Factors that affect Willingness to PAY towards Supply of Water Ready to Drink Tirta Montala in Aceh Besar

Murtala, Murtala and Teuku Roli, Ilhamsyah Putra and Jariah, Abu Bakar (2020) Factors that affect Willingness to PAY towards Supply of Water Ready to Drink Tirta Montala in Aceh Besar. International Journal of Academic Research in Business and Social Sciences, 10 (6). pp. 354-364. ISSN 2222-6990

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Abstract

This study aims to estimate the value of the community's WTP in paying drinking water tariffs for PDAM Tirta Montala in the Sub District of Ingin Jaya District Aceh Besar, and analyzing the effect of income, number of family members and the volume of water needs on the community's ability to pay for PDAM Tirta Montala's drinking water tariffs in Sub District of Ingin Jaya District Aceh Besar. Estimation results show that the average capacity of the community to pay for Tirta Montala Drinking Water in the District of Mau Jaya Aceh Besar is between Rp. 70,000 - 79,999 per month. Per capita income, the number of family members and the volume of water needs, both simultaneously and partially, have a significant effect on the ability of the community to pay for the drinking water tariff of PDAM Tirta Montala in the district of Jaya Jaya Besar. Variations in the ability of the community to pay for drinking water tariffs at Tirta Montala PDAM in the Sub District of Ingin Jaya District Aceh Besar are influenced by variations in per capita income, the number of family members and the volume of water needs by 94.9 percent and the remaining 5.15 percent are influenced by other variables outside the research model this. The Montala Regional Water Company (PDAM) should no longer carry out a policy of increasing PDAM water tariffs for the next few years. The need for additional Water Treatment Plants (WTP) if the PDAM will increase the number of customers until 2030. Need further research for the planning of gradually increasing Water Treatment Plants (WTP) and network planning for PDAM service development. Keywords: Willingness to Pay

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