Stockholm - Water sector plays a vital role in addressing poverty, health, However, one of the main issues in providing usable water is related to financing water infrastructure. Therefore, an adequate solution is needed in financing the water sector to overcome this obstacle.
In Indonesia, the development projects of water infrastructure construction to provide drinking water, sanitation, and water storage highly depends on the state budget (APBN) and regional budget (APBD). While infrastructure are required to be addressed urgently, Indonesia is still facing challenges in financing.
Minister of Public Works and Housing Basuki Hadimuljono, in his capacity as the Vice Chairman of the National Organizing Committee of the 10th World Water Forum confirmed that his party continues to encourage the collaboration between the central and the regional government, as well as the business and private sector to focus on the establishment of financial schemes for drinking water, sanitation and dam construction.
This scheme includes government cooperation with business entities (Public Private Partnership/ PPP), blended financing for large-scale projects, and micro financing for small-scale projects.
"Currently, there are several projects with PPP scheme, namely Drinking Water Supply System (Sistem Penyediaan Air Minum/SPAM) in Pekanbaru, Bandar Lampung, Semarang Barat, Umbulan, and Dumai-Rokan Hilir-Bengkalis," said Basuki Hadimuljono in World Water Week 2023 Asia-Pacific Focus Finance Session in Stockholm, Sweden, Tuesday (22/08/2023).
He added that Merangin dam, Bodri Dam, Komering Irrigation, SPAM Bintang Bano, SPAM Jatiluhur 1, SPAM Karian Serpong, and SPAM Jatiluhur 2 are currently in the preparation stage using PPP scheme.
On this occasion, Minister Basuki also invited all participants to attend the 10th World Water Forum in Bali, from 18th to 24th May 2024. "There will be three processes in the Forum, namely thematic, regional, and political. In addition, there are six sub-themes for thematic process, where investments on water are included particularly in a sub-theme entitled Sustainable Water Finance." said Basuki.
National Organizing Committee of the 10th World Water Forum