Governor OKs increase in tap water tariffs
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)