ANALYSIS OF DRINKING WATER SUPPLY SYSTEMDEVELOPMENT BASED ON THE AFFORDABILITY OFPUBLIC PURCHASING POWER USING THE CONTINGENTVALUATION METHOD (CVM)(CASE STUDY: SPAM IN GUNUNG SINDUR DISTRICT)

• Main Author: Wentaria
• Format: Theses
• Language: Indonesia
• Online Access: https://digilib.itb.ac.id/gdl/view/79123
• Institution: Institut Teknologi Bandung

The Contingent Valuation Method (CVM) used in this research explains that the service continuity variable has an influence on Willingness to Pay (WTP) a society where every increase in continuity of service is one unit, it is variable WTP will increase by 0.939 assuming that the other independent variables from the regression model are fixed. Mark Ability to Pay (ATP) according to the Bogor Regency Minimum Wage (UMK) is IDR. 3,957/m3 and value ATP current customers amounting to Rp. 4,526/m3, whereas WTP with the increase in research services used CVM is IDR. 6,373/m3, meaning that with the increase in services offered, customers are willing to upgrade WTP. The water requirement for SPAM development is 600 L/second, construction will be carried out in two stages, stage I in 2024-2029 is 150 L/second and stage II in 2029-2043 is 450 L/second. This system requires an investment cost in stage I of Rp. 65,292 M and phase II amounting to Rp. 276.6 M. With the imposition of a tariff increase of 30% per five years from the basic tariff of Rp. 3,250/m3, financial viability indicates value NPV, BCR and BEP sequentially amounting to Rp. 246,461,828,512, 3.17 and 5 years and the cost of production is IDR. 1,228/m3. The raw water unit financing scheme is 100% financed by DJSDA, the production unit is 50% financed by DJCK and 50% through Bank loans and the distribution unit is 50% financed by APBD and 50% through Bank loans. Sensitivity analysis shows that if there is a risk of an increase in operational costs and investment costs, and a decrease in income of 10% each, the SPAM development plan is still feasible to implement. It is hoped that this study can provide important clues for further research and basic information in the strategy for sustainability of clean water services in Gunung Sindur District in particular, then it can be replicated to answer challenges in achievingFCR by other PDAMs in Indonesia who face the same problem.