Indonesia Has a New Program to Overcome Water Availability Problems

Ciliwung River (Photo: Kuncoro Widyo Rumpoko-aksikata).

Access to clean water is still a problem for some Indonesians. For this reason, to improve access to clean water for all people, Indonesia now has the Indonesia Water Fund (IWF) program.

IWF is an initiative by the Ministry of SOEs through the synergy of Holding BUMN Danareksa (Danareksa, Nindya Karya, Perum Jasa Tirta 1, and Perum Jasa Tirta 2) to provide water connections to various regions in Indonesia.

IWF exists as an effort to accelerate the provision of clean water infrastructure that is evenly distributed in Indonesia, considering that there is still an imbalance in the price of clean water between regions due to the uneven distribution of clean water infrastructure.

This is in line with Indonesia’s 2030 SDG map where the government targets 100% of the population to have access to safe drinking water sources.

“We hope that IWF can solve the big problem related to clean water, closing the gap in the need for house connections in Indonesia which also contributes to the health and welfare of the community,” said Deputy Minister of BUMN II, Kartika Wirjoatmodjo, in a statement, Thursday (20/10/2022).

On the same occasion, President Director of PT Danareksa (Persero) Arisudono Seorono said, IWF is part of a strategic initiative to help bring 10 million new home connections.

“So that access to piped water will be able to reach more people,” he said.

IWF itself will focus on three pillars that offer an investment approach with sustainable benefits and provide integrated access from upstream to downstream. This investment will be carried out through the synergy of investment from SOEs, private and foreign.

This Investment Scheme is expected to encourage investors’ interest to contribute to an investment that provides sustainable benefits, which accelerates the provision of equitable clean water infrastructure for Indonesia.

Furthermore, IWF is said to be implementing 31 clean water supply projects in Indonesia with an investment of Rp 45 trillion.

Deputy Minister of SOEs II Kartika Wirjoatmodjo said, for the initial stage, investors for the IWF program have committed to invest US$ 1 billion or more than Rp 15 trillion.

“In Indonesia, there are still many who consume groundwater, even though it should have been banned. But we must also admit that our PDAM has not been able to reach many places,” he said quoted on Tuesday (18/10).

After signing the memorandum of understanding, the Ministry of SOEs will coordinate with the Ministry of Public Works and Public Housing (PUPR) to discuss regulations and technical matters related to the clean water supply program.

The Ministry of SOEs also collaborates with city and district governments as well as local PDAMs so that the infrastructure construction process can be more measurable and benefit the surrounding community.