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Full Cost Recovery (Godman)

Full Cost Recovery (Godman)

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Published by adbwaterforall
Convention on Water and Wastewater in South East Asia (Full Cost Recovery )
Convention on Water and Wastewater in South East Asia (Full Cost Recovery )

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Categories:Topics, Art & Design
Published by: adbwaterforall on Jul 05, 2011
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02/10/2014

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PERPAMSI
Indonesian Water Supply Association
Country Resultsfrom Indonesia
FULL COST RECOVERY SURVEY
Drs. Godman Ambarita, M.SiLocal Coordinator for Indonesia
The views expressed in this paper are the views of the authors and do not necessarily reflect the views or policies of theAsian Development Bank (ADB), or its Board of Directors, or the governments they represent. ADB does not guaranteethe accuracy of the data included in this paper and accepts no responsibility for any consequences of their use.Terminology used may not necessarily be consistent with ADB official terms.
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PERPAMSI
Persatuan Perusahaan Air Minum Seluruh Indonesia (Indonesian Water Supply Association)
1. Introducing the Indonesian water supply sector 
 
3
PERPAMSI
Persatuan Perusahaan Air Minum Seluruh Indonesia (Indonesian Water Supply Association)
1.Introducing the Indonesian watesupply sector (1)
Water utilities are owned by local governments
Loans for investment are channeled throughMinistry of Finance to the local governments
306 water utilities provide piped services toaround 18% of the total population of Indonesia
Total coverage in urban areas 38%
6 million household connections in total
70% raw water from rivers, 15% spring water 
Around 5% of the 306 water utilities operate onfull cost recovery level
4
PERPAMSI
Persatuan Perusahaan Air Minum Seluruh Indonesia (Indonesian Water Supply Association)
1.Introducing the Indonesian water supply sector (2)
Around 40% of all water utilities are operatedbelow operation cost recovery level
3 of the 4 utilities surveyed operate under fullcost recovery conditions
Water tariff increases are subject to approvalfrom the municipality (city council)
Tariff calculation is done in accordance tonational standards
 
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PERPAMSI
Persatuan Perusahaan Air Minum Seluruh Indonesia (Indonesian Water Supply Association)
2. Actions and factors to reachfull cost recovery
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PERPAMSI
Persatuan Perusahaan Air Minum Seluruh Indonesia (Indonesian Water Supply Association)
2.Actions and factors to reach fullcost recovery (1)
Regular 
tariff increases
combined with tariff structure revisions
 –
Close cooperation between the utility, localparliaments, customers, media and NGOs(City of Makassar / Sulawesi)
 –
Create incentives to save water 
Introduce progressive tariff structures
Minimum quantity of water sold to lowincome areas at affordable social prices(City of Medan / North Sumatra)

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