Sutiyoso defends water charge increase
Sutiyoso defends water charge increase
Damar Harsanto, The Jakarta Post, Jakarta
The Jakarta administration has played down criticism over the
recent tap-water rate increase, arguing the decision was fair to
both poor and wealthy customers.
"You judge yourselves whether it is fair or not to allow
richer customers to bear the higher rate of up to Rp 12,000 per
cubic meter of tap water, compared to the meager rate of Rp 900
for the poor, which is lower than similar rates applied in other
cities nationwide," Governor Sutiyoso said on Friday.
The administration announced last week an increase in tap
water tariffs, ranging from 5 percent to 63 percent, starting
July 1.
The tap water fee for "modest" homes, as well as for social
and religious foundations, like orphanages, mosques and churches,
has increased by 63 percent, from Rp 550 to Rp 900, while for
bigger houses, the fee has been raised by 8 percent to 11
percent, from Rp 5,100 and Rp 7,500 to Rp 5,700 and Rp 6,800 --
depending on water consumption.
A 6 percent increase, from Rp 9,750 to Ro 10,400 has been
imposed on industrial and commercial enterprises, like hotels and
restaurants. Customers classified as "special zone", including
the Tanjung Priok port, are facing a 5 percent increase, to Rp
12,150 from Rp 11,500.
Sutiyoso said the rate paid by high-end customers had been too
steep, so a slight increase for them had been decided upon.
"Since the tap water rates paid by the poor are cheaper than
those paid by other poor residents in other cities across the
country, like Semarang and Banjarmasin, we decide on a higher
increase. I am sure they (Jakartans in the low-income bracket)
will be able to afford the increase," he said.
The rate for low-income households and social and religious
foundations in Semarang hovers at Rp 1,347, while in Banjarmasin
in East Kalimantan it stands at Rp 948.
City Council speaker Ade Surapriatna said the council had
rejected the increase as it burdened people in the low-income
bracket.
"We are also opposed to the increase as the administration did
not consult the council over the plan," he said.
He said the council had formed a team to study the tap water
business in the city. The council is also seeking, through the
team, to modify legislation issued by former speaker Agung Imam
Sumanto -- whose term was from 1999 to 2004 -- that allows the
administration to raise tap water rates every six months until
2007.
The latest increase is the second in a series of 10 planned
raises, which were conceived as part of efforts to pay off city-
owned tap water operator PAM Jaya's debts.
On Jan. 20, the administration covertly increased tap water
rates by between 4 and 16 percent.
The company owes around Rp 600 billion to its two foreign
partners, British PT Thames PAM Jaya and French PT PAM Lyonaisse
Jaya, and Rp 1.6 trillion to the Ministry of Finance.
Palyja, a subsidiary of France's ONDEO (formerly Lyonaisse des
Eaux) serves customers in the western part of Jakarta, while TPJ,
a subsidiary of Britain's Thames Water International, supplies
tap water to customers in the eastern part of Jakarta.