Thu, 27 May 2004

Water rate hike proposed in June

TANGERANG: Tangerang regency water company PDAM Tirta Kerta Raharja (TKR) will increase its rates by between 10 percent and 30 percent starting June.

Currently, the rate is Rp 2,500 (27 U.S. cents) per cubic meter. Starting next month, the rate will be between Rp 2,750 and Rp 3,500 per cubic meter. The increase will be imposed for commercial subscribers only.

Tangerang Mayor Wahidin Halim urged TKR not to increase the rate, pending a discussion with his administration.

"The increase must be adjusted in accordance with consumers' financial situation as 60 percent of TKR subscribers live in the municipality," he said on Tuesday.

TKR director Utar Sutarya said the company had to cover its production costs and pay Rp 306 billion it owed to the Ministry of Finance in installments. -- JP