Water rate hike sought in Bogor

Water rate hike sought in Bogor

BOGOR (JP): City-owned water company PDAM Bogor threatened to
put into effect a plan to distribute water on a rotating basis if
members of the Bogor mayoralty council remained opposed to its
proposal to raise water rates.

"The company is losing money in its operation so we are forced
to raise water rates," company spokesman E.E. Sulaiman said on
Saturday.

Sulaiman said the company was suffering losses amounting to Rp
450 per cubic meter of water produced. Sulaiman said the water
was sold at Rp 950 per cubic meter, far below the production cost
of Rp 1,400 per cubic meter.

"Bogor Regent Agus Utara Effendy approved our proposal to
raise the water rates, but the hike can't take effect if the
councilors do not give their approval," he said.

According to the law, a regent decree must be approved by the
councilors before being enacted.

"The rate hike is badly needed to enable the water company to
improve its service," Sulaiman said.

He said delaying the rate hike would burden customers, whose
number reached 67,000.

"The company has suffered great losses. Last year we lost Rp 4
billion, and this year our loss is estimated at Rp 3 billion," he
said, adding that the rate hike was the only way to cover losses
in production.

Sulaiman also said the rate hike was supported by customer
representatives and the Indonesian Consumers Organization.
(21/asa)