Multa Fidrus, The Jakarta Post, Tangerang, Wednesday, July 09, 2008
Members of the Tangerang regency legislative council have asked the regency's tap water company to review its plan to increase the price of tap water by up to 30 percent, given the recent fuel price increase.
"An increase in the price of tap water will certainly increase the burden on residents. We therefore urge the water utility to review its plan to increase water prices," Burhanundin, speaker of commission C at the council, said Tuesday.
He said he understood the company, PDAM Tirta Kerta Raharja (TKR), needed to raise water prices to meet increasing operational costs, but that the increase should not be as high as 30 percent.
"The water company must also take a look at the reality of people's purchasing power. Most of the consumers are on a low income," Burhanundin, a member of the Indonesian United Party faction, said.
Another commission member, Dahyat Tunggara, said any increase, however low, would be a burden for residents.
"The increase should not be as high as 30 percent. We think any plan to increase water prices should be approved by the council even though we realize an increase in the price of water is inevitable," he said.
Neither the government's 2005 regulation on PDAM management nor the home minister's 2007 regulation gives the council any involvement in technical arrangements to set water prices.
PDAM TKR president director Maryoso said the company had yet to finalize the new water rates because his staff had not completed studies on appropriate price ranges.
"The increase in the price of water has been triggered by an increase in our operational costs because of the recent fuel price rise," he said.
He said the new water rates were likely to come into effect in October. The new rate will apply for households and industry; for consumers from social groups there will be no increase.
"We are considering increasing the price of tap water from Rp 2,100 to Rp 2,520 per cubic meter for households and from Rp 3,500 to Rp 4,500 per cubic meter for industries," he said.
He said the company also planned to increase the price of partly processed water usually sold to third parties such as Bumi Serpong Damai city, Gading Serpong housing estate and Jakarta water utility.
Maryoso said he would keep the council informed about the company's plans to increase water rates, but would not seek the council's approval.
"There is no need to ask for the council's approval to increase tap water prices," he said.
PDAM TKR produces tap water from the Cisadane river to meet the needs of 90,000 customers. One-third of its customers live in Tangerang regency and the other 60,000 are residents of Tangerang municipality.
The company is still unable to supply water to 60,000 new customers currently on a waiting list because of limited production capacity and infrastructure.
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