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Full Cost Recovery Principle
One effort that is currently being undertaken by PDAMs to improve their financial health in accordance with commercial business principles is to adjust water sales prices while due attention is being paid to the public and social services aspects of the PDAMs.

The main objective of the PDAMs' water sales prices adjustment is to guarantee business management in accordance with healthy business principles. This effort must certainly be linked to improvements in other areas such as business efficiency improvement, labor productivity increases and, last but not least, a maximum possible reduction in unaccounted-for-water (UfW).

Problems related to tariffs have grown into a general problem for PDAMs because many water companies have from the outset acted as providers of a social service, delivering water at prices far below production costs. Because of this, tariff increases are difficult to explain to the public without protests via local parliaments and community organizations. This makes it more difficult for PDAMs to achieve a situation in which they operate according to healthy business principles.

Looking at reports that have up to now been received by PERPAMSI, the larger PDAMs have in general adjusted their tariffs to achieve full cost recovery. To achieve the desired tariff levels, it is necessary to start with an transparent awareness campaign to explain the objective of tariff increases, which should be accompanied with improvements in service levels (widening of distribution networks, additional connections, improved water quality), and a reduction in unaccounted-for-water. If these matters are being fully addressed by PDAMs, tariff adjustments can be implemented and accepted by the public without meaningful protest.

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Granting of ISO 9002 Certificate (PDAM Tirtanadi)
ISO 9002 Certificate from the Chairman of Dutch Quality Registration Agency was handed over on 1 May 2001.

ISO 9002 - Deli Tua Water Processing. In order to meet the demand of quality, quantity and continuity of measured and tested water supply, PDAM Tirtanadi applied for ISO 9002 quality standard for one of the installations they own i.e. Deli Tua water processing installation. Besides improving the quality, another purpose for the application of certification is to improve efficiency in all fields including manpower, use of chemicals, power and the operations of available equipment. With the application of ISO 9002, it is hoped that productivity of Deli Tua processing installation will increase.

Next to improving the quality of waste water, PDAM Tirtanadi also plans to develop a sludge treatment facility of the 'sun drying bed' type, in order to return an end product to river with 'zero waste quality'.

TEKAER (PDAM Tirta Kerta Raharja)
Even in the most remote area...

Kronjo is one of the sub-district areas of Tangerang Regency. It is located about 30 kilometers from the center of Tangerang towards the north of West Java coast; the area is accessible only after driving in a car for about two hours. It is a long drive because there are holes in the read so that a car has to travel slowly, zigzagging to avoid large holes whose asphalt is completely ruined.

According to Krojo Head of Sub-district, Mulyono, the people in his administrative area numbering about 77,700 people are distributed in five villages who have suffered lack of clean water all this time, potable water in particular. Well-to do people, and according to one of the inhabitants, Jatam, they total only 10 percent, build rainwater reservoirs for water supply during the dry season. The rest of them depend on irrigation water which is channeled from Cisadane River, and lately has been experiencing heavy pollution. Here and there, the people collectively construct 20 x 20 meters dikes, and some of the irrigation water is then channeled there just for filtering purposes, then used by taking it in containers home.

They have to do this because the groundwater which is located about 4 kilometers from the coast is insipid and even salty, it cannot be used for bathing, washing let alone drinking.

Fortunately, the people who are generally farmers or bandeng fish farmers since January 2002 got the luck of getting rained in a desert with the presence of PDAM Tirta Kerta Raharja of Tangerang Regency. Even though the presence is not like that of PDAM in urban areas where people's homes are accessed by pipes.

Tangerang Regency PDAM is present in Kronjo Sub-district, to be exact in Muncung Village next to the office of the Village Chief, with an installation of saline water processing to become ready to drink potable water in containers with trade brand TEKAER. This brand originates from the name PDAM Tirta Kerta Raharja. The wonderful thing is, although the packaged drinking water dares to compete in quality with various other packaged water already known for a long time by the people in urban areas such as Aqua, Ades, Aquaria, VIT etc., the price is extraordinarily chea; Rp.2,500.- per gallon @ 20 liters. So it is only Rp.125.- per liter. Compare this to Aqua in agents which has reached Rp. 6.500 per gallon @ 20 liters. Compare also to a glass of tea without sugar in restaurants which may reach Rp. 1,000.-

It is true that the production of the water processing installation with the Reverse Osmosis system has just reached 20 meters if run for 24 hours; it is not yet enough to meet the need of the people in the sub-district totaling 77,700 people. However, as breakthrough that has been hoped for tens of years, the development of brackish water processing into ready to drink water has clearly been able to open a new chapter in the matter of potable water in the area and this may become a model for the development of similar installations in other coastal areas not yet accessed by PDAM pipes.

The President Director of PDAM Tirta Kerta Raharja, Drs. Dadan Hendra Sambas said that there was indeed a kind of injustice felt by the people on Tangerang north coast in the matter of clean water supply. Some people in urban areas are able to enjoy PDAM's clean water product, while those living on the north coastal area are not. It is not that PDAM's pipes cannot access them, but for this purpose there is need for very expensive investment so that this is not feasible at the moment. So, it was necessary to seek alternatives, so that there would not be an impression that Tangerang PDAM did not care about the people on the north coast. And the alternative technology is Reverse Osmosi.

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