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)