Regarding The IWF Management Fund Of IDR 15 Trillion, The Minister Of SOEs Needs The Role Of Stateistic Partners

SOE Minister Erick Thohir (Photo: Doc. Antara)

JAKARTA - The government has officially launched the Indonesia Water Fund (IWF) program. It is targeted that IWF will manage funds of IDR 15 trillion to improve access to clean water for 40 million Indonesians.

Minister of State-Owned Enterprises Erick Thohir revealed, IWF focuses on three pillars that offer an investment approach with sustainable benefits and provide integrated access from upstream to downstream.

Erick said, IWF can be carried out in accordance with an investment model that matches investor profiles with schemes that are easily replicated throughout Indonesia.

According to him, the role of strategic partners is needed in the IWF program in order to achieve optimal results in the operation process.

"Initial targets, IWF will manage funds amounting to US $ 1 billion or around Rp. 15 trillion from strategic partners to improve access to clean water for the 40 million people of Indonesia. In accordance with IWF principles, namely the provision of investment platforms that are easily replicated, so that the addition of house connections to accelerate access to clean water will be continuously improved," said Erick, Monday, October 17.

Erick added that IWF is a fast solution for equitable access to clean water, accelerates the provision of inclusive, sustainable, and efficient clean water for all Indonesian people, as well as expanding the coverage of national clean water services.

Furthermore, Erick said, IWF is also a form of funding for clean water that runs side by side with the APBN independently, so it does not burden the APBN directly.

"IWF is an effort to maximize Indonesia's GDP, because insufficient water supply will have the potential to reduce Indonesia's GDP by 2.5 percent by 2045," explained Erick.

The National Socio-Economic Survey (Susenas) of 2021 noted that households with access to drinking water only reached 90.8 percent, of which about 12 percent of households had access to safe drinking water, and approximately 19 percent had access to piped drinking water.

Based on data from the Danareksa Research Institute, water consumption is increasing in line with the increase in population.

However, water scarcity is a big problem in several countries and along with poor water quality is the cause of disease spread.

In the future, the issue of scarcity and water quality must be a priority.

The realization of investment/financing for the irrigation and sanitation sector has not met as needed.

IWF is an alternative financing for the irrigation sector in Indonesia that involves SOEs, private parties, and investors.

With the source of the funds scheme, it is hoped that it can ease the burden on the state budget.

For your information, the IMF was launched by Vice President Maruf Amin virtually.

The launch was held at the BUMN International Conference or State-Owned Enterprises (SOE) International Conference which was held in Nusa Dua, Bali, today.

The Indonesian Water Fund (IWF) was initiated by the Ministry of SOEs through the synergy of Holding BUMN Danareksa (Danareksa, Nindya Karya, Perum Jasa Tirta 1, and Perum Jasa Tirta 2) to bring water connections to various regions in Indonesia.

Vice President Ma'ruf Amin revealed that the existence of IWF as a platform to support the acceleration of investment in the provision of clean water connections to homes is expected to be an alternative solution for the Government through non-APBN funding.

"The Indonesian constitution recognizes and guarantees the right to water as the embodiment of the fulfillment of the human rights of the Indonesian people, as well as social rights in which the role and involvement of the Government becomes a necessity," said Ma'ruf Amin.

For this reason, according to Maruf, water must be managed as a national asset as well as the people's need to realize prosperity and justice for all Indonesian people.

"I hope that the Indonesia Water Fund launched today can improve the welfare of the people in the future," added Ma'ruf.