WILLINGNESS TO PAY FOR QUALITY IMPROVEMENT OF PDAM TIRTAMARTA IN YOGYAKARTA CITY: CONTINGRENT VALUSTION METHOTAPPROACH
Abstract
Yogyakarta City is one of the city that growing rapidly in line with increasing of the populations. Increasing population growth will also increase the need for clean water. PDAM Tirtamarta is a public service provider that has a role in clean water management for the benefit of the people in the area of Yogyakarta City, that has a number of customers of PDAM Tirtamarta 29.954. To fulfill the needs of clean water, PDAM Tirtamarta need to make quality improvement, in this research is the repair of the leaking pipe into a new pipe. The purpose of this research is to analyze the factors that influence willingness to pay of household customers to improve the quality of PDAM Tirtamarta in Yogyakarta City.
This research used contingent valuation method (CVM), which was measured by the value of willingness to pay (WTP). Data collection techniques of 308 respondents in this research used dichotomous with direct interviews and binary logistic regression, the research found that 88% of respondents were will to pay for quality improvement of PDAM Tirtamarta, the variables of income, education, water quality, and customer satisfaction significantly influence the willingness to pay, whereas the variables of house ownership and the family members have no effect on it.
Keywords: willingness to pay;