Indonesia : Enabling Water Utilities to Serve the Urban Poor

The scope of this paper is limited to how donors and governments can stimulate owners to realize the potential of water utilities in serving the urban poor. As survey data indicates that reliable water utility service is a key aspect of serving the...

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Bibliographic Details
Main Author:	World Bank
Format:	Policy Note
Language:	English en_US
Published:	Washington, DC 2014
Subjects:	ACCESS TO WATER ADEQUATE WATER AFFORDABLE WATER ALTERNATIVE WATER ALTERNATIVE WATER SOURCES ALTERNATIVE WATER SUPPLIES BILL COLLECTION BULK WATER CENTRAL GOVERNMENT CIVIL SOCIETY CIVIL SOCIETY INVOLVEMENT CLEAN WATER COMMUNITY DEVELOPMENT COMMUNITY GROUP COMMUNITY GROUPS COMMUNITY INVOLVEMENT COMMUNITY WATER CONNECTION CHARGES CONNECTION FEE CONNECTION FEES CONSTRAINED WATER SUPPLY DEVELOPMENT CONSTRUCTION CONSUMER OVERSIGHT CONSUMPTION BLOCKS COST OF WATER COST RECOVERY COST SAVINGS CROSS-SUBSIDIES CUBIC METER CUBIC METERS DEEP WELLS DEMAND MANAGEMENT DISTRIBUTION SYSTEM DISTRIBUTION SYSTEMS DRINKING WATER FIXED CHARGE FREE WATER GOOD WATER SUPPLY HAND PUMP HANDPUMPS HOUSE CONNECTION HOUSE CONNECTIONS HOUSE WATER CONNECTION HOUSE WATER CONNECTIONS HOUSEHOLD CONNECTION HOUSEHOLD CONNECTIONS HOUSEHOLDS HYGIENE INTERMITTENT WATER SUPPLY IRRIGATION IRRIGATION WATER LAKES LOCAL AUTHORITIES LOCAL COMMUNITY LOCAL WATER LOCAL WATER UTILITIES LOCALITY LOW WATER LOW-INCOME HOUSEHOLDS MAINTENANCE COSTS MANAGEMENT OF WATER MANAGEMENT OF WATER SUPPLY MANAGEMENT OF WATER SUPPLY OPERATIONS MARGINAL AREAS METER READERS METERING MONTHLY BILLS MONTHLY HOUSEHOLD WATER MONTHLY WATER MONTHLY WATER BILL MUNICIPAL WATER NATIONAL WATER NATURAL RESOURCES NUMBER OF CONNECTIONS OPERATORS OWNERSHIP OF WATER PAYMENT OF CONNECTION FEES PIPE PIPED WATER PIPES POOR URBAN HOUSEHOLDS PRESSURE PRICE OF WATER PROJECT MANAGEMENT PROVISION OF WATER PUBLIC COMPANY PUBLIC TAP PUBLIC UTILITY PUBLIC WATER PUBLIC WATER UTILITIES PUBLIC WORKS QUALITY OF SERVICE QUALITY WATER QUANTITIES OF WATER RAINWATER RAINWATER COLLECTION RAINWATER HARVESTING RAINWATER STORAGE RAW WATER REGIONAL DEVELOPMENT REGULATORY BODIES REGULATORY FRAMEWORK RELIABLE WATER SUPPLY RIVERS RUNNING WATER RURAL SETTLEMENTS SANITATION SANITATION STRATEGY SERVICE STANDARDS SHALLOW WELLS SMALL SCALE PROVIDERS SMALL-SCALE WATER SMALL-SCALE WATER PROVIDERS SMALLER TOWNS SOURCES OF WATER SQUATTERS STAKEHOLDER INVOLVEMENT STANDPIPE WATER SUPPLY WATER TARIFF ADJUSTMENT TARIFF ADJUSTMENTS TARIFF COLLECTION TARIFF INCREASE TARIFF POLICY TARIFF RATE TARIFF RATES TARIFF REFORM TARIFF SETTING TARIFF STRUCTURE TOWN TOWNS TREATMENT PLANT URBAN AREA URBAN AREAS URBAN POLLUTION URBAN WATER USE OF WATER USER CHARGES USERS UTILITY MANAGEMENT UTILITY OPERATIONS WASHING WASTEWATER WASTEWATER RECYCLING WATER AVAILABILITY WATER BILLS WATER BODIES WATER COMPANIES WATER COMPANY WATER CONNECTIONS WATER CONSUMPTION WATER DEVELOPMENT WATER FLOWS WATER GOVERNANCE WATER INFRASTRUCTURE WATER LOSSES WATER PRICES WATER PROVIDERS WATER QUALITY WATER RESOURCES WATER RESOURCES MANAGEMENT WATER SECTOR WATER SECTOR DEVELOPMENT WATER SECTOR REFORM WATER SERVICE WATER SERVICES WATER SOURCES WATER STRATEGY WATER SUBSIDIES WATER SUPPLIES WATER SUPPLY WATER SUPPLY ASSETS WATER SUPPLY CAPACITY WATER SUPPLY SITUATION WATER SUPPLY SYSTEM WATER SUPPLY SYSTEMS WATER TABLE WATER TARIFF WATER TARIFFS WATER USE WATER UTILITIES WATER UTILITY WATER VENDORS WATERSHED WATERSHED MANAGEMENT WELLS
Online Access:	http://documents.worldbank.org/curated/en/2006/01/10276761/indonesia-enabling-water-utilities-serve-urban-poor http://hdl.handle.net/10986/19472

Description
Summary:	The scope of this paper is limited to how donors and governments can stimulate owners to realize the potential of water utilities in serving the urban poor. As survey data indicates that reliable water utility service is a key aspect of serving the poor, this paper focuses on how Indonesian water utilities (PDAMs) can increase access to the poor. It also touches on tariff reform because the reluctance of PDAMs to connect the poor at an artificially low tariff creates a hindrance to overall reform. However, this discussion does not offer a comprehensive analysis or solutions to PDAM or tariff reforms, topics that have already been covered by several excellent studies. This study draws heavily on recent Indonesian survey data, while offering insights and first-hand accounts from those who have successfully managed water utilities in serving Indonesia's poor. Several water utility Diruts (Direktur Utama or a utility's Managing Director) have been able to serve the people by turning around weak utilities and guiding them to profitability. Their solutions on PDAM management appear in the annexes and apply mainly to PDAM reform, which is needed for sustainable service to the poor. This paper is more concerned with what can be done in the short term to move toward a system based on more reformed utilities that are led by motivated owners serving the poor. In general, while rural settlements are built up and maintained around water sources such as shallow wells, the quick spread of urban pollution due to crowding quickly eliminates clean water sources in those areas. Therefore, it is generally cheaper to find water in settled rural areas than in cities. Furthermore, the significant difference in Indonesia between the sometimes artificially low price of piped water and the high price people are willing to pay for it often results in serious social inequalities, including economic rents, illegal connections, water strongmen, water smuggling from social tariff to commercial tariff areas, and water theft.

Indonesia : Enabling Water Utilities to Serve the Urban Poor

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