Gap of Indonesia universal access on safe drinking water is still wide in 2017, which is big challenge for Local-government Owned Companies on Drinking Water (PDAMs) as main suppliers. Unfortunately, in 2018, around 26% of PDAMs were ‘less healthy’ and 14% were 'unhealthy'. Among the problems of PDAMs are productivity level as fundamental factor correlated with production capacity and the efficiency. This research used the Cobb-Douglas Production Function Model to measure its productivity, by using 261 PDAMs in Indonesia. The result show that the production elasticity of PDAMs in Indonesia is 1.19 (more than 1) or 'increasing return to scale' in character. This means that PDAM has the potential to use more efficient production factors, potential capital accumulation to increase number of customers, source of profit as well as attractive for investors. As many as 61.6% PDAMs (133) were classified as 'productive' and 48% of PDAMs (112) were classified as 'sub-productive'. This information is very important for revitalization of PDAMs by the Ministry of Public Works and Public Housing in order to achieve universal access of safe drinking water in Indonesia and for the self-evaluation of all PDAMs in Indonesia. Gap capaian Universal Akses Air Minum Aman masih sangat lebar pada Tahun 2017, yaitu sebesar 72,04%. Hal ini menjadi tantangan besar bagi Perusahaan Daerah Air Minum (PDAM) sebagai penyedia utama akses air minum aman. Namun demikian, pada Tahun 2018 sebanyak 26% PDAM di Indonesia tergolong ‘kurang sehat’ dan 14% tergolong ‘sakit’. Diantara masalah yang dihadapi oleh PDAM yaitu tingkat produktivitas air, sebagai faktor mendasar yang berkaitan dengan kapasitas pelayanan dan efisiensinya. Studi ini menggunakan Fungsi Produksi Cobb-Douglas untuk mengukur produktivitasnya, menggunakan data 261 PDAM. Hasil studi menunjukkan bahwa elastisitas produksi PDAM di Indonesia sebesar 1,19 (lebih dari 1) atau bersifat ‘increasing return to scale’. Artinya PDAM memiliki potensi penggunaan faktor produksi yang lebih efisien, potensi daya akumulasi kapital untuk penambahan jumlah pelanggan dan berpotensi menjadi sumber profit serta menarik bagi investor. Dari 261 PDAM yang diteliti, sebanyak 61,6% PDAM (133) tergolong ‘produktif’ dan 48% PDAM (112) tergolong ‘sub-produktif’. Informasi ini sangat penting bagi upaya penyehatan PDAM oleh Kementerian Pekerjaan Umum dan Perumahan Rakyat dalam rangka pencapaian universal akses air minum aman di Indonesia dan bagi evaluasi diri seluruh PDAM di Indonesia.
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