PDAM of Central Maluku district aspires to double its service coverage in its technical areas a decade, from serving 38 percent in 2020 to 80 percent in 2030. This ambitious goal can be achieved with strong PDAM financial capacity.
“We were struggling very hard just to pay for the operation cost. We hardly paid our employees on time,” the Head of Financial Administration Section of PDAM of Central Maluku, Mr. Calvin Devry Tahamata recalled the hurdles that the water company faced. “Our tariff needed adjustment because the last time we renewed it was 12 years ago,” he added.
To overcome the financial adversity, USAID IUWASH PLUS assisted the PDAM of Central Maluku to revisit its water service tariff by following the Minister of Home Affairs Regulation No.21/2020 and considering community’s affordability. In 2020, the PDAM and USAID calculated the water tariff, socialized the adjustment, and advocated the regent to support the tariff.
Aside from using internal funding, PDAM of Central Maluku has also sought external funding sources, such as the MPWH’s urban water grant that can be used to build more household connections.
In 2020, PDAM of Central Maluku and USAID IUWASH PLUS prepared an academic paper for the regional regulations on capital participation and the PDAM’s status amendment into Perumda Air Minum. These two regulations are the requirements of the MPWH’s urban water grant. In the same year, PDAM of Central Maluku and the relevant local government offices also advocated the regent and parliament on the approval of the regulations. “The Regent is very supportive to these regulations to improve the PDAM’s performance,” Mr. Calvin Devry Tahamata mentioned regarding the Regent’s response to the regulations.
In March 2021, the Central Maluku district government issued the Regent Regulation No.8/2021 on the PDAM’s tariff. Three months later, the PDAM started to impose the new tariff. “Now, we can pay our employees on time and the operational expenditure smoothly,” Mr. Calvin Devry Tahamata shared the changes.
In addition, the regional regulations on the local government capital participation and the PDAM’s status amendment into Perumda Air Minum Tirta Nusa Ina were approved in 2021.
With these new regulations, PDAM feels optimistic of bringing a better future for the company and communities. “By becoming a Perumda Air Minum, we will be able to deliver our service more professionally. With the capital participation, we will be able to build more house connections in the future,” hopes Mr. Calvin Devry Tahamata.
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