Translating The Water Law Into Dynamic Modelling of The Mathematical Structural Equation : A Case of Medan North Sumatera

Abstract

To support the planning of water resources infrastructure systems for the people of Medan City, North Sumatra, it is necessary to have a model to determine the best selling price for water The distribution of water in the city of Medan is carried out by the Agency for the Development of Drinking Water Supply Systems, abbreviated as the PDAM. PDAM determines the selling price of water based on the Regulation of the Ministry of Home Affairs No. 23, 2006, which is a policy that contains guidelines and procedures for determining the selling price of water, so that it is mathematically inaccurate. Therefore, this research was conducted to translate the water law into an accurate Dynamic modelling mathematical structural equation so that it can determine the optimal selling price of water. The dynamic model is an effective, flexible, and realistic model that contains many economic variables that affect the selling price of water, so it is suitable to determine the optimal selling price of water and the development of water resources in the future. The optimal selling price of water is very relevant to educating water users to be more efficient in using and maintaining the sustainability of water resources.