PAM Jaya Prepares Rp 22.8 Trillion Investment for 13,000 Km Water Pipe Overhaul in Jakarta

PAM Jaya is preparing a substantial investment of Rp 22.8 trillion (approximately $1.4 billion USD) to undertake a massive 13,000-kilometer pipe rejuvenation project across Jakarta. The primary objective is to tackle the persistent issue of non-revenue water (NRW), a critical challenge for the city's water supply system.

According to PAM Jaya's President Director, Arief Nasrudin, the company plans to initiate market sounding in December 2026. This process will help identify suitable investment schemes for the extensive pipe replacement. Nasrudin emphasized the need for careful planning due to the significant financial commitment required, noting that PAM Jaya's current financial standing is relatively healthy.

"We must carefully calculate whether such a large investment can provide adequate returns through a business-to-business (B2B) scheme," Nasrudin stated. He further explained that reducing NRW is a top priority, defining it according to Ministry of Public Works and Housing regulations, which categorizes water loss into three types: unauthorized official consumption, commercial losses, and physical losses.

Nova Harivan Paloh, head of Commission B of the DKI Jakarta Regional People's Representative Council (DPRD), has lauded PAM Jaya's comprehensive approach to addressing NRW. Paloh acknowledged the considerable cost associated with replacing the 13,000 kilometers of pipeline but expressed appreciation for PAM Jaya's efforts. He also urged the company to expand household connections to ensure optimal water utilization by residents, suggesting that increased connections could further help reduce NRW.