Water tariff is the price in rupiah has to be paid by customers of PDAM for each meter cubic of water supply distributed by PDAM. The determination of tariff frequently causes conflict of interest among customers who expect the lowest tariff and the water supply provider (PDAM) want the highest tariff. Therefore, it is necessary to find solution. This research was aimed to analyze ability to pay in basis of customers’ income (ATP), to study willingness to pay water supply tariff (WTP) in basis of customers perception on service level, and to study the autorized tariff concerning ability and willingness perception (ATP and WTP) of water supply customers. In basis of the research, it was concluded that in determining tariff policy of PDAM, instead of estimating operational cost recovery and profit, PDAM have also to calculate the interest of PDAM costomers through ATP and WTP analysis by remain considering the level of service
To submit an update or takedown request for this paper, please submit an Update/Correction/Removal Request.