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PDAM Banyuwangi Will Raise Tariffs

PDAM Banyuwangi Will Raise Tariffs
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PDAM Banyuwangi Will Raise Tariffs

From Rp 875 to Rp 1.850 per Meter Cubic

BANYUWANGI – Local Water Company customers (PDAM) Banyuwangi must be prepared to spend more. Because, PDAM is now planning to increase the basic water tariff (TDA) for household group customers (R2) which amounts to 44 thousand people.

No half-hearted, Regional-Owned Enterprises (BUMD) which provides clean water supply services, plans to double the TDA. Precisely from the current rate of Rp 875 per cubic meter to Rp 1.850 up to Rp 1.900 per meter cubic.

Information obtained, PDAM has submitted the tariff adjustment plan to the Banyuwangi DPRD last Tuesday (5/9). The plan was submitted directly to the Chairman of the Supervisory Board of PDAM Banyuwangi, Agus Siswanto to members of the council from across factions and across commissions.

Confirmed by journalists Jawa Pos Radar Banyuwangi, Chairman of the Supervisory Board of PDAM Banyuwangi, Agus Siswanto, does not deny that his party plans to adjust the TDA. "The tariff adjustment plan is only the result of a study". The realization awaits the regent's decision,he said yesterday (7/9).

Agus said, basically, the implementation of PDAM tariff adjustment does not need council approval. However, his party took the initiative to submit the plan to the DPRD as people's representatives.

It says, The current TDA of PDAM Banyuwangi is based on Regent Decree No 3 Year 2004. It means, the rate has never been adjusted during 13 year. even though, referring to the Regulation of the Minister of Home Affairs (Permendagri) Number 71 Year 2016, PDAM should review tariffs every two years and adjust tariffs every four years or at the latest 5 once a year.

Agus added, Based on the results of a large study, the Banyuwangi PDAM TDA tariff for class R2 customers is planned to be around Rp 1.850 up to Rp 1.900 per meter cubic. “But again. This is only a submission from. The decision must wait for the regent's decision,"said the man who also serves as Assistant for Development Administration and People's Welfare (Welfare) The Banyuwangi Regency Government.

Still according to Agus, So far, the Banyuwangi Regency Government has provided subsidies for PDAM customers. Subsidies are provided for R2 customers. This subsidy is given because the average tariff charged to customers does not reach the full cost, aka full cost recovery.

Further said, because TDA was never adjusted during 13 year, then PDAM cannot invest and or fix the clean water network that was built since the Dutch colonial era.

"So far, PDAM investment has only come from the district government to add to the network". even though, limited water flow. Especially during the dry season like this. Need more water capacity with a drill. That's what so far has not been able to do," he said.

Not only that, Agus admitted that the tariff adjustment was carried out following the recommendation of the Financial and Development Supervisory Agency (BPKP). “BPKP recommends increasing PDAM tariffs,“Cetsunya.

Agus added, The tariff adjustment will be offset by an increase in service to customers. "If this tariff adjustment is realized", then the PDAM will be able to invest in adding new water sources and maintaining the existing water network. Thus, the quality of service will also improve,” he said.

Confirmed separately, Chairman of Commission III DPRD Banyuwangi, Khusnan Abadi, say, His party appreciates the initiative of the PDAM Supervisory Board which submitted the tariff adjustment plan to the legislature.

"In Permendagri there is no rule for the regent or the supervisory board to report or notify the council". We respond well to the good intentions of the PDAM supervisory board,' he said over the phone.

Khusnan added, although not authorized to determine PDAM tariff, factions in the Banyuwangi DPRD provided a number of suggestions for the TDA adjustment plan. There are factions who expect the tariff increase to take the middle way or Rp 1.500 per meter cubic.

"There are also those who propose that the increase is gradual so that it does not burden the community too much",said the politician from the National Awakening Party (PKB) the. Menurut Khusnan, Tariff adjustment is very urgent because PDAM Banyuwangi's TDA has never been adjusted for a long time 13 year. If it continues, he said, then it could be that PDAM Banyuwangi collapses and cannot provide services to the community.

"However, before the tariff adjustment is made, we hope PDAM meets customer forum," he concluded. (radar)