ACTIVITIES - NEWS

Aetra invests billions of rupiah to reduce water loss

February 16, 2016

AETRA
With seven years remaining before its contract ends, private water operator PT Aetra Air Jakarta (Aetra) is still struggling to reduce water losses that continue to cause inefficiencies.

Aetra president director Mohamad Selim said recently that his company managed to reduce water losses, known as non-revenue water (NRW), by 1 percent, or 100 liters per second (lps), last year.

“Our NRW used to always be above 40 percent. However, by the end of the year, it became 39 percent,” he said.

Selim said 80 percent of NRW was a result of old and rusty pipes while the other 20 percent was because of water theft.

Aetra and fellow private water operator PT Palyja Lyonnaise Jaya (Palyja) took over water operations in Jakarta from city-owned PAM Jaya in 1997. There have been no major pipe replacements or revamps since the takeover. NRW is the main reason neither company has been able to expand its services.

Selim said the company had revamped its distribution system by replacing 23.4 kilometers of pipes, fixing leaks in 23,000 spots as well as fixing pipes in more than 13,900 customers’ homes. “We also calibrated the water meters of 27,258 customers and replaced old meters for at least 81,100 customers,” he said.

He added that the company had inspected pipes in 37,500 places and found 3,618 illegal installations. “We saved around 4.6 million cubic meters of water from last year’s efforts,” he said.

Selim said the company spent around Rp 36 billion (US$2.7 million) to reduce the NRW by 1 percent. “Saving 1 percent of NRW means we can serve 12,000 new customers,” he said.

To break even on its investment, the company would need four years, he said.

Selim said, however, that the company would continue to focus on reducing NRW by targeting a further 2 percent decrease this year.

The company has set aside Rp 165 billion for investment this year. Of the total, Rp 72 billion is to reduce water losses, including replacing old meters and fixing leaking pipes.

Another Rp 15 billion is for building a reservoir and boost pumps in Kemayoran, Central Jakarta, to supply clean water to the planned Asian Games athletes’ village in 2018. 

The company has also allocated Rp 30 billion to increase water volume and Rp 48 billion for increasing water treatment plant capacity.

PAM Jaya president director Erlan Hidayat has announced his intention to take back operations once Aetra and Palyja’s contract ends in 2023. “We will start the transition as soon as possible,” he said.

Erlan said PAM Jaya would start to build water treatment plants, including in the East Flood Canal, to increase raw water for the city.

The city is planning to take over water services from the two companies as they have been deemed as failing to fulfill residents’ needs. 



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