MATERIAL FOR THE LONG TERM PLAN 2004-2008

PT JASA TIRTA II

A. ASSUMPTIONS
1. EXTERNAL FACTORS
a. There are no changes in Government Policy regarding the implementation
of the management concept in water resource which will affect the
Company.
b. There are no Economic Crisis which affect the Companys operations
c. The inflation rate is about 6.5% annually.
d. The climate and the rainfall are normal.
e. There is no natural disaster in the River Catchments Area of Brantas River
Basin or Bengawan Solo River Basin that will significantly affect the
revenue or the cost or expenditure of the Company.
f. Operational and Maintenance Expenses regarding the Public Welfare and
Safety (Flood Control, Water Quality Control with Water and Water
Resource Conservation) is a contribution disburse by the Government.
g. The up-rating schedule of the Water Treatment Plant (WTP) and the newly
planned WTP of the State-Owned Drinking Water Company.
h. The PLN are willing to pay the O&M charges of the irrigation
infrastructure for Mendalan and Siman Hydro Power Plant which uses the
water from Konto River.
i. The Industrial Water Demand are:
1). Brantas River Catchments Area
The increase in the number of industrial water beneficiaries in 2004 to
2008 will not be significant. The additional industrial water supply be
equalized by the decrease in the water usage due to recycling.
2). Bengawan Solo River Catchments Area
The increase in industrial beneficiaries is an average of 12.5%
annually
j. The increase of water tariff charges for PDAM, PLN and industries in
Brantas River Catchments Area and Bengawan Solo River Catchments
Area as follows:
1). Brantas River Catchments Area
a. PLN
In the year of 2004, the water tariff charges are Rp 24.70/kwh, and
increase of 15% annually.
b. PDAM
In the year of 2004, the water tariff charges are Rp 40.00/m3 (1st
Semester) and Rp 45.00/m3 (2nd Semester), and the increase is
assumed every two years of 16% annually.
c. Industry
In the year of 2004, the water tariff charges are Rp 80.00/m3 (1st
Semester) and Rp 90.00/m3 (2nd Semester), and the increase is
assumed every two years of 16% annually.
 2). Bengawan Solo River Catchments Area
The increase in industrial beneficiaries is an average of 12.5%
annually
a. PLN
In the year of 2004, the water tariff charges are Rp 31.50/kwh, and
increase of 10% annually.
b. PDAM
(1) For Central Java Province: In the year of 2004, the water tariff
charges are Rp 50.00/m3, and the increase every two years of
16% annually.
(2) For East Java Province: In the year of 2004, the water tariff
charges are Rp 40.00/m3 (1st Semester) and Rp 45.00/m3 (2nd
Semester), and the increase every two years of 16% annually.
c. Industry
(1) For Central Java Province: In the year of 2004, the water tariff
charges are Rp 100.00/m3, and the increase every two years of
16% annually.
(2) For East Java Province: In the year of 2004, the water tariff
charges are Rp 80.00/m3 (1st Semester) and Rp 90.00/m3 (2nd
Semester), and the increase every two years of 16% annually.

2. INTERNAL FACTORS
a. The Water Demand for PLN, PDAM and Industries can be supplied
sufficiently.
b. Perum Jasa Tirta I is the only supplier of raw surface water in Brantas
River Basin and Bengawan Solo River Basin.
c. The PJT 1 employee / human resources can be utilized to conduct
consultation work for institution outside the Company.
d. The Equipment manage by PJT 1, if not used by O&M activities, can be
utilized Construction Service works with Sub Contract scheme.
e. Some of the potential Water Tourism Object in some tourism object can be
developed to support Companys revenue in tourism service.
f. The companys liquidity is sufficient to support the Companys operations.

B. GOALS

Based on the propose and target of the Company as mentioned in Chapter 1

paragraph D, the goals of the company at end of the year 2008 are:
1. To conduct the public service of fine and sufficient water and water
resource with the completion of the following:
a. The completion of the public service of the fine and balance water and
water resource usage between all water beneficiaries.
b. The completion of efficient water usage by the beneficiaries.
c. The availabilities of water resource management employee
d. The completion of the Companys health performance of Going
Concern and Disclaimer every year.
 2. To support national economy in water and water resource management
with the completion of the following:
a. The completion of the development and implementation of overall
water resource management system based on the principle of One
River, One Plan and One Integrated Management related with 6 (six)
activities management issues (Rain Catchments Area, Water Quantity,
Water Quality, Flood Control, River Environment and Irrigation
Infrastructure).
b. The acceptance of Operation and Maintenance Cost Recovery Concept
to preserve the irrigation infrastructure function.
c. The completion of cooperation with private sector in the development
and irrigation infrastructure management to support Government
Policy to increase private sector participation in form of investment in
the irrigation sector.
d. The completion of the Companys transferred / managed natural
resource enhancement to support national program in national asset
enrichment.

C. OBJECTIVES

To describe the goals mentioned in point B above and according to the major task
of the Company mentioned in the Minister of Public Works Decree No
56/PRT/1991, the goals of the Company is expected to be achieved in the year
2008 stated as follows:
1. OPERATIONS
a. Water Service
1) Brantas River Basin
No Description Units Year
2004 2008
1 PLN
a Production Billion kWh
b Tariff Rp / kWh
c Revenue Billion Rp.
2 PDAM
a Production Billion m3
b Tariff Rp / m3
c Revenue Billion Rp.
3 Industries
a Production Billion m3
b Tariff Rp / m3
c Revenue Billion Rp.

2) Bengawan Solo River Basin

No Description Units Year
2004 2008
1 PLN
 a Production Million kWh
b Tariff Rp / kWh
c Revenue Million Rp.
2 PDAM
a Production Million m3
Central Java Million m3
East Java Million m3
b Tariff
Central Java Rp / m3
East Java Rp / m3
c Revenue Billion Rp.
Central Java Billion Rp.
East Java Billion Rp.
3 Industries
a Production Million m3
Central Java Million m3
East Java Million m3
b Tariff
Central Java Rp / m3
East Java Rp / m3
c Revenue Billion Rp.
Central Java Billion Rp.
East Java Billion Rp.

b. Non Water Service

1) Brantas River Basin
No Description Year
2004 2008
1 Tourism
2 Consultation Service
3 Construction Service
4 Equipment Rental Service
2) Bengawan Solo River Basin
No Description Year
2004 2008
1 Tourism
2 Consultation Service
3 Construction Service
4 Equipment Rental Service
c. Other Services
Other Services revenue (such as land rental, sand mining license, water
quality laboratory) for Brantas River Basin in the year of 2004 is Rp 0.45
Billions and in the year 2008 predicted to be Rp 1.07 Billions, and for
Bengawan Solo River Basin in the year of 2004 is Rp 0.11 Billions and in
the year 2008 predicted to be Rp 0.13 Billions
 2. WATER AND WATER RESOURCES OPERATION
a. Irrigation Infrastructure Operation and Maintenance
b. River Catchments Area Preservation
c. Public Service Obligation
3. HUMAN RESOURCES DEVELOPMENT MATTERS
The objectives that want to be achieved in the end of the year 2008 in the
Human Resources matters are:
a. The replacement of Officers/Experts/Operators that will retire at:
No Year Brantas Solo
Retire Recruit Retire Recruit
1 2004 12 16 25
2 2005 18 18 25
3 2006 21 22 2 27
4 2007 28 13 1 27
5 2008 19 15 27
Total 98 84 3 131

b. The availabilities of professional and quantitative and qualitative sufficient

water resource companys employee.
c. The implementation of Work Safety and Healthy (K3=Keselamatan dan
Kesehatan Kerja) in the Company as the zero accident objective.
d. The achievement of entrepreneurship in the Companys employee.

4. MANAGEMENT AND ORGANIZATION MATTERS

The objectives in the management and organization matters until the end of
the year 2008 are:
a. The companys organization structure that can overcome
obstacles to achieve the goals of 2008.
b. The implementation of SMM ISO-9001 consistently and
continuously.
c. The implementation of SNI 19-17025-2000 (LKA) consistently
and continuously.
d. The increase in financial support from the beneficiaries with the
preparation of O&M activities system program and O&M activities
reporting and accountability.
e. The implementation of the Good Corporate Governance

5. RESEARCH AND DEVELOPMENT MATTERS

The objectives in the research and development matters until the end of the
year 2008 are:
a. The establishment of Inter Agency Information System in the water
resource management.
b.

6. FINANCIAL MATTERS
D. STRATEGIES
 1. BRANTAS RIVER BASIN
a. OPERATIONS
1). Water Services
a). Hydro Power Plant (PLN)
b). Raw Water for Drinking Water (PDAM)
c). Industrial Water
2). Non Water Services
a). Tourism Industry
b). Consultancy Service
c). Construction Service
d). Equipment Rental Service
e). Other Services
b. WATER AND WATER RESOURCE OPERATIONS
1). Irrigation Infrastructure Operation and Maintenance
2). River Catchments Area Preservations
3). Irrigation Infrastructure Rehabilitation
c. HUMAN RESOURCE DEVELOPMENT MATTERS
d. MANAGEMENT AND ORGANIZATION MATTERS
e. RESEARCH AND DEVELOPMENT MATTERS
f. FINANCIAL MATTERS
g. PUBLIC SERVICES MATTERS
2. BENGAWAN SOLO RIVER BASIN
a. OPERATIONS
1). Water Services
a). Hydro Power Plant (PLN)
b). Raw Water for Drinking Water (PDAM)
c). Industrial Water
2). Non Water Services
a). Tourism Industry
b). Consultancy Service
c). Construction Service
d). Equipment Rental Service
e). Other Services
b. WATER AND WATER RESOURCE OPERATIONS
1). Irrigation Infrastructure Operation and Maintenance
2). River Catchments Area Preservations
3). Irrigation Infrastructure Rehabilitation
c. HUMAN RESOURCE DEVELOPMENT MATTERS
d. MANAGEMENT AND ORGANIZATION MATTERS
e. RESEARCH AND DEVELOPMENT MATTERS
f. FINANCIAL MATTERS
g. PUBLIC SERVICES MATTERS
E. COMPANY POLICY
1. BRANTAS RIVER BASIN
a. OPERATIONS
1). Water Services
 a). Hydro Power Plant (PLN)
b). Raw Water for Drinking Water (PDAM)
c). Industrial Water
2). Non Water Services
a). Tourism Industry
b). Consultancy Service
c). Construction Service
d). Equipment Rental Service
e). Other Services
b. WATER AND WATER RESOURCE OPERATIONS
1). Irrigation Infrastructure Operation and Maintenance
2). River Catchments Area Preservations
3). Irrigation Infrastructure Rehabilitation
c. HUMAN RESOURCE DEVELOPMENT MATTERS
d. MANAGEMENT AND ORGANIZATION MATTERS
e. RESEARCH AND DEVELOPMENT MATTERS
f. FINANCIAL MATTERS
g. PUBLIC SERVICES MATTERS
2. BENGAWAN SOLO RIVER BASIN
a. OPERATIONS
1). Water Services
a). Hydro Power Plant (PLN)
b). Raw Water for Drinking Water (PDAM)
c). Industrial Water
2). Non Water Services
a). Tourism Industry
b). Consultancy Service
c). Construction Service
d). Equipment Rental Service
e). Other Services
b. WATER AND WATER RESOURCE OPERATIONS
1). Irrigation Infrastructure Operation and Maintenance
2). River Catchments Area Preservations
3). Irrigation Infrastructure Rehabilitation
c. HUMAN RESOURCE DEVELOPMENT MATTERS
d. MANAGEMENT AND ORGANIZATION MATTERS
e. RESEARCH AND DEVELOPMENT MATTERS
f. FINANCIAL MATTERS
g. PUBLIC SERVICES MATTERS
F. PROGRAM ACTIVITIES
1. BRANTAS RIVER BASIN
a. Year 2004
1). OPERATIONS
a). Water Services
(1).Hydro Power Plant (PLN)
(2).Raw Water for Drinking Water (PDAM)
 (3).Industrial Water
b). Non Water Services
(1).Tourism Industry\
(2).Consultancy Service
(3).Construction Service
(4).Equipment Rental Service
(5).Other Services
2). WATER AND WATER RESOURCE OPERATIONS
a). Irrigation Infrastructure Operation and Maintenance
b). River Catchments Area Preservations
c). Irrigation Infrastructure Rehabilitation
3). HUMAN RESOURCE DEVELOPMENT MATTERS
4). MANAGEMENT AND ORGANIZATION MATTERS\
5). RESEARCH AND DEVELOPMENT MATTERS
6). FINANCIAL MATTERS
7). PUBLIC SERVICES MATTERS
b. Year 2005
1). OPERATIONS
a). Water Services
(1).Hydro Power Plant (PLN)
(2).Raw Water for Drinking Water (PDAM)
(3).Industrial Water
b). Non Water Services
(1).Tourism Industry\
(2).Consultancy Service
(3).Construction Service
(4).Equipment Rental Service
(5).Other Services
2). WATER AND WATER RESOURCE OPERATIONS
a). Irrigation Infrastructure Operation and Maintenance
b). River Catchments Area Preservations
c). Irrigation Infrastructure Rehabilitation
3). HUMAN RESOURCE DEVELOPMENT MATTERS
4). MANAGEMENT AND ORGANIZATION MATTERS\
5). RESEARCH AND DEVELOPMENT MATTERS
6). FINANCIAL MATTERS
7). PUBLIC SERVICES MATTERS
c. Year 2006
1). OPERATIONS
a). Water Services
(1).Hydro Power Plant (PLN)
(2).Raw Water for Drinking Water (PDAM)
(3).Industrial Water
b). Non Water Services
(1).Tourism Industry\
(2).Consultancy Service
 (3).Construction Service
(4).Equipment Rental Service
(5).Other Services
2). WATER AND WATER RESOURCE OPERATIONS
a). Irrigation Infrastructure Operation and Maintenance
b). River Catchments Area Preservations
c). Irrigation Infrastructure Rehabilitation
3). HUMAN RESOURCE DEVELOPMENT MATTERS
4). MANAGEMENT AND ORGANIZATION MATTERS\
5). RESEARCH AND DEVELOPMENT MATTERS
6). FINANCIAL MATTERS
7). PUBLIC SERVICES MATTERS
d. Year 2007
1). OPERATIONS
a). Water Services
(1).Hydro Power Plant (PLN)
(2).Raw Water for Drinking Water (PDAM)
(3).Industrial Water
b). Non Water Services
(1).Tourism Industry\
(2).Consultancy Service
(3).Construction Service
(4).Equipment Rental Service
(5).Other Services
2). WATER AND WATER RESOURCE OPERATIONS
a). Irrigation Infrastructure Operation and Maintenance
b). River Catchments Area Preservations
c). Irrigation Infrastructure Rehabilitation
3). HUMAN RESOURCE DEVELOPMENT MATTERS
4). MANAGEMENT AND ORGANIZATION MATTERS\
5). RESEARCH AND DEVELOPMENT MATTERS
6). FINANCIAL MATTERS
7). PUBLIC SERVICES MATTERS
e. Year 2008
1). OPERATIONS
a). Water Services
(1).Hydro Power Plant (PLN)
(2).Raw Water for Drinking Water (PDAM)
(3).Industrial Water
b). Non Water Services
(1).Tourism Industry\
(2).Consultancy Service
(3).Construction Service
(4).Equipment Rental Service
(5).Other Services
2). WATER AND WATER RESOURCE OPERATIONS
 a). Irrigation Infrastructure Operation and Maintenance
b). River Catchments Area Preservations
c). Irrigation Infrastructure Rehabilitation
3). HUMAN RESOURCE DEVELOPMENT MATTERS
4). MANAGEMENT AND ORGANIZATION MATTERS\
5). RESEARCH AND DEVELOPMENT MATTERS
6). FINANCIAL MATTERS
7). PUBLIC SERVICES MATTERS

2. BENGAWAN SOLO RIVER BASIN

a. Year 2004
1). OPERATIONS
a). Water Services
(1).Hydro Power Plant (PLN)
(2).Raw Water for Drinking Water (PDAM)
(3).Industrial Water
b). Non Water Services
(1).Tourism Industry\
(2).Consultancy Service
(3).Construction Service
(4).Equipment Rental Service
(5).Other Services
2). WATER AND WATER RESOURCE OPERATIONS
a). Irrigation Infrastructure Operation and Maintenance
b). River Catchments Area Preservations
c). Irrigation Infrastructure Rehabilitation
3). HUMAN RESOURCE DEVELOPMENT MATTERS
4). MANAGEMENT AND ORGANIZATION MATTERS\
5). RESEARCH AND DEVELOPMENT MATTERS
6). FINANCIAL MATTERS
7). PUBLIC SERVICES MATTERS
b. Year 2005
1). OPERATIONS
a). Water Services
(1).Hydro Power Plant (PLN)
(2).Raw Water for Drinking Water (PDAM)
(3).Industrial Water
b). Non Water Services
(1).Tourism Industry\
(2).Consultancy Service
(3).Construction Service
(4).Equipment Rental Service
(5).Other Services
2). WATER AND WATER RESOURCE OPERATIONS
a). Irrigation Infrastructure Operation and Maintenance
b). River Catchments Area Preservations
 c). Irrigation Infrastructure Rehabilitation
3). HUMAN RESOURCE DEVELOPMENT MATTERS
4). MANAGEMENT AND ORGANIZATION MATTERS\
5). RESEARCH AND DEVELOPMENT MATTERS
6). FINANCIAL MATTERS
7). PUBLIC SERVICES MATTERS
c. Year 2006
1). OPERATIONS
a). Water Services
(1).Hydro Power Plant (PLN)
(2).Raw Water for Drinking Water (PDAM)
(3).Industrial Water
b). Non Water Services
(1).Tourism Industry\
(2).Consultancy Service
(3).Construction Service
(4).Equipment Rental Service
(5).Other Services
2). WATER AND WATER RESOURCE OPERATIONS
a). Irrigation Infrastructure Operation and Maintenance
b). River Catchments Area Preservations
c). Irrigation Infrastructure Rehabilitation
3). HUMAN RESOURCE DEVELOPMENT MATTERS
4). MANAGEMENT AND ORGANIZATION MATTERS\
5). RESEARCH AND DEVELOPMENT MATTERS
6). FINANCIAL MATTERS
7). PUBLIC SERVICES MATTERS
d. Year 2007
1). OPERATIONS
a). Water Services
(1).Hydro Power Plant (PLN)
(2).Raw Water for Drinking Water (PDAM)
(3).Industrial Water
b). Non Water Services
(1).Tourism Industry\
(2).Consultancy Service
(3).Construction Service
(4).Equipment Rental Service
(5).Other Services
2). WATER AND WATER RESOURCE OPERATIONS
a). Irrigation Infrastructure Operation and Maintenance
b). River Catchments Area Preservations
c). Irrigation Infrastructure Rehabilitation
3). HUMAN RESOURCE DEVELOPMENT MATTERS
4). MANAGEMENT AND ORGANIZATION MATTERS\
5). RESEARCH AND DEVELOPMENT MATTERS
 6). FINANCIAL MATTERS
7). PUBLIC SERVICES MATTERS
e. Year 2008
1). OPERATIONS
a). Water Services
(1).Hydro Power Plant (PLN)
(2).Raw Water for Drinking Water (PDAM)
(3).Industrial Water
b). Non Water Services
(1).Tourism Industry\
(2).Consultancy Service
(3).Construction Service
(4).Equipment Rental Service
(5).Other Services
2). WATER AND WATER RESOURCE OPERATIONS
a). Irrigation Infrastructure Operation and Maintenance
b). River Catchments Area Preservations
c). Irrigation Infrastructure Rehabilitation
3). HUMAN RESOURCE DEVELOPMENT MATTERS
4). MANAGEMENT AND ORGANIZATION MATTERS\
5). RESEARCH AND DEVELOPMENT MATTERS
6). FINANCIAL MATTERS
7). PUBLIC SERVICES MATTERS