Meeting Drinking Water Provision Target through Business Plan
31 Jan 2017

On January 30-31, the Indonesia Infrastructure Initiative (IndII), the Ministry of Public Works and Housing (KemenPUPR) and Bappenas organised a seminar to disseminate a standardised business plan concept for regional water authorities (PDAMs) across the country. The expectation is that developing and implementing business plans will help PDAMs to improve their performance in meeting drinking water provision targets in their area. Their results will then accelerate the achievement of the national goal of 100% drinking water access by 2019.

The seminar was attended by representatives from 35 PDAMs (some of which have participated in the IndII business plan program), 37 provincial government secretariats, and international development agencies.

In the seminar, representatives from Pricewaterhouse Coopers Indonesia Advisory (PwC) and IndII facilitated a discussion on the strategic and technical aspects of business plan. “A business plan is a dynamic document; don’t just finalise and store it somewhere. It is to be used to develop and monitor business growth, whether existing or new business, and will need to be updated regularly. Furthermore, it is important for PDAMs to identify the main stakeholders relevant to the business plan early on and communicate the plan to them,” said Agung Wiryawan, PwC Director.

The seminar also generated inputs to improve and accelerate multistakeholder coordination in implementing the business plan. This will encourage PDAMs to be more professional and accountable for their overall management. Furthermore, a representative from one national bank, Bank Rakyat Indonesia, shared the bank’s perspective on PDAM water management. This discussion was further completed by PDAM Banyumas which shared its experience in developing bankable business plan. At the same time, the Indonesian government is in the process of revising Presidential Regulation (Perpres) No. 29/2009, which will make it easier for PDAMs to access subsidised loans from commercial banks with a guarantee mechanism. When accessing those loans, savvy PDAMs will be able to use their business plans to demonstrate their viability.  During an evaluation by the IndII team and consultants in early January 2017, most PDAM directors cited the value of the business plan in improving overall management and performance.

“Local government capital has continued to increase since we fully implemented our business plan,” said Brahmono Weko Pujiono, Director of the PDAM in Tegal District. On the same note, PDAM Pontianak City Director Afandi praised the support of IndII’s consultants in helping the PDAM to use its business plan to achieve annual targets. “We are now able to develop a business plan that can foster trust between the PDAM and its stakeholders,” he added.