The high cost of inefficiency

The high cost of inefficiency

Clean water supply companies (PDAM) all across Indonesia are planning to raise their consumer subscription rates as of August 1. The plan is contained in a circular letter issued by the home affairs ministry's director general of general administrative affairs and regional autonomy and addressed to all provincial governors and regency heads.

As usual, justifications given for raising the rates were soaring operational costs, the steep cost of equipment and increased general expenditures. In the meantime, the public's purchasing power has sharply declined due to the economic crisis.

It is no secret, though, that our state-owned water supply company is highly inefficient in operation in various regions. It has been said the percentage of the volume of water leaked due to a defective pipe system has run into the double digit mark in several regions. The question is, must the public be made to pay for this inefficiency?

We are sure it is possible to improve the efficiency of PDAM's operations so that consumers can be spared from having to pay higher rates. One thing the economic crisis has taught us is the value of efficiency.

-- Bisnis Indonesia, Jakarta