Governor OKs increase in tap water tariffs

JAKARTA (JP): Jakarta Governor Sutiyoso approved Monday the 25 percent average increase in tap water tariffs announced by city- owned water company PDAM late last week.

Sutiyoso said he would sign a gubernatorial decree legalizing the new tariffs.

He defended PDAM's reasons for the price adjustment, saying the tariff rise was important to help PDAM overcome financial difficulties.

"PDAM's operational expenses are much bigger than its earnings. It would certainly collapse if it keeps on going that way. That's why the new tariffs were established," he said.

PDAM announced Friday that the new tariffs were effective as of April 1. The decision has been strongly criticized by its customers who have complained that it was an improper move during a time of economic crisis and that the decision had not been officially approved by the governor.

Sutiyoso, however, reiterated that the tariff adjustment had been made in line with standard procedures.

"It was approved by City Council and the Ministry of Home Affairs," he said.

"I have studied the matter thoroughly and have received some input as well. I agree with it (the increase) and know exactly that my approval is right and natural," he said.

The most important aspect of the new tariffs is that it will not in any way inflict suffering on poor people because the increase for them is only between 10.58 percent and 11.42 percent, said the governor.

He added that PDAM had even cut prices for special customers like orphanages, dormitories run by noncommercial institutes and places of worship by 3.85 percent in an effort to maintain its cross-subsidy policy.

The new tariffs, he said, mostly affected affluent customers, such as wealthy families and luxury apartment dwellers, who must pay up to 65.71 percent in higher prices.

"But such an amount of money would mean nothing to them anyway," said Sutiyoso.

Traffic stickers

Sutiyoso's stance on wealthy people's ability to cope with the price hike was also clearly reflected in a statement regarding the city administration's plan to implement a traffic sticker system to ease traffic problems.

Under the sticker system, each driver of a private vehicle would have to buy a sticker in order to enter restricted zones during specified hours. The system is intended to replace the unsuccessful three-in-one regulation.

"If people can afford to have cars, then they are not common people. They are wealthy people," he said.

He said new city buses would operate to help transport people who wanted to avoid buying the stickers.

"We'll prepare comfortable business class buses for middle to upper class people so that they can enjoy the ride. We'll also provide new public buses to accommodate other commuters," said Sutiyoso without elaborating.

"I hope we can get the buses imported and operating here before the sticker system is implemented. We'll pay for the buses through credit with the money we'll get from the sales of the stickers," he said.

A presidential decree was issued March 23 to support the sticker system. Presidential Decree Number 50 states that private vehicles should display a sticker when driving on the restricted roads.

Trials of the new system will be held from August to November on Jl. M.H. Thamrin and Jl. Medan Merdeka Barat in Central Jakarta and part of Jl. Jend. Gatot Soebroto between 7.30 a.m. and 9.30 a.m. and between 5 p.m. and 7 p.m. (ind/cst)