PEOPLE WILLINGNESS TO PAY (WTP) FOR THE CENTRALIZED TREATMENT SYSTEM OF DOMESTIC SEWAGE BASED ON THE CHARACTERISTIC OF RESIDENTIAL AREAS IN BANJARMASIN CITY (Case Study : Residential Area of Sungai Andai and Kelayan in Banjarmasin City )

• Main Author: HIDAYAT (NIM : 25413001), DEDI
• Format: Theses
• Language: Indonesia
• Online Access: https://digilib.itb.ac.id/gdl/view/21624
• Institution: Institut Teknologi Bandung

Provision of sanitation is one of the objectives of sustainable development which has been scheduled in the Millennium Development Goals (MDGs) by 2015. <br /> <br /> <br /> <br /> The problem of domestic waste water is becoming very urgent to overcome, especially in such big cities like Banjarmasin City. Banjarmasin city has a mainland <br /> <br /> <br /> <br /> condition which is 0.16 meters below sea level, the influence of the tide along with the soil conditions are mostly in the form of peat or water-saturated soil requires a domestic waste water treatment system which is more comprehensive. At this moment in time, Banjarmasin identified to have polluted rivers and water soil pollution caused by domestic waste originating from residential areas that still throw away directly into the river or the use of septic tank does not meet standards. System treatment development of domestic waste concentrated in residential areas to minimize contamination is not followed by the people’s interest toward the infrastructure. <br /> <br /> <br /> <br /> This study examined the amount of ability and willingness of people to pay for the provision of services and domestic waste water infrastructure which <br /> <br /> <br /> <br /> centralized in two strategic settlement areas, namely Sungai Andai Settlement (new settlements) and Kelayan Settlement Area (Settlement dense). It also examined the <br /> <br /> <br /> <br /> factors that influence people's willingness to pay on both the strategic residential areas. Analysis of the value of WTP used Contingent Valuation Method approach <br /> <br /> <br /> <br /> with bidding games technique. Analysis of the willingness to pay with descriptive analysis and logit models whereas the factors that influence the multiple regression analysis with enter method. <br /> <br /> <br /> <br /> The survey results of 194 respondents of the Sungai Andai and Kelayan region obtained the willingness to pay the cost of installation of Rp.979.181, - (Sungai Andai) and Rp. 659 794, - (Kelayan), while the ability to pay the installation costs was Rp. 1,646,257, - (Sungai Andai) and Rp. 1,413,278, - (Kelayan). This value was under the expectation from PD.PAL which sets the fee of Rp. 4.000.000, -. Due to the waste treatment is a public need and externalities, therefore the City <br /> <br /> <br /> <br /> Government and PD. PAL still have to subsidize the provision. As for the willingness to pay the service fee per month for Rp.13.660, - (Sungai Andai) and Rp. 9021, - (Kelayan), while the ability to pay the installation costs was Rp. 45 729, - (Sungai Andai) and Rp. 39 258, - (Kelayan). The affordable monthly rates can still <br /> <br /> <br /> <br /> be seen from the willingness and ability of the people. The increased availability can be improved which can be viewed from the factors that affect social and economic <br /> <br /> <br /> <br /> characteristics: income and home ownership (Sungai Andai) 99% confidence level and education variables, understanding of the domestic waste treatment rate <br /> <br /> <br /> <br /> (Kelayan) 99% confidence level. Therefore, the need for improvement of socialization in both new settlements and dense settlements has an importance impact for domestic waste of water treatment system so that negative externalities can be mitigated.