Director General of Public Works and Housing Infrastructure Financing at the ministry Herry Trisaputra Zuzna said that the development of clean water distribution using the pipe system involves no small costs.
Thus, all parties should find the best formula since water is the source of life, he said during a workshop held as part of the World Water Forum here on Monday.
"We need to create an affordable financing scheme for the public, but one that is still attractive for the private sector," he said.
According to Zuna, the access rate for clean water with the new piping system covers around 20.6 percent of the public. Thus, there will still be around 80 percent that can still be explored to find the financing formula.
"As an illustration, in our RPJMN (National Mid-Term Development Plan), increasing from 20 to 30 percent will require Rp123.4 trillion (US$8.04 billion) in 5 years," he pointed out.
"Thus, reaching 80 percent will require more than Rp1 thousand trillion," he added.
He said that the problem concerning the financing scheme with the private sector involves the certainty of income. Thus, the ministry needs to provide clear business planning.
Meanwhile, West Java Regional Secretary Setiawan Wangsaatmaja said that the province already has four public-private partnership (KPBU) schemes, which can support the formulation of clean water provision financing.
This includes the provision of clean water coming from Jatigede Dam, Sumedang, for fulfilling the water demand in Cirebon Raya.
People’s access to clean water in West Java is already good, but there are still many aspects that need to be worked on when it comes to supplying water through the piping system, he said.
"I see that until 2035, in West Java alone we will need an investment of around Rp20 trillion (US$1.3 billion). Because of this, this blended financial innovation has become something that we rely on," he added.
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Translator: Bagus Ahmad R, Fadhli Ruhman
Editor: Rahmad Nasution
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