Semarang City PDAM harmonises commercial and industrial tariffs
Meanwhile, operational cost inflation continues to surge, driven by rising chemical prices, electricity tariffs and labour wages.
Semarang (ANTARA) – Semarang City Water Utility (PDAM) Tirta Moedal has harmonised tariffs for commercial and industrial customers, effective from 1 June 2026 usage.
PDAM Semarang Director Ady Setiawan stated on Saturday in Semarang that the tariff harmonisation for commercial and industrial customers would be selectively adjusted by 10-25 per cent, while tariffs for household and social categories remain unchanged.
The announcement was made during a celebration of Idul Adha 2026, which included animal sacrifice and meat distribution at the PDAM Tirta Moedal office.
He explained that the policy follows Mayor’s Regulation No. 4 of 2025, which was supposed to take effect last year but was delayed.
“The principal authority, in this case the Mayor of Semarang, wanted to first assess PDAM’s service to customers,” said Wawan, his nickname.
He cited key factors for the tariff adjustment, including ensuring service sustainability in line with Drinking Water Supply System (SPAM) indicators and achieving Full Cost Recovery (FCR) to balance operational costs and revenue.
Additionally, rising production costs due to inflation were a consideration, especially as tariffs have not been raised for seven years.
“Meanwhile, operational cost inflation continues to surge, driven by rising chemical prices, electricity tariffs and labour wages,” he said.
Wawan was confident the tariff increase would not significantly impact water usage, as regional regulations on groundwater (ABT) usage are in place.
“We are confident there will be no drop in customers. This is because the ABT regional regulation mandates PDAM water usage. Moreover, the adjustment is based on Minister of Home Affairs Regulation, not arbitrary,” he said.
Meanwhile, PDAM Semarang General Director Yulianto Prabowo explained that the tariff increase for commercial and industrial customers ranges from 10-25 per cent, depending on the customer’s usage block.
For example, Commercial 1 (Block 1) tariff increased from Rp5,000 to Rp5,500 (10 per cent), while subsequent commercial blocks saw a 15 per cent adjustment to Rp6,750.
Affected customers account for approximately 9.8-10 per cent of the total 214,000 customers.
“If calculated based on cumulative inflation of 5 per cent per year over seven years, the increase should have been 35 per cent. However, we have opted for a prudent range of 10-25 per cent to safeguard business purchasing power,” he said.