Water rates to increase next year

Water rates to increase next year

The Jakarta Post, Jakarta

The head of the city drinking water regulatory body, Achmat
Lanti, said on Friday that water rates would be increased early
next year as recommended by city-owned tap water company PD PAM
Jaya's foreign partners.

He said the rate increase was understandable considering the
inflation rate over the last six years.

PD PAM Jaya works in cooperation with PT PAM Lyonnaise Jaya
(Palyja) and PT Thames Pam Jaya (PT TPJ).

"Over the six years of cooperation, the inflation rate has
reached a total of 156 percent while rate increases over the same
period only reach 123 percent," Lanti said after meeting Governor
Sutiyoso at City Hall.

Lanti was unable state the exact rate increase.

Several observers said that water rates should not be
increased until the operator improved its services, including
water quality and supply consistency.

In response, Lanti said a number of improvements would be
made.

"PD PAM Jaya was able to increase its coverage from 40 percent
of the city's population in 1997 to 55 percent now. Second, it
curbed water leakage from 55 percent to 47 percent. Third, it
increased production from 85 million cubic meters per year to 110
million cubic meters per year," he said.

"We hope our foreign partners will continuously improve
efficiency, including minimizing leakage so that they can book
profits and improve services," he said.