BPKP values PDAM Kotabaru performance healthy

Kotabaru, S Kalimantan (Antaranews Kalsel) - The performance of the government-owned water company PDAM Kotabaru in 2018 was considered healthy by the Financial and Development Supervisory Agency (BPKP).


Director of PDAM Kotabaru Noor Ipansyah here Friday said the performance evaluation covers four aspects, namely finance, service, operations and HR.

"The performance evaluation in 2015 by the BPKP was not healthy, but from 2016 until now it has been declared healthy," he said.

In terms of finance, PDAM Kotabaru has not yet made a profit. The reason is the basic water tariff imposed does not cover production costs or full cost recovery (FCR).

The average selling price is currently Rp3,500 per cubic, while the average production cost is Rp4,500 per cubic.

"If you want FCR, the tariff must be changed. But that is the policy of the regional head, of course there are many considerations, so that it has not been done," he said.

However, the company is not necessarily said to be a loser because income and expenditure are relatively balanced.

According to Noor Ipansyah, the difference in the balance sheet is due to the shrinking value of the benefits of the company's assets.

"For example, pipes, PAPs, or reservoirs, in accounting, the value must be depreciated every year. If that does not count, between actual income and expenditure is balanced," he explained.

This is because the number of PDAM Kotabaru customers continues to increase, especially with the presence of urban drinking water grant programs for low income people (MBR).