Water Credit Program Opens Citizen Access To Drinking Water And Sanitation

Photo: Doc. Danone AQUA

JAKARTA - One of the government's priority programs until 2024 as stated in the 2020-2024 National Medium-Term Development Plan (RPJMN) is to realize 90 percent of decent sanitation access, including 15 percent of households have safe sanitation access, as well as a decrease in the number of BABS to 0 percent.

This government target is in line with one of the Sustainable Development Goals (TPB), namely the provision of access to drinking water and sanitation is safe and sustainable for the community. One of the effective solutions that has begun to be implemented in various regions in Indonesia in achieving this target is water credit.

Water credit is an initiative of financing by financial institutions to the Drinking Water and Sanitation Supply System Management Group (KPSPAMS) to increase the coverage and quality of drinking water and sanitation access services in the service area. In addition to the group of government management through the Community-Based Drinking Water and Sanitation Program (PAMSIMAS), there are also similar groups formed through CSR, non-governmental resources, or other third-party sources of funds that also receive similar financing.

It is hoped that this water credit initiative will not only reach more people to gain access to drinking water and sanitation, but can also directly empower recipients and maintain the sustainability of built facilities.

The water credit scheme can further ensure the sustainability of drinking water and sanitation access programs compared to direct assistance that can be stopped if the donation does not continue. This program does emphasize the community's contribution directly to the provision of drinking water and sanitation access, in order for a sense of ownership and responsibility to emerge. Through this water credit scheme, there is an opportunity for micro financial institutions to develop and launch financial products in the water and sanitation sector," said Rachmad Hidayad, Team Lead Partnership Account Water.org Indonesia, in a written statement, Thursday, December 14.

One example of the success of water credit occurred in East Java. Facilitated by Danone-AQUA and Water.org Indonesia, the East Java MSME Bank is an institution that has helped develop the water credit initiative.

Since 2018, this program has distributed 123 loans to more than 100 KSPAMS in East Java, and until 2023, the total funds disbursed have reached Rp5.5 billion. The funding has succeeded in adding around 1,500 Home Connections (SR) that can meet water needs of at least 6,000 people.

"When it was just formed in 2015, we only had 80 House Connections (SR), now we have been able to serve more than 533 households. One of the driving factors is water credit from Bank UMKM East Java. Through this disbursement, we managed to add around 150 SR," explained Kasio, Management of KSPAMS Handarbeni, Puhkerep Village, Rejoso District, Nganjuk Regency, East Java.

The water credit initiative has proven to provide direct benefits to the community, especially in improving clean and healthy living behavior.

"Residents are used to bathing twice a day, washing their hands, and making latrines so they no longer defecate carelessly," said Mardi, a resident of Puhkerep Village.

The indirect impact is increasing productivity and income. Many residents open laundry, workshop, or brick factory services. The shop owner is also more productive because he does not need to close the shop because he has to take water from a location that is too far away. The expansion of this service coverage also adds to the number of farmers and breeders, including goat and chicken farming, as well as just utilizing the home page to grow vegetables.

With all these conveniences, customers now only pay Rp. 1,000/m3 or only Rp. 15,000-Rp. 20,000 per month. When compared to residents who do not use SPAM services, where they spend Rp. 100,000 per month to buy gallon water, then there is significant savings.

Danone-AQUA is actively involved as Water.org's strategic partner in running the water credit program. Karyanto Wibowo, Sustainable Development Director of Danone Indonesia, stated that this program is in line with our sustainability strategy as stated in Danone Impact Journey.

We are committed to always providing quality drinking water to support health as well as providing positive benefits and impacts for the community and the environment in Indonesia. For this reason, we believe that the availability of drinking water and sanitation access can improve the health level of the community so that it is able to have a good quality of life. Danone-AQUA's efforts to increase access to drinking water, sanitation and environmental restructuring are translated through the WASH (Water Access, Sanitation and Hygiene) program," he explained.

The water credit program and collaboration with Water.org have contributed significantly to the entire WASH Danone-AQUA program in Indonesia.

Until now, the Danone-AQUA and Water.org collaboration programs through the water credit scheme have provided benefits both directly and indirectly to more than 230 thousand beneficiaries. Meanwhile, the total beneficiaries we estimate for our WASH program throughout Indonesia to date have reached 520 thousand people," added Karyanto.

Karyanto also revealed that the Water Credit scheme is also being developed for Islamic boarding schools.

"Currently we are trying to develop access to drinking water and sanitation in a number of Islamic boarding schools that still have limited facilities," concluded Karyanto.

Through this program, Islamic Boarding Schools that require costs to build drinking water and sanitation facilities can apply for financing to BPRS HIK Parahyangan with several conveniences. The water credit program for this pesantren has begun with disbursement of water and sanitation financing for 4 Islamic boarding schools in West Java with a total number of 486 students.