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)