This study aims to assess the water supply company’s tariff modification under various circumstances. To evaluate the financial situation if no tariff modifications were made, the study first conducted an examination of the existing financial data. A tariff adjustment scenario is also run through an investment feasibility test and until it reaches the full cost recovery (FCR). A variety of scenarios for tariff adjustment were run, each one with a different percentage increase in tariffs and a different time period for the increase in tariffs. These scenarios were based on the findings of the analysis done on the water demand and the adjustment of water usage tariffs at PDAM Tirta Musi Palembang. This hypothetical situation demonstrated how higher tariffs will affect the company’s ability to increase revenue. To sum up, this study has offered a framework about tariff adjustment under various alternatives, and examples of successful and unsuccessful pricing strategies in the local water company.

The availability of clean water is the responsibility of the local government to the community by one of the regional-owned companies known as the regional drinking water company (Perusahaan Daerah Air Minum – PDAM). The company performance will greatly affect community satisfaction. This study aims to analyze the performance of PDAM Lematang Enim and assess customer satisfaction with them. The data used in this study were collected through laboratory analysis and direct surveys of the community. The data were then analyzed using quantitative statistical methods. Customer satisfaction index (CSI) analysis and quadrant analysis are used to map customer satisfaction with the services provided. The CSI score showed that a value of 66.14 can be grouped in the satisfied category. The level of customer satisfaction with the services provided by PDAM Lematang Enim can be categorized as good. Strategies for increasing customer satisfaction are formulated through strength, weaknesses, opportunities, and threats (SWOT) analysis. The results of the analysis show that customer satisfaction is included in the satisfied category. Water quality variables include that water does not smell and tastes quite good, but customers still feel that the water they receive has a different color. Strategies that can be implemented to increase customer satisfaction include focusing on increasing the most important variables according to customers, reducing spending on less important variables, and optimizing the use of appropriate technology.