Publication: Indonesia : Enabling Water Utilities to Serve the Urban Poor
Date
2006-01
ISSN
Published
2006-01
Author(s)
World Bank
Abstract
The scope of this paper is limited to
how donors and governments can stimulate owners to realize
the potential of water utilities in serving the urban poor.
As survey data indicates that reliable water utility service
is a key aspect of serving the poor, this paper focuses on
how Indonesian water utilities (PDAMs) can increase access
to the poor. It also touches on tariff reform because the
reluctance of PDAMs to connect the poor at an artificially
low tariff creates a hindrance to overall reform. However,
this discussion does not offer a comprehensive analysis or
solutions to PDAM or tariff reforms, topics that have
already been covered by several excellent studies. This
study draws heavily on recent Indonesian survey data, while
offering insights and first-hand accounts from those who
have successfully managed water utilities in serving
Indonesia's poor. Several water utility Diruts
(Direktur Utama or a utility's Managing Director) have
been able to serve the people by turning around weak
utilities and guiding them to profitability. Their solutions
on PDAM management appear in the annexes and apply mainly to
PDAM reform, which is needed for sustainable service to the
poor. This paper is more concerned with what can be done in
the short term to move toward a system based on more
reformed utilities that are led by motivated owners serving
the poor. In general, while rural settlements are built up
and maintained around water sources such as shallow wells,
the quick spread of urban pollution due to crowding quickly
eliminates clean water sources in those areas. Therefore, it
is generally cheaper to find water in settled rural areas
than in cities. Furthermore, the significant difference in
Indonesia between the sometimes artificially low price of
piped water and the high price people are willing to pay for
it often results in serious social inequalities, including
economic rents, illegal connections, water strongmen, water
smuggling from social tariff to commercial tariff areas, and
water theft.
Link to Data Set
Citation
“World Bank. 2006. Indonesia : Enabling Water Utilities to Serve the Urban Poor. © Washington, DC. http://hdl.handle.net/10986/19472 License: CC BY 3.0 IGO.”