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Thursday, 1 February 2018

Learning about WASH Innovative Financing in KSAN 2017

Learning about WASH Innovative Financing in KSAN 2017

The 2017 National Conference on Sanitation and Water Supply (KSAN) is a biennial event initiated by the Water Supply and Sanitation Working Group to encourage the commitment of stakeholders to increase access to water supply and sanitation in Indonesia. The 2017 KSAN focused in improving and optimizing financing to increase access to water supply and sanitation in order to achieve 100 percent sanitation and water supply access in 2019, as well as the agenda of Sustainable Development Goals. One financing methods discussed at this KSAN was innovative financing which includes financing through corporate social responsibility scheme (CSR), microcredit/microfinance, ziswaf funds (obligatory charity, religion disbursement) and the Government and Business Entity Cooperation scheme (KPBU).

Discussion on innovative financing through CSR, microcredit/microfinance and ziswaf funds was attended by representatives from the Directorate of Integrated Settlement Infrastructure Ministry of Public Works and Housing (PUPR), Pundi Amal Program SCTV, MUI, Baik Cooperative, and Water Supply and Sanitation Working Group in NTB. This discussion scrutinized examples of innovative financing that were facilitated by the government and implemented by companies, microfinance institutions and Baznas (National Zakat Board of Indonesia) .

As an example, CSR facilitated through cooperation with the Directorate General of Human Settlements PUPR and Lembaga Filantropi was discussed. This cooperation was impelemented so that more companies are willing to provide CSR funds. In this cooperation, Lembaga Filantropi classifies city/district with companies that have interest to have partnerships in water supply and sanitation issues. Meanwhile, the PUPR will facilitate and link the company to the city/district requiring CSR partnerships.

The next example of CSR innovative financing is Pundi Amal Program by SCTV. This program encourages parties to donate funds to build water supply and sanitation facilities.To ensure the program’s continuity and sustainability, Pundi Amal Program publishes its CSR program through the media. For example, Pundi Amal Program in Petemon, Surabaya was successful in encouraging many parties to donate, after it published its CSR program in the media. The same case can also be seen in Pundi Amal Program in the Masela islands. By giving an illustration in the media that in the islands the only water supply resource is only limited rainfall water, it will trigger concerns.

The next discussion was innovative financing through the Government and Business Entity Cooperation scheme (KPBU) with representatives from the Directorate of Public Private Partnership and Design Bappenas, Perpamsi, Bappeda in East Java, PT. Meta Adhya Tirta Umbulan and PDAM Tirtanadi. The KPBU scheme has been implemented in East Java between governments working with the private sector to support the Umbulan raw water source in Pasuruan district. The financing with this scheme has also brought many benefits, as informed by Budi Setiawan, the Head of Bappeda in East Java. “The benefits of this KPBU scheme, for example are that the selling price of Umbulan water perliter can be reduced from 7,000 to 2,400 rupiah. In addition, the quality of water produced is also better and also there is knowledge transfer of water supply management from the private sphere to the government,” said Budi.

In the future, there are several things that need to be prepared to make KPBU to become one of the financing solutions for water supply and sanitation. For example, it is necessary to prepare a forum to disseminate KPBU to PDAM as an alternative scheme for financing water supply facilities. Next, there should also be a communication forum between the head of local governments and legislative members to mainstream the KPBU.


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