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.