State-owned power firm PLN's decision to substitute LNG with crude oil to fuel Indonesia's power plants is forcing tap water operators to increase tap water rates by 30 percent, as operational costs have forced PLN to slash the operators' electricity cap allowance by 18 percent.
The chairman of Indonesian Tap Water Operators Association, Syaiful, said that the price hike was inevitable as PDAM used 60 percent of its electrical cap allowance for industrial processes.
"If the cap is reduced, it logically follows that our operational costs will increase", Syaiful was quoted as saying by metrotvnews.com.
In response to the planned increase of water rates, Public Works Deputy Minister Hermanto Dardak stated that in accordance with the Millennium Development Program 2015, the government would commit to the building of more than 8 million water installations that would reach areas that
currently had no access to clean water within the next 4 years.
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