Acceptance Analysis of PDAM Sleman’s Water Tariff, Based on Revenue and Willingness to Pay Projection

https://doi.org/10.22146/jcef.60536

Made Widiadnyana Wardiha(1*), Istiarto Istiarto(2), Fatchan Nurrochmad(3)

(1) Ministry of Public Works and Housing, Jakarta, INDONESIA
(2) Department of Civil and Environmental Engineering, Universitas Gadjah Mada, Yogyakarta, INDONESIA
(3) Department of Civil and Environmental Engineering, Universitas Gadjah Mada, Yogyakarta, INDONESIA
(*) Corresponding Author

Abstract


In Sleman, the Regional Water Company (PDAM) provides clean water to the community and charges a tariff for each cubic meter of water sold to customers. According to the Minister of Home Affairs Regulation No. 71 of 2016 states, PDAM tariffs requiring an annual review in November. The most recent tariff was set by PDAM Sleman in 2016, therefore, a recalculation is required. In addition, there is a need to analyze the tariff acceptance from the service provider, and service recipient’s point of view. In this study, the calculation tariff method utilized a formula based on the Minister of Home Affairs Regulation No. 71 of 2016. Meanwhile, the acceptance analysis from profit point of view conducted by calculating the projection of water sales revenue, profit to earning assets ratio, and customer willingness to pay (WTP). Furthermore, revenue projections were obtained by multiplying tariffs with the water sold volume, while the WTP projection is obtained using the inflation method, based on the PDAM Sleman customers’ wTP, from the 2007’s research. PDAM Sleman tariffs based on calculations resulted in low tariffs of IDR3727.48, basic tariffs of IDR4659.36, and full rate of IDR9460.17. Based on the WTP analysis, the tariffs are feasible from the service recipient’s (PDAM customers) point of view, because this is affordable by customers, for the average water consumption. However, from the service provider’s (PDAM Sleman) point of view, the tariffs are not feasible a 0.31% profit ratio is much lower, compared to the 10% profit ratio. Therefore, tariff adjustments are required to increase profits. These strategies include determining tariffs based on consumption blocks alone, without breaking down based on customer group categories and adjusting the second and third consumption blocks’ rate.

Keywords


Water tariff; Calculation; Profit, Willingness to pay, Earning assets

Full Text:

PDF


References

Badan Pusat Statistik, 2020. Inflasi Indonesia Menurut Kelompok Pengeluaran. [online] Available at: <https://www.bps.go.id/statictable/2009/06/29/901/inflasi-indonesia-menurut-kelompok-komoditi-2006-2019.html> [Accessed 15 Jan. 2020].

Badan Pusat Statistik Kabupaten Sleman, 2019. Kabupaten Sleman Dalam Angka 2019. [online] Available at: <https://slemankab.bps.go.id/publication/2019/08/16/c400805c8dee98a3d701ea33/kabupaten-sleman-dalam-angka-2019.html> [Accessed 15 Dec. 2019].

Bupati Sleman, 2016. Peraturan Bupati Sleman Nomor 10 Tahun 2016 tentang Perubahan Atas Peraturan Bupati Sleman Nomor 28 Tahun 2012 tentang Tarif Pelayanan Perusahaan Daerah Air Minum Sleman. [online] Available at: <https://peraturan.bpk.go.id/Home/Details/39381> [Accessed 12 Aug. 2019].

Bupati Sleman, 2019. Peraturan Daerah Kabupaten Sleman Nomor 1 Tahun 2019 tentang Perusahaan Umum Daerah Air Minum Tirta Sembada. [online] Available at: <https://peraturan.bpk.go.id/Home/Details/108374/perda-kab-sleman-no-1-tahun-2019> [Accessed 20 Dec. 2019].

Damayanti, N.L. and Sudrajat, 2017. Persepsi Rumah Tangga Terhadap Pelayanan PDAM dan Willingness To Pay (WTP) Pengguna Air PDAM (Kasus di Desa Tirtonormolo Kecamatan Kasihan Kabupaten Bantul). Jurnal Bumi Indonesia, 6(1), pp.1–9.

Fuente, D., 2019. The design and evaluation of water tariffs: A systematic review. Utilities Policy, 61(September), pp.1–11.

Indayani, I.P., 2013. Analisis Kelayakan Tarif Air Berdasarkan Peraturan Menteri Dalam Negeri Nomer 23 Tahun 2006 Data Tahun 2009 s.d 2012 Study Kasus di PDAM Tirta Dharma Kabupaten Sleman. Jurnal Akuntansi, 1(2), pp.60–73.

Insukindro, 1995. Ekonomi Uang dan Bank: Teori dan Pengalaman di Indonesia. Yogyakarta: BPFE Yogyakarta.

Istichori, Wiguna, I.P.A. and Masduqi, A., 2018. Analisis Penentuan Tarif Air Minum PDAM Kabupaten Lamongan Berdasarkan Prinsip Full Cost Recovery. Journal of Civil Engineering, 33(1), pp.10–19.

Klassert, C., Sigel, K., Klauer, B. and Gawel, E., 2018. Increasing block tariffs in an arid developing country: A discrete/continuous choice model of residential water demand in Jordan. Water (Switzerland), 10(3), pp.2–26.

Lopez-Nicolas, A., Pulido-Velazquez, M., Rougé, C., Harou, J.J. and Escriva-Bou, A., 2018. Design and assessment of an efficient and equitable dynamic urban water tariff. Application to the city of Valencia, Spain. Environmental Modelling and Software, 101, pp.137–145.

Mauliyah, N., 2016. Analisa Kelayakan Tarif Pada Perusahaan Daerah Air Minum (PDAM) Kota Blitar, Jawa Timur Berdasarkan Pengembalian Biaya Penuh (Full Cost Recovery). Akuntabilitas, 9(2), pp.63–79.

Menteri Dalam Negeri Republik Indonesia, 2016. Peraturan Menteri Dalam Negeri Nomor 71 Tahun 2016. [online] Available at: <https://jdih.bpk.go.id/?p=55427> [Accessed 20 Aug. 2019].

Nauges, C. and Whittington, D., 2017. Evaluating the Performance of Alternative Municipal Water Tariff Designs: Quantifying the Tradeoffs between Equity, Economic Efficiency, and Cost Recovery. World Development, [online] 91, pp.125–143. Available at: <http://dx.doi.org/10.1016/j.worlddev.2016.10.014>.

Saptono, H., 2007. Kajian Willingness To Pay Pelanggan Rumah Tangga pada Pelayanan Air Bersih Melalui Metode Contingent Valuation Method. Yogyakarta.

Suratin, A., Triakuntini, E. and Herdiansyah, H., 2019. Effects of the implementation of a progressive tariffs policy on water management in DKI Jakarta, Indonesia. Environmental and Socio-Economic Studies, 7(4), pp.36–44.

USAID Indonesia, 2006. PDAM Tirta Gemilang Kabupaten Magelang, Analisa Kondisi Keuangan dan Pra Studi Kelayakan Usulan Investasi. Jakarta.

Whittington, D., 1992. Possible Adverse Effects of Increasing Block Water Tariffs in Developing Countries. 41(1), pp.75–87.



DOI: https://doi.org/10.22146/jcef.60536

Article Metrics

Abstract views : 2951 | views : 1707

Refbacks

  • There are currently no refbacks.




Copyright (c) 2022 The Author(s)


The content of this website is licensed under a Creative Commons Attribution-ShareAlike 4.0 International License.
ISSN 5249-5925 (online) | ISSN 2581-1037 (print)
Jl. Grafika No.2 Kampus UGM, Yogyakarta 55281
Email : jcef.ft@ugm.ac.id
Web Analytics JCEF Stats