Kotabaru govt adds equity to PDAM

The District Secretary of Kotabaru H Said Akhmad submits draft bylaw on additional equity for water company PDAM Kotabaru to Deputy Speaker of Kotabaru Legislative Council (DPRD) H Mukhni AF. (Antaranews Kalsel/photo special)

The revenue of PDAM as regional public service agency (BLUD) does not enter the regional treasury, but is used for the improvement of public service,

Kotabaru, S Kalimantan (ANTARA) - The District Government of Kotabaru is set to add equity investment for the government owned water company PDAM Kotabaru, to enable it to expand water distribution.

The District Secretary Said Akhmad here on Wenesday remarked that every year the government routinely allocates IDR6 billion in its budget for the equity.

"The equity is the obligation of local government who every year allocate IDR6 billion and the plan is set in the draft bylaws on equity investment," he said.

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The additional capital investment is to strengthen the company capital structure to improve it service to the public. "The capital equity from the government is especially used for expansion of distribution through network addition," he pointed out.

Thereby, the district government expected the performance of the PDAM Kotabaru will improve. "The revenue of PDAM as regional public service agency (BLUD) does not enter the regional treasury, but is used for the improvement of public service," he added.

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Meanwhile, the regional government equity is regulated in a regional regulation to be transparant and encounted for.