Fri, 08 Jul 1994

Why the increase?

From Kompas

I was surprised to learn that the tariff rate of drinking water was increased by 40 percent, a fantastic hike! We are truly ignorant of how the Drinking Water Company manages their business. It would be more appropriate for the company, in this era of openness, to inform the public of the real reason for the tariff hike instead of giving the diplomatic argument that the tariff increase is aimed at enhancing the company's services to the community.

The company should make every effort to prevent leakage and promote efficiency in its management so that the consumers will not be unnecessarily burdened with arbitrary increases.

There are strong indications, however, that leakage in the company may reach as much as 47 percent. If that is true, the management should do something to keep the leakage to a minimum.

The company should not take advantage of the unfortunate consumers who have a weak bargaining position and depend on the company for their daily water consumption.

ATIK

Jakarta