Good practices for Social inclusion - Case studies and summary

year due to bad sanitation 25 . A World Bank study even values this loss at $12 per
household per month 2627 .
A national policy, strategy and action plan on solid waste management (SWM) were
prepared in 2003. The strategy emphasizes the three Rs (Reduce, Recycle, and Reuse),
promotes public awareness and advocates public-private and local government
partnerships.
Governance and finance
In 2001, Indonesia adopted a national decentralisation policy. Since then, local
government has the authority to conduct planning, implementation, monitoring and
evaluation of all governance and development programmes. The policy increased the
local responsibility for the environment. Peri-urban settlement and inner city
communities may even set up their own decentralised water supply and sanitation
systems rather than be part of a whole city network run by the city utility
Over the last 30 years, the Indonesian government has spent around US$ 820 million
on sanitation or US$ 0.02 per person. This equals to 1,3% of expenditures for
drinking water. In the last two FYPs, the investment increased to an equivalent of
US$ 15 and US$ 26 per person 28 . With decentralisation, new finance mechanism have
been introduced. Previously, local governments typically invested less than 2% of
their annual budgets on water supply and much less (detailed figures unknown) on
sanitation. Overall, annual investments on water and sanitation are some 3,6 trillion
rupiah or US$ 375 million, about three times more than those of the central
government, but they are much lower than those in other middle-income countries 29 .
Implementing agencies
At national level, five ministries (Finance, Settlement and Regional Infrastructure,
Environment, Home Affairs and Health) and the National Development Planning
Agency deal with urban sanitation. The latter heads the Sanitation Working Group
since 1999. It has limited authority and mainly organises workshops and trainings.
The provision of water and sanitation services in urban areas is the responsibility of
PDAMs (Perusahaan Daerah Air Minum), local government- owned water utilities.
There are 306 PDAMs in Indonesia. There are only a few utilities dedicated
exclusively to sanitation, called PD-PAL or Local Government Owned Wastewater
25
http://siteresources.worldbank.org/INTINDONESIA/Resources/Publication/03-
Publication/Citiesintransition-Eng.pdf
26 World Bank http://siteresources.worldbank.org/INTWSS/Resources/UWSIEP.pdf (2003) Cities in
Transition : Urban Sector Review in an Era of Decentralization in Indonesia. (Dissemination Paper No.
7), Washington D.C., USA, World Bank: Urban Sector Development Unit, Infrastructure Department
East Asia and Pacific Region.
http://siteresources.worldbank.org/INTINDONESIA/Resources/Publication/03-
Publication/Citiesintransition-Eng.pd
27 Additional information on ISSDP can be found on the following websites:
http://issdp.ampl.or.id/v2/index.php?option=com_frontpage&Itemid=1 (in Bahasa) and
http://www.wsp.org/filez/activity/910200732409_Indonesia_Country_Program_Management_and_Inte
gration.pdf
28 http://www.un.org/esa/agenda21/natlinfo/countr/indonesa/sanitationIndonesia04f.pdf
http://www.un.org/esa/agenda21/natlinfo/countr/indonesa/sanitationIndonesia04f.pdf
29 http://en.wikipedia.org/wiki/Water_supply_and_sanitation_in_Indonesia
http://en.wikipedia.org/wiki/Water_supply_and_sanitation_in_Indonesia
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