Published by Indonesia Water and Sanitation Working Group

2. Information Media for Water Supply and Editorial 1
Environmental Sanitation
Readers' Voice 2
Published by: Headlines
Working Group for Water Supply and Sanitation
Small Scale Water Provider
Advisor:
Director General for Urban and
A drop of water in the barren land 3
Rural Development, Department of Public Works Drink Water Provision in Ho Chi Minh City
Board of Trustee: Considering Small Scale Water Providers 7
Director of Human Settlement and Housing, Reportage
National Development Planning Agency Republic
of Indonesia SMU 34 Jakarta, the Winner of National UKS Competition
Director of Water and Sanitation,
UKS, not a symbol of Healthy School 9
Ministry of Health
Director of Water Supply Development, Telescope
Department of Public Works
Director of Natural Resources and Appropriate WSS Working group of Banten Province,
Technology, Director General on Village and going with spirit and commitment 11
Community Empowerment,
Department of Home Affairs Story
Director for Facilitation of Special Planning Lost Water, scarce drops 13
Environment Management,
Department of Home Affairs Interview
Director of Multilateral Foreign Financing of Bappenas,
Chief Editor:
Oswar Mungkasa Delthy S. Simatupang, SH: Project Preparation is a key to success 15
Board of Editor: Around AMPL 18
Supriyanto, Johan Susmono, Around WASPOLA 22
Indar Parawansa, Poedjastanto
Abstract
Editor: Community Empowerment in Rural Water Provision 24
Maraita Listyasari, Rewang Budiyana,
Rheidda Pramudhy, Joko Wartono, Essy Asiah, Innovation
Mujiyanto, Andre Kuncoroyekti
Water Treatment Plant (IPA) of Air Mandiri 26
Design/Illustrator: Insight
Rudi Kosasih
Water for the Poor in Jakarta 27
Production: Water Infrastructure and Poverty Alleviation Policy 30
Machrudin
AMPL Role for Sustainable Facility 33
Distribution:
Toward Independent, Transparent and
Agus Syuhada
Professional PDAM (Water Supply Enterprise) 36
Address:
Jl. Cianjur No. 4, Menteng, Jakarta Pusat Book Info 46
Phone/Fax.: 62-21-31904113 CD Info 47
http://www.ampl.or.id
e-mail: redaksipercik@yahoo.com Website Info 47
redaksi@ampl.or.id IATPI Clinic 50
oswar@bappenas.go.id
Agenda 51
Unsolicited article or opinion items
AMPL Literature 52
are welcome. Please send to our address
or e-mail. Don't forget to be brief and
accompanied by identity.
This magazine can be accessed at Water
Supply and Environmental Sanitation Website
at www.apml.or.id Percik magazine can be accessed through WSS website http://www.ampl.or.id

3. E D I TO R I A L
D
SOURCE: WWS WORKING GROUP
ear readers, welcome again in
Percik edition one of 2006.
Issued last year, Percik is co-
ming to see you all, the loyal readers,
around the country. We are always pre-
sent beside you though with unfixed
schedule. What do you think of water
and sanitation in your place? Is it better
or worse than last year?
In general, we're being exposed to
water service issues. Not all people get
appropriate service and this is our
homework left unsolved. On the other
side, the competent parties expected to
meet such demand are also encoun-
tering many problems. As result, all
have to go with market rule.
People must therefore meet water
demand from alternative sources. One
of them is small scale water provider.
Although more expensive than PDAM
and uncontrolled quality, people refer
choosing them as their water sources.
Water is an irreplaceable basic need.
Economically, the ongoing process is
reasonable. Where there is demand,
there is supply. However, seen from
characters of water buyers, which are Exhibition: Pokja AMPL Working Group and WASPOLA participated on
ICE-FTUI exhibition in March.
commonly from the poor level, it is less
advantageous for poverty alleviation. water providers is thus possible. This is tion, thesis or other research findings.
The poor have to pay more. When would what we will present in the headlines of We hope this presentation will bright
they improve their living standard if this edition. and increase your knowledge.
they spend money just to meet basic Dear readers, relating to drink water In reportage column, you will see
needs that should be obtained with and sanitation issues, we'll establish how SMU 34 Jakarta wins 2005
lower price? interview with Director of Multilateral National UKS (School Health Program)
On the other side, many problems Foreign Financing of Bappenas. This is competition. Imagine if each school im-
are still encountered to access to them. important to give clear description of plements the UKS program, it will bring
BUMD (Local Owned Companies) or our position in relation to foreign loan great outcome. In the story column, we
private ones are reluctant to serve them and how we can manage the loan in present WSLIC 2 Project damage due to
for some reasons, for example, some of order to avoid people from sustaining natural disaster. This will be valuable
the poor live in the illegal settlement or increased loan without optimum out- lessons for us, how to deal with public
they are unable to pay water connection comes. facilities under serious problems.
in advance. Therefore, there should be a In this edition, we will also present Finally, we hope Percik will serve as
breakthrough in discretion and ideas on new columns, namely regulation and your reference in the water supply and
how to provide them with cheap water. abstract columns. Regulation column sanitation issues. We are looking for-
Small scale water providers can be contains recently issued regulations ward to your feedbacks in the form of
bridge for this purpose, but they need serving as socialization, while abstract articles or other contributions.
nurture. Cooperation with large scale column contains abstracts of disserta- Regards.
Percik April 2006 1

4. R E A D E R S ' VO I C E
WSLIC 2 vs CLTS cal team, health team, there should be CIANJUR 43213
special persons-in-charge of CLTS. They Titih Titisari
The two programs are different. may be part of health team called (danelaini@yahoo.com)
However, let's see what makes these two 'Sanitation Coordinator'. They are In every publication, we always
different programs a useful thing. responsible for collecting data of people send one exemplar to all relevant ser-
WSLIC 2 is water and sanitation for who always move in the exposed places vices. We find your service has been
low income community program, espe- and recording change in their behavior listed in our record. But if you need the
cially those living in the village. This without subsidy or fund from anyone. same, we're pleased to send it to you
program runs with community partici- Certainly the people should be informed via abovementioned address.
patory approach in the decision making, that latrine is not identical with septic Thank you.
planning, implementation, operational tank.
and maintenance. All is driven by com- We have been doing this in Pono-
munity. It has four main components, rogo for WSLIC 2 during 2006. Al- SANIMAS Info
namely increased institutional and com- though CLTS training is not provided
munity capacity; increased hygiene and yet and we only learn from the guide- My friends and I are interesting in
sanitation; water and sanitation deve- book, we find this program applicable SANIMAS program, which is now being
lopment; and project management. and welcomed by the local people. developed. We also propose to make
This program is granted by World such a Community Sewerage Course.
Bank, AusAID, the Government of Bambang Apriyanto, ST We think that what we propose will be
Indonesia, and beneficiaries through PMC of Ponorogo Regency in line with SANIMAS program. We
incash and inkind. hope you will give us information and
CLTS (community-led total sanita- technical concept on SANIMAS imple-
tion) is sanitation program focusing on We never receive Percik mentation and, if you're favorable,
community awareness of latrine impor- please send us Proceedings of 2004
tance for personal hygiene and sanita- I, representing Subdin Teknik SANIMAS National Seminar held in
tion, which is implemented by conside- Penyehatan Lingkungan (Sanitary Bali. Also, we'd like to know how to
ring mapping, transect, contamination Engineering Sub-service) of Urban establish cooperation with WASPOLA.
route, and simulation. This program is Development Plan Service of Cianjur Thank you for kindly assistance.
awarded to community by referring to Regency, inform you that delivery of
their language and understanding. Percik magazine never arrives in subdin Nurul Ichsan
Women's role is therefore important in so far, which is directly related to water Sanitary Engineering of
the respect since they have sense of and sanitation service. So, to avoid UNDIP
humility. missing in disposition considering
If we look into both programs, they importance of this magazine as commu- For more information on compre-
are not contradictive each other. They nication and information media, we ho- hensive SANIMAS program, including
can even be integrated into an advanta- pe you will send the Percik magazine to seminar proceedings, please contact
geous package because they all use Head of Settlement and Regional Infra- BORDA, Jl. Kaliurang Km.6 Yogya-
demand-responsive approach. structure Service of Cianjur Regency karta 55283, Phone: 0274.888273. To
For example, in the preparation of via: establish cooperation with WASPOLA,
Community Working group in WSLIC 2, Dinas Cipta Karya Kab. Cianjur please contact Jl. Cianjur No. 4,
in addition to chairman and deputy Cq. Subdin Teknik Penyehatan Lingkungan Menteng, Jakarta Pusat, Phone:
chairman, treasurer, secretary, techni- Jl. Prof. Moch. Yamin No. 131 (021)3142046 .
2 Percik April 2006

5. HEADLINES
Small Scale Water Provider
A DROP OF WATER IN
THE BARREN LAND SOURCE: MUJIYANTO
W
ater cannot be viewed as
social property. It also has
More than 100 million Indonesian people economic value and both
cannot be separated each other.
do not have access to water and sanitation. Treating water as economic property
will eliminate its social function and
In accordance with Millennium Development Goals, undermine needs of the poor. In this
regard, government is required to
Indonesia should have been capable of reducing increase water access and quality
half of such amount in 2015 later. throughout community since it cons-
titutes their basic needs. This is an
Could it come true? How could we pursue the goals? unanswerable challenge, not only by
Indonesia but also other countries.
Are there any alternative services? Experiences found in several coun-
tries show that government tends to
Percik April 2006 3

6. HEADLINES
SOURCE: MUJIYANTO
apply low price for water management
so that they cannot increase quality of
the service or even maintain the existing
one. Though low price is said to give
benefit to the poor, not all can access to
the service and they will in turn seek
alternative water source with high cost.
This condition emerges ideas of pri-
vate involvement in the water provision.
On other side, water has become fasci-
nating 'blue gold' for the private compa-
nies to make profit. They invest large
capital into this sector. There are two
patterns of this large scale water supply,
namely state owned companies and pri-
vate ones.
They serve water supply for decades.
Unfortunately, the result is still unsatis-
fied. Many people cannot access to their
service, especially the poor. It is most
likely due to tariff and management li-
mitations. There are reasons why people
cannot access to water service provided cal studies, the small scale water c. Community scale water plant in
by the company, such as (i) high cost providers are divided into several cate- Dhulikel (Nepal) (Snell, 1998 and
and advance pay of connection prevent gories: McIntosh, 2003).
the poor from water subscription; (2) a. Providers having fixed relation with These small providers have distinc-
water cannot always satisfy their needs, water company, from which they tive characters, namely individual ini-
especially the poor; (iii) tariff structure distribute water via stalls or hy- tiative, flexible, market-adaptable in the
and low consumption by the poor make drants. For example, water stalls in context of financial regulation and tech-
the water company reluctant to serve Nairobi (Kenya), Lilongwe (Malawi), nical selection. Besides, such business
them; (iv) people living in the illegal Batam (Indonesia); public hydrants has operational efficiency in terms of (i)
settlement are not eligible to public service. in Dakar (Senegal), Mopti (Mali), cost recovery, (ii) leakage free, (iii) not
On the other side, water company Dhaka (Bangladesh); and public requiring public subsidy and loan.
are less informed of the poor so that (i) hydrants are managed by small- "Small Scale Water Provider" study
service is unsuitable with demand and holders association in Segou (Mali). funded by ADB showed that community
only focusing on unachievable technical b. Community that sell pipeline water scale water service has some characters:
standard; (ii) on-time payment is to those who haven't accessed to (i) flexible strategy and management.
unsuitable with irregular income of the facility. For example, water plant Investment and operating cost limita-
poor; (iii) lack of good communication built by community of Buenos Aires tions are addressed by choosing com-
between water company and the poor. (Argentine); water plant built by munity based technology. Community
In such a condition, Small Scale entrepreneurs of Guatemala City under service is mostly casual workers
Water Providers are thriving. They are (Guatemala) and water selling cen- so that invoicing is not conducted
there to meet water need of the poor, ter in Manila (Philippines) produced monthly but as frequent as possible
especially those living in the urban area, from river water solar treatment; according to their financial ability; (ii)
which are inaccessible by large scale tank truck and cart which take water Water company is as standard of ser-
water company or otherwise having dis- from pipeline water from which vice. Small scale providers consider
continuous water supply. This business water company cannot do service. water company their competitor so that
is potential service for the poor with low For example: Dakar (Senegal), Por- they always improve service quality as
investment. tau-Prince (Haiti), Jakarta (Indo- equal as competitor's; (iii) less apprecia-
Based on purposes of some empiri- nesia). tion from local government and water
4 Percik April 2006

7. HEADLINES
company. Investment is difficult as they ness can make 2% contribution to ser- This independency is seen from its inde-
are alleged illegal, unprofitable, and vice coverage. pendent management. Everything is
their asset cannot be audited. As result, arranged by themselves, including loss
access to credit is limited with high a. Distribution and Service and profit, while relationship with other
interest and thus investment risk is also Distribution adopted by small scale distributors, such as mobile sellers,
high; (iv) close relationship between water service has distinctive characters. serves only as provider (See table).
validity and service level. Some of them use tiered distribution
Type of water service varies, such as and some of them distribute directly to b. Price
using cart, pipeline to home (water ter- consumers. According to characters, small scale
minal), tank truck, water stall, etc. Most of them are private and inde- water providers use their own ways to
Water stall is a rapid growing business, pendent. Some come from foundation, fix water price. This depends on sources
especially I cities, for the following rea- self-support community or individual. of standard water, access distance to
sons: (i) consumers can buy water in the
adequate amount and time; (ii) capital Service and Service Area of Private Water Company
expense per house is low; (iii) better
cost recovery for water company be- NO SERVICE TYPE OF SERVICE SERVICE AREA
cause these small scale providers make 1 House connection - Continuous/shift - Crowd housing
payment as per quantity. service - Mid level housing
Furthermore, small scale water pro- - Daily supply - 40 Families range
viders can upgrade themselves as per - Runoff/bore well - Economic scale
prevailing condition. Some cases indica- connection
te that water cart can be converted to
2 Pipeline and fleet - Water purchase using - Tank truck
tank truck and even underground wa-
tank truck in the fleet
terline. In Indonesia however, there is
never small scale water providers con- base
verted to large water company. 3 Tank truck - Custom-based service - Housing with
Therefore, their existence can pro- - Minimum 4 m3 underground
mote MDGs achievement in 2015. They - Downtown and off reservoir, 6 m
are eligible to be incorporated into town coverage distance from road
water investment strategy for their
- Industries
important role in accelerating service
- Office
coverage. Nevertheless, there should be
special attention to them, especially in - Stores
terms of expensive rate as well as lack of - Refill depot
investment and legality. 4 Cart - Custom-based service - Housing with
- Service for retailer undrinkable well
Condition in Indonesia - Urban service, about water
Small scale water providers are easi- 1 RT coverage - Relatively plain
ly found in the cities of Indonesia.
- 20 liter gallon housing and easily
However, there is no complete data on
accessed by cart
such business, either from quantity or
service coverage. This is well under- - Water for drinking
stood since the business is commonly and cooking
illegal. 5 Refill - Standard water - Custom-based service
General description of this business treatment - 1-2 km coverage
can be seen from the result of survey - Custom-based service distance (driving
conducted by Settlement Research and
or on-site purchase range, motorcycle
Development Center of Public Work Mi-
delivery, direct carry
nistry and Hydroconsell in five cities of
within 200km
Indonesia (Bandung, Subang, Jakarta,
Palembang and Makassar). This busi- distance)
Percik April 2006 5

8. HEADLINES
consumer, and facility used. In general, Distribution of Small Scale Water Supply
small scale water providers fix much
higher price than formal ones, in this TYPOLOGY SUPPLIER DISTRIBUTOR DISTRIBUTOR CONSUMER
respect, PDAM. Comparison of water L e v e l1 1
TKT LTKTl 22
eve
price is presented in the following table:
No WATER VENDOR SELLING / M 3 (Rp) Small Terminal Cart House well
CART
1. PDAM 4.250
2. Small Terminal 17.500 – 15.000
Refill Depot House well
3. Bulk Terminal 10.000 – 15.000 PDAM
water
TANK TRUCK Bulk Terminal Industry
4. Electric Pump 20.000/month (40 KK)=2.222/m3 treatment
5. Refill Mineral Water 184.210 Office
6. Sealed Mineral Water 447.368
Artesian
PIPELINE well
House well
People cannot do anything to face
such a high price. This is because water Cart
is basic need that should be met even
Tank Truck
when in the outlandish price. Word
'must' is the only answer since there are Pipeline
no other alternatives.
c. Legal Base It should be recognized that articles in
Government has issued Government
this government regulation just provide large scale
Regulation No. 16 of 2005 regarding
Water Provision System (SPAM). This water providers. Article 1(9) pronounces
regulation deals with water provision, that provider includes state/local owned company,
standard water protection, authority cooperative, private company and/or community
and responsibility, supporting entity,
group which undertake drink water provision system.
financing and pricing, development and
supervision, and administrative penalty. It does not pertain to
From articles contained therein, none small scale water providers at all.
relates to small scale water providers.
Article 10 of PP, for example, says
"Distribution unit shall confirm fixed
quantity, quality, and continuity of dis- 1(9) pronounces that provider includes to give them equal opportunity.
tribution" (paragraph 2), and the next state/local owned company, coopera- International experience showed that
paragraph says "24 hours guaranteed tive, private company and/or communi- authorized small scale water providers
service". Besides, article 6 provides that ty group which undertake drink water can render continuous service with
drink water supplied by SPAM shall provision system. It does not pertain to equal quality as the formal ones but
meet quality standard (paragraph 1) and small scale water providers at all. with lower price than their illegal coun-
substandard drink water shall not be Indeed, existence of small scale terparts.
distributed to the people. Both articles water providers can be incorporated For sure, the existing small scale
will certainly be difficult to be imple- into private company or community water provider can deal with issues that
mented by small scale water providers. group, but it only regards institution large scale water company cannot. Their
It should be recognized that articles while their activities have no legality. operation is like 'a drop of water in the
in this government regulation just pro- Accordingly, there should be space barren land'.
vide large scale water providers. Article for them in the form of permit/contract (MJ)
6 Percik April 2006

9. HEADLINES
Water Supply in Ho Chi Minh City
Considering Small Scale Water
Providers
H
o Chi Minh City is the largest Ho Chi Minh City to give water access to tion program is also developed (i) to
city in the Socialist Republic of the people was materialized into policy increase water production, (ii) to
Vietnam, larger than Hanoi framework called Socialization Pro- improve quality and service coverage
capital of Vietnam. In 2004, population gram, namely a program to promote mainly in the inaccessible area, and (iii)
of Ho Chi Minh City was 6.1 million with involvement of local private companies to reduce leakage level through repair of
an area of 2,094 km2, while population to invest in the water business. This pro- water distribution network, especially in
of Hanoi City was 2.9 million with an gram was materialized into regulations the area with high leakage. To achieve
area of 921 km2. As with large cities in developed by and between the govern- the goals, these regulations offer six
the developing countries, Ho Chi Minh ment of Ho Chi Minh City and SAWACO cooperation schemes:
City is constrained in the basic infra- in 2002. The regulations have been rati- Scheme 1: Investment for Compre-
structure provision for its people, fied and announced by People's Com- hensive system; investors are to invest
including water provision. mittee of Ho Chi Minh City on August their capital for comprehensive system
In the water sector, this city is 2003. Commencing with tryout of one development, from production unit to
exposed to (i) lack of water due to rapid of small scale water providers, Hiep An distribution network and home connec-
domestic and industrial needs along Co. Ltd, and then implemented in the tion. This investment is conducted in
with economic growth, (ii) significant broader extent. the area having no access to urban water
non-revenue water, and (iii) limited In addition to creating favorable distribution network.
government fund to improve water ser- water investment climate for private Scheme 2: Investment for Produc-
vice as people demand. Such factors companies, regulation on the socializa- tion unit; investors are to invest their
make public water service called Saigon SOURCE: LINA DAMAYANTI
Water Supply Corporation (SAWACO,
formerly Ho Chi Minh City Water
Company) lies below target.
In the 2001-2005 master plan, the
government of Ho Chi Minh City tar-
geted 90% people will have water
access; however until end of 2001,
SAWACO service coverage was only
50% with 40% leakage. This condition
encouraged government of Ho Chi Minh
City to abstain from relying only on
SAWACO. Accordingly, on December
2001, government of Ho Chi Minh City
decided to establish policy framework
for promoting involvement of private
companies, including small scale water
providers as SAWACO's partner to pur-
sue the given target.
Socialization Program
Small scale water provider (the Hiep An Co. Ltd) that become SAWACO partner.
Political will of the government of
Percik April 2006 7

10. HEADLINES
SOURCE: LINA DAMAYANTI
capital for production unit scale water providers and
development. Water production community, but also by
is sold to urban water company. government of Ho Chi
This investment is conducted in Minh City and urban water
the area having access to SAWA- company. Besides increas-
CO but always exposed to lack of ing water access for the
water and low pressure. community, this program
Scheme 3: Investment for also encourages SAWACO
network improvement; to improve its performance
investors are to invest their cap- in giving public service.
ital to improve and develop Today, its service coverage
overall distribution network in is growing. According to
the certain area. This invest- SAWACO, community
ment is conducted in the area served by pipeline system
having access to SAWACO dis- is 74%, and since 2005,
tribution with high leakage SAWAC has successfully
level. made profit.
Scheme 4: Investment for
water transport; investors are to invest adopted by urban water company, Water Supply to the Poor
their capital to supply water in the either technical or quality standard. For In general, small scale water pro-
remote area by taking water from urban the reason, the government of Ho Chi viders supply water to the area inacces-
water company. Transport cost is partly Minh City requires SAWACO to provide sible by formal provider, which is com-
borne by SAWACO. technical assistance for the small scale monly inhabited by the poor. In Ho Chi
Scheme 5: Investment for perform- water providers. Minh City, water supply to the poor is
ance development in the production Benefits of the innovative underta- not only conducted by small scale water
unit; investors are to invest their capital kings are not only received by small providers but also public service
to improve and develop performance in providers such as SAWACO, including
the production unit. Sales profit will be for the poor living in the illegal settle-
shared proportionally between urban ment. This policy is just made by go-
water company and investors.
Ho Chi Minh City vernment of Ho Chi Minh City, while in
Scheme 6: Investment for distribu- People's Committee the previous time public service
P
tion network; investors are to invest providers are not allowed to give service
eople's Committee is executive
their capital to develop new distribution agency that holds central role in to the people living in the illegal settle-
network and distribute the water from Socialist Republic of Vietnam. ment.
SAWACO main meters. This agency is available in all govern- This policy is made upon considera-
Until today, investors are interesting mental levels from central to ward tion that water is the basic need for all
in most schemes except scheme 6, some (equivalent to village/kelurahan in people including the poor and having no
have been in operation and some other Indonesia). land title. However, according to Deputy
are still in negotiation or contract. In People's Committee is elected by Director of Urban Transportation &
addition to those schemes, regulations People's Council (legislatives), and Public Work, provision of this basic
also provide other aspects such as joint- People's Council is elected directly by need doesn't mean to legalize land use,
people through general election.
operation/investment procedure and thus if city government will use the land,
People's Committee in Ho Chi Minh City
delivery mechanism in the end of con- illegal inhabitants should leave the area.
consists of 1 Chairman, 4 Deputies, and
tract term or when service area has been 7 members, which represent city go- In order for low incomers to access the
covered by urban water company. An- vernmental agencies such as police de- water service, public service providers
other interesting thing to investors is in- partment, army, and all departments of should apply rate block or progressive
centives, from easy access to land use, the city level (equivalent to service). rate, in which the lowest consumption
tax exemption, even for imported goods Members of People's Committee are block will be charged below production
or equipments, investors are free of usually heads of the departments. cost. (Lina Damayanti)
import duty. However, small scale water Visit to Vietnam Report
providers shall meet standard service
8 Percik April 2006

11. R E P O RTA G E
SMU 34 Jakarta, the Winner of National UKS Competition
UKS, not a symbol of
Healthy School
SOURCE:MUJIYANTO
B
reeze is blowing to welcome every
guest in the school. A big shady
tree is swinging its leaves. Just in
the portal, a terraced water pool makes
splattering sound. The green plants
adorn each corner of the school. Such
nuance is harmonized with light green
paint of the wall and sports field.
Any corner of the school displays
notices of keeping cleanliness, say no to
drugs, no smoking in school area, and
beware of dengue fever. Dustbin, for
organic and inorganic waste, is posted
in front of the classroom. In the outer
wall, flower vases are hanging with
stems creeping downward. Every class-
room is equipped with AC and wash-
basin. Model classroom is equipped School’s environment always clean and green.
with two washbasins.
In the school having 8,747 m2 area, schools in Indonesia in the UKS and UKS should stand independently. "Few
we find none derelict room. Behind this environmental program. students are always unconscious during
3-floor school, students plant home ceremony. That's why we consider to
herbal crops. In the other corner of the Long Process prepare a special treatment room," she
school, students raise birds in the giant Realizing a healthy school is not remembered again. From the time, UKS
cage. There is also recycle house to con- easy. It needs long time and hard work. is revived by using a room in the corner
vert waste into useful things. In 2000 ago, the school had been reno- of the school.
That is condition of State Senior vated. Spirit shown by headmaster and In the early phase, this room just
High School (SMU) 34 Jakarta. teachers to realize vision and mission is contained one simple table and sleeping
Established on 13 September 1978, this considerable. This all brings the school bed. However, upon motivation and
school bears mission to increase student as one of the top best in Jakarta. fund subsidized by school in coopera-
involvement in the environmental- Outcome of this success is that UKS tion with relevant institutions such as
friendly school program. Target of being is placed in a special attention, which in Health Service, National Education
environmental-friendly school has come the past it was less important for some Service and Puskesmas (Local Clinic),
true. schools even left unattended. the school succeeded in the UKS devel-
This is more remarkable upon suc- "Previously UKS was integrated with opment. These institutions gave hand in
cess of the school to win the 2005 youth Red Cross (PMR) in the small the form of medicines, cupboards, and
National UKS (School Health Program) room," said Septina Wibarini, SPd, sleeping beds. Since then UKS has quite
Competition. Not surprisingly to say teacher and UKS SMU 34 coordinator. complete facilities. Now, the UKS has
that the school is reference for other As with growing demand however, four permanent sleeping beds and one
Percik April 2006 9

12. R E P O RTA G E
SOURCE:MUJIYANTO
emergency beds and one dental chair.
There are also medicine case and other
health extension equipments. This UKS
occupies 6 x 8 m room. "A good UKS
should have at least four sleeping beds
for one thousand students, physicians,
and dental clinic," explained Septina.
Activities
UKS is open every school hour. One
picket or more is standby every rest
hour. They are Youth Health Cadres
(KKR) serving any students that want to
get treatment, or assisting physician on
call. From Monday to Thursday, there is
a physician on call, namely dentist and
general practitioner, in shift. "The KKR
member can immediately give minor
treatment to their friend. If physician in
on call, they serve as nurses," said be associated with health," said the
Septina. teacher and UKS pioneer. Meanwhile,
UKS is open every
Every year, UKS workgroup of this KKR members serve as change agent for
school recruits new cadres. About 30
school hour. One picket other students to pursue healthy life.
students are recruited as KKR member or more is standby School facilities and infrastructures
every year or every generation. They get every rest hour. They are also conditioned to support the pro-
special training on handling minor acci- are member of Youth gram. Today, there are 36 special wash-
dent, sexology, narcotics, and AIDS. Health Cadres (KKR) rooms for 24 classrooms. Drainage also
This training involves relevant institu- gets attention, including waste manage-
tions and NGOs. Sometime, KKR mem- ment. "So, school health doesn't always
bers involve in extension program in the mean UKS," Septina affirmed.
Puskesmas. "They are core cadres of
school health program," Septina con- activities such as sport match and Challenges
firmed. others. Maintaining is more difficult than
About physicians, this teacher of acquiring. This phrase also applies to
biology explained that they come from Effects UKS SMU 34. The problem lies on the
students' parents. "They work here vo- Septina explained that UKS helps KKR recruitment, not because it is diffi-
luntarily. Especially dentists, they work increasing students' understanding of cult to recruit the KKR cadre, but how to
under agreement," she said and health and the relevant issues. For impart a spirit of the winning team as
explained that these dentists are hired example, AIDS issues. Programs they performed last year. "Their spirit is
based on parents and teachers during designed by UKS make students AIDS different from the predecessors'. It is
registration of new students, while for literate. Besides, students can make likely that they're less forged," said
prescribed medicines, the school, via direct consultation with school physi- Septina while explaining that first ge-
school committee, has established spe- cian in case they have a disease. "For neration of UKS has remarkable spirit.
cial budget every year. sure, they are more care for healthy life. Besides maintaining UKS, the work-
Every Friday, UKS and its And an important thing is that they can group still has another obsession, name-
cadres initiate mosquito control pro- easily get medicine when they get ill, ly they will build a public clinic for the
gram (PSN) in the school. This activity free of charge," she said in a smile. poor. The obsession is to realize school's
involves al students for half an hour. UKS existence will inevitably moti- social awareness. "This is our dream,"
UKS cadres serve as health team when vate all school persons to success the concluded Septina waiting the dream
SMU 34 students arrange outbound program. "Almost every subject should come true. Good luck. (MJ)
10 Percik April 2006

13. TELESCOPE
Water Supply and Sanitation Working Group
(Pokja AMPL) of Banten Province
Going with Spirit and Commitment
N
o money, no program. This is a alth Service, Educational Service and 7 members from echelon III, 2 members
common myth always encoun- Public Work Service arranged monthly from echelon II and 1 member from ech-
tered by Indonesian bureau- coordination meeting, sometimes held elon I. The relevant institutions are
crats. It is most likely that money is the at the beginning of the month. Fur- Bapeda, Bapedal, BPM, Health Service,
key. Is this myth eliminated? The ans- thermore, additional meeting was Educational Service and Public Work
wer is: Yes. sometimes held in a month. Budget for Service. Since then, Pokja has its own
Water Supply and sanitation all working group's activities, either operational budget. In 2005, budget
working group of Banten Province is meeting or outbound activities, is allocated to BPM was Rp. 127,500,000.-
one that can make it true. This team was charged to the relevant parties in shift. . In 2006, budget allocated to BPM,
established in 2003. Although no mo- In other words, they subsidize the Bapeda and Health Service increased
ney and incorporation legality, this working group. Rp. 215 million.
working group went forward until Go- Existence of the working group with-
vernor Decision was issued two years la- out legality is not apart from concern of Socialization
ter (2005). the Working group Leader, which is also Socialization plays important role
Incorporation of WSES working the then Head of Bappeda, Ir. H. for the successful program, including
group of Banten Province was triggered Hilman Nitiamidjaya. He was the only AMPL. Socialization is directed toward
by activities of National Working group echelon one official actively involved in all stakeholders including DPRD (Local
and WASPOLA held in Yogyakarta in the organization. Besides, role of House of Representative). The process
2003. Banten participants then estab- Governor and Provincial Secretary has been conducted so far although
lished a Provincial working group. On should not be undermined as well. The individually, but the outcome is not bad.
the other side, provincial government triumvirate officials always served as New Leader of Pokja AMPL of Banten
itself was committed to support this inviters in the working group activities. Province, Ir. Harmin Lanjumin, advised
effort since water and sanitation cover- As result, spirit and commitment of that DPRD (Local House of Representa-
age in this province was still low. Water those officials were transmitted among tive) support is great. According to him,
coverage was 64.35% and sanitation working group members. the DPRD agrees to allocate budget to
coverage was 53.64% of total population Activity of Pokja AMPL Banten is this sector provided that there should be
of 8,939,946 individuals. Another trig- prominent among others'. From 20 real activities that touch lower level
gering factor was frequent visit by working group available, it is likely that community.
National Working Group. Pokja AMPL is the one with frequent For bureaucrats, NGO, and universi-
Therefore, this activity runs al- and continuous activities. It is then a ty, the existence of this Pokja is well
though without money. A lack of budget "trade mark" for other sectors as well as known. This is because they always
to fuel this Working group is due to cities/regencies in Banten Province to involve in the activities held by Pokja
administrative problem of the local go- do the same. AMPL. Regency/city government in the
vernment. It is required that budget In 2005, the Pokja AMPL was legal- province has also recognized Pokja.
should be allocated clearly whereas this ized upon the issuance of Governor of Even, three of six regency governments
cannot be realized since incorporation Banten Province Decision No. 618/- have acknowledged community-based
legality is not issued yet. Kep.173-Huk/2005v dated 2 May 2005 program of AMPL, namely Lebak
Since its establishment, the working regarding incorporation of Pokja AMPL Regency, Pandeglang Regency and
group with membership being represen- Banten. The team has 20 members con- Tangerang City, while Serang Regency,
tatives of Bapeda, BPM, Bapedal, He- sisting of 10 members from echelon IV, Tangerang Regency and Cilegon City
Percik April 2006 11

14. TELESCOPE
will follow the same this year. nity in the AMPL development. socialization of Pamsimas and SANI-
Today, stakeholders, especially DPRD MAS programs.
Restrictions (Local House of Representative), are This year, Pokja AMPL Banten will
As a new working group using the waiting for the implementation of the pro- arrange 15 activities such as road show
new approach, it is reasonable if Pokja gram. They find that it takes too long to in regencies/cities that have not
AMPL is facing restrictions in the imple- make dissemination and socialization. involved in AMPL program; public dia-
mentation of the work program. The Thus, it is possible that DPRD will cut off log with regency/city; finalization of
data shows that restrictions available budget allocation to the sector. draft AMPL strategic plan to make it de-
are as follows: finitive and looking forward to Go-
Lack of valid data on water and sani- Pokja Activities vernor Decision; regular coordination
tation coverage During 2005, Pokja AMPL Banten meeting in provincial, regency and
Less attention from local government has facilitated establishment of Pokja national levels; hearing with Pokjanas
to water and sanitation (AMPL) AMPL in Lebak Regency, Pandeglang (National Working group), WASPOLA
development, which implies to limi- Regency and Tangerang City. All 2005 and foreign donors; following training
ted fund work program has been implemented held by Pokjanas; organizing national,
Inadequate people's awareness of except one, namely Public Dialog, which provincial and regency workshops'
clean and healthy life behavior will be realized this year. Pokja also pro- accomplishing APML data; assistance
Work program in local level has not vides CLTS training and development in and work visit to regency/city; synchro-
been implemented yet three villages, namely Parigi, Kertasana nization of 2007 Pokja AMPL pro-
Lack of concrete cooperation between and Rahayu Villages of Pandeglang gram/implementation; and monitoring
local government, NGO and commu- Regency. Besides, the Pokja facilitates and evaluation.
THEIR COMMENTS
Ir. Harmin Lanjumin, Leader of Pokja AMPL of Banten Province regency/city working group. I always say, "Never confusing about money." In
fact, we could make action without money. Now Pokja AMPL is a model for
other institutions and Pokja. Even some foreign donors visit Pokja AMPL
P okja AMPL Banten has been over two years. What can
we expect now for the implementation? We have allo-
cated budget to Health Service and BPM; now, what will
Banten to see our condition, which they consider successful.
Existence of Pokja can eliminate sector-centric because Pokja itself
involves in the activities. It means that Pokja also makes control. The rele-
we do with the budget? About preparation, Provincial vant institutions also involve and even request to be controlled by Pokja. They
Working group is ready, and it should be followed by are not offended if we give them ideas.
regency/city working group because they will be in direct We hope Pokja will go forward in the future along with fact that former
contact with the people. Leader of Pokja, Ir. H. Nitiamidjaya, MM is appointed as Secretary Local
DPRD (Local House of Representative) has afforded financial support to this Government. We hope he will give more attention to Pokja. I think that
sector. All they expect is implementation of the program. They don't want to Banten people will not be healthy and get substandard life if they always
know that the budget is expended only for holding numbers of meeting. So there drink inappropriate water.
is no much time by focusing only to community empowerment. AMPL has been
two years old; the DPRD likes to see reality other than strategic plan. If result is
clear, they will increase budget. That is their commitment. So, socialization Saprudin, Pokja member from BPM
A
should not take too much time to do. I think water and sanitation (AMPL) deve- ctually empowerment model has been established before Pokja AMPL
lopment is very effective for the people, especially relating to health. exists. However, it is sectoral and scattered. With Pokja, those activities
will be directed well. There will be agreement and meeting to determine
direction of AMPL development.
Ir. H. Nuryanto, MM, member of Pokja AMPL
Banten Rustiantoko, anggota Pokja AMPL dari Bapedal
P reviously I was confusing of how to build Pokja
(working group) without money. But I could remove
such confusion. We then made action without money and
Previously clean water and sanitation project (APBL) was available. Each
sector has its own program. Now, the relevant institutions may involve in the
program by using the same data. It means that all components will move in
legality. Accordingly, I use the same way to encourage one point. Pokja will ensure success, togetherness, and sustainability. (MJ)
12 Percik April 2006

15. H I S TO RY
Lost Water Source,
Scarce Course
SOURCE:MUJIYANTO
P
eople never think that their wa-
ter has gone away. They live at
the foot of Mountain Anjasmoro
for tens of years without lacking water
from Kali Sekopek. Therefore, when
WSLIC 2 project existed in this area in
2003, Kali Sekopek is one of three
sources, Luh and Benda Putih sources,
for people of Banaran Village, Kan-
dangan Sub-district, Kediri Regency of
East Java Province.
Until one morning, 24 January
2006, large flood swept away Kandang-
an area and the vicinity, which was avai-
lable in slope of Mountain Anjasmoro.
Sungai River, the so-called river, as the
main of Kali Sekopek overflowed. The
flood brought large mass of water,
woods, mud and rocks. The flood taking
six tolls dead and destroying teens of
houses in Medowo River, 1 km from
Banaran Village, blocked upstream of Dried off: Sekopek River spring is bone-dry
Kali Sekopek. Ongoing flow from the big
river never drops anymore at Sekopek to collection tank provided before. "The viduals available in one hamlet or 17
River. Upstream of the river is now only important thing, we have water," he RTs. In addition to water lost, a main
a bulk of irremovable boulders. said. collection tank of 7 m3 capacity does not
Sekopek River is but a monument, This creek's water debit is small. operate anymore.
waterless river. People of RW 1, Putuk Therefore they block the flow using sand Hadi explained that his people do
Hamlet of Banaran Village which usual- sacks. Tens of sand sacks were put in not have any alternatives so far to
ly rely on this river are now desperate. rows. And water intake from Sekopek replace water of Kali Sekopek. If there
Water flow to houses stopped for two River was removed to this source. The were any adequate alternatives how-
days. Hadi Suwito, Head of Banaran result is not bad. Water flows again. But, ever, his people would be ready to give
Village and Chairman of HIPAM (Water people should be patient. Water is given contribution. "People have no problem
Consumers Association) Margorukun in shift, yet it is dirty and odor. "In the to collect money because they fully rely
explained that such condition has forced past water of Kali Sekopek was clean," on the board," Hadi confirmed.
HIPAM board to find the way to run Hadi said. Hendra CF that ever assisted WSLIC
water back to their homes. As emer- WSLIC 2 plant delivered in 2005 2 in the village contended that there are
gency alternative, people run the creek was serving 3133 families or 1,800 indi- two alternatives available, namely to
Percik April 2006 13

16. H I S TO RY
SOURCE:MUJIYANTO
theft ever occurred in the source loca-
tion, while it was close to the village.
Hadi Suwito admitted that he never
thinks so far. Moreover, his side has no
idea where to find such fund that he
ever got from the WSLIC 2 project.
Since disaster, people have never ar-
ranged meeting to discuss their water
fate in the future. All to be done is to
take emergency response to damaged
installation. "People can actually make
contribution, but it is surely not impo-
sed on them, isn't it?" he said.
People contribution of Rp. 1,500 per
family per month, which has been collected
so far was expended for maintenance cost.
Even HIPAM board is not paid for the
work. Today, since water is clogged, people
do not pay contribution anymore, except
those continuously receiving water from
Emergency: Residents make emergency dam to catch water Bendo Putih source (51 families) and Luh
source (50 families).
maintain the existing emergency water the year. "I think the latter is appropri- Water installation in Bandaran is
source or to take water from Medowo ate but it depends on people and fund different from that in Medowo. In
River through pipe. Limitation of the availability," Hendra said. Medowo, whole water installations from
former is that water contains mud, Hendra valuated that pipe procure- WSLIC 2 project is totally defect. As
small debit and often dried during dry ment requires about Rp. 25 million. It result, local government of Kediri re-
season. However, it is cost saving. excludes installation and intake base gency allocates fund for settlement re-
Limitation of the latter is that it needs cost. "This is rough valuation. We have pair, including water facility. Mean-
large cost to procure pipe of over 1,200 not considered pipe safety and other while, Banaran as affected village, is out
m long. However, the water runs along factors," he said and added that pipe of attention. (MJ)
B anaran village is situated in the
foot of Mountain Anjasmoro. Topo- Banaran alternative was chosen.
People flowed three water sources
at G l a n c e
graphically, it lies in the hillside, available in the village. The three so-
northeast of Kediri Regency. It is bor- urces were situated in Perum Per-
dered by Jombang Regency. Population hutani area. Each of them was alloca-
totaled 2,200 individuals. They live ted for different people as per dis-
from agriculture and plantation. tance, house location and water ca-
Water is the main problem for the me being, every person was willing to pacity.
people. Previously, they took water pay in cash. Therefore, fund collected was also
from the creek crossing in the Perum With MPA/PHAST process, people different. For those getting water
Perhutani area. Water management determined themselves what to be from Bendo Putih should contribute
was self-supported by people. Those built. There were three options, na- Rp. 20,000/month; from Luh was Rp.
living in the downstream can get wa- mely pipeline, manual well and pump 18,000/month and from Sekopek was
ter by digging wells. well. Second alternative was difficult Rp. 26,000/month.
When WSLIC 2 project entered in to meet because well depth varies, Before disaster, all goes smoothly.
2003, people welcomed them enthusi- some might reach 50 m deep, while People's contribution was also ade-
astically. They gave contribution as third alternative was not chosen due quate. But since the incident, water
required to get the project. In the ti- to high maintenance cost. Finally, first flow is sluggish. (MJ)
14 Percik April 2006

17. I N T E RV I E W
Director of Multilateral Foreign Financing of Bappenas, Delthy S. Simatupang, SH.
Project Preparation
is a Decisive Factor
sectors. Provided water and sanitation
N ational Budget is not ade- Today, Bappenas is establish-
SOURCE: MUJIYANTO
sector is priority for the government, it
quate to meet the deve- ing Government Borrowing Stra-
lopment demand. The govern- tegy to improve foreign loan should always be financed from both so-
ment should inevitably bor- management. From macro econo- urces.
row from foreign creditors. my, the strategy includes demand
Until December 2005, Go- and usage plan of the foreign
Where do we get financing so-
vernment of Indonesia's debt loan for 2006-2009. From micro
to foreign creditors totaled economy, the strategy includes urces come so far?
US$ 61.048 billion. Such strict evaluation on project pro- We divide the sources into three:
amount was 45% of Gross Do- posal through three screening first, bilateral countries; second, multi-
mestic Product (GDP). devices, namely focus on priori-
Government proposes to ty, criteria of project implemen-
lateral agencies (ADB, World Bank,
reduce credit amount by set- tation and preparation, and European Community, etc.); and third,
tling the credit that has been already allocated, improved and evaluation quality. The only well- commercially. Meanwhile, credit itself is
clearance of the credit in progress, and taking prepared and qualified project will get foreign divided into three, namely grant, soft
into full consideration when establishing new loan, while the unprepared ones will be removed
credit proposal. On the other side, the govern- away. credit and commercial credit, and from
ment will take necessary efforts to increase GDP To know more about foreign loan and its soft and commercial credits, we know
growth through an increase in investment and relation to the new strategy, the following is pre- such a mix credit.
improved economic foundation as well as main- sented interview between Percik and Director of
taining stability of macro economy. In 2009, fo- Multilateral Foreign Financing, Delthy S.
reign loan will expectedly reduce to 31.8% of GDP. Simatupang, SH. What characteristics of the
credit?
Characteristics of one credit to
I
s it likely that we don't rely on source to accelerate MDGs in this sec- another are different. Bilateral credit is
foreign loan in water and sa- tor. I think we still need foreign loan. commonly soft credit with 25-40 years
nitation sector? installment period and 0.75-2.5% inte-
We don't need to rely on foreign loan Is there guarantee that using rest. There is usually grace period of 5-7
as long as our APBN is adequate. How- foreign loan, we will achieve the years. Credits differ based on their cha-
ever, water and sanitation sector has goals? racteristics, namely tied and untied.
been included into World MDGs. If we At least we will approach the Tied means that goods and services sho-
see, to achieve the 2015 Millennium De- expected condition in 2015. uld be procured by creditors. United
velopment Goals (MDGs), we will be left means that goods and services may be
behind when only relying on our Na- How's the trend of this sector procured through international compe-
tional Budget (APBN), while we cannot financing in the future? tition. There is also exception, for exam-
even make investment for water sector. If our APBN tends to recovery, we ple Japan, where 30% goods should be
Mr. Basah ever stated that we need Rp. will use APBN and PHLN (Foreign Lo- procured from Japan and the remaining
15 trillion to meet only clean water, not an) to finance this sector. This is a rea- may be done through international
drink water. Until today, our APBN can- sonable choice although it will change competition. Multilateral credit is usu-
not subsidize such amount. Therefore, if financing composition. If APBN gets re- ally general untied.
we only rely on APBN, we'll need too covered, the portion will be better as
long to realize the MDGs, maybe until well. We hope that PHLN portion will be Which is cheaper, bilateral or
2030. So, foreign loan is one financing reduced. This certainly applies to all multilateral?
Percik April 2006 15

18. I N T E RV I E W
There are two opinions based on If this is not fixed, the ownership posal and negotiation is the most critical
project operators' experiences. Con- will be highly insufficient. This occurs one. We will consider it carefully and we
ventional bilateral is cheaper based on during pre-design phase, then how if will apply the so-called readiness crite-
cost of borrowing. However it is much this occurs during negotiation phase. I ria.
more expensive based on cost project often find that during negotiation,
since it is tied. On the other hand, the donors or their consultants talk more. Why should we be stringent in
International Competitive Bidding This indicates that their ownership is the readiness criteria?
(ICB) has high cost of borrowing but small. We cannot expect that project Because complying with all criteria
lower cost of project since it is obtained runs well if the ownership issue emerges will reduce issues available in the pro-
from international competitive bidding. since in the design phase. ject implementation. We have evaluated
The bilateral one is LCB (Limited Com- the project for the recent 10 years of why
petitive Bidding), meaning that it is only the projects are not on time, project
tendered in the donor country. We can Therefore, to avoid higher cost, extension does not run, etc. We find, for
imagine how could it be if companies in government should provide example, issues of land provision, assis-
the relevant country regulate the pricing money for preparation of the tance fund, and other minor issues such
and bear higher cost from the set ten- project. Why should the project PMU and PMG that should be esta-
der. The price will not as competitive as be expensive? Because we blished from the beginning. We want
in ICB. We just choose which one we that all issues have been fixed from the
usually get the price from PPTA
prefer. beginning. So far, the issues are not
or TA of the creditor. This
clear. We used to go for negotiation with
How far does the bidder/pro-
makes larger size of the project unclear issues. As result, as we execute
ject owner involve in project quo- and this relates to portfolio negotiation, the project does not run.
tation during preparation phase? of their credit. And as consequence, we should pay the
The important thing is that owner so-called unnecessary commitment
estimate should be well supported. This So, the projects do not run well charge, which means government loss.
is what the project owner must take into just because of ownership issue? The project will take longer time and
account. In determining price unit, they Ownership is not large because it all this also bears cost and benefit will
should know in detail. Experiences indi- depends on consultant. The project change. For example, we would like to
cated so far that owner estimate is do- ownership is under question. build water facility in a city. It should be
minantly worked on by external techni- completed in 2012 but it is in fact com-
cal assistance so that the price is more Does it mean that project pre- pleted in 2012. This is beyond the
expensive. Therefore, to avoid higher paration crucial? schedule. And service coverage will be
cost, government should provide money Preparation of the project is crucial. smaller because of increase in popula-
for preparation of the project. Why We in Bappenas will be strict in making tion. We do not pay attention to this so
should the project be expensive? Because preparation of the project, from pre- far and we tend to work out of proce-
we usually get the price from PPTA or paratory work, negotiation, until moni- dure. Creditors do not care because
TA of the creditor. This makes larger si- toring. It means that we should have upon execution of contract, they receive
ze of the project and this relates to port- quality since presentation of the idea. 1%. Bank remains a bank although it is a
folio of their credit. Just make sense. This is called quality at entry. This will development bank. They do not know
Consultant is paid by them other than be in the bluebook. So it has been select- free charge. Therefore, we should take it
by our government in providing us tech- ed from national priority, budget and seriously into account regarding the
nical assistance. It is reasonable that suitability with Mid-Term Development readiness criteria.
their ownership is in the donor country, Plan. When the project enters into the
not in ours. The design is therefore mo- bluebook, it means that project is ready Does it mean there is a change
re expensive. The problem now is that to be funded through foreign loan. After in paradigm in relation to project
the government does not provide money that, the project will compete again in preparation?
for preparation of the project. If any, it our proposal to donor country. And we Our previous experiences showed
is not sufficient so that preparation is will see again selection of priority that when we want to make negotiation,
taken over by the foreign consultant. among sectors. Timeframe between pro- they (creditors) set out such criteria. But
16 Percik April 2006

19. I N T E RV I E W
it is not negotiation criteria but post- Work. Now it must be shared. This is government. Loan for local government
negotiation criteria. What happened exactly for ready and priority project. has its own criteria. One of them is
then? After negotiation we cannot meet And this is not only for the project ha- measured from their fiscal capacity.
the criteria. Now we reverse, we will not ving cost recovery but also for social Many local governments do not meet
make negotiation if not meeting the cri- projects. This never occurs before. such given criteria. It means that local
teria. They got shocked because there government is not eligible for the loan,
was no one stepping forward for negoti- whereas water is the basic need. This is
READINESS CRITERIA:
ation. From creditor side, they'll lose a dilemma. On the other side, eligible
Project organization
market. Finally, all portfolios were local government may borrow through
Financing plan and provision of assistance
reduced. World Bank's reduced. Just central government; this is called
imagine, from US$1.2 billion it reduced fund onlanding. This also bears problem be-
to US$100-200 million. ADB's even got Preparation of goods and services procure- cause they're not willing to do so. They
zero. Now, project with good prepara- ment document in the first year only want the fund is used for cost
tion will result in good implementation. Land relinquishment and people relocation recovery project so that they can settle
Therefore, readiness criteria should be (for physical project) the loan. Meanwhile, water and sanita-
considered either local government or Establishment of project achievement indi- tion, especially for the poor, are inclu-
the relevant ministry. cators as basis for monitoring and evalua- ded into non cost recovery. Local go-
tion vernment will not take the loan for such
How to make effective and effi- Project implementation directive purpose.
cient foreign loan?
Project preparation is so crucial. How to solve the problem?
Now Bappenas is establishing the borro- With the project preparation, Today, Ministry of Finance is pro-
wing strategy, which provides our bor- will it not delay implementation of cessing KMK 35 for revision. There is
rowing capacity and the projects funded the project? also revision of Ministry of Finance
from foreign loan should be derivative Actually the project should not be Regulation for on granting. We hope
of projects under Mid-Term Deve- delayed. On the other hand, better this will give contribution to problem
lopment Plan. The project is no more preparation of the project will accelerate solution.
standing alone. We're looking forward project implementation. Project prepa-
that the strategy will reduce government ration is inadequate so far and thus Is it likely that we cannot
loan to 31.8% in 2009. And we can con- implementation is delayed. Therefore, expect grant?
trol our loan stock. Thus we can allocate preparation should require longer time. Grant is always available but the
the loan to each priority sector and each amount is not large, so that we cannot
sector will have ceiling value. With fixed What would be challenges in expect them as development fund. The
borrowing capacity, creditors will com- the future encountered by AMPL amount is not significant. Grant given to
pete to finance the projects. For exam- sector in relation to foreign loan? us is more related to preparation of the
ple, our borrowing capacity is US$2.5 AMPL sector has its own challenges. project. We even call them foreder.
billion per annum. With large number These relate to application of Law No. Therefore, we should be careful when
of creditors, the value offered may be 33 regarding decentralization. It means receiving such grant because it could
three folds larger. However, we can only that with this Law, AMPL issue has been undercover loan. This is important for
borrow such extent so that they will authorized to local government. Inter- us to identify and anticipate. PPTA
compete to fund the projects. Thus, vention of central government should be (Project Preparation Technical Assis-
project preparation will be better and eliminated. In fact, capacity of local go- tance) could in turn undercover the
put in priority. Besides, we also have to vernment is limited. And central go- loan, except IDTA from ADB, which is
be discipline against foreign budget. It is vernment will finally make intervention. soft loan. To be or not, it doesn't matter.
different now. Each ministry wants to No problem if the funding sources are So that, relevant ministries and local
borrow according to its demand. For from APBN (National Budget). But if government should take necessary care
example, if US$2.5 billion were to be the fund is originating from foreign when receiving any grants because
borrowed by Ministry of Public Work, it loan, it will bring about the problem PPTA is tied although it does not men-
might be all for the Ministry of Public because the financing should be for local tion the same. (MJ)
Percik April 2006 17

20. AROUND AMPL
Small Scale Water Providers Workshop
in North Jakarta
S
mall Scale Water Providers is an Small Scale Water Providers give remaining depend on other sources
inevitable issue. This is because contribution to approximately 2% of including SSWPs.
there is an urgent need by people service coverage. This study also There are four SSWPs service pat-
and, on the other side, water company showed second potential of 8% of terns in the North Jakarta area: (i)
cannot cover all community levels. To the people using other alternatives cart vendor, (ii) tank truck vendor,
know more about their role of water such as public well, river and rain- (iii) small terminal vendor and (iv)
provision, a Small Scale Water Provi- water. pipelining. The dominant pattern is
ders Workshop was held on 23 February cart vendor.
2006 ago in North Jakarta. For North Jakarta case, SSWPs ge-
This workshop was attended by re- nerally depends highly on formal
The workshop
presentative of relevant institutions ones. Until today, however, water
(Bappenas, PU, Depdagri, BPPSPAM), was filled with resale right to the areas uncovered
relevant services of DKI Jakarta Pro- presentation being by formal providers or illegal settle-
vince, sub-districts and villages in the divided in two sessions. ment has not been stipulated by go-
North Jakarta, water operators (PAM First session discussed vernment. Besides, the government
Jaya, TPJ, and Regulatory Body), about results of the has not issued any regulations on
Settlement Research and Development small scale water providers re-
study on Small Scale
Center of PU, Hydroconseil Consultant, garding permit, service area, quality
NGO, WASPOLA and Pokja AMPL. The Water Providers. and standard pricing.
workshop was opened by Director of International experience showed
Housing and Settlement of Bappenas, that authorized small scale water
Basah Hernowo. providers can render continuous
He stated that limited access to ade- In general, SSWPs service is divided service with equal quality as the for-
quate and safe water facility remains into three: (i) pipeline to house, (ii) mal ones but with lower price than
unsolved. According to him, some peo- tank truck and (iii) cart. Besides, their illegal counterparts.
ple have not obtained service from for- service pattern also varies per city; For development of SSWPs regula-
mal providers and most of them are the the most variable is Bandung with tory body in Indonesia, recommen-
poor. This group of people will be then eight patterns and the least variable dations are made, for example, plan-
consumers of Small Scale Water Provi- is Makassar with three patterns. ning and regulation should involve
ders (SSWPs). Therefore, we should This variation is considered relating SSWPs, formal agreement/permit
consider the role SSWPs will play in the to availability of standard water; the with key SSWPs for definitive term
future. more limited standard water, the until formal providers can cover the
The workshop was filled with pre- less service pattern can be estab- service.
sentation being divided in two sessions. lished. Discussion is aimed at making
First session discussed about results of For further SSWPs service, this stu- SSWPs partner of formal providers in
the study on Small Scale Water Pro- dy showed that pipeline service is in expanding their service coverage as
viders. the top rank followed by tank truck alternative solution until the formal
The presentation produced some and cart. provider can serve the coverage area.
important results as follows: Study conducted in North Jakarta Service offered by formal providers
Results of study in five cities (Ban- showed that only 50% North Jakarta remains the best alternative because it
dung, Subang, North Jakarta, Pa- people obtain service from Formal can give better and coverable service
lembang and Makassar) showed that Scale Water Providers, while the than SSWPs'.
18 Percik April 2006