Public urged to accept water rates increase

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)