NEGARA ~ Management of Jembrana Water Company, or Megumi, were questioned by legislators this week over losses in the last quarter, officials said.
In the first half of the year, Megumi saw losses of Rp120 million (Rp13,200), causing problems finding investors and angering Jembranaâ€™s House of Representatives.
Since Megumi, which processes seawater for drinking, was created five years ago, it has struggled to grow.
Megumi Cooperative, which originally managed the company, set up the firm in an attempt to increase profits, but it was not able to succeed.
â€œPolicy must be reviewed again if we want to see Megumi make money,â€ a member of the budgeting committee of the Jembrana House of Representatives, Iskandar Alfan, said.
â€œThe piping of Megumi water is inefficient, which is why there are not many people consuming their water. The company will suffer even more losses is the management donâ€™t rethink their policies,â€ Alfan said.
The companyâ€™s management, meanwhile, said authorities in Buleleng and Denpasar had agreed to market Megumi water in their regencies.
The management only had a small amount of capital to produce the water, so could therefore only produce a small amount of water, which hindered the companyâ€™s growth, said Alfan.
â€œItâ€™s hard to reach the breakeven point, especially after the rising of petrol prices. And Megumi water is more expensive than other waters,â€ he said.
A current plan, he added, was to sell Megumi to investors who wished to cooperate with the regional company.