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