
25-year cooperation agreements with PT Garuda Dipta Semesta and
PT Kekar-Thames Airindo.

The increase, averaging 25 percent, sparked protests from the
public which is reeling from the effects of the economic crisis,
including skyrocketing prices of basic commodities.

The highest increase, 65.71 percent, set for affluent
subscribers, will lift the cost per cubic meter of water from Rp
1,175 to Rp 2,545 (about 30 U.S. cents). Tariffs for middle
income consumers were raised by 38.36 percent, from Rp 930 to Rp
1,935 per cubic meter.

Low-income subscribers who consume less than 20 cubic meters
of water monthly will note an increase of 38 percent, to Rp 1,600
from Rp 775.

Governor Sutiyoso said the rise in the tariff was necessary or
else the state-owned water company suffer a loss of Rp 294 for
each cubic meter of water used.

PT Garuda Dipta Semesta is owned by tycoon Soedono Salim,
better known as Liem Sioe Liong. PT Kekar-Thames Airindo is
partly owned by Sigit Hardjojudanto, President Soeharto's eldest
son.

Under the deal, PT Garuda will be in charge of water
treatment and distribution in the western parts of Jakarta, while
PT Kekar-Thames will operate in the eastern part of the city.

The two private companies will work in cooperation with French
firm Lyonnaise des Eaux and British firm Thames Water
International.

Under the accord, the private investors have the authority to
operate, maintain and expand the water distribution system in the
city, including the management of PDAM Jaya's customer base.

Lukman Mokoginta, a councilor from the Indonesian Democratic
Party (PDI), said funds should be used as agreed upon once the
private companies had transferred their equity.

"The project should benefit the people, such as to build new
pipelines in more areas and repair of leaked pipes," he said.

He said many areas located in the north, west and east of the
city did not have enough public taps, forcing people in areas
where clean water is scarce to buy water from hawkers.

The Indonesian Consumers Foundation (YLKI) has said water
losses due to leakage in pipelines reach almost 50 percent. (ind)