Ministry of Public Works Receives IDR 1.58 Trillion Loan from World Bank, What for?
JAKARTA - The Ministry of Public Works (PU) is pursuing a target of fulfilling access to clean water and piped water to reach 100 percent by 2030. To realize this, the ministry is encouraging cooperation with various parties, including by opening the option of drawing loans from the World Bank.
Deputy Minister of PU Diana Kusumastuti said that her ministry had received a loan from the World Bank worth 100 million US dollars or around IDR 1.58 trillion (exchange rate of IDR 125,800). This fund is to build pipe connections to homes throughout Indonesia.
Diana explained that the construction of the water pipe connections aims to channel water from the Water Treatment Plant (IPA) to households. Thus, it is hoped that the community will no longer need to pump groundwater.
"The total loan from the World Bank is 100 million US dollars. Its utilization is in accordance with the readiness criteria submitted by the regions. So the implementation is from 2018 to 2024," said Diana in the Closing Loan National Urban Water Supply Project (NUWSP) agenda at the Auditorium of the Ministry of PU, Jakarta, Tuesday, November 19.
Diana added that the loan obtained from the World Bank must at least achieve several KPIs. Until the end of 2024, the KPIs have been successfully completed by the Ministry of PU since 2018.
The targeted KPIs include access to clean drinking water through piped networks for 8.4 million people, the number of women receiving clean drinking water through pipes for 4.2 million people, Regional-owned Enterprises (BUMD) that have experienced increased performance, as many as 41 BUMDs.
In addition, the number of new house connections installed is 1.6 million, the number of low-income community (MBR) house connections is 336,944, the local government has increased financial assistance for BUMD Drinking Water by 59 locations, BUMD Drinking Water is active in training programs as many as 247 BUMDs.
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"The World Bank provides loans, but there are targets that must be achieved. There are 17 KPIs that must be achieved. If none are achieved, the World Bank in its mission reminds us that all 17 KPIs must be achieved," she said.
She said that the government is targeting to achieve 100 percent access to safe drinking water by 2030. However, to achieve the target there are still five strategic issues such as service coverage, availability of raw water, operational techniques, stakeholder coordination, and funding.
"Our challenge is that the need for water continues to increase because the population is also increasing. This means that the need for drinking water is increasing," she said.