Water Supply and Distribution Systems Indonesia (2008)
The Indonesian Statistics Institute (BPS) estimates the value of the water supply industry at $440 million rupiahs in 2006 thus registering over 43% growth since 2003. Indonesia currently has over 300 municipal owned water enterprises (PDAMs), comprised of 8 large-scale PDAMs (over 50,000 house connections) and 77 medium-scale PDAMs (10,000 to 50,000 house connections). The balance is made up of small-scale PDAMs serving fewer than 10,000 house connections. Water tariffs generally do not cover operating and maintenance costs, and average loss of water to non revenue use is high. Many PDAMs are too small and inefficient to maintain controlling staff. Many do not have an asset management system and 30% have no accountant. There has been no significant asset investment over the past 10 years. Responsibility for water supply and sanitation rests with the regional governments, but new lending is blocked by PDAM and regional government loan arrears. Although PDAMs can increase water tariffs, local politicians often control tariffs for political ends, with PDAMs frequently used to finance local projects.
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