Govt to let councils set water rates
Govt to let councils set water rates
Muninggar Sri Saraswati, The Jakarta Post, Jakarta
Following the enactment of a controversial water resources law,
the government is expected to surrender its power to determine
water rates and manage regional tap water companies to regional
consultative councils.
Patana Rantetoding, the director general of city and village
affairs of the public works ministry, said on Monday the issue
would be covered in a government regulation on the development of
tap water systems.
The government regulation will be passed in support of Law No.
4/2004 on water resources. The government is currently completing
the draft of the regulation.
"Consultative councils, according to the draft of the
government regulation, are legislative councils located in state-
owned and regional-owned tap water companies," Patana was quoted
by Antara as saying.
He said the councils would consist of both members of society
as well as representatives of the central government and local
administrations.
During a discussion on the draft regulation, Patana said the
main duties of the council would be to set water rates and to
appoint directors of regional tap water companies, a privilege
currently in the hands of local administrations.
"The rates will be based on local income levels. That is why
it must be decided by consultative councils," Patana said.
These councils also will be able to rule on the possible
involvement of the public sector, including cooperatives and
public groups, in the tap water business, he said.
"The private sector will be allowed to participate in the
business with the consent of a consultative council," Patana
said.
He said the approximately 300 regional tap water companies
(PDAM) were still unable to deliver water to the majority of
Indonesians.
"With some 95,500 cubic meters a second, the PDAMs can only
deliver water to some 40 million customers. With this capacity,
it should be able to fill the needs of some 100 million
customers," Patana said.
Separately, activist Nila Ardhiani of the People's Coalition
for Water Access criticized the draft regulation, saying it would
result in a heavier burden on the people, particularly the poor.
"The government is creating too many new institutions for the
water sector. Who will pay for those institutions? I fear that it
will influence the tap water rates," she said.
Nila also questioned whether the government would be able to
guarantee that members of the consultative councils would really
represent the public.
"How can they guarantee the members will not represent just
the interests of the private sector?" she asked, criticizing the
government for its half-hearted attempt to involve the public in
drafting the regulation.
Indonesia's water resources law has been roundly criticized
for, among other things, encouraging the privatization of the
water sector.
Activists have brought the law to the Constitutional Court for
a judicial review.