In Jakarta, poor families refuse cheap tap water because they simply don't trust the system.
March 19, 2026
Original Paper
Perception over Price: Averting Behavior and Risk in Jakarta's Water Sector
SSRN · 6437519
The Takeaway
Despite piped water being significantly cheaper, only 11% of residents use it for drinking, opting instead for expensive bottled water. The study reveals that household income has zero effect on this choice; instead, decades of government service failures have created a 'crisis of public confidence' where even the most economically constrained households prioritize perceived risk over price.
From the abstract
Despite 67% piped water coverage, only 11% of Jakarta residents use it for drinking, engaging instead in costly averting behavior. This study investigates whether this widespread aversion stems from economic constraints or risk perceptions shaped by institutional distrust. Using survey data from 725 households and ordered logistic regression, we test these competing explanations. The findings are conclusive. Household economic capacity shows no significant effect (p > 0.05), while perceived risk