Mon, 26 Jul 2004

Water business in Gunungkidul thrives during drought

Antara, Yogyakarta

Selling clean water is regarded as a lucrative venture during the dry season in Gunungkidul regency, Yogyakarta, because there are huge profits to be made.

Traders say that all you need to make money are enough funds to provide the product, knowledge of your clientele and determination.

"A tanker truck with a 5,000-liter capacity and a small motorized water pump is needed to start the business," said a water trader from Ponjong district, Hadi Subroto.

A trader will gain more profit if he drives the truck himself, but usually a trader will hire an experienced driver.

But, even though it is highly lucrative, the business is not without its risks due to the harsh geographical conditions of the Gunungkidul area which is mostly rocky and hilly.

"A tanker can slip and plunge into a ravine if a driver miscalculates, because the water must be distributed to isolated villages via roads that are rocky and narrow," said Hadi recently.

A trader in Wonosari district, Yanto, said he usually sells 10 tanks of clean water at Rp 60,000 (US$7.00) to Rp 80,000 per tank and is able to gross Rp 600,000 a day.

Operational costs for buying fuel and water from an artesian well at Rp 6,000 per tank and the daily wages for the driver and his assistant would be deducted, so a tanker owner could earn around Rp 200,000 to Rp 300,000 net a day.

A trader or tanker owner could earn around Rp 6 million a month and at the very least earn Rp 24 million during the dry season which usually lasts for four months.

The distribution areas for the business are vast, encompassing areas prone to water shortages such as Tepus, Rongkop, Girisubo, Semanu, Tanjungsari, Saptosari, Pangang, Paliyan and Purwosari districts.

The PDAM state-owned water company network has not reached this region yet.