JAKARTA - The Ministry of SOEs signed a memorandum of understanding with several strategic partners related to the Indonesia Water Fund project. The signing took place at the Bali Nusa Dua Convention Center on the sidelines of the SOE International Conference, Tuesday 18 October.

The signing of the memorandum of understanding was carried out by Deputy Minister of SOE II Kartika Wirjoatmodjo together with President Director of PT Danareksa (Persero) Arisudono Soerono, Managing Director of Suez Recycling Pacific Pte Ltd Farsyad Kaviani Dehkordi, and Chairman & CEO of PT CITIC Envirotech Indonesia Gwo Liang Jeremey.

Kartika said investors for the Indonesia Water Fund program are committed to investing US$1 billion or more than IDR 15 trillion. Kartika said that the Indonesia Water Fund program is in line with Indonesia's sustainable development program or SDGs, which is to provide cheap water facilities to the community.

"Currently, there are still many people who use groundwater to meet their consumption of clean water or buy gallons of water at an expensive price. The Indonesia Water Fund program will open access to clean water for the community in the district and city areas", said Kartika.

After the signing process is carried out, the Ministry of SOEs will coordinate with the Ministry of Public Works and Public Housing, especially the Directorate General of Water Resources to discuss regulations.

"We will also collaborate with the city and district governments, as well as the local PDAM (Regional Drinking Water Company) so that the process of working on the water pipe can be directly enjoyed by the surrounding community", she said.

Kartika explained that the Indonesia Water Fund is a solution for funding clean water development projects, not all of which can be funded by the State Budget (APBN). According to her, clean water development projects require funds of around IDR 190 trillion, while the State Budget only allocates funds of around IDR 60 trillion.

President Director of PT Danareksa (Persero) Arisudono Soerono added that the Indonesia Water Fund will immediately run 31 clean water projects with a total of IDR 45 trillion.

"This IWF allows investors to provide equity funding to run the clean water program", said Arisudono.

Apart from the IWF, it is also funded by other sources. Meanwhile, the projects that will be funded are not only brownfield projects but also greenfield projects.

"We can enter clean water development projects from upstream to downstream. So, this IWF will help build PDAM infrastructure in urban districts", said Arisudono.

The Indonesia Water Fund 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 provide water connections to various regions in Indonesia.

Previously, SOE Minister Erick Thohir said that IWF focuses on three pillars that offer an investment approach with sustainable benefits and provide integrated access from upstream to downstream. IWF can be run with an investment model that fits the investor profile with a scheme that is easily replicated throughout Indonesia.

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

"The initial target was that IWF would manage funds amounting to US$1 billion or around IDR 15 trillion from strategic partners to improve access to clean water for 40 million Indonesians. By IWF's principles, namely providing an investment platform that is easy to replicate, so that additional house connections for The acceleration of access to clean water will be continuously improved", he said.


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