Council set on improved water service

The Jakarta Post ,  Jakarta   |  Fri, 06/30/2006 4:20 PM  |  Jakarta

The Jakarta Post, Jakarta

The City Council said Thursday it was determined to see a 2004 gubernatorial decree on automatically increasing water rates every six months for three years revoked, because customers continued to complain about poor service.

The head of Council Commission A for administrative affairs, Achmad Suaidy, said city water utility PT PAM Jaya needed to improve its service before it increased its rates, which it is planning to do again in July.

""With the automatic price hike, PAM Jaya has been taking its customers for granted,"" he said.

He said the public utility needed to increase it rates because leaking pipes and water theft had resulted in it losing 49 percent of its daily supply.

""If the company was able to reduce the leakage rate by 10 percent, it would not need to increase water rates,"" Achmad said, adding that Governor Sutiyoso should immediately reject the impending rates increase.

Councillors for the 1999-2004 period approved the administration's proposal for an automatic water rates increase every semester until 2007. The policy took effect in early 2005.

The latest increase of 8.39 percent was in February, with an average water price of Rp 5,932 per cubic meter.

It was made through tough negotiations as the council rejected Sutiyoso's initial proposal for a 17.32 percent increase.

PAM Jaya and its partners, PT PAM Lyonnaise Jaya (Palyja) and PT Thames PAM Jaya (TPJ), have suggested a rates increase of up to 14 percent for the next semester.

Rates would go up by Rp 6,000 per cu m on average.

Sutiyoso said at City Hall he would study the proposal further.

""The rates increase must accommodate the needs and interests of all parties ... We don't want to make the people suffer,"" he said.

The Jakarta Water Regulating Body, which makes recommendations on water rates and services, has yet to complete its evaluation of the proposal made by the water operators.

The chairman of the regulating body, Ahmad Lanti, said the service provided by the public utility would definitely be taken into consideration.

""We are still evaluating its performance ... we'll see whether a rates increase is warranted,"" he said after meeting with Deputy Governor Fauzi Bowo.

PAM Jaya general director Didit Heryadi, who accompanied Ahmad Lanti, said the company was now focusing on improving its service by repairing leaking pipes. (10)

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