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)