Water, Wealth, and the Weight of Regulation: Evaluating PERUMDA Air Minum Jereukom's Contribution to Local Revenue and Public Service in Merauke Regency, Indonesia

Regionally owned enterprises are expected to support local revenue while delivering essential public services, yet many peripheral-region water utilities struggle to balance financial performance with service obligations. This study examines the implementation of Merauke Regency Regulation No. 5 of 2018 concerning PERUMDA Air Minum Jereukom, focusing on how implementation shapes the company's contribution to local own-source revenue (PAD) and public water services. Using a qualitative case-study design grounded in George C. Edward III's policy implementation model, this research draws on interviews with eight informants, regulatory documents, business plans, financial reports, and customer perspectives. The findings show that the regulation has been implemented through formal communication, organizational structure, and local-government support, yet implementation remains constrained by fragmented data, aging pipes, high water losses, insufficient treatment capacity, and bureaucratic delay. PERUMDA's contribution to local revenue remains potential rather than realized, as accumulated losses preclude dividend distribution despite recorded net profit. Its public-service contribution is evident but uneven, particularly in coverage, water quality, continuity, and complaint responsiveness. The study contributes to policy-implementation literature by showing that, in local water enterprises, revenue contribution is inseparable from service quality, both depending on sustained investment in infrastructure, institutional coordination, and public trust.