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Jakarta Post

City to propose draft on new groundwater tariff

The city administration will soon propose a bylaw raising the groundwater tax to prevent further groundwater exploitation and stymie the water and land subsidence crisis in the capital

Triwik Kurniasari (The Jakarta Post)
JAKARTA
Wed, March 4, 2009

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City to propose draft on new groundwater tariff

The city administration will soon propose a bylaw raising the groundwater tax to prevent further groundwater exploitation and stymie the water and land subsidence crisis in the capital.

“The increase [in the tariff] is also aimed at curbing groundwater exploitation involving big industries across the city,” Governor Fauzi Bowo said Tuesday.

The administration’s environment board (BPLHD) previously announced the price of groundwater for wealthy residential areas and industry would be up to six times higher than its current rate.

The tax in wealthy residential areas will increase from Rp 525 per cubic meter to Rp 3,300, and for industry from Rp 8,800 to Rp 23,000 with the proposed bylaw.

Dian Wiwekowati of the BPLHD previously said some experts from the Bandung Institute of Technology (ITB) had conducted research last year to help the agency decide the ideal rate.

“We will also impose stricter sanctions for business owners who violate the bylaw. We can revoke their operational permits,” Fauzi said.

“Many people blame residents for digging wells to access water, but their digging doesn’t actually have a great effect on land subsidence in the city,” said Fauzi.

“It is large industry that has had the biggest impact on it [land subsidence],”

Last year, the administration reported more than 1,000 companies in the city overused groundwater.

The BPLHD reported earlier that in vulnerable areas of the city, groundwater exploitation had caused land to sink 1.2 meters. Construction of high-rise buildings also speeds up land subsidence as developments put pressure on the soil.

The BPLHD would cap the issuance of permits to build artesian wells for new commercial buildings, as existing wells already account for more than 80 percent of total groundwater use in the city.

Fauzi also called on industry and wealthy residential areas to use tap water.

“We will increase the clean tap water supply for Jakartans, including residents living in critical areas like Marunda [North Jakarta], Cengkareng and Kali Deres [both in West Jakarta],” he said.

In 2004, the city mining agency drew up a memorandum of understanding with private water companies PT PAM Lyonnaise Jaya (Palyja), PT Aetra Air Jakarta and the city’s water operator PT PAM Jaya, requiring private operators to supply clean tap water to minimize groundwater use.

However, residents and business operators continue to use groundwater.

Aetra business service director Rhamses Simanjuntak claimed his company was ready to supply tap water to large industries.

“We have adequate pipeline networks to supply tap water to large industries and commercial buildings, such as malls, apartments, hotels and office buildings,” Rhamses told The Jakarta Post.

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