Govt targeting piped water for 10m households

Adianto P. Simamora ,  The Jakarta Post ,  Jakarta   |  Wed, 09/24/2008 10:50 AM  |  National

The government has unveiled its ambitious goals of bringing piped water to 10 million households within the next five years as part of its commitment to meeting the target set under the Millennium Development Goals (MDGs).

Public Works Minister Joko Kirmanto revealed the plans after meeting with Vice President Jusuf Kalla on Tuesday, two days before leaders from around the world, including Indonesia, gather in New York to report on progress and map out agendas for the agreed MDGs.

"We have to push the supply of piped water to about 10 million households within five years. Otherwise, we will be left behind and fail to meet the MDGs target," Joko said.

The MDGs require signatory countries to provide drinking water access to 65 percent of the country's households.

Indonesia, the fourth most populous country in the world, currently provides piped water access to a mere 28 percent of its population, or 7.1 million households, mostly in urban areas.

"We are facing critical problems with the supply of drinking water. Pak Kalla gave the order to increase piped water connections," Joko said.

The ministry is required to formulate a plan of action for the ambitious target within two months, and report it to Kalla.

Joko said the plan would eventually allow 90 percent of rural households and 80 percent of medium-sized-city households access to piped water.

"The government will help provide subsidies to people living in villages so they can buy clean water," he said without elaborating.

The Drinking Water and Environment Restoration (AMPL), a network consisting of activists, state-owned tap water companies and the government, previously said Indonesia was unlikely to meet its MDGs target because of contaminated groundwater in cities and a lack of funding to expand piped water coverage.

Joko said his ministry would allocate Rp 7.4 trillion (US$795.7 million) this year to improve the quality of tap water and cut operating costs of water companies in the country.

To date, there are 335 municipal/regency-owned water firms in Indonesia. Most are burdened with poor water quality, resulting in high operating costs.

"If the companies spend Rp 2,500 to clean a meter cubic of drinking water, then sell it for Rp 1,500, they will obviously suffer from financial problems. We have to solve this problem if we want to meet the target of new piped water connections to 10 million households," Joko said.

Joko added the government would also write off debts incurred by the municipal/regency-owned water companies, in a bid to increase the rate of tap water connections nationwide. "We have agreed to write off their debts of Rp 3.6 trillion," he said.

The World Bank earlier urged the government to facilitate the debt write-off with no penalties.

According to World Bank figures, the amount owed by 206 local tap water firms to the Finance Ministry reached Rp 3.88 trillion in 2006, with 106 of the companies owing more than Rp 1 billion each.

A debt-restructuring facility has been established by the Finance Ministry, but so far only 20 local water firms have applied for it.

The World Bank also predicts Indonesia will need about US$4.6 billion to reach the MDGs target.

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