ABSTRACT

81Indonesia is one of the largest textile producers because of its high competitiveness. Most of the textile and apparel industries are located in West Java province. There are cases where the Indonesian textile industry causes pollution of ground water. This study aims to estimate the economic costs of groundwater pollution in two hamlets in Lagadar village, Bandung Regency, West Java province, which is caused by wastewater from the textile industry. Environmental assessment methods using replacement and prevention costs were carried out with primary data collected from the field with a survey of 84 households. The results show that the average expenditure of households to buy clean water (bottled water and/or tap water), build public wells, and operate public water treatment, is Rp 67,048 per month; or IDR 804,576 per year. Therefore, the total economic cost of pollution of groundwater for two hamlets (of 546 households), is IDR 36,608,208 per month; or IDR 439,298,496 per year.