Determining water rate of the HIPPAM system

Abstract

The increasing demand for drinking water demand in Indonesia is mainly determined by the rapid population growth. In overcoming the issue, the development and rehabilitation of water supply system are necessary. The tariff or rate of water is a price assigned by water authorities on water supplied and distributed to their customers through the pipe network. A tariff is not only to recover the full costs of its supply and production, but also to incorporate the operation costs. Hence, it establishes the continuity of the water supply in the future. This research aims to determine tariff or water rate in HIPPAM System with the case study at Salawaty District - Sorong Regency. The tariff should be adjusted to the ability to pay of customers, and it is based on the income and the amount of water paid in a month. Besides, the next parameter is the willingness to pay that can be obtained from the customer survey. The results show that the majority of customers are willing to pay the water rate at the low price of IDR 1500/m3. On the other hand, the research suggests that the most appropriate tariff in the study area is IDR 2456,1/m3. This tariff is assumed to be able to guarantee the continuity of the drinking water supply system in the future. Keywords: tariff, water supply, HIPPAM, Salawati District, Sorong Regency.