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Jakarta Post

Price hike not the only answer: NGO

Increasing water costs to resolve the city’s tap water problem will affect overlooked victims, the residents, an activist said Wednesday

The Jakarta Post
Jakarta
Thu, January 21, 2010

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Price hike not the only answer: NGO

I

ncreasing water costs to resolve the city’s tap water problem will affect overlooked victims, the residents, an activist said Wednesday.

The comment came amid a campaign to increase water costs by water operators, recently backed by city water company PAM Jaya.

According to Muhammad Reza, the Campaign and Advocacy Coordinator for the People’s Coalition for the Rights to Water (Kruha), the current average cost of Rp 7,000 (around US 70 cents) per-cubic-meter could be reduced.

“The current system of water pricing should be scrutinized,” he said.

Reza said that there were alternatives to make clean water more accessible to the public, without having to raise the cost.

“The water company must increase its efficiency,” he said, referring to water loss due to technical problems such as broken pipes and commercial issues such as illegal water usage or broken water meters.

Reza also suggested making the shares of the water company available for public purchase, allowing more “democratic” management.

Other alternatives included handing water management to communities in certain areas, or establishing independent water recycling systems using methods such as reverse osmosis.

Some experts have said that Jakarta should better retain rainwater to make the city’s water resources more sustainable.

Jakartans pay different prices, according to their economic ranks, to use tap water from PT PAM Jaya, the city’s company, which runs its operation through two private companies: PT Aetra Air Jakarta (Aetra) and PT PAM Lyonnaise Jaya (Palyja).

The lowest cost is just above Rp 1,000, while the highest is more than Rp 14,000. PAM Jaya claimed it often experienced losses because according to the current contract between PAM and the private companies, the former must pay a little more than the average price of Rp 7,000 to the latter.

PAM Jaya’s director said last year that the company currently had around Rp 200 billion in debt.

Riant Nugroho from PAM Jaya’s regulatory body said that the company should not linger on “romantic notions” of assuring a low price to maintain its customers.

“People will pay for water. There are residents in areas that do not receive tap water who pay high prices for water in jerry cans,” he said.

Riant was referring to residents in certain areas, such as those in several neighborhoods in North Jakarta, who have no access to the company’s tap water. Those residents can spend more than Rp 10,000 a day for water.

Increase in water costs would also be a welcome change for two private companies, who claimed they were running a tough business in Jakarta.

The two were attending a seminar at the State Water Company infrastructure financing in Central Jakarta.

The seminar’s speakers included a brief lecture from David Hull, the Chairman of Public Services International Research Unit (PSIRU), titled, “Replacing failed private water contracts”.

Hull said that the current trend for water management in cities around the world was to use public services.

“People imagine privatization is the future but this is not true with water,” he said.

Amid arguments surrounding the possibility of terminating the contract between PT PAM Jaya and the two private companies, clean water for urban areas is pressing.

Data from the regulatory board revealed that only 45 percent of urban areas in the country had access to tap water from PAM. (dis)

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