Vendors in North Jakarta hike water prices up to 100%
Vendors in North Jakarta hike water prices up to 100%
JAKARTA (JP): Many vendors in North Jakarta have raised retail
water prices by 100 percent following the recent decision of the
City Water Company, PAM Jaya, to increase its prices.
"Now I sell it for Rp 1,500 (70 U.S. cents) or Rp 2,000 a
cart, whereas before I'd let it go for Rp 1,000," said Rusba, a
water vendor in Tanjung Priok.
Despite PAM Jaya giving assurances of stable retail prices of
vended water, the increased fees have caused a domino reaction
with merchants operating public-water taps raising it between 25
to 100 percent.
Water vendors who obtain their water from the public water-
taps increased their previous price by 50 to 100 percent.
This month PAM Jaya raised its prices again for the fourth
time in 10 years, and the second time since September 1991.
Though the price increase for households averaged about 40
percent, public water-tap users are now charged Rp 790 per cubic
meter, more than three times the previous amount of Rp 250 per
cubic meter.
The increase has triggered negative reaction from the public
sector and city councilors, who were originally opposed to the
idea. It was only after a marathon session with PAM Jaya
executives last week that the council finally gave its approval
to the price hike on public water taps.
Based on the company's earnings, PAM Jaya has continued to
maintain a healthy profit with before tax revenues reaching Rp
14.9 billion in 1992 and Rp 13.4 billion in 1993.
It has defended the price raise as a means of gathering funds
to support its development plans which will allow the company to
expand its services to reach 65 percent of the city's population
by the year 2000.
The company presently serves less than half of the city 8.5
million population and thus many, especially those who live in
North Jakarta where clean water is a major problem, depend
heavily on water-vendors to supply this daily need.
There are nearly 2,000 public water-taps in Jakarta with each
one able to serve some 100 households.
Deaf ears
Evident at various locations, PAM Jaya's prohibition against
increases at water-taps has apparently fallen on deaf ears.
"I used to sell a cart containing 10 water jugs for Rp 200 per
jug, now I sell it for Rp 300 per jug," Lilik, who manages a
water-tap in Tanjung Priok, said. Each jug contains 20 liters.
Similar to Lilik, Abdul Kadir in Cilincing now sells a cart of
18 water jugs for Rp 650 per jug from the previous price of Rp
350 per cart.
In protest of the restriction against price raises, thousands
of water merchants went to the North Jakarta office of PAM Jaya
expressing their grievance.
They threatened to close down the water-taps if the
municipality continued to prohibit them adjusting their prices to
the increase.
PAM Jaya's director of administration and finance, Mahmud
Ranusemitro, reiterated that they are not allowed to increase
their prices but assured them that his office would meet with
City Council on Monday to set a maximum retail price.
As of yesterday afternoon, none of the council commissions
were scheduled to meet with PAM Jaya.
In spite of calls against the closure of public water-taps,
some, like Mrs. Tamaria Manik in Kapuk, West Jakarta, have
already temporarily shut down amid the uncertainty.
She revealed that her bill had soared from Rp 321,000 the
previous month to Rp 1.42 million.(mds)