OPTIMIZATION OF WATER SERVICES FEE FOR SUPPORTING OPERATION AND MAINTENANCE OF JATIGEDE MULTIPURPOSE RESERVOIR

Water services fee play important part in maintaining sustainable water resources management. It should be optimal that there should be substantial part to cover operational and maintenance cost subject to the willingness to pay from the water users. This paper finding an optimal sustainable water price for various water users by investigating the relationship between the various parameters covering operating costs with government subsidies as low as possible without causing an increase in maintenance costs. The object of this study is the Jatigede reservoir in West Java province with an effective volume of 877 million m3 which irrigates 90 thousand ha and raw water 3.5 m3/s with electricity production from targeted at 110 MW. The methodology of analyzing the inter-related parameters is using dynamic system modelling. These inter-related parameters are water production, water consumption, other areas' water prices, willingness to pay. The results show that the optimal prices are obtained by 20% of government subsidy. Willingness to pay for this scheme is stable with 90% of reliable water production which can cover 93% of the operation and maintenance cost, and avoiding additional maintenance costs in the long run.