Public urged to accept water rates increase

JAKARTA (JP): City Governor Sutiyoso urged the public on Tuesday to accept his decision to increase the tap water tariff by up to 40 percent, to prevent continuous losses suffered by the city-owned tap water firm PT PAM Jaya.

"The tariff had not been increased in the past three years. It's hard but we should do it (increase the tariff) if we don't want to suffer losses," Sutiyoso told reporters.

However, he claimed the city administration still is concerned about the poor and therefore has not increased the tariff for customers grouped under categories I and II.

The categories I and II are places of worship, social and charity dormitories, orphanages, public hydrants and tap water, state hospitals, very basic houses and apartments.

The governor had earlier proposed a 6 percent increase in the water tariff for those under categories I and II, but the City Council objected.

The plan to increase the tariff for other categories was approved in February by the City Council, which even proposed a higher increase for some other categories.

Sutiyoso gave his approval on the Council's proposal on March 29.

The water tariff for customers categorized under group I and II will remain Rp 375 per cubic meter.

Under the new tariff, those living in a modest house or apartment has to pay Rp 1,035 per cubic meter.

The highest increase will apply for group IVB and V, which include star-rated hotels, condominiums, PT Jaya Ancol entertainment center and food processing, chemical and textile factories. The tariff will be between Rp 5,200 and Rp 7,000 per cubic meter.

Sutiyoso denied on Tuesday that his decision was made silently to avoid public protest.

"We have received the council's approval before deciding that the new tariff should take effect on March 1," he argued.

Although Sutiyoso's decision was dated March 29, the new tariff is effective as of March 1.

Besides the council's approval Sutiyoso said his decision was based on a study conducted by experts from the University of Indonesia and Bandung Institute of Technology.

"I did not decide the new tariffs arbitrarily, I have considered experts' suggestions," he said.

Separately, the Council deputy speaker Djafar Badjeber confirmed on Tuesday that it has approved the tariff hike.

"We could not avoid the tariff increase as we don't want to suffer continuous losses," Djafar of the United Development Party told reporters.

Sutiyoso's decision to increase the tariffs was believed to be made after he received a report saying that PT PAM Jaya had suffered losses totaling Rp 300 billion since 1997.

The report was made earlier by PAM Jaya's foreign partner, Pam Lyonnaise Jaya (Palyja) and Thames Pam Jaya (TPJ),

Palyja, a joint venture with Suez Lyonnaise des Eaux of France, services the western areas of the capital, while TPJ, a joint venture with Thames Water Overseas Ltd. of Britain, operates the services in eastern Jakarta. (jun)