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USAID-SECO Partnership to Bring Piped Water to More Urban Indonesians

USAID-SECO Partnership to Bring Piped Water to More Urban Indonesians

High non-revenue water and low energy efficiency rates have been recognized as critical areas of water utilities (PDAMs) across Indonesia for some time. BPPSPAM estimated on average PDAMs in Indonesia had 33% non-revenue water in 2017.

An energy audit by USAID IUWASH from 2004 to 2010 indicated that many PDAMs spent more than more than 30% of their operating budget on electricity costs. High levels of non-revenue water and poor energy efficiency prevent PDAMs from funding necessary expansion of services, especially for low-income households.

To improve this situation, USAID finalized a partnership and cooperation agreement with the Swiss State Secretariat for Economic Affairs (SECO) to provide US$4.5 million to the USAID IUWASH PLUS project. This contribution will address non-revenue water and energy efficiency issues by advancing the technical and financial performance of seven PDAMs in West and Central Java, namely Depok city, Bogor District, Karawang District, Surakarta City, Magelang City, Magelang District, and Sukoharjo District from 2019 to 2021.

Through this partnership, non-revenue water will be reduced by 5% to 7.5%, energy efficiency will be increased by 15%, and 600 PDAM staff will receive targeted capacity building to better manage non-revenue water.

In celebration of this partnership, USAID IUWASH PLUS conducted an event on June 26, 2019 in Jakarta. Many high-ranking officials were present, including the U.S. Ambassador, the Swiss Ambassador, and the Minister of National Development Planning (BAPPENAS), Bambang Brodjonegoro. Representatives from the seven PDAMs and local governments—including the Regents of Karawang and Bogor, Mayor of Magelang, and Vice Mayor of Surakarta—as well as journalists were also in attendance.

During the event, the representatives from the seven local governments signed a commitment letter witnessed by the Director General of Human Settlement of the Ministry of Public Works and Housing, Danis H. Sumadilaga, to show commitment to reduce the non-revenue water and increase efficiency energy.

“The Swiss Government’s support will enable PDAMs to expand and improve service, enhance financial performance, and reduce energy consumption. In addition to high non-revenue water, SECO’s contribution will also target energy consumption,” said the Swiss Ambassador, Kurt Kunz.

The U.S Ambassador, Joseph R. Donovan said, “Thanks to the Swiss Government, we can now pilot new measurement systems in seven water utilities in West Java and Central Java. This system will help these utilities save money, save water, upgrade to more energy efficient equipment, and improve maintenance. All of these endeavors will allow them to bring clean water access to 60,000 urban Indonesians in low-income areas.”

Closing the event, the Minister of Bappenas said, “The technical assistance provided under the partnership between USAID and SECO could contribute to improve PDAM. I hope the lessons learned from all these endeavors are compiled and replicated to other regions.”

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