Doing Business In Indonesia: 2012 Country - Export.gov

Water and Wastewater Equipment
Overview Return to top
Unit: USD thousands
2010 2011
2012
(estimated)
2013
(estimated)
Total Market Size 335 435 500 580
Total Local Production 70 90 105 120
Total Exports 55 70 80 90
Total Imports 320 415 475 550
Imports from the U.S. 50 80 95 115
Exchange Rate: 1 USD 8,996 8,992 9,000 9,000
Total Market Size = (Total Local Production + Total Imports) – (Total Exports)
Data Sources: Central Bureau of Statistics Indonesia, Trade Stats Express USA
Indonesia has been struggling to provide adequate clean water and sanitation for its
people. Demand for clean water is steadily increasing due to a population growth as
well as economic activity in urban and rural areas. Until the end of 2011, service access
for clean water has predicted to cover 50%-53% of Indonesia or higher by 3%-6% from
47.7% in 2009. However, the total service access for public is still lower than the target
of Millennium Development Goals (MDGs) for clean water access in 2015 at 68.87% of
the total population. The number of households with access to adequate sanitation was
only 51.02% in 2009 and it is projected to reach 62.37% of the total population by 2015.
The GOI faces several challenges in providing clean water supply such as scarcity of
raw water resources, water leakage problems (average of 33% of non revenue water),
and mismanagement of water company. Currently, there are 402 companies provide
clean water, of which 382 are regional state-owned companies (PDAM), 10 are under
the Ministry of Public Works and 10 are private companies. They serve 83 cities and
319 districts in Indonesia. However, only 103 companies are considered as financially
healthy.
In order to achieve the MDG, the GOI has formulated national strategic planning on
water supply system development which are increasing production capacity in urban,
sub urban, strategic areas (fish harbors, remote areas, boundary areas, remote islands)
and rural areas (4,650 villages) until 2014 by 14,120 liter/second; facilitating Public
Private Partnership Projects for 23 locations, implementation of reuse water supply in 8
locations, facilitating water supply for urban low income community in 577 locations and
facilitating 107 PDAM in accessing loan to local banks.
The Ministry of Public Works estimates the investment need for developing water
facilities in urban and rural areas will be IDR 65.2 billion during 2011-1014. Investment
from private companies is expected to reach IDR 12 billion per year. However, currently,
private companies only contributed about IDR 5 billion per year.