ANALYSIS OF THE DEVELOPMENT OF DRINKING WATER SUPPLY SYSTEMS BASED ON FINANCIAL STUDIES AND AFFORDABILITY OF COMMUNITY PURCHASING POWER (CASE STUDY : CENTRAL SPAM OF PALANGKA RAYA)

• Main Author: Rara Massora, Reslisari
• Format: Theses
• Language: Indonesia
• Online Access: https://digilib.itb.ac.id/gdl/view/86227
• Institution: Institut Teknologi Bandung

Palangka Raya, as the capital city of Central Kalimantan, faces an increasing demand for drinking water alongside population growth. The primary challenges in providing non-piped drinking water include poor groundwater quality and a majority of refill drinking water depots not meeting feasibility standards. PERUMDAM (Regional Public Water Company), as a Regional GovernmentOwned Enterprise (BUMD), plays a strategic role in providing safe drinking water services. The local government has planned the development of a piped Water Supply System (SPAM) using raw water from the Tumbang Rungan intake, as outlined in the Regional Spatial Plan (RTRW) and the Regional Drinking Water Supply Plan (RISPAM). The SPAM development will be carried out in two phases: Phase I (2025-2030) with a built capacity of 400 L/second requiring an investment of approximately Rp 242 billion, and Phase II (2031-2045) with a built capacity of 500 L/second requiring an investment of approximately Rp 266 billion. Using the Contingent Valuation Method (CVM) to assess the community's affordability, the study found that the Willingness to Pay (WTP) for improved PERUMDAM water services is Rp 11,872/m³, and the Ability to Pay (ATP) is Rp 7,084/m³, both above the current tariff of Rp 4,780/m³. This indicates the readiness of the Palangka Raya community to accept a tariff increase and shows a positive response towards the SPAM development plan to enhance PERUMDAM services. Based on multiple linear regression analysis, the significant factors influencing customers' WTP for service improvement include gender, occupation, education, water bill amount, house status, quantity, and continuity of supply. According to the survey results, 76% of non-customer respondents expressed a Willingness to Connect (WTC) to the PERUMDAM network and a WTP of Rp 6,907/m³, which also exceeds the current tariff. To achieve financial feasibility, the selected financing scheme involves 100% funding of the raw water unit by the National Budget (APBN), 70% of the production unit funded by the APBN, and 30% through bank loans, while the main distribution unit is funded 50% by the Regional Budget (APBD) and 50% through bank loans. The initial base tariff is set at Rp 5,050/m³ with a tariff increase scenario of 25%-30% every five years. These findings are expected to providevi strategic input for the Palangka Raya City Government in formulating policies to enhance the coverage of safe and affordable piped drinking water services