Draft Government Regulation Set to Transfer the Management of Drinking Water Tariffs

The Regulatory Body (Badan Pengaturan – “BP”) of State-Owned Enterprises (Badan Usaha Milik Negara – “BUMN”) will have the authority to manage the national drinking water supply. This regulation is a key amendment in the Draft Government Regulation (Rancangan Peraturan Pemerintah – “RPP”) on the Drinking Water Supply System (Sistem Penyediaan Air Minum – “SPAM”).

“The central government will have the authority to organize the development and management of the SPAM, including appointing BUMN as implementers and setting national drinking water tariffs,” said Dewi Chomistriana, the Director-General of Human Settlement.

She explained that the central government is taking over the authority to set national drinking water tariffs to ensure the principles of quantity, quality, and continuity (Kuantitas, Kualitas, dan Kontinuitas – “3K”), as well as efficiency and sustainability of services. Previously, this authority rested with regional governments.