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1. AIM: To operate water for public utilization and its qualifying water sources which sufficient to fulfill the necessity of all the people and to carry out certain tasks given by the government in managing the river basin and/or its sources including to give information, recommendation, consultation and guidance OBJECTIVE: to develop the national economy by participating in the program of national development in water management, water source and electric power SCOPE OF WORK: Water service and water availability guarantee for water resources business that prioritize on fulfilling water needs for daily basic needs and irrigation for farmers. utilization of surface water, hydroelectric power generation and other business. Watershed management, such as: control, develop, and utilize water resources in Citarum River Basin.
PJT II is not task of a commercial aspect, but carry out some tasks of the government with the other institution of water resources management that are 1 environmental and social.
JASA TIRTA II PUBLIC CORPORATION FUNCTIONS/MANDATE Citarum and Inter-connected Basins
Area: 12,000 km2 Citarum
Basin: 6,600 km2 Length: 270 km Reservoir: Saguling, Cirata and Jatiluhur
Rainy and Dry season Ann. Rainfall: 2,353 mm 80% falls Nov-May
JASA TIRTA II PUBLIC CORPORATION CORPORATE FEATURES 1. OPERATIONAL KPI TARGET IN 2012
JASA TIRTA II PUBLIC CORPORATION CORPORATE FEATURES 2. FINANCE
In carrying out commercial and non-commercial tasks, the financing is obtained from commercial tasks (such as electricity, industrial raw water, drinking water company and other services), and obtained from consumers with the tariff/rate set by government. Financing of water resources management is aimed to utilize water resources held by cooperatives, state-own company/district-own company, other business entities and individual covered by itself. For the social services, welfare and public safety, the government in certain limits, can provide assistance to the management fees state-own company/district-own company. Government budget is prioritized to cover the expenses from management of things that are social matter, public welfare and security.
JASA TIRTA II PUBLIC CORPORATION CORPORATE FEATURES 2. FINANCE (Ctd.)
BUDGET AND REVENUE 2012
• Total Revenue : Rp. 424.842,42 million
• Total Operating Expenses(government subsidy not included) : Rp. 374.865,19 million • Profit Before Tax : Rp. 58.000,29 million 5
ADVANTAGES OF THE CORPORATE FEATURES OF JASA TIRTA II PUBLIC CORPORATION 1. JASA TIRTA II owned by the state but has the status as a legal entity. Hereby, its operation becomes separate from the government system. Subject to government control and agreed statutes, it can make its own decisions. 2. JASA TIRTA II can manage its own finances, buy and sell, retain its revenue, and employ and lay off staff. It is financially autonomous, but not necessarily financially independent, since part of its funding can come from the state, depending on its responsibilities and the scope for cost recovery. 3. MANAGEMENT: CEO‐style director with high autonomy, responsible to the governing board or shareholders, customer focus, quick response to new challenges and 6 opportunities.
SUGGESTIONS ON HOW TO PROMOTE CORPORATE RBOs IN ASIA 1. Political support and commitment from government The government provides legitimacy and over-all directions, but can leave the operation to the corporation. 2. Capacity building In-house managerial capacity and technical expertise are major assets of a corporate RBO 3. Financing of the RBO Income and expences management