Groundwater rates to increase ten-fold

Ni Komang Erviani, The Jakarta Post, Denpasar | Fri, 08/20/2010 11:33 AM

The provincial administration is looking to impose new rates on access to groundwater starting next year, two times more than the current tax, drawing criticism from hotel operators.

“The increase will be applied in 2011. There will be no more delay,” Bali Governor Made Mangku Pastika said Thursday.

He brushed aside demands from businesses to postpone the rate hike.

The administration imposed a 500 percent hike on the tax this year.

Pastika said increased groundwater tax was in accordance with the 2009 gubernatorial regulation.

He ruled out any possible delay, saying hotel operators already enjoyed high profits.

“If they deem the rate rise too high, they can increase their room rates.”

He lambasted hotel operators for demanding cheaper water rates, citing Bali’s clean water crisis.

“Out of around 400 rivers in Bali, half are already dry, while hotels use clean water just to splash their gardens and golf courses,” he said.

The revenue from the rate rise will be used to provide clean water for several drought-stricken areas, including Karangasem and Nusa Penida.

“People in Karangasem and Nusa Penida find it difficult to get clean water. It’s a shame that hotels exploit water for their gardens,” the governor said, stressing that hotels should manage their own water consumption.

“They should use water recycled from bathrooms and kitchens to maintain their gardens.”

During a meeting with the provincial council earlier this week, a number of tourist operators have urged council members to issue recommendations to the governor, asking for the new tax to be postponed.

“Groundwater taxes hurt hotels. We hope the governor can delay the implementation of the new rate hike,” said hotelier Bagus Sudibya.

Data from the provincial administration showed that groundwater tax revenue has increased, with the biggest portion paid by residents in Denpasar, who paid Rp 8.01 billion.