Water Supply and Urban Livelihoods

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Wl)ANTO HADIPURO WATER SUPPLY AND URBAN LIVELIHOODS

A CASE STUDY IN SEMARANG-INDONESIA

Wijanto Hadipuro Water supply and urban livelihoods A case study in Semarang-Indonesia Water supply and urban livelihoods A case study in Semarang-Indonesia

Proefschrift ter verkrijging van de graad van doctor aan de Radboud Universiteit Nijmegen op gezag van de rector magnificus prof. mr. S.C.J.J. Kortmann, volgens besluit van het college van decanen in het openbaar te verdedigen op dinsdag 23 oktober 2012 om 12.00 uur precies

door Wijanto Hadipuro geboren op 21 september 1963 te Brebes, Centraal Java, Indonesië Promotoren: Prof. dr. H. Ernste en Prof. dr. Β. Widianarko (Soegijapranata Catholic University Semarai Indonesië)

Copromotoren: dr. A.L. van Naerssen en dr. M.A. Wiering

Manuscriptcommissie: Prof. dr. ir. W.T. de Groot dr. E. de Jong Prof. dr. F. Kraas (Universität zu Köln)

iv Water supply and urban livelihoods A case study in Semarang-Indonesia

Doctoral Thesis to obtain the degree of doctor from Radboud University Nijmegen on the authority of the Rector Magnificus prof. dr. S.C.J.J. Koitmann, according to the decision of the Council of Deans to be defended in public on Tuesday, October 23,2012 at 12.00 hours

by Wijanto Hadipuro Bom on September 21,1963 in Brebes, Central Java, Indonesia

Supervisors: Prof. dr. H. Ernste and Prof. dr. Β. Widianarko (Soegijapranata Catholic University Semarang, Indonesia)

Co-supervisors: dr. A.L. van Naerssen and dr. M.A. Wiering

Doctoral Thesis Committee: Prof. dr. ir. W.T. de Groot dr. E. de Jong Prof. dr. F. Kraas (Universität zu Köln)

Cover design by Isa Grafika and Wijanto Hadipuro Printed by Isa Grafika Published by UFT Penerbitan dan Desain, Universitas Katolik Soegijapranata, Semarang, Indonesia

ISBN: 978-602-8011-44-0 No part of this book may be reproduced in any form, by print, photoprint, microfilm, or any other means, without prior written permission from the aithor

vii Tables and figures xm Abbreviations xv Glossary xvii Preface xxiii

Introduction 1

1.1 Sustainable livelihoods analysis for urban water supply 4 1.2 Problem context: Water supply in Semarang 5 1.3 Research questions 8 1.4 Overview of the book 9

Towards a model of urban water supply for sustainable livelihoods 11

2.1 Controversies around urban water supply providers 11 2.2 A review on Sustainable Livelihoods Analysis 14 2.3 Sustainable Livelihoods Analysis and water projects 20 2.4 A model of urban water supply for sustainable livelihoods 22 2.5 Concluding remarks 26

Research methods and the field study site 29

3.1 Research framework and research steps 29 3.2 Research methods 32 3.2.1 Household water supply vulnerability assessment 33 3.2.2 Water supply sustainability context 38 3.2.3 The urban water supply sustainable livelihoods analysis 39 3.2.4 Urban water policies and their impacts on people's livelihoods 42 3.3 Casestudy selection: Choice of sub-district and neighbourhoods 43 3.3.1 Selection of the sub-district 43 3.3.2 Selection of neighbourhoods 50 3.3.3 Vulnerability assessment at sub-district level: Between plan and reality 50 3.4 Conluding remarks 51

The contexts of household water supply vulnerability at Semarang City and Tanjung Mas Sub-district 53

4.1 The city of Semarang and neighbourhoods in Tanjung Mas 55 4.2 The vulnerability context at the city level 57 4.2.1 Ecological problems 58 4.2.2 Economic problems 63 4.2.3 Social problems 64 4.2.4 Shocks, trends and seasonality in ecology at city level 4.3 The vulnerability context at sub-district level 4.4 Concluding remarks

The sustainability context of water provision in Tanjung Mas

5.1 Water provision in Tanjung Mas 5.1.1 Public water supply: PDAM Semarang City 5.1.2 Artesian well providers 5.1.3 Water kiosks 5.1.4 Bottled water providers 5.1.5 Self-provision 5.2 Changes in water provision in Tanjung Mas 5.3 Water supply sub-sector analysis 5.4 Concluding remarks

Household water supply vulnerability

6.1 Why households change water supply providers? 6.1.1 The Old City 6.1.2 Kebonharjo 6.1.3 Tambaklorok Riverside 6.1.4 Tambaklorok Seaside 6.1.5 Provider changes: The relevant factors 6.2 The role of assets 6.2.1 Natural assets 6.2.2 Physical assets 6.2.3 Human assets 6.2.4 Financial assets 6.2.5 Social assets 6.3 Vulnerability factors and livelihood strategies 6.3.1 Strategies towards PDAM policy 6.3.2 Strategies towards environmental problems 6.3.3 Strategies related to decreasing assets 6.4 Livelihood outcomes 6.5 Concluding remarks

The regulations on urban water provision and their impacts on livelihoods

7.1 Current water supply regulatory framework 7.1.1 Law No. 7/2004 on water resources 7.1.2 Relevant regulations on PDAMs 7.1.3 Relevant regulations on water provision using artesian wells 7.1.4 Relevant regulations for bottled water industry 7.1.5 Relevants regulations on refilled-bottled water kiosks 7.2 The regulatory framework's probable impacts 130 7.2.1 Private sector participât ion 131 7.2.2 Groundwater extraction 132 7.3 The logical consequences: Ways forward 133 7.4 Conctuding remarks 134

8 Conclusions and recommendations 137

8.1 The summary of the book 137 8.2 Main findings 139 8.3 Field study: Methodological and theoretical implications 142 8.4 Public and private provision debate and livelihoods 143 8.5 General policy recommendations 144 8.5.1 On quality 144 8.5.2 On expanding PDAM coverage 145 8.5.3 On coping with excessive groundwater extraction 145 8.6 Final remarks 146

Annex 1: Water supply providers using artesian wells in Tanjung Mas in 2005 149 Annex 2: Questionnaire for village head or secretary 150 Annex 3: Tidal flood at Port Tanjung Mas 151 Annex 4: Tidal flood at Johar Market 152 Annex 5: Guided interview topics 153 Annex 6: The original and new list of respondents 155 References 159 About the author 167

Tables and figures

Tables

Table 3.1 Summary of Variables and Indicators of Vulnerability Analysis of Sustainable Livelihoods Analysis Table 3 2 Sustamability Context· Variables, Operational Definition and Indicators Table 3.3 Households' Assets to Access Water, Definition and Indicators Table 3.4 Sub-distncts and Districts of Semarang Coastal Area Table 3.5 Water Provisions in the 15 Sub-districts of Semarang Coastal Area m 2006 Table 3.6 Population Characteristics of Tanjung Mas Sub-district in 2004 Table 4.1 Inflation Rate, 2004-2007 Table 4.2 Summary on Water Supply Vulnerability Analysis according to Districts in Semarang, 2004-2005 Table 4.3 Summary on Water Supply Vulnerability Analysis according to Rivers in Semarang, 2004-2005 Table 5.1 Urban Water Provision in Tanjung Mas by Neighbourhood m 2006 Table 5.2 Tanff Structure of PDAM Semarang City in 2006 (in Rp ) Table 5.3 Growth of Bottled Water Industry in Indonesia Table 5.4 Changes in Water Provision in Tanjung Mas, 1996-2006 Table 6 1 Main Water Provision Changes and the Causes of the Changes, 1996-2006 Table 6.2 Water Supply Providers Compared. Service and the Impacts on Households' Assets, 1996-2006 Table 6.3 Water Provision Changes and Their Impacts on People's Livelihoods, 1996-2006 Table 7.1 The Tanff for Each PDAM Subscriber Group

Figures

Figure 1 1 Location of Semarang, Central Java, Indonesia Figure 1.2 Shallow Well, Artesian Well, Water Kiosk and Cart Used by Water Peddlers Figure 2.1 Four Degrees of Vulnerability Figure 2 2 Asset Pentagon Figure 2 3 DFID's SL Framework Figure 2.4 A Model of Urban Water Supply for Sustainable Livelihoods Figure 3.1 Research Framework, Research Steps and the Structure of the Book Figure 3 2 Sub-distncts Bordering the Sea in Semarang Figure 3.3 Map of! anjung Mas Sub-distnct Semarang Figure 4 1 Map of Districts in Semarang Figure 4 2 Garbage in Banjir Kanal Timm Figure 5 1 Water Supply Provision Map in Tanjung Mas Semarang in 2005 Figure 6 1 Pattern of the Mam Water Supply Provider Changes in Each Area, 1996-2006 Figure 6.2 Water Tanks Figure 6 3 Grandma M's House Figure 6.4 Madam Ν 's House

xiu

Abbreviations

ADB the Asian Development Bank ASPADIN Asosiasi Perusahaan Air Minum dalam Kemasan Indonesia or the association for bottled water companies in Indonesia Bappenas Badan Perencanaan Pembangunan Nasional or the Indonesian National Development Planning Agency BKKBN Badan Koordinasi Keluarga Berencana Nasional or National Coordination Bureau for Family Planning Program BPS Badan Pusat Statistik or National Bureau of Statistics BRI Bank Rakyat Indonesia CAMP the Catchment Management and Poverty CARE used to stand for Cooperative for American Remittance to Europe CLUWRR the Centre for Land Use and Water Resources Research CVA Capacities and Vulnerabilities Analysis DFID Department of International Development DMAE Departamento Municipal de Agua e Esgotos, a public water supply company in Porto Alegre, Brazil HLSA Household Livelihood Security Assessment ITDG the Intermediate Technology Development Group IWRM Integrated Water Resources Management NGO Non Governmental Organization Oxfam Oxford Committee for Famine Relief PDAM Perusahaan Daerah Air Minum or local water supply company Perpamsi Persatuan Perusahaan Air Minum Indonesia or the association for PDAMs PIP Policies, Institutions and Processes PKK Pendidikan Kesejahteraan Keluarga or Family Welfare Education Puskesmas Pusat Kesehatan Masyarakat or public health care centre RMLC Risks Mapping and Local Capacities SL Sustainable Livelihoods SLA Sustainable Livelihood Analysis UK the United Kingdom UNCHS United Nations Centre for Human Settlements UNDP United Nations Development Programme Unicef United Nations Children's Fund VCA Vulnerabi I hy and Capacity Assessment WHO World Health Organization

Glossary

This glossary has been produced to be of help to readers of this particular text

Artesian wells wells where water usually rises to a greater level than the land surface

Benefit-cost analysis an analysis which presupposes that public policy decisions have multiple objectives and embrace social goals which are much broader than mere economic efficiency

Better-ofT: in this text it is used interchangebly with the haves and it is used as a contrast for the poor

Claims: one of livelihood strategies towards water supply by demanding a right to relatives or neighbours who have water or to government

Cost-effectiveness analysis an analysis which is used to assess trade offs between benefits, measured m some unit other than money, and resource costs

Deep wells wells where the water requires pumping to the surface

Deplete one of livelihood strategies towards water supply by selling assets to buy water

Diversify one of livelihood strategies towards water supply by seeking new sources of water supply

Ecological integrity preserving water and its hydrological processes on which life depends

Economic efficiency urban water supply system must not be wasteful in its use of resources

Financial assets financial resources which are available to people (such as incomes, savings, and credit (acuities) to access to sufficient quantity and good quality of water

Galon Indonesian term for a bottle containing 20 litres of water

Hoard one of livelihood strategies towards water supply by stormg water in case the supply stops

Household a person or co-resident group of people who contribute to and/or benefit from a joint economy in either cash or domestic labour that is a group of people who live and eat together, and may involve close family, wider kin network and can include unrelated co- residents such as lodgers

Human assets mental and physical abilities an individual or a household possesses in order to achieve and/or pursue certain livelihood goals

XVII Informal settlements: settlements (sometimes illegal or unauthorized) of impoverished people who live in houses often of a temporary nature erected on land which has not formally been proclaimed and serviced for residential use.

Institntional sustainability: a water supply provider's capacity to sustain its existence in the water supply business.

Kabupaten: municipality, consisting urban and rural areas.

Kecamatan: district.

Kelurahan: sub-district in urban areas.

Kota: city, consisting urban area only.

Livelihood assets: natural, physical, human, financial and social assets as parts of a household's livelihoods.

Livelihood strategies towards water supply: the planned activities that households undertake to build their livelihoods. They include coping strategies designed to respond to shocks in the short term, such as interruption in water supply, and adaptive strategies designed to improve circumstances in the long term.

Livelihood outcomes: the results of women and men's livelihood strategies and feedback into the vulnerability context and asset bases, with successful strategies allowing them to build asset bases as a buffer against shocks and stresses as opposed to poor livelihood outcomes which deplete asset bases, thereby increasing vulnerability.

Livelihoods: a broad range of the capacities, assets and activities of individuals, households or communities to make a living.

Merit good: the consumption of a good, in this case water, has a benefit to society beyond that which accrues to the individuals consuming it, such as contributing to a productive and decent life including health.

Move: one of livelihood strategies towards water supply by going to a different place temporarily or permanently because of water shortages, either for all household members or some of them.

Natural assets: resources relating to water supply from which livelihoods are derived.

Non-resilient: a condition experienced by households where they cannot bounce back to normal state after a crisis.

xvm Physical assets the basic infrastructure relating to water supply available to the respondents such as houses, pipe infrastructure, water tanks and water pumps

Policy leverage how to change a policy so that it contributes to the betterment of people's livelihoods

Poor: in the text it is used interchangebly with the haves not In this text it is the same as pre- prosperous households

Pre-prosperous households: households which fail to fulfil one of these indicators that all household members eat at least twice a day, all household members have different set of clothes for different occasions, the largest part of the house floor is not made of earth, and the sick household members or contraceptive users use modem medical services

Preserve and protect one of livelihood strategies towards water supply by keeping water resources m good condition

Resilience the capacity to bounce back to normal state after a crisis

Rukun tetangga (RT): a household association which functions as the lowest level ot political administration in Indonesia

Rukun warga (RW): neighbourhood organizations, administrative unit at the next-to-lowest level m city It consists of several household associations

Seasonality all external changes that happen according to a certain system of seasons such as seasonal fluctuations in production and prices or the availability of water supply or stock because of the change from a wet to a dry season

Shocks impacts which are typically sudden, unpredictable, and traumatic They include human health shocks caused by water problems (too much, too little or too polluted water), natural shocks (such as flood and drought), economic shocks such as inflation and structural adjustment program, and political shocks such as war or conflict

Social assets social links or ties upon which people draw to support them when they have trouble with water

Social equity the way one household or urban water supply provider makes its livelihood must not disrupt options for others to make theirs

Stint one of livelihood strategies towards water supply by reducing current consumption and/or lowering quality of water

Sustainability context includes ecological integrity, economic efficiency and social equity

xix Sustainable livelihoods: livelihoods which is able to maintain or enhance its capabilities and assets, when it provides livelihood opportunities for the next generation and, as a surplus value, benefits other livelihoods at the local and global levels in both the short and long term.

Sustainable Livelihoods Analysis: an analysis of the sustainability of people's livelihoods with the help of the Sustainable Livelihoods Framework.

Sustainable Livelihoods Framework: a conceptual model showing the relationship of all variables in Sustainable Livelihoods Analysis.

Sustainable livelihoods variables: vulnerability context, sustainability context, livelihood assets, livelihood strategies, and livelihood outcomes.

Trends: general directions or tendencies which include international, national, regional, and municipal/city trends in the economy or in urban water supply management such as privatization, technological trends, and population trends.

Unaccounted for water: the difference between the amount of water that is produced or purchased, and the amount of water that is actually sold to all subscribers. It includes underground or unavoidable leakage, unauthorized use, inaccurate meters, or other unusual causes.

Urban water supply system: public, private, community-based water provision, self-provision and their combinations.

Vulnerability in terms of water supply: insecurity and sensitivity in the well-being of individuals, households and communities in the face of a changing environment related to the access to good quality and sufficient quantity of water, and implicit in this, their responsiveness and resilience to risks that they face during such negative changes.

Vulnerability context: negative external changes to good quality and sufficient quantity of water which include shocks, trends and seasonality which may come from ecological, economic, social and political negative external changes.

Vulnerability factor: a condition where vulnerability and sustainability context strike the insufficient assets of a household and/or if household's strategies in the long run are ineffective to cope with the context and/or a decrease in assets which make a household cannot cope with vulnerability context.

Water for daily basic human needs: water needed by household members for consumption (drinking and cooking), hygienic purposes (washing and bathing) and amenities (gardening and cleaning vehicles).

xx Water supply sub sector analysis: an analysis of the interaction among water supply providers, the value chain started from raw water, the treatment process, the distribution of the water, and the subscribers of each water supply providers.

Water table drop: the drop of groundwater level in the ground because of excessive pumping.

XXI

Preface The first time I encountered the environmental problems of Semarang was a few months after I moved from Bandung in West Java to Semarang in Central Java in 1999. On the way to taking our only daughter to a dance competition, 1 saw a sign 'Hati-hati Rob '. 'Hati-hati ' means be careful. Though I was bom in Central Java I was not familiar with the word 'rob ', so I told my wife 'I wonder how in this big city there can be rob and the police do nothing more than put it on a sign.' At that time I thought rob meant robbery in English. Later on I felt ridiculous remembering that moment, because the 'rob ' mentioned on the sign actually means sea tide.

The research I did for my PhD has opened up my mind that the sign 'Be careful of the sea tide' actually means a lot to the people experiencing the sea tide. Not only do they get the flood, but also they have difficulties in getting fresh water. Their efforts to get fresh water have even made them suffer more from another environmental problem, land subsidence. 'Be careful of the sea tide' means also 'be careful with your fresh water and land subsidence' that can really rob you. The pictures of Grandma SU and Grandma M and their houses with the tanks to keep fresh water say more than thousands of words.

xxiii More than seven years doing research and advocacies; attending two World Water Forums, one World Water and Environmental Congress, being a research fellow on water governance at the University of California Berkeley, and studying at Radboud University Nijmegen, the Netherlands mean nothing compared to the experience I gained from the people I met during my field study on how they coped with the environmental problems they laced.

My Ph.D. research also opens up my mind that there is nothing impossible in this small world. People might think that it is impossible that such environmental problems can happen in the fifth most populous city in Indonesia. People also might think that there is no hope for the people living in this area. However, things happen. Grandma M could still smile though she carried a very heavy burden caused by the environmental problems. When I was a child I did not dare to think that someday I would study abroad. Even I did not dare to think that I could get my master degree. However, once again things happen. For the most vulnerable people I dedicate this thesis and hopefully this thesis will inspire the readers that there is nothing impossible in this world. Be prepared for the best and the worst and do the best for the unfortunate.

This thesis is one of the results of the cooperation agreement between the Department of Human Geography, Spatial Planning and Political Sciences of the Environment, Radboud University Nijmegen, the Netherlands and the Post Graduate Programme on Environment and Urban Studies, Soegìjapranata Catholic University of Semarang Indonesia, under the subject of staff upgrading. This thesis would not have been completed without the support and help of many people and organisations.

First of all I would like to express my sincere gratitude to Dr. Ton van Naerssen of Radboud University Nijmegen and Prof. Dr. Budi Widianarko, ray rector and the former head of the Post Graduate Programme on Environment and Urban Studies of Soegìjapranata Catholic University of Semarang who initially worked out the cooperation agreement. Dr. Ton van Naerssen is not only my co-promoter but also offered me friendship during my study. I am indebted to Dr. Ton van Naerssen and his family who invited me for dinners and took me to some beautiful places in

xxiv the Netherlands which made my wife very astonished. My wife told me that she could not imagine that the same thing, as what have been done by Dr. Ton van Naerssen and his family for me, would happen in Indonesia. From Prof. Dr. Budi Widianarko who is also one of my promoters, I got not only a chance to study in Nijmegen, but also he introduced me to the world of water and non governmental organisations (NGOs).

I am also very grateful to Huib Emste who is willing to be my promoter, Dr. Mark Wiering who supported me as my co-promoter, and Yvonne Cremers and other staffs of the Department of Geography, Radboud University Nijmegen. Huib and his family made my stay in Nijmegen more colourful than what I used to do: staying in front of the computer for more than eight hours a day seven days a week during my visits in Nijmegen.

I also owe much to Nila Ardhianie the Director of Amrta Institute who introduced me more to water resources advocacy and to Hamong Santono from the People Coalition on the Right to Water, Raja P. Siregar who used to work for the Indonesian Forum for Environment (WALHI), Suraya Afiff from Karsa and many other NGOs. Without them I would not be able to be fully engaged in water resources management.

I would like also to thank my students and former students of Soegijapranata Catholic University of Semarang Indonesia, who have helped me with the field study. Hans Robert from the Department of Management Faculty of Economics and Business helped me with the preliminary study at 15 kelurahans in Semarang that border the sea. Nurma Yunita Indriyanli interviewed chiefs of RW, the owners of water supply providers and their associations in Semarang, and Semarang City and Central Java Province government officers. Her support has been documented into a joint article that was published by Water Policy in March 2009. Astrid Ekaningdyah and Rissa Inayati helped me with the interviewing of respondents for the household survey.

The field study would have never happened without the permit and support from the head of Kelurahan Tanjung Mas, his wife and all the village staffs, and the respondents. Hopefully this thesis will give a small contribution to the solution of the problems faced by the people living in Kelurahan Tanjung Mas Semarang.

Thanks also for my English editor Mollie Whitehom (Preface, Chapter 1 to 3, and Annexes), Erin Carter (Chapter 7) and Nancy Christiaans (Chapter 4, 5, 6 and 8) and also the editors of the International Journals and Magazines where some parts of this thesis are published. They have made my English look perfect.

Last but not least, I would thank my wife Enni Sugiyanti. Her understanding on whatever ridiculous things I have done has made my life meaningful. I owe much to my only daughter Felicia Inesa who has had to experience less comfortable situations because of a lot of ridiculous decisions I have made. I hope that they are and will always be happy to have a husband and a father like me.

xxv

1. Introduction

This book is about the application of a livelihoods-based analysis to water provision for vulnerable people (including the poor) in an urban area. By using a new model of water supply for sustainable livelihoods, this book addresses the problem of safe water supply faced by the people living in the coastal area of the capital city of Central Java Province of Indonesia, Semarang.

The relevance of the book thus concerns both the development of a model to approach urban water supply and the application of the model in an area where many slums of the agglomeration are located and the people are mostly poor. Since the inhabitants of these settlements are poor, they are often not served by public water supply and they depend on groundwater As will be shown this aggravates the environmental problems they have, and makes their livelihoods more vulnerable. Moreover it makes this research relevant for water supply policies not only for Semarang but also for similar cases which can be found almost all over the world especially in developing countries.

The major objective of the study indeed is that the analysis of the effects of the water supply in the coastal area on people's livelihoods will contribute to the policy changes in coastal safe water supply and thus to better conditions for the vulnerable people living along the coast. It is the author's hope that once the model proves to contribute to better practices, it will also have wider implications for policies benefiting poor people elsewhere in the developing world.

Without water there can be no life. Water is the most essential public good for people's livelihoods. However, some 1.1 billion people or 18 per cent of the world's population lack access to safe drinking water. Although 84% of them are living m rural areas, the difficulty to get access to an improved source of drinking water in urban areas is higher than in rural areas especially for those who are poor and living in developing countries (WHO and Unicef; 2006). Lack of access to safe water (safe being the key quality indicator) is and has been one of the keystone issues for the urban poor (Onestmi, 2011).

Due to population growth and urbanization, in many regions of the world a growing competition for natural resources, including water, exists The immense growth of cities especially in developing countries is resulting in the urbanization of both poverty and environmental degradation to a greater degree than ever before (Araby, 2002; Hardoy et al., 1992; UNCHS, 1996). If in 2005 among 6.5 billion of the world population, 48.6% lived m urban areas, then in 2050 it will account for 69.6% of 9.2 billion people Most of the population growth expected in urban areas will be concentrated m the cities and towns of the less developed regions (United Nations, 2008) Water scarcity, worsening water quality, and groundwater depletion are among the major environmental problems in cities, and the sustainable provision of safe water is a real challenge. World Health

ι Organization's report' states:

Rural areas still lag far behind urban areas in terms of drinking water coverage. Even though rural drmkmg water coverage increased from 64% in 1990 to 73% in 2004, we still have some 900 million people that remain un-served. A continuation of this trend would lead to coverage of 80% by 2015 - which means about 300 million people gaining access. Yet in 201S about 700 million will remain un-served if the current trend is confirmed. The urban challenge is different. Urban coverage with improved drinking water has remained practically unchanged over the past 15 years at 95%. But this admirable achievement is threatened by predicted urban population growth over 2005-2015. We are expecting to have about 755 million more people m urban areas. Although the coverage trend analysis predicts a similar coverage in 2015 of 95%, just preventing an increase in the number of people un-served will require the provision of services to almost 800 million new users over the next 10 years.

There are other reasons too why getting access to safe water is difficult for many urban dwellers, in particular the urban poor. Characteristic for cities is the conunoditization of almost everything and water is no exception. Beali and Kanji (1999), for example, write "In urban areas where economies are often more monetised and where there is exclusive dependence on cash income, livelihoods crucially depend on access to employment or income earning opportunities and what Rakodi (1999) calls 'capital assets'." To get water, people living in urban areas have to spend their capital assets and the poor spend absolutely (more expensive tariff) and relatively (the costs for water compared to total incomes) more than the rich. The UK Department of International Development (DFID) in one of its publications noted that people in poorer areas where piped supplies were not available usually had to buy water from vendors with the price from 4 to 100 times more than from public utilities (Bakker, 2003a). While according to the Asian Development Bank (ADB) in their research in Delhi, the poor even had to pay 489 times more than those who were connected to a piped water supply system (Ertuna, 1997).

Urban areas, particularly in developing countries, also have become the battle fields for the two opposing views : one is in favour of strong government involvement and another wants private sector participation in water supply delivery (Villaverde, et al, 2010) and the utilisation of market proxies in water supply management such as the adoption of efficiency, cost recovery and competitiveness of the provider. The proponents of private sector participation and market proxy mechanism argue that this system will lead to a more efficient and effective way in delivering the water, a view that is supported by the World Bank. The World Bank's critics, however, doubt the efficacy of the private participation and market proxy mechanism. According to Hall and Lobina (2007), major innovations are more likely to come from community-based systems and public

1 See http://www.who.int/watCT sanitation health/monitorine/imp2006radio/en/index.html. (accessed on 15 March 2008). 2 Tho-e are quite a lot of articles on public and private debate. A report by Public Ciozcc entitled Profit Streams the World Bank & Greedy Global Water Companies prepared by Sara Grusky can show the arguments behind the debate. Budds and McGranahan's article Are the Debates on Water Privatisation Missing the Point'' Expenences from Africa, Asia and Latin America in Environment and Urbanization 15 (2): 87- 113 is another good example. authorities than from private companies. More recently Pigeon et al. (2012) based on experiences in five countries plea for a remunicipalisation of water with the slogan "Putting water back into public hands'.

So far there is no conceptual model which can compare the performance of private, public or community-based providers (whether using market proxy mechanism or not) in delivering water supply for daily basic human needs. In addition, most models of urban water supply focus on the efficiency of supply systems; when they consider the broader impact, their focus is different from the one in this book. For example, Murphy et al. (2004) developed an integrative model based on the strategic business planning for a certain water supply operator. This model is trying to integrate community vision, utility mission, customer needs, regulatory agencies and requirements, and stakeholder objectives, on the one hand, with the long-range strategic elements and short term business plan and implementation program on the other hand. Thus the model stresses the business side of the operator.

Another model that was developed by Barthel et al. (2008) is trying to integrate socio economic aspects to hydrological systems. In their opinion, systems that aim at evaluating impacts of climate change on large spatial and temporal scales cannot be based on the assumption that infrastructure, economy, demography, and other human factors remain constant while physical boundary conditions change. Or in other words, any meaningful simulation of possible future scenarios needs to enable socio-economic systems to react and to adapt to climatic changes. Barthel et al. (2008) developed a coupled simulation system comprising sixteen individual models to simulate global change impacts on the entire water cycle of the Upper Danube Catchment, which was demonstrated by means of concrete simulation models of the water supply sector and of the domestic water users. However, because the focus is different, these two models cannot be used to compare the performances of public, private and community-based providers and to answer why urban poor cannot access improved source of water supply.

Thus it is necessary to develop a new model that links different modes of water supply to people's daily needs. The breadth of the livelihoods approach (Chambers and Conway, 1992; DFID, 1999; Farrington et al., 2002; De Haan and Zoomers, 2005) informs its potential to fill the need for such a model. Livelihoods can be defined as a broad range of the capacities, assets and activities of individuals, households or communities to make a living. A livelihood is termed sustainable when it is able to maintain or enhance its capabilities and assets, when it provides livelihood opportunities for the next generation and, as a surplus value, benefits other livelihoods at the local and global levels in both the short and long term (Chambers and Conway, 1992).

In using the livelihoods approach for urban water supply, I will analyse how (1) macro and water supply policies, (2) negative external changes called vulnerability context and (3) water problems such as water scarcity, worsening water quality, groundwater depletion and water commoditization, will affect the micro level of household's assets, strategies and outcomes. In livelihoods approach the challenge to deliver water supply (disregarding which provider is giving the service) is how to contribute to the betterment 3 of people's livelihoods, especially the poor. The development of the model of urban water supply for sustainable livelihoods as proposed in this book and its application to the Semarang case serves this aim.

1.1 Sustainable livelihoods analysis for urban water supply

There are fairly large numbers of studies dealing with water supply providers. However, the results of the studies have not answered the question "which provider is more beneficial to people's livelihoods". Access (Kyessi, 2005; Connors, 2005; Hardoy et al., 2005; Guardiola et al., 2010), coverage (Pirez, 2002; Hardoy and Schusterman, 2000; Budds and McGranahan, 2003), price (Pirez, 2002) or even vested interest such as private profits and protecting public jobs (Budds and McGranahan, 2003) are some partial livelihood aspects that are used as the basis of the debate on the role of water supply providers. Therefore, it does not surprise that these studies show contradictory results.

Despite the fact of the important role of water supply for people's livelihoods, livelihoods approach has not been fully used to provide sustainable supply especially for vulnerable people who have difficulties in accessing safe water. Sustainable Livelihood Analysis (SLA) as a holistic and people-centred approach (Murray, 2001) offers a look at the real world by understanding things from local perspectives (Scoones, 2009) of such people, besides it can link micro-meso-macro level (Erenstein and Thorpe, 2011). Moreover, in a policy perspective, SLA can be used to enhance the effectiveness and efficiency of interventions (Erenstein and Thorpe, 2011) such as the policy of safe water provision. The application of SLA as a tool to evaluate the effectiveness and efficiency of interventions can be found ranging from irrigation (Smith, 2004), tourism (Simpson, 2007) to farming (Erenstein and Thorpe, 2011).

SLA originated as an approach to analyse poverty in rural areas, but is currently applied to both rural (Chambers and Conway, 1992; Carney et al., 1999) and urban areas (Moser, 1998; Beali and Kanji, 1999; Meikle et ai, 2001; Farrington et al., 2002; Rakodi and Llyod-Jones eds., 2002). As an approach to tackle poverty problems, SLA is very popular among developmental agencies such as the DFID and the United Nations Development Programme (UNDP), and Non Governmental Organizations (NGOs) such as CARE (it used to stand for Cooperative for American Remittance to Europe) and Oxford Committee for Famine Relief (Oxfam) International.

Up to now there has been a number of efforts to apply SLA to domestic water supply problems. Soussan et al. (2004) see the importance of the role of water in poverty reduction because water is vital to the livelihoods of many poor people and improvements in access to reliable water services having the potential to make a major contribution to poverty reduction. Nicol (2000) uses SLA approach as a link between water supply development project and livelihood system at household level. The Centre for Land Use and Water Resources Research (CLUWRR) under the project of the Catchment Management and Poverty (CAMP) tries to integrate SLA to Integrated Water Resources Management (IWRM) by identifying the impact of forestry operations on

4 people's livelihoods (Hewett and Hope, undated)3, and the role of the improved domestic water supply in poverty eradication (Hope et al, 2003)

To my knowledge, despite its strengths and popularity, SLA has never been used to analyse which water provision benefits the livelihoods of urban poor the most the private, public or community-based urban water supply provider or their combinations In that context a model on urban water supply for sustainable livelihoods is proposed

This model is intended to be used 1 As a tool for analyzing the role of private, public or community-based (or their combinations) of urban water supply in improving people's livelihoods 2 As a tool for policy leverage of how to make urban water supply regard more to people's livelihoods, to sustainabihty context and to cope with vulnerability

The model is aimed to deal with the delivery of domestic urban water supply for daily basic human needs4 and it will be applied to the case of Semarang, Indonesia To give an overview of the application of the model, the next section will elaborate the problem context of water supply in Semarang

1.2 Problem context: Water supply in Semarang

Semarang is one of the major cities in Indonesia With approximately 1 5 million inhabitants, Semarang is the fifth most populous city in Indonesia Like other coastal cities m Indonesia, including the capital city of Indonesia Jakarta, it suffers from land subsidence because of excessive groundwater extraction In Semarang almost all the lowland coastal area suffers from high levels of land subsidence According to a study by Partners for Water (2008)5, the city is progressively subsidmg below sea water level at a rate of 9 cm/year In addition to land subsidence, Semarang also suffers from seawater intrusion that makes it difficult to get fresh water in a certain area Seawater intrusion had reached 2 S km from coastline into the land in 1992 (Hadipurwo6) and in 2004 had reached the centre of the town, Simpang Lima

3 See http //www cluwrr nel ac uk/Droiects/camp/campCC pdf (accessed on 23 November 2004) 4 For the discussion on how much water is needed to meet daily basic human consumption please refer to Ρ Η Gleick's article The Human Right lo Water in Water Policy I (1998) 487-503 ! 'Partners for Water' is an organization which made a feasibility study on building a polder system at Banger River of Semarang 4 See http //www dgll esdm go id/enelish/proundwaler/Gc/gc semaranel992 html (accessed on 19 October 2004) 5 Figure 1.1 Location of Semarang, Central Java, Indonesia

In 2007 the Semarang public water supply company (PDAM7) coverage was only 55.8% of the 1.5 million Semarang City inhabitants (PDAM Kota Semarang, 2008). It only covers some parts of the coastal area and this is one of the reasons why people not receiving coverage in these areas highly depend on groundwater which results in land subsidence and seawater intrusion. In other words, the problem of excessive groundwater extraction is due to the inadequate coverage of both for the domestic use of Semarang inhabitants and the industrial usages by the PDAM

Many people use other water resources. To begin with, people use shallow wells, which is the traditional way of water provision in coastal area. However, its role in water supply is decreasing. Because of deteriorating water quality due to intruding seawater, people tend to use water from shallow wells only for less value-added activities such as washing, bathing, gardening or watering the yards. For drinking, people tend to rely on other sources .

7 PDAM stands for Perusahaan Daerah Air Minum which means local water supply company. In Indonesia local water supply companies are owned by provincial governments, or municipal or city governments. * People might use water from two or more water supply providers. For example for bathing they use water from shallow wells, artesian wells or water peddlers, while for drinking and cooking people buy bottled water. 6 Many inhabitants get fresh water from artesian or deep wells , though the quality as drinking water is questionable. When it is managed by a provider, people have to pay water charges to either the developer of the housing area or the chiefs of neighbourhoods or the owner of the artesian well. In water prone areas, some better-off inhabitants dig their individually owned deep wells. From the field study, some of artesian well owners have problems with the sustainability of the water supply. Water from some artesian wells has dried up due to water table drop. Other artesian well water has become salty because of seawater intrusion. To find better quality water, people have to dig deeper and deeper artesian wells.

In the area dominated by PDAM we can usually find water peddlers providing water services. It is because PDAM service is sometimes temporarily off. Water peddlers are safeguards when PDAM service is off and also safeguards especially for the poor that cannot get connected to both artesian well providers and PDAM. The water sold by water peddlers mainly comes from artesian well providers.

Figure 1.2 Shallow Well, Artesian Well, Water Kiosk and Cart Used by Water Peddlers

9 Deep well and artesian well are sometimes used interchangeably. Actually deep well is different from artesian well. In deep wells, the water requires pumping to the surface; in artesian wells, conversely, water usually rises to a greater level than the land surface. 7 People can also buy bottled water. The history of bottled water business in Indonesia started in 1973 with Aqua as the first bottled water company. From 1973 to 1978 Aqua faced some ups and downs in its business. It was only in 1978 that the company started to grow and found its success because at that time they could reach the very potential low- class market especially the ones that could not be reached by public water supply companies. After that, the dependency of the people including the Semarang inhabitants on bottled water continued to increase.

Since 2002 there has been strong competition for bottled water business i.e. refilled- bottled water kiosks, which can be found at every comer in almost all big cities in Indonesia. People buy water from water kiosks by bringing their own bottles. This business is very competitive compared to bottled water because the price for the same quantity, about 20 litres (usually in Indonesia people use the term galon for the bottle), is only 30% of bottled water, though some people are still questioning its quality. Some of the reasons why it is cheaper are that the distribution costs are much lower (the buyers come from the kiosk's neighbourhood), and refilled-bottled water producers do not need much advertising cost to market their trade-marks. Besides safe drinking water, some water kiosks sell untreated water which they call 'mountain water' and that has to be boiled to make it drinkable.

The problem is that all the alternatives for PDAM water use groundwater as their sources. PDAM itself uses groundwater around 35% out of its 2,509 litre/second total capacity. The other 65% comes from surface water from Kaligarang River, Babon River and Klambu Dam (PDAM Kota Semarang, 2008). These alternatives for obtaining water supply have many impacts. On the one hand excessive groundwater extraction causes problems of land subsidence and seawater intrusion. Land subsidence has increased the tidal flooding, while seawater intrusion makes the access to fresh water increasingly difficult. On the other hand these alternatives also have positive impacts on people's livelihoods especially for the people who do not have access to PDAM.

Tanjung Mas, my field research area, is one of the most suffered areas due to water resources problems in Semarang. The greatest land subsidence and the worst tidal flooding can be found in this place. Because of these environmental problems there have been various changes in water provision in this sub-district, involving public, private and self provision.

By using the model proposed, this research interrogates the impacts of water provision changes on the livelihoods of the people living in Semarang coastal area. Tanjung Mas Sub-district is chosen as the location of the study. Sub-district (kelurahan) is a part of a district (kecamatwi). In Indonesia administratively a city is divided into districts. A district consists of sub-districts which are then divided into neighbourhood organizations (rukun warga orRW). The smallest administrative unit is household association or rukun tetangga (RT) which usually consists of 30-40 households.

1.3 Research question 8 This research aims to answer the following central question:

What are the consequences of changes in urban water supply for daily basic human needs to livelihoods of the people living in coastal area of Semarang?

Instead of asking people in the research area how they perceived the consequences of different sources of water supply for their livelihoods, I referred to the changes in the source of the water they used. In this way I made it very concrete to them and their answers were more reliable than would be the case in asking them a rather abstract question. I0 The answers also gave the researcher an insight in what happened with the sources of water both quantitatively and qualitatively. The central question serves the objective to recommend policies for the government at all levels, specifically the local one, to improve the situation.

The central question consists of four sub research questions: 1. What conceptual model can be used to evaluate urban water supply for sustainable livelihoods? Amongst others, a literature review on how to apply livelihoods analysis in urban water supply will be undertaken to answer the question. 2. What is the vulnerability context at city and district level that triggers the changes in urban water provision affecting the households of Tanjung Mas? 3. What do water provisions look like and what are the causes of the changes in water provision in Tanjung Mas and its neighbourhoods in 1996 to 2006? 4. How do these changes - in urban water supply for daily basic human needs - affect people's livelihoods living in Tanjung Mas? This sub research question will be answered through the application of the model developed in the first sub research question.

In addition to the central question, an analysis on the policies affecting the changes in water supply and how the government can improve the performances of the providers to benefit people's livelihoods will be covered in two subsequent sub research questions: 5. What are the current policies relating to water provision at the location of the study? 6. Finally, how can the policies relating to water supply bring benefits to the livelihoods of the people living in Tanjung Mas?

1.4 Overview of the book

Chapter 2 of this book starts with the presentation of a literature review in search of a livelihoods analysis for urban water supply. Since a suitable conceptual model is not available, a new model of urban water supply for sustainable livelihoods is developed. There are three issues discussed which become the basis of model development: the first

By analyzing the changes we can compare the performance of providers. Another way is to make a comparison between two providers at two different but comparable locations at the same period of time. 9 concerns controversies on the research results of the role of water supply providers (public, private and community-based and their combination) on the improvement of livelihoods. The second is about sustainable livelihoods analysis (SLA), while the third issue concerns a new model of urban water supply for sustainable livelihoods.

Once having designed a new conceptual model, I continue with the methodology of the research which will be described in Chapter 3. Thereafter, based on the proposed model, an assessment of the vulnerability context in Semarang City and in the research area of Tanjung Mas will be carried out. The vulnerability assessment occurs on three levels: the city level, the community/sub-district level and the household level. The aim of the vulnerability assessment at city level is to familiarize the researcher with the problems of vulnerability at a more macro level, while at the community level the vulnerability problems in Tanjung Mas are assessed. With the results of the vulnerability assessments at city and community levels sub research question 2 can be answered. However, not all vulnerabilities at the higher levels create problems for particular households. The household level analysis will conclude whether the context will become a problem. Chapter 4 of the book will deal with vulnerability assessment at city and community level. The household level will become a part of Chapter 6 that is about the results of the household survey on livelihoods analysis, which will answer sub research question 4.

Water supply can be considered as a sub sector of the water resources sector. In Chapter 5,1 start with the description of water supply providers in Tanjung Mas and continue with a water supply sub sector analysis which is carried out to show the interaction among water supply providers; the value chain started from raw water, the treatment process, the distribution of the water, and the subscribers of each water supply providers. A general trend of the changes in water supply will also be presented. This analysis is meant to answer sub research question 3.

Water supply business is highly regulated in Indonesia. There are so many regulations such as the requirements to meet the health standards for drinkable water, the Indonesian Standard for Bottled Water, the technical requirements for refilled-bottled water kiosks and their water trade, groundwater extraction permit, and the tariff of public water that should be affordable to subscribers. The policy analysis is intended to answer sub research question 5 which is needed for an answer to the final sub research question 6. All the relevant policies issued by international, national, regional and local policy makers will be discussed in Chapter 7. The question why PDAM does not cover most of coastal area of Semarang also can be found in this chapter.

The book will end with conclusions and recommendations that will be presented in Chapter 8. It includes a brief summary of the book, a synthesis and reflection on the most important findings, a reflection on methodological and theoretical implications, the controversies of public, private and community-based water supply system and my position on the controversies, and my general recommendations.

10 2. Towards a model of urban water supply for sustainable livelihoods11

The purpose of this chapter is to give an overview of relevant theones, concepts and preceding researches related to the first sub research question concerning a conceptual model that can be used to evaluate provisions for urban water for the betterment of people's livelihoods For that purpose the chapter comprises five sections

To give a better picture on the roles of respectively public, private and community-based water supply providers and the way they relate to people's livelihoods, a review of the results of preceding relevant researches will be presented in the next section As we will see, unfortunately the results of preceding researches tend to be contradictory especially with regard to the question of which provider contributes most to the betterment of people's livelihood

The subsequent section deals with an approach to the sustainability of vulnerable urban households, namely the sustainable livelihoods analysis (SLA) that originates from the nineties An extensive overview of the major concepts that are used in SLA is presented In this approach, sustainability and vulnerability are key notions The discussion aims to offer a Sustainable Livelihoods (SL) Framework for analyzing the role of water supply providers in improving people's livelihoods Some earlier specific efforts to relate water supply with livelihoods are dealt with in section 2 3

On the basis of the discussion in the first three sections, I will develop a model that will be the focus of section 2 4 The proposed model aims to analyse the role of domestic urban water service delivery for daily basic human needs to improve people's livelihoods Water for daily basic human needs includes water needed by household members for consumption (drinking and cooking), hygienic purposes (washing and bathing) and amenities (gardening and cleaning vehicles)' Some concluding remarks on the background and the proposed model will be parts of section 2 5

2.1 Controversies around urban water supply providers

The management of water supply services cannot be separated from the management of water resources as a whole It is a complex task that has to meet a number of different - and often contradictory - social, economic and environmental goals (Cashman, 2006) Water services cater to social objectives access to a certain minimum amount of water is generally perceived to be 'merit good', that is, its consumption has a benefit to society beyond that which accrues to the individuals consuming it, such as contributing to a

1 ' An article based on this chapter has been accepted to be published in Journal of Water, Sanitation and Hygiene for Development on July 5, 2012 under the title of The Sustainability of Urban Water Supply in Low Income Countries A Livelihoods Model, co-authored by M A Wienng and Ton van Naerssen 12 Water can also have symbolic and religious functions II productive and decent life including health (World Bank, 1993).

Nevertheless, many developing countries have foiled to supply water as 'merit good'. The mid seventies witnessed the widespread demise of state-led public supply including water, with budget constraints and internal management problems, inviting new approaches to provide quality services at acceptable costs (Moulaert and Swyngedouw, 1987). This was the beginning when people stressed more on the economic and financial goals, which in practice means that water supply providers should be financially autonomous from government budget. 'The consumer pays' is the main principle adopted reflecting economic goals that should be met by water supply providers. Since the 1980s the World Bank and donor agencies' support of privatisation has led to demand- responsive approaches and the use of these principles, replacing previous state-led views of the water and sanitation sector (Nicol, 2000). Privatisation of water supply mainly happens in urban context especially in cities which inhabit more than one million people (Hall and Lobina, 2006), due to the purchasing power of their inhabitants and the big demand combined with the difficulties to find good water supply sources. That is why controversies involving privatisation of water supply are mainly related to urban areas.

Besides the discussion concerning social and economic objectives, any delivery of water involves environmental issues. Without a proper regulation, water supply providers whose stress is on economic objectives tend to lower cost by using good quality groundwater as their main sources of supply. By using good quality of groundwater, the provider can cut the cost of treating raw water to make it drinkable. A regulation against excessive groundwater exploitation might increase the cost of surface water treatment and as a result might harm the economic goal of making profit.

Given the multiple actors and goals involved in water supply, an approach that focuses solely on the performance of public utilities in terms of cost-benefit and/or cost- effectiveness is not enough: these approaches presuppose that providers should include the intangible benefits of supplying water as 'merit good' which might undermine the economic objectives of financial autonomy and/or making cash profit13. Nor do the criteria normally used to evaluate private companies - efficiency and productivity - fully apply to water providers: their work has social and environmental implications.

There are four main categories of the management of urban water supply: managed by government or public, managed by private sector, by community (Kyessi, 2005) and the combinations of the three - through for example public-private partnership (Bakker, 2003a; Hall, 2001) and public-community partnership (Hoedeman, 2006). Controversies persist over the effectiveness and consequences of the management of public, private, or community-based water supply systems - alone or combined - in meeting the

15 Benefil-cost analysis presupposes that public policy decisions have multiple objectives and embrace social goals that are much broader than mere economic efficiency. Cost-effectiveness analysis is used to assess trade-offs between benefits, measured m some unit other than money, and resource costs. Cost- effectiveness can indicate the least-cost method of reaching a prescribed objectives, such as a given level of emissions or ambient air quality, as well as ways of maximizing (or minimizing) some physical environmental and/or social effects with available resources. (Hutschmidt, et al. (1983)). 12 contradictory social, economic and environmental goals (Gilbert, 2007). The controversies about what the best solution to improve urban inhabitants' livelihoods have not been resolved yet. The following paragraphs will review them on the basis of earlier researches in developing countries.

There are some contradictory research-results found in the effectiveness of public water supply management. On the one hand, Budds and McGranahan (2003) for example write:

There is general agreement that public utilities have been too slow in extending access to services and that Ihey can be inefficient and corrupt (p. 87). Publicly run utilities in developing countnes have been singularly unsuccessful in providing reliable water supply and sanitation (p. 97).

On the other hand, public water supply companies such as Departamento Municipal de Agua e Esgotos (DMAE) of Porto Alegre in Brazil that is fully financed through water bills paid by its 1.4 million inhabitants is a massive success. The impressive result was that 99.50% of the population of Porto Alegre had access to clean water by the year of 2001 (Maltz, 2005).

One article on private company's success is written by Hardoy and Schusterman (2000). They found that Aguas Argentinosi, the private company which managed water and sanitation in Buenos Aires, in five years could expand its coverage including informal settlements'5. In 1993 Aguas only served 6.4 million residents of which 200,000 were in informal neighbourhoods (which belonged to the poor), while in 1998 there were 7.9 million residents served and 550,000 of which lived in informal neighbourhoods. However, using the same location of study and the same company, Pirez (2002) writes:

Although water and sanitation services for most of the metropolitan area have been transferred to a private firm (Aguas Argentinas), in what was the largest privatisation in that sector worldwide, and in spite of rate increases for all customers, the service has not been extended to cover the poorest population who lack the service (p. 152). The poorest inhabitants have had to resort to self-help efforts to create a substantial part of the necessary infrastructure, which has subsequently been transferred to Aguas Argentinas (p I S3).

Solo (1999) reports the important role of small-scale private providers of water and sanitation in a great range of urban areas in Africa, Asia, and Latin America. According to him, without these operations 10 million of low-income households would be worse- off. However, another report shows that informal resellers of these small-scale private providers might constrain the extension of better quality public services to low-income- neighbourhoods (Jaglin, 2002). Besides, in East Africa, households using private sources

14 Though it is a little bit risky to cite the successful experience of privatization in Buenos Aires since the system collapsed in 2006, most of the articles state that the collapse is not due to the private company's poor performance. See for example Xavier Maitrerobert's presentation in Atlanta on 22 March 2007 entitled Paying for Sustainable Water Irifrastructure. Innovations for 21 " Century ax Session No. 3: Private Sector Water Providers: Where It Works, Where It Doesn't 15 Informal settlements are settlements (sometimes illegal or unauthorized) of impoverished people who live in houses often of a temporary nature erected on land which has not formally been proclaimed and serviced for residential use. 13 such as kiosks take the longest time to collect the water and cost twice the price compared to other sources (Thompson et ai, 2000).

There is also a contradictory research result with regard to the community-based urban water management. Kyessi (2005) states that community-based urban water management can be one of the best solutions for urban poor areas. He shows how the residents, most of them being poor, are coping with the deficiency of water themselves. However, Kyessi also notes that some free of charge community-based water service in Dar es Salaam had collapsed and that privatisation of these free of charge community-based service was seen as a way out in avoiding their collapse.

All the controversies of the research results on water supply providers above deal with the poor and use indicators such as access (Kyessi, 2005; Connors, 2005; Hardoy et al., 2005; Guardiola et al., 2010)), coverage (Pirez, 2002; Hardoy and Schusterman, 2000; Budds and McGranahan, 2003) or price (Pirez, 2002) which are small parts of the livelihoods of people. Though the quotations seem too simplistic to illustrate the very complex situation, the intention of quoting the articles is to show that we need a more holistic approach to analyse the impacts of urban water provision on people's livelihoods. These contradictory findings and the need for a more holistic approach of people's livelihoods make the discussion on sustainable livelihoods relevant. By holistic, I mean that we have to consider all impacts of water provision on all assets (natural, physical, human, financial, and social) owned by households, their livelihoods' strategies and outcomes and whether water provision can safeguard households' resilience or not. This will be the focus of the next section.

2.2 A review on Sustainable Livelihoods Analysis

Water is essential for the basic needs of life, including drinking, cooking, washing, gardening and cleaning. To assess the impact of water supply delivery on people's livelihoods, this section begins with an analysis of sustainable livelihoods.

According to Chambers and Conway (1992) as the pioneers of a livelihoods approach, a livelihood comprises capabilities, assets (stores, resources, claims and access) and activities required to make a living. The analysis of livelihoods can be at different levels, ranging from the macro regional level to the community and the family levels but in SLA the most common unit of analysis is the household (Chambers and Conway, 1992; De Haan and Zoomers, 2005). A household is commonly defined as a person or co-resident group of people who contribute to and/or benefit from a joint economy in either cash or domestic labour that is a group of people who live and eat together (Rakodi and Llyod- Jones eds., 2002). Households may involve close family, wider kin network and can include unrelated co-residents such as lodgers (Beali and Kanji, 1999).

Chambers and Conway (1992) distinguish two kinds of sustainability in livelihoods analysis: environmental and social. Environmental sustainability deals with the external impact of a certain household's activity to maintain its livelihoods on other households' livelihoods, while social sustainability refers to the internal capacity to withstand outside 14 pressure. According to Oxfam, sustainability needs to be looked at from several perspectives (Carney et. al., 1999; Norton and Foster, 2001): • Economic (e.g. the functioning of markets, credit supply); • Social (network, gender equity); • Institutional (capacity building, access to services and technology, political freedom); • Ecological (quality and availability of environmental resources). Others16 include resilience and use other terms such as economic efficiency or economically effective, social equity or socially equitable and ecological integrity or environmentally sound.

Addressing the sustainability issue more specifically, SLA includes a household's vulnerability to stress and shocks from its wider environment (DFID, 1999). The most important quality of sustainability in SLA is the capacity of households to cope with and recover from stress and shocks. Stress and shocks are considered as key notions to explain the vulnerability context, which frames the external environment in which people exist (DFID, 1999). The early theory on vulnerability has been developed to explain how famines have occurred and many scholars have written about it in different ways and more often theoretically than empirically (Dietz, et al., 2004). Though the discussions are more theoretical, there is still a lack of appropriate measurement schemes for practical application, partly due to the complexity of identifying and quantifying the contributing elements (Wagle, 2008) or according to Norton and Foster (2001) it still requires further methodological development.

The classical definition on vulnerability was pointed out by Moser (1998). Moser defines vulnerability as insecurity and sensitivity in the well-being of individuals, households and communities in the face of a changing environment, and implicit in this, their responsiveness and resilience to risks that they face during such negative changes. Consequently, vulnerability has two sides: an external side of risks, shocks, and stress to which an individual or household is subject; and an internal side which is defencelessness, meaning lack of means to cope without damaging loss. Loss can take many forms: becoming or being physically weaker, economically impoverished, and socially dependent, humiliated or psychologically harmed (Chambers, 1992). The external17 side can be categorised into ecological, economic, social and political (Moser, 1998) while the internal side deals with the ownership of assets as a means to cope with every negative change without damaging loss.

The definition above implies two dimensions of vulnerability: sensitivity and resilience (Dietz et al., 2004; Blaike and Brookfield 1987; Moser, 1998). Sensitivity concerns the intensity with which shocks are experienced. Resilience is the capacity to bounce back to normal state after a crisis. Figure 2.1 shows the four degrees of vulnerability in terms of these two dimensions.

16 For the discussion about il please see Carney et al. (1999). 17 Moser (1998) uses the term environmental, instead of external, but for the purpose not to be contused with the environment such as nature, 1 prefer to use the term external changes. 15 Figure 2.1 Four Degrees of Vulnerability

Low sensitivity, high resilience (least High sensitivity, high resilience vulnerable)

Livelihood security Livelihood security shoek shock

Low sensitivity, low resilience High sensitivity, low resilience (most vulnerable)

Livelihood security Livelihood seeurily shock shock

Source: Dietz el al. (2004).

Vulnerability is closely linked to asset ownership (Chambers, 1992; Moser, 1998). Five kinds of assets can be distinguished: natural, physical, human, financial, and social assets. The external negative occurrences that expose risks to one or more of the assets of an individual, a household or a community will become part of the vulnerability context. On the one hand, the same occurrences may have different impacts on an individual, a household, or a community because every individual, household or commumty has different kinds and degrees of assets. Dietz et al. (2004) present a good example for this. When an area is affected by floods, for one family this can result in a tragedy from which it might take years to recover, while for a neighbouring family it might be a mere disturbance to daily life, because the households have different degrees of physical (houses, for example) and/or financial assets. On the other hand, an example in Caimcross et al. (1990) shows where the same occurrence can give the same impact on 16 the rich and the poor, because it is not the financial asset that matters but the human asset. Water-bome disease caused by water quality can attack every-one in the community, rich and poor alike, because it deals with human asset of every-one in the community.

On vulnerability variables. Chambers and Conway (1992) mention stress18 and shocks as variables in vulnerability analysis. Later Chambers (1992) mentions risks, stress and shocks as parts of vulnerability. Later works such as the one by Moser (1998) mention shocks, long-term trends, or seasonal cycles as negative external changes that could result vulnerability". DFID in their Sustainable Livelihoods Guidance Sheets (1999) puts shocks, trends, and seasonality in the box of Vulnerability Context. Referring to Chambers and Conway's (1992) and De Haan's (2000) definition of stress; trends and seasonality can be categorised as more precise variables for vulnerability analysis because the two differentiate the time the external changes happen. Based on Moser's and DFlD's works, in this book shocks, trends and seasonality will be used as variables of vulnerability analysis. The most important thing in vulnerability analysis is how vulnerability is perceived by the poor themselves (De Haan and Zoomers, 2005).

Shocks are impacts which are typically sudden, unpredictable, and traumatic (Conway, 1987; Conway and Barbier, 1990 in Chambers and Conway, 1992). Shocks are violent and unexpected. Shocks include human health shocks caused by water problems (too much, too little or too polluted water), natural shocks (such as flood and drought), economic shocks such as inflation and structural adjustment program, and political shocks such as war or conflict. Trends include international, national, regional, and municipal/city trends in the economy or in urban water supply management such as privatisation; technological trends; and population trends. Trends are more predictable. Seasonality includes all external changes that happen according to a certain system of seasons such as seasonal fluctuations in production and prices or the availability of water supply or stock because of the change from a wet to a dry season. Dividing the variables of vulnerability into shocks, trends and seasonality is necessary for the intervention purposes to reduce or to eliminate the impacts of vulnerability context. Mitigation management might be related to shocks. To deal with trends it might be policy intervention or policy re/deregulation which is more important, and government supplies could be one of the solutions for seasonality.

As mentioned before vulnerability is closely linked to asset ownership. Chambers and Conway (1992) referring to Swift (1989) divide assets into two categories: tangible and intangible. The most prominent division of assets with their pentagon is proposed by Camey (1998) based on Scoones (1998). Figure 2.2 shows the asset pentagon.

According to Chambers and Conway (1992) stresses are pressures which are typically continuous and cumulative, predictable, and distressing, such as seasonal shortages, rising population or declining resources. Stresses are less violent than shocks but can last longer (De Haan, 2000). Davis (1996) in Dietzel al. (2004) uses structural (more or less permanent) and proximate (changing from year to year) vulnerability. Though it is not really the same terminology, shocks and seasonality might belong to proximate vulnerability while trend is more structural. 17 Figure 2.2 Asset Pentagon

Natural Capital

Social Capital jS X. Physical Capital

Financial Capital Human Capital

Source: DFID Sustainable Livelihoods Guidance Sheet (1999).

The shape of the pentagon is used to show schematically the variation in people's access to assets. The centre point of the pentagon, where the lines meet, represents zero access to assets while the outer perimeter represents maximum access to assets. There might be a trade-off that occurs as we invest in or transform one type of asset into another or into flows of income. That is why the distance of each asset pentagonal to the centre of the pentagon might be changing when we invest on human capital 0 by using for example our physical capital.

An analysis at household micro level cannot be separated from macro and sectoral policy analysis. According to DFID and UNDP, the organizations that first developed SLA, macro-micro links and sectoral policies should be taken into consideration in SLA (Carney et al, 1999; Erenstein and Thorpe, 2011). The importance of examining how macro and sectoral policies affect the livelihood options available to a particular individual, household or community is also stated by Chambers and Conway (1992), the pioneers of SLA.

In 2001 the Intermediate Technology Development Group (ITDG) introduced a suh sector analysis to cope with the assessment of micro, macro, and sectoral policies (Ward and Gilbert, 2001; Majale and Albu, 2001). A sub sector is defined as a vertical grouping of enterprises involved in production and marketing of one well-defined product or several closely related products. Sub sector assessment is a system approach to the study of economic activity which helps analysts better understand the dynamic of the sub sector (Miles, undated).

Referring to Albu and Scott (2001), a sub sector analysis gives added value to SL investigations especially in selecting and developing the intervention ideas that have practical potential to achieve significant pro-poor benefits. In line with what the ITDG

The term capital and asset are used interchangeably in this book. 18 has already proposed, this book will also present a water supply, as a sub sector of water resources sector, analysis.

A sub sector analysis fits well in the box of 'Policies, Institutions and Processes' (PIP) as part of the SL Framework. PIPs cover a broad range of social, political, economic and environmental factors that determine peoples choices and so help to shape livelihoods, such as institutions (established ways of doing things: social norms and belief systems), organizations, policies, and legislations (Farrington et al., 2002). They are relevant at all levels, from households to global processes. They are the keys in determining access to the various types of asset that women and men use in pursuing their livelihood strategies either through acting as conduits to make assets available to them, or barriers to their access.

Changes in the external environment - whether natural (earthquakes, floods) or man- made (economic crises, failed policies), whether short-term (shocks) or long- term (trends), or whether regular (seasonal) or irregular - impact on households. To cope with them, households (or individuals or communities) devise strategies based on the expectation of what the outcome will have on the households. Farrington et al. (2002) gives a detailed explanation on livelihood strategies and livelihood outcomes. Livelihood strategies are the planned activities that households undertake to build their livelihoods. They usually include a range of activities designed to build asset bases and access to goods and services for consumption. The concept of household strategies acknowledges that the poor are not passive victims; they are able to adapt or respond to changing circumstances (De Haan and Zoomers, 2005).

Livelihood strategies also include coping strategies designed to respond to shocks in the short term, such as interruption in water supply, and adaptive strategies designed to improve circumstances in the long term. Livelihood strategies are determined by the capabilities, assets and opportunities available to households (which are in turn affected by PIPs and changes in the vulnerability context) as well as by the choices and preferences of households. These strategies could be ineffective if in the long term consumption declines and/or assets are lost permanently, or if successive calls on particular strategies deplete the natural, social or financial resources on which households or communities call (Rakodi and Llyod-Jones eds., 2002).

Livelihood outcomes are the results of women and men's livelihood strategies and feedback into the vulnerability context and asset bases, with successful strategies allowing them to build asset bases as a buffer against shocks and stresses as opposed to poor livelihood outcomes which deplete asset bases, thereby increasing vulnerability. Livelihood outcomes may therefore lead into either virtuous or vicious cycles. Virtuous cycles are shown by developed and expanded resources and capacity, while depleted and destroyed resources and capacity lead to vicious cycles (Magis, 2010). To conclude, the sustainable livelihoods frameworks in particular linked inputs (designated with the term 'capitals' or 'assets') and outputs (livelihood strategies), connected in tum to outcomes, which combined familiar territory (of poverty lines and employment levels) with wider framings (of well-being and sustainability) (Scoones, 2009). 19 2.3 Sustainable Livelihoods Analysis and water projects

The growth in the interest to apply SLA in public water programmes began when people realized that water supply was not only related to public health but also could generate local incomes especially for the poor. In other words water supplies play an important role for home-based productive activities which are critical, especially for the livelihoods of poor people (Soussan, 2004). In Nicol's (2000) argument water is not only good for consumption but also a productive asset to produce incomes. Many types of livelihood activities that depend on water take place in and around the house (Soussan, 2004), such as brick making, livestock, and laundry (Merrey, et al., 2005).

Nicol (2000) makes use of SL Framework to establish an understanding which helps to assess the relative costs or benefits to poor households involved in (or subject to) the trade-offs between free provision and supply sustainability, and between the ability and willingness of the poor to purchase their right to consume water. The trade-offs are between short term costs and benefits and long term sustainability. For example, if the poor want free provision, although actually they are able to pay for the water, then there might be a problem with the sustainability of the supply. The unsustainable supply might harm their livelihoods, because if the supply stops they have to look for other sources that might be more expensive or worse in quality.

Among other authors. Nicol (2000) is an exception when he states that maybe a poor quality of water supply will increase the poor's livelihoods. According to him the plentiful supply is more important than the quality of supply especially for the livestock owned by the poor. The plentiful supply might increase the productivity of the livestock and consequently it can improve the livelihoods of the poor. The increasing asset whether natural, physical, human, financial, or social is the heart of SLA; it is not the improvement of the quality or the quantity of water supply per se.

Nicol (2000) adds that a poor quality supply for a household's consumption might warrant a higher poverty weighting21, but the same supply might be plentiful and not harmful for livestock, serving to increase livestock productivity and reduce the vulnerability of the household. That is why cost and benefit analysis in water supply delivery coping with the trade-offs requires greater depth of analysis of livelihood uses (and potential uses) of water.

Hope et al. (2003), with Nicol (2000) and later on Soussan (2004), consider water as a productive good. Their research was on the role of improved domestic water supply in

21 See for example Water Poverty Index developed by Caroline Sullivan (2002), her article Calculating a Water Poverty Index in World Development 30, 7 1195-1210 Sullivan wntes that Water Poverty Index can comprise various elements such as water availability, access to saie water, clean sanitation, and tune taken to collect domestic water The poor quality supply relates to the access to safe water Safe water is associated to a piped water supply which is drinkable from the tap or potable The smaller the number of the population to access a potable water supply, the smaller the index will be

20 livelihoods and poverty reduction in Limpopo Province of South Africa. The focus of the research was on the relationship between domestic water supply, kitchen-garden farming and poverty. According to Hope et al. (2003) improved water supply would deliver two significant benefits to the surveyed communities: health benefits and kitchen-garden irrigation benefits to different social cohorts, while economic benefits (building, brewing beer, brick-making etc.) were minor which might have been due to lack of opportunities (markets, local economic conditions) or other input constraints (finance, knowledge/information) to develop these small-scale, water dependent business enterprises.

Through SLA Soussan (2004) sees that the benefits of making the improvement of water supply services far outweigh the costs by as much as 60 times and never less than three times in the major regions in the developing world: the poorer the people and the countries, the higher the potential benefit-cost ratio is. Involving the results of the WHO study, Soussan writes that every dollar invested in improvement of water supply generates between US$ 5 and US$ 11 in economic benefits. Unfortunately, Soussan does not mention how the economic benefits are calculated.

Hewett and Hope (undated) under the Catchment Management and Poverty (CAMP) alleviation project in Grenada, South Africa and United Republic of Tanzania started from 2001 and ended in 2004 tried to assess the effects of water and forestry policy on the livelihoods of people living in those three countries. The objective of the project was to improve the livelihoods of the poor by increasing access to water. The project proposed improved methodology using SLA- for the whole catchment management. Integral to the research was Integrated Water Resources Management (IWRM) at the catchment scale and SLA at the household scale. Through this research they assessed whether or not the sectoral policy instruments directed to achieving sustainable basin- wide water resources, ecological and economic systems improved the livelihoods of the poorest people. By using SLA they tried to develop a more people-centred approach to decide on development policies.

Merrey et al. (2005) are the ones who integrate the livelihoods to the definition of IWRM. In their opinion the problem of the IWRM is that it does not have any focus on the livelihoods of the people in light of the fact that at the time being there are 1.1 million people who do not have any access to clean water (Merrey et al., 2005). According to Merrey et al. (2005) IWRM needs to be put in the broader context of both modem integrated natural resource management and the livelihood approach, which together take a holistic and people-centred approach. An alternative definition of IWRM, proposed by Merrey et al. (2005), involves the promotion of human welfare, especially the reduction of poverty, encouragement of better livelihoods and balanced economic growth through effective democratic development and management of water and other natural resources in an integrated multilevel framework that is equitable, sustainable and transparent as possible, and conserved vital ecosystems.

Many authors have realized the importance of SLA in water provision. Some of them like Soussan (2004) and Hewett and Hope (undated) worked on applying SLA empirically, 21 Hope et al. (2003) applied SLA in water supply related to poverty in both urban and rural areas in South Africa, while Nicol (2000) and Merrey et al. (2005) tried to apply SLA more conceptually. So far SLA has never been used by other authors to contribute to resolving the controversies as to which one among private, public or community-based urban water supply providers or their combinations benefits most to people's livelihoods. Referring to the arguments mentioned above, it is necessary to develop a new model on urban water supply for sustainable livelihoods which not only can be used to contribute to resolving the controversies among public, private and community-based urban water supply system, but also a model that can be used as a tool for improving policies of how to make urban water provision regard more to the livelihoods of the people.

2.4 A model of urban water supply for sustainable livelihoods

Some modifications to the original DFID's SL Framework (see Figure 2.3) to facilitate its application to urban water supply should be undertaken. Basically the modifications are concerned with distinguishing actors, context and levels; and adding a sustainability context to the model. How and why the modifications are made will be elaborated in details in the following paragraphs.

Figure 2.3 DFID's SL Framework

LIVELIHOOD OUTCOMES ft . HxvlMHm

73 3 . Reduced

m . Mora

ofWbM*

Source: Carney el al. (1999)

Groups of Actors

There are many people, organizations or actors that deal with water supply. Broadly speaking, we can distinguish three categories of actors, which can be better figured out separately: the actors who regulate urban water supply delivery, the actors who deliver urban water supply, and - since this book focuses on people and not on companies or small-scale industries - the households as the users who are served by urban water supply actors. Differentiating the three groups of actors allows us to specify the roles they play.

The first category of actor is that of the regulators. Because water has many spatial and environmental characteristics, we have to differentiate the 'regulators' within a multi- 22 level governance setting We thus have international, national, regional, and local-level regulators, ranging from international bodies to national governments, business entities and associations, down to local communities In the proposed model, this group of actors is visualized in the Regulator Box, which must be adapted to individual cases The regulators play the role of watchdog for the second group of actors, the providers (Marques, 2008, Johnson and Handmer, 2002)

Regulators might be a central government which issues general policies on water supply delivery Regulators also include regional and/or local governments, because most water provision is supplied and managed locally either by regional or local governments or even by a local community Since there is a trend of the increasing role of multilateral agencies such as the World Bank and other regional banks (the ADB, for example) and organizations beyond the state such as the European Union, regulators may also include international regulators Besides all levels of government, regulators may come from business association of water supply providers such as Perpamsi (the association for PDAMs) or ASPADIN (the association for bottled water companies) in Indonesia

The second category of actors contains water supply providers The providers concern the actors who are delivering safe water to the users I put providers into a separate box because by making water supply providers autonomous and not a part of the government apparatus, 'comparative' or 'yardstick' competition22 is induced, possibly leading to a more efficient delivery In the model the providers are displayed in the Water Supply Provider Box (that encompasses the water supply sub sector) There are three major categories of providers in the water supply subsector public companies, private companies and community-based systems Of course many combinations are possible (Bakker, 2003a, Hall, 2001, Hoedeman, 2006) Providers' policies and their institutional sustamability belong to the Water Supply Provider Box Policies include those for pricing, technology, infrastructure, etc, while institutional sustamability refers to the provider's capacity to sustain its existence in the urban water supply business

The third actor is the household as a user of water provided by water supply providers Since the focus of this book is on water supply delivery for daily basic needs of household members, the Household Box only contains household users Separating households from regulators and providers makes it possible for households to conduct social control mechanisms A good example is the water supply provider of Porto Alegre, which includes a deliberative council of subscribers' representatives that not only controls the provider's activities but also participates in the formulation of relevant regulations (Maltz, 2005) In the model they can be found in the Household Box Adopted from the original SL Framework, the Household Box contains four elements assets, strategies, outcomes and resilience

72 Since the costs for delivering water supply services are mainly for infrastructure, it is impossible to have a direct competition in terms that there are two different infrastructures where users can choose which service they would like to use Such condition is known as a natural monopoly A direct competition can only happen at the bidding process of which company that will deliver the service 23 As a result, there are three separate boxes for these actors: The Regulator Box, the Water Supply Provider Box, and the Households Box. In reality there may be an overlap between the three groups of actors that I have distinguished. An example is self-provision in water, where a household owns a water source such as a deep or shallow well. Here the overlap is between the Water Supply Provider Box and the Household Box. Another possibility is an overlap between the Regulator Box and the Water Supply Provider Box, which happens when the regulator in this case government fully controls a water supply provider, for example when a public water supply company is owned and used for the vested interests of the government to generate incomes. Such overlap between actors is far from ideal, for social, economic and environmental goals may suffer. The overlap between the Water Supply Provider Box and the Household Box in the case of self- provision may produce environmental problems through the excessive use of water. Households do not pay for the water and it is difficult for regulators to control consumption. The overlap between the Regulator Box and the Water Supply Provider Box may undermine the social goal of universal service - especially for the poor - since there is too much stress on the financial aspect of generating profits for the regulator's own purposes.

The context: Vulnerability and sustainability

The context box consists of the Vulnerability Context Box as in the original SL Framework and the additional Sustainability Context Box. Since the vulnerability context, including shocks, trends and seasonality, has already been described in detail in Section 2.2, I will here focus on the sustainability context. The latter is meant to accommodate the aspects of sustainability that are uncontrollable for water supply providers and water users but can be influenced by them. The three characteristics of sustainability - ecological integrity, economic efficiency and social equity - constitute the Sustainability Box.

Ecological integrity is about preserving water and its hydro logical processes on which life depends. Economic efficiency means that the urban water supply system must not be wasteful in its use of resources. Social equity means that the way one household or urban water supply provider makes its livelihood must not disrupt options for others to make theirs.

All three parts of sustainability context are relevant to urban water supply in terms of some reasons. Water supply delivery in developing countries is characterized by high levels of 'unaccounted for water' and low coverage. 'Unaccounted for water' can be defined as the difference between the amount of water that is produced or purchased, and the amount of water actually sold to all subscribers. 'Unaccounted for water' includes underground or unavoidable leakage; unauthorized use, inaccurate meters; or other unusual causes. Low coverage means that a piped water supply company delivers only to a small number of the inhabitants of a city. Cities in developing countries are reaching extreme levels of 'unaccounted for water'; up to 40 - 60% of the water supplied. According to the World Bank the coverage is ranging from 18 - 100%. The coverage level in Indonesia in 2007 was 18.4% {Bappenas (the Indonesian National Development 24 Planning Agency), 2007).

The high percentage of groundwater usage both by providers and users can threaten the ecological integrity, while the high level of 'unaccounted for water' means that there is a problem of economic efficiency. The low coverage can harm the social equity especially for the poor, because most of the people who are not covered are the poor. The facts mentioned above make vulnerability and sustainability context relevant to the model proposed.

Levels

The Regulator Box is placed at the top of the model because water belongs to a common- pool resource; to allocate it efficiently and effectively, one needs policies or regulation from the government and other institutions. The second level concerns the macro level and comprises the vulnerability and sustainability contexts. The third level, the micro level, concerns the water supply providers and the water users. As the model aims to assess water supply for basic human needs, households are at its centre. The model developed is aimed to meet the purpose of this book that is to focus on analyzing and improving the policy of water supply delivery with regards to the livelihoods of vulnerable households.

The model

Figure 2.4 shows the complete model of urban water supply for sustainable livelihoods. Analyses of the role of water supply provision in improving people's livelihoods can be conducted by examining the impact of the activities on the vulnerability and sustainability context. The crux of the matter is whether or not the actors succeed in improving livelihoods by decreasing households' vulnerability and by promoting sustainability. This implies that the provision activities can support households to cope with negative changes, to create a virtuous cycle of outcomes, and to allow households lo build and increase their assets and capacities.

Within the model, it is not a matter of judging public, private or community-based systems (or their combinations) as such, but rather how the providers find a balance in terms of vulnerability and sustainability. To sum up from the discussion above, in my opinion water provision must: 1. Be able to safeguard the resilience of households in case of negative external and internal changes; 2. Reduce vulnerability through policies that grant access especially to the poor, and maintain the reliability of supply regardless of season; 3. Preserve the sustainability of water resources, reduce waste and give access to all inhabitants which is in turn related to social equity; 4. Maintain the continuity of the water supply system, e.g. through the implementation of a filli cost recovery principle that contributes to water supply provider's institutional sustainability.

25 Figure 2.4 A Model of Urban Water Supply for Sustainable Livelihoods

Regulator: • International • National • Regional • Local

/\ Vulnerability Context: Sustainability Context: • Shocks , / \ , • Ecological Integrity • Trend • Economic Efficiency • Seasonality Ί-^/Κ • Social Equity ^V \\ d1^ \ Households: Water Supply Provider: Resilience • Public Companies ι • Policy Ass • Private Companies ι· Institutional- V • Community-based ι' Sustainability • Their Combinations ' ^ Strategies Outcomes 1 Note: The assets include natural assets, physical assets, human assets, financial assets, and social assets.

If there are problems with a provider's performance, the model points to means to lever performances, for example regulating tariff structures to balance the interests of the supply system's institutional sustainability with universal access, or regulating groundwater extraction to maintain its sustainability.

2.5 Concluding remarks

I have proposed a household-centred model that mtegrates SLA with urban water supply delivery, and have extended the criteria usually used to judge urban water supply. The aim is not to assess public, private, or community-based systems as such, but to include them in a more holistic view of providers' performance, including household vulnerability and different aspects of sustainability: ecological integrity, economic efficiency, social equity at a macro level; institutional sustainability of water supply providers; and resilience of household users. In my opinion, the model will be able not only to assess the providers' performance, but also can be used to lever water supply

26 policies in order to contribute more to the improvement of people's livelihoods.

The next chapter will deal with the problem of methodology of how to apply the model for the field study in Semarang City of Indonesia. As a new conceptual model there are quite a lot of discussions on how to assess water supply vulnerability: how to assess and describe the impact of the changes in water supply on households' assets; what kind of strategies are used by households and what the outcomes are. This will also include how to get an inventory of the relevant regulations at national, provincial and city levels and how to analyse the regulations to assess their impacts on the livelihoods of people.

3. Research methods and the field study site

This research concerns an effort to apply a sustainable livelihoods analysis for evaluating the impacts of changing water supply on people's livelihoods. The results are intended to contribute to recommending policy changes in Semarang coastal water supply and thus to better conditions of the vulnerable people living along the coast. The detailed steps of how to reach such recommendations will be at the heart of this chapter. After a description of the research framework and research steps in Section 3.1, the chapter will continue with a section dealing with research methods for each step. Section 3.3 deals with the site selection for the field study and contains a brief description of the site. The chapter will close with a short section that concludes the methods developed and the challenges to deploy the methods.

3.1 Research framework and research steps

To answer (sub) research questions mentioned in Chapter 1, there are some research steps undertaken. The conceptual model figured out in Figure 2.4 will be used to answer the research questions. Figure 3.1 shows the research framework, the research steps and the chapters of the book.

29 Figure 3.1 Research Framework, Research Steps and the Structure of the Book

Theoretical Concepts Research Steps Book Structure and Perspectives

Step 1 Explomioo to the Problem Chapter 1

The Contribution of Stqp 2. Lttaimre Review and Conceptual Chapter 2 Urban Water Supply A Model of Urban Water Moddlmg Providers to Supply for Sustainable People'§ Ltvdihoods Livelihoods

Sustainable Livelihoods Analysis 1 Step3 Chapters »• Methodological Development

Vulnerability Context l -^ Assessment Criteria φ- · Livelihood Assets • -• Step 4- Chapter Ί Livelihood Strategies Vulnerability Context Analysts at City and Sub-district Level Livelihood Outcomes StepS Chapter 5 Resilience • ···»• Wattr Supply at the Location of the Study, Resets of Analysis < lu Changes and Its Impacts on Sustainability Context i Susuinabilily Context T*· ReResulta s of Ai alysis ·· Water Supply and Step 6 Chapter 6 Its Changes at the >••+ Water Supply and Location of the Study Sustainable Livelihoods Analysis

Polic> RecoimncndatioD Step? • -*· for Water Supply Policies Inventory and Chapter 7 Water Policies for Vulnerable Analysis Enter national. National, β '"People-mtf-fbrSuaHtnaMe- Provincial and City Level Groundwater Management ( • -» Step« Chapter 8 Policy Improvement Analysis, Conclusion and Recommeodaltons

Note vertical arrow stands for the confrontation and the horizontal one for 'from this on be oooduded' (Vmchuren and Doorewaard, 1999) Step one, the preliminary study shows that the coastal part of Semarang suffers from many environmental problems. The people there fece a difficult situation. On the one hand they suffer from the impacts of excessive groundwater extraction, but on the other hand they are forced to use groundwater because most of them are not served by PDAM Semarang City, the public water supply company owned by Semarang City government. People buy groundwater from many water vendors such as artesian well providers, refilled-bottled water kiosks, water peddlers or bottled water providers. Some, however, do not have any other choice than using deteriorated surface water from shallow wells.

Research step two m Chapter 2 contamed a literature review on the role of water supply providers to improve people's livelihoods and on SLA. The role of water supply providers to improve the livelihoods of people has been the subject of many scholars' research. What is interesting about SLA is that it is offering an integrative analysis of the livelihoods of people starting from vulnerability context, livelihood assets, livelihood strategies, livelihood outcomes and resilience. By confronting the two branches of literature23 (the role of water supply providers and SLA), I proposed a model of urban water supply for sustainable livelihoods.

From the foregoing it follows that vulnerability context, livelihood assets, livelihood strategies, livelihood outcomes, and resilience will be employed to develop assessment criteria for a sustainable livelihoods analysis focusing on water supply. These will be used to assess the contribution of water provision at the location of the field study to people's livelihoods. The methodology developed in research step three (this chapter) will be used as a research perspective to study the phenomenon which results in problems for households living in Tanjung Mas Sub-distnct A research perspective is like a pair of glasses we use to approach our research object. The latter is the phenomenon we are studying and of which statements will be made on the basis of the research project to be earned out (Verschuren and Doorewaard, 1999). This chapter will also discuss the site selection for the fieldstudy .

In Chapter 4 (the fourth research step), three levels of vulnerability context of livelihoods are distinguished: respectively the city, commumty/sub-district and household level. The most common unit of analysis for SLA is a household. However, it is also quite impossible to make a household level assessment for SLA without linking it to macro level and sectoral policies (Chambers and Conway, 1992; Camey et al., 1999). Constraints and opportunities for households often originate from the situation at the macro level or sectoral policies from governments. For example, the expansion of piped water supply services sometimes is derived from the availability of funds from government budgets and is due to sectoral policies such as meeting one of the Millennium Development Goals of 80% coverage of PDAMs in urban areas. A second reason why a city and commumty/sub-district vulnerability context analysis should be carried out is to familiarize the analyst to the more macro context of households being analysed and to develop a good questionnaire for household level assessment.

23 See Verschuren and Doorewaard (1999: SO) about the principle of confrontation in research framework 'For example, you relate a theory on farming to a public management theory in atàa to be able to derive proposals from this for an adequate farming policy ' 31 The city and community/sub-district level assessment will be parts of Chapter 4, while the household level vulnerability assessment will be presented in Chapter 6. Since at national level usually water supply vulnerability assessment mostly deals with policies (Hadipuro, 2007), it will be assessed in research step seven: policies inventory and analysis, while the other levels will be the focus of research step four.

Later on we will see that vulnerability is a difficult concept to understand by common people. That is why when we do an assessment at community and household level we have to give some clues about vulnerability at city or a more macro level. Nonetheless, the vulnerability factors are basically the perceived ones (by respondents) for the sub- district level. Please note that not all city and community vulnerability context will lead to vulnerability of specific households, because household's vulnerability is determined not only by external changes, but also the internal side of asset ownership.

Research step five will deal with the current water provision at the location of the study: the interaction among water supply providers; the value chain started from raw water, the treatment process, the distribution of the water, to the subscribers of each water supply providers; and the general trend of the changes in the provision. The research object in this step is the current water provision at the location of the field study and its dynamics. The perspective used to approach this object is the sustainability context. In other words, we are going to see how the supply and its dynamics contribute to preserve the ecological integrity, economic efficiency and social equity. The results of step five will be part of the Water Supply Provider Box analysis of the model and will be presented in Chapter 5.

Chapter 6 will consist of the results of household sustainable livelihoods analysis related to urban water provision at the location of the field study. In this step the results of the analysis done in step five as the research object will be viewed using the assessment criteria as the research perspective resulted from step three. This analysis will be done in step six of the research. In the model, it is figuredou t in the Household Box.

Step seven comprises an inventory and analysis on the urban water supply policies at national, provincial and city levels of the Regulator Box of the model, that affect urban water supply at the location of the field study. A description on the policies and the results of the policy analysis on the impacts on people's livelihoods will be presented in Chapter 7.

Finally, research step eight will consist of the analysis on how to improve the urban water policy so that it can contribute to the improvement of people's livelihoods. The result of the analysis, the conclusions and the recommendations will be presented in Chapter 8.

3,2 Research methods

The core of the research is on the application of a SL Framework to analyse the role of water supply providers against the background of livelihoods of the people living in Semarang coastal area. The field study itself aims to demonstrate that the model

32 developed in step two is valid The research focuses on the deep understanding of the context of the changes m water provision in Semarang as experienced by individual household respondents and what the impacts on their livelihoods are A qualitative approach is well suited for that purpose However, some steps undertaken, other than the core of the research, employ quantitative approaches such as the selection of the neighbourhoods as the samples for the field study

This section will start with the method to assess household water supply vulnerability The second part is about the method for researching the current urban water supply, its dynamics at the location of the study, and its impacts on the sustainabihty context The third section deals with water supply sustainable livelihoods analysis Next is a sub section on the method for analyzing the urban water policies and their impacts on the livelihoods of the people living at the location of the field study, including the policy analysis on how to improve the policies for the improvement of people's livelihoods The detailed research methods employed are as follows

3.2.1 Household water supply vulnerability assessment2'*

Doing research, especially empirical research, on vulnerability presents some problems for methodologies There are many methodologies used for analyzing vulnerability (Cannon et al, 2003) but most of them deal with disaster and natural hazards Capacities and Vulnerabilities Analysis (CVA), Vulnerability and Capacity Assessment (VCA), Oxfam's Risks Mapping and Local Capacities (RMLC), CARE's Household Livelihood Security Assessment (HLSA) as well as many others in use or development (Cannon et al, 2003)

Based on the literature review on vulnerability analysis (Cannon et al, 2003) and some modifications of the methods, a vulnerability assessment method is developed to make it suitable for water provision Four mam available vulnerability analyses will be presented in the next section Each of the four analyses has its own merits and contribution to the assessment approach used for this study First the summary and analysis of the similarities and the differences which are actually complementary are presented and then it is followed by the modifications needed including why the modifications should be made for water supply vulnerability assessment This section will end with the application of the modified method

Summary and analysis on four mam vulnerability analyses

The analyses of HLSA, CVA, VCA, and RMLC deal with vulnerabilities and capacities HLSA is the only method which differentiates the level of analysis According to HLSA qualitative data consist of three levels descriptive information community, mtra- household and household level Data at community level are how livelihood outcomes link with wider community, political and social context and the institutional environment

24 The complete version of the research method on water supply vulnerability assessment has been published in the Journal of Environmental Assessment Policy and Management Vol 9 Issue 1, March 2007 121-133 Only the relevant methods are presented in this chapter Data at intra-household level consists of gender and power relations. While data at household level includes: assets, resources, food securities and health status, other basic needs (including water, shelter and education), and capacities to cope with risks and crisis.

On the methods used for data gathering, CVA mentions about the importance of secondary data review. The secondary data are categorised mainly as quantitative data. The secondary data are important to get an overview of the situation and context. The information of these data may be obtained from libraries, government offices, universities, research centres, newspapers and maps.

The qualitative data mainly comes from participatory data gathering using semi- structured interviews, group discussions, life history tracing, and also transect walks and direct observation. To help conducting the analysis, CVA offers a seasonal calendar which identifies periods of problems, diagrams to show different incomes or food sources of livelihood coping strategies analysis, community mapping to show elements of risks and safe areas, and problem trees to identify the root causes and long-term effects

The four methods of analyses use different indicators. Nevertheless, they can be categorised into the three interrelated areas of physical/material (including environmental degradation), social/organizational, and motivational/attitudinaL, as distinguished by CVA. These categories are very broad and indicators vary from the ownership of physical resources such as land, water, animal, capital, and other means of production to social and organizational networks such as formal political structures and informal systems which may lead to exctusion/marginalization and to motivations, skills and attitudes (those with skills, knowledge and education can have more choices and a greater ability to improve their livelihoods).

As mentioned before, because all the four aim to deal with disaster and natural hazards they cannot directly be used to assess water supply vulnerability. However, the methods for data gathering, and some of the variables and indicators are useful for developing a method for analyzing water supply vulnerability.

Modifications of existing methods on vulnerability analysis

Since the characteristics of disasters and hazards vulnerability are different from water supply vulnerability, modifications in the methods are introduced. Broadly, the three modifications are about the levels of information gathered, the variables involved and the indicators used.

The method of vulnerability analysis employed in this research starts with the vulnerability context, defined as the external occurrences that expose risks to one or more of the assets of a household (Moser, 1998). As HLSA mentioned, the information of the context might be from a macro level which might be city/municipal, provincial and national or even international levels, to community level (since water supply is usually delivered at a community level especially for community-based and small-scale water 34 supply providers), and household level Without ignoring the provincial and national level of information, I will concentrate on city/municipal level because most of piped water supply services are managed at city/municipal level The economic, social and environmental occurrences are usually adapted by the management of piped water supply at city/municipal level Inflation at a municipality or a city is usually followed m the medium or long term by a tanff increase Population growth at a municipality or a city is followed in the medium and long term by the expansion of service coverage

From the CVA, I have adopted the tools for data gathering secondary data review, semi- stmctured interviews with key informants to obtain both general and specific information on problems and vulnerabilities faced and experienced by a certain community, transect walks with key informants to visualize interactions between physical environment and human activities over space and time, environmental changes and vulnerable areas, and historical profiling to give an insight into the vulnerability context at household level

From the VGA, I have learned much about the indicators used especially proximity and exposure to hazard, poverty, exclusion/marginahzation, ownership of physical resources (cash, land, tools, jobs, access to credit), social and organizational networks (people who share physical resources are, m times of need, more likely lo survive), and skills While from Oxfam-RMLC, I have adopted the variables considered level of poverty, standard of health, proportion of female-headed households, and living conditions

The information gathered on research variables of water supply vulnerability is categorised mto shocks, trends and seasonality (DFID, 1999), with each indicator ecological, economic, social and political changes (Moser, 1998) All information is related to or might cause problems to water supply Table 3 1 seeks to integrate the variables, sub variables, and indicators of vulnerability that are developed for the water supply vulnerability assessment Not all indicators mentioned m the four vulnerability analyses are included in the indicators for water supply vulnerability assessment This is because some of them actually belong to assets For example, social and organizational networks in the VGA actually belong to social assets It also happens with ownership of physical resources which of course belongs to physical assets Another example is female-headed households Female-headed in contrast with male-headed belong to human assets The details about assets will be discussed m section 3 2 3 Because of asset ownership some groups of people tend to be more vulnerable than others The external changes at city, community and household level will be checked whether they have negative impacts on households' assets or not

35 Table 3.1 Summary of Variables and Indicators of Vulnerability Analysis of Sustainable Livelihoods Analysis

Variables Sub variables Indkalon (examples)

Shocks Ecological Exposure to natmal shocks and disasters Economical Sudden market fluctuations (including lay-oEEs) Social Epidemics and strike Political War and violent conflicts

Trends Ecological Environmental and resource changes, and pollution Economic Increase or decrease of poverty, and conunercialuauoD of jwblic goods Social Population trends Political Margmalizahon of social groups and individuals

Seasonality Ecological Seasonal water shortage and floods Economic Fluctuations m inflation rate Soa al Seasonal health problems Political Policies on prices in response to seasonality

Source· adapted from Hadipuro (2007)

The application of the modified method The method used to explore the Semarang City vulnerability context is through an analysis of the secondary data published by Suara Merdeka25 newspaper. Some other publications such as publications from Semarang City local government offices (the Semarang City Development Agency, the Semarang City Research and Development Office), and NGOs such as the Semarang Legal Aid {Lembaga Bantuan Hukum Semarang) were used to counter check the data from Suara Merdeka. The columns from Suara Merdeka were analysed from 2 January 2004 till 30 April 2005. There were two main reasons in choosing the range of the date. First, the range should cover the whole seasons, rainy and dry season. Second, 30 April 2005 was chosen as the end of the data gathering process and after that the analysis and the reporting process began. All the headlines and the Semarang section pages in Suara Merdeka were downloaded fromth e newspaper's website (http://wwwfVf"?merdeka.com). The result of the information gathered at city level is a description of the vulnerability context covering the people living in Semarang.

Suara Merdeka is the most outstanding newspaper in Central Java. It is published in Semarang. There are quite enough spaces for the news on Semarang. Some of the important occurrences in Semarang become headlines of the newspaper which are quite difficult to find in the newspapers published outside Semarang. We can also find publications and opinions about Semarang from local government officers, local experts, and local NGOs in this newspaper. The sub-district/community level is considered in case there is a specific problem in the vulnerability context that is found only in a certain small area of the study and possibly unidentified at city level and also because a vulnerability context at city level will not necessarily become a vulnerability context at community/sub-district levels. For example, a pipe leakage might not be identified at city level but might cause major problems for the community whose water supply service is deUvered through this broken pipe. Another example concerns the number of lay-offs at city level that might substantially affect certain communities, while other ones would remain untouched.

A survey method using written questionnaires is used to gather data on the vulnerability context at community/sub-district level. At community level, first a transect walk with key informants to visualize the interaction between physical environment and human activities over space and time is done. Then two groups of people are asked to fill in questionnaires about what kinds of vulnerability context they are facing. The first group consists of the chiefs of neighbourhood and some sub-district officers. This group is chosen since information both from inhabitants and from the government is usually distributed and channelled through the chiefs of neighbourhood and sub-district officers. All of the members of the first group are men. The second group consists of women. The women selected belong to the housewife activists {ibu-ibu PKK) at the sub-district. I expect to obtain a better result by asking both groups, since usually the men know the official general information while women know the details of the daily problems of vulnerability related to water supply. Assuming that housewives in this area are not career women and domestic work is mainly done by them, they are the ones who first encounter and know the problem of water supply in details.

The household level is the focus of the analysis. The household level deals with how the external changes impacts on a household's assets. If external changes cause the assets to decrease and the household is not able to bounce back to the normal state then the household is considered non-resilient regarding the external change concerned, a situation that should be improved by a better policy. A stratified purposive sampling method is used for the household survey. First neighbourhoods that can represent the degrees of the environmental problems of the area: the least suffered area, the less and the most suffered area, are chosen. Second, among the neighbourhoods for each category, at least one neighbourhood is chosen. Then some households of the chosen neighbourhood are interviewed about the changes in urban water supply that they have been experiencing.

Discussions with the chief of the neighbourhood, a housewife activist at the neighbourhood, and a key informant were held to compose a list of probable household respondents for each category of water supply changes (for example from using shallow well water to be a PDAM subscriber or from using shallow well water to be a subscriber of an artesian well provider). The household respondents for each category of the changes are divided into the most vulnerable, the less and the least vulnerable households. The degrees of the environmental problems of the area and the vulnerability categorisation of the households are meant to generalize the analysis in order to recommend a policy for the improvement of their livelihoods. 37 3.2.2 Water supply sustainability context

The first step to assess the water supply at the sub-district level is the collection of secondary data from government offices and other sources concerning water supply providers, such as groundwater extraction permit holders from the Central Java Govenunent Mining Office, the coverage of PDAM fromit s office, and trade permits for refilled-bottled water kiosks and water vendors from Semarang City Industry and Commerce Office. Data on bottled water companies are gathered from the Association for Bottled-Water Companies in Indonesia (ASPADIN) and the data on bottled water providers in Tanjung Mas are from the sub-district office. These data are supplemented with observations and interviews with chiefs of neighbourhoods at the locations of the study especially with regard to water peddlers.

During the second step familiarization with the water supply sub-sector takes place and a guided interview is done with the respondents of each water supply provider. The interview includes the following questions: (1) Where do you get the water? (2) Who do you sell to or who are your customers? (3) Whom do you buy the water from? (4) What changes have occurred in your business? (5) What kind of technology do you use to get the water - for example the technology for pumping and water treatment? (6) How is the reliability of the supply system - infrastructure, delivery, stock availability?

Step three concerns drawing a preliminary water supply sub-sector map to illustrate the researcher's understanding of water supply sub-sector at the location of the field study, its dynamics and interaction. The map includes (1) the sources of water they sell, which are classified into groundwater and surface water, (2) water supply providers' characteristics (water treatment used and distribution channels) and the interactions among water supply providers, and (3) the final household subscribers of each water supply provider.

Sustainability context components as parts of the Sustainability Context Box of the model, which are also asked in this step, are ecological integrity, economic efficiency, and social equity. The institutional sustainability is also researched. The institutional sustainability belongs to the Water Supply Provider Box of the model. The reason to differentiate these two kinds of sustainability can be found in Chapter 2. The sustainability context and the institutional sustainability are asked in this step because of research efficiency reasons. The respondents of sustainability context and institutional sustainability are the same. They are the owners or the managers of water supply providers at the chosen sub-district. The following paragraphs will define each of the components of sustainability context and institutional sustainability with its indicators.

Ecological integrity is about preserving water and its hydrological cycle on which life depends. The indicator is the type of water source: groundwater or surface water. Surface water is categorised to be more sustainable source compared to groundwater.

Economic efficiency means that a livelihood system must not be wasteful in its use of

38 resources Conservation tariff26 - that is the water tariff that imposes the efficiency of its usage - and the leakage (the term used in this research is "unaccounted for water") are the indicators of the economic efficiency The amount of 'unaccounted for water' can be counted by comparing the production of water treatment plants or the amount of water extracted to the amount of cubic metre the subscribers pay

Social equity means that the way one provider makes its livelihood must not disrupt options for others to make theirs Equitable tanfi and equitable access will be used as research indicators Equitable tariff means that the tanfi" should be charged in accordance with the subscriber's income Equitable access means that every inhabitant should have the same opportunity to get water for his/her domestic purpose

Table 3 2 Sustamabihty Context Variables, Operational Definition and Indicators

Variables Operational Definition Indicators Ecological Integrity A livelihood system must Usage of surface water preserve water and its Sustainable use of hydrological cycle on which groundwater life depends It concerns quantity, quality and contmuity of the water Economic Efficiency A livelihood system must not Minimum 'unaccounted be wasteful in its use of for water' resources Conservation tanff Social Equity The way a livelihood system Equitable Access operates must not disrupt Equitable Tariff options for others to make theirs

Institutional sustamabihty refers to the provider's capacity to sustain its existence in the water supply business. It includes the access of a water supply provider to services and technology - includmg the technology of pumpage, water treatment and the technology that deals with the reliability of the system (infrastructure, delivery, and stock availability), and cost recovery concept application (all costs should be covered by water charges or other sources such as subsidies from the government)

3.2.3 The urban water supply sustainable livelihoods analysis

The unit of analysis for urban water supply sustainable livelihoods is a household A household is also the proper unit analysis for this research since the connection to a water supply service is usually based on households A household may involve not only close family and wider km network but also unrelated co-residents such as lodgers (Beali and Kanji, 1999)

26 Some people prefer to use the temi the progressive tanff or block tariff 39 The main research variables for sustainable livelihoods analysis are the components of the vulnerability context: the livelihood assets, strategies, outcomes, and household resilience. Resilience is the ultimate goal of supplying water to households. That means: it must contribute to making the livelihood system of households able to cope with, to adapt to and recover from vulnerability context due to shocks, trends and seasons (see vulnerability context Table 3.1). An effective livelihood strategy and a virtuous-cycle of outcome are the indicators for the household's resilience. The vulnerability context has been described earlier. The other variables will be defined below.

Livelihood assets

In livelihood analysis there are five types of assets: natural assets, physical assets, human assets, financial assets, and social asset (Carney, 1998). Below are the details of each asset's definition and indicators: 1. Natural assets are water resources. The indicators used are access to land and water sources. A certain width of land owned by respondents with backyards or front yards makes it possible for them to dig a well. Ownership of wells with good quality of water possibly could make respondents more resilient from negative external changes relating to water supply. 2. Physical assets are the basic physical infrastructure relating to water supply. Ownership of a house, infrastructure (pipe), machine or technology (pump), transport vehicles, and communication tools are some of the examples. It is quite impossible if the house is rented; moreover in a short time scale, for a certain household to dig a well or apply for water supply services to providers such as PDAM and an artesian well provider. 3. Human assets include mental and physical abilities available in a household which can be mobilized to obtain water. The indicators are education, skills and/or knowledge on water (such as how to purify bad quality water), household members (the greater the number the more the opportunity to get water)27, household age composition (the higher the productive age means the greater the chance to get water), and male headed household28. 4. Financial assets mean the financial resources, which are available to households to access water. The indicators used are incomes, savings, and credit facilities available to households to access water. 5. Social assets deal with social networks which facilitate households' access to water. The indicators used are membership of groups/associations, kinship or other social ties that can help households in case they get a water shortage.

27 As the unit of analysis is a household, children as members of a household belong to human assets. 28 In some cases there is still resistance to giving credit to female headed households besides in many cases only male headed households are invited to attend neighbourhood meetings. An Table 3 3 Households' Assets to Access Water, Definition and Indicators

Assets Definition Indicators Natural assets Water sources Access to land and water sources Physical assets The basic physical Ownership of a house, infrastructure relating to infrastructure (pipe), machine or water supply technology (pump), transport vehicle, and communication tools Human assets Mental and physical abilities Education, skills and/or knowledge available in a household, on water (such as how to purify which can be mobilized to bad quality water), household obtam water members (the greater the number the more the opportunity to get water), household age composition (the higher the productive age means the greater the chance to get water), and male headed household Financial assets Financial resources available Income, savings, and credit to households to access water facilities available Social assets Social networks which Membership of facilitate households' access groups/associations, kmship or to water other social lies

Livelihood strategies

Usually two kinds of livelihood strategies are distinguished' coping and adaptive strategies. Coping strategies are temporarily safety mechanism to cope with sudden and unexpected shocks and stresses. According to Farrmgton et al. (2002) coping strategies are short-term, while more permanent ones are called adaptive strategies

The indicators for coping and adaptive strategies are derived from Chambers and Conway (1992) but modified for their application to water supply stmt, hoard, preserve and protect, deplete, diversify, claim and move. When households experience water shortages, some prefer to stint or reduce their current consumption and/or move to lower quality of water such as from using water from PDAM to shallow wells. Others build water tank to hoard or store water in case the supply stops In a small number, households preserve and protect groundwater by building groundwater recharge wells; or for those who are using water from shallow wells they try to preserve water by applying the technology for purifying the deteriorated water from their shallow wells. The other coping and adaptive strategies are: deplete, diversify, claim and move When households have to sell assets to buy water, this strategy belongs to deplete Diversify means that households seek new sources of water supply. Some others prefer to make claims for water on relatives or neighbours. The last strategy that can be used is moving to another area where water is more easily accessed They may move altogether or only some of 41 their family members who move to other places. In case they experience water shortage they can make claims or temporarily move to the place where their family members live.

The strategies can be effective or ineffective. These strategies are ineffective if in the long term consumption declines and/or assets are lost permanently or if successive calls on particular strategies deplete the assets on which the households or the communities call (Rakodi and Llyod-Jones eds., 2002). An analysis on the changes of the assets will be used as an indicator whether the strategies is effective or not.

Livelihood outcomes

Livelihood outcomes are the results of the people's livelihood strategies and feedback into the vulnerability context and the asset bases, with successful strategies allowing them to build asset bases as a buffer against shocks and stresses as opposed to poor livelihood outcomes which deplete asset bases, thereby increasing vulnerability (Farrington et al., 2002). Livelihood outcomes may therefore lead into either virtuous or vicious cycles. The possibilities of livelihood outcomes are derived from DFID (1999), but modified for this specific purpose of water supply.

The following possible outcomes are distinguished. Virtuous cycle of outcome might result in more income because it is easier and cheaper to get water, such as less time to collect water, and less payment for good quality of water. When households can get better quality of water, it will increase their well-being. The other positive outcome is more sustainable use of water. For example, when people are more educated and their water literacy increases, they may become thriftier with water or change their water supply from groundwater to surface water. Reducing vulnerability and improving water security are the other two positive outcomes besides what have been mentioned above. Vicious cycle of outcome is the contrary of the above description.

3.2.4 Urban water policies and their impacts on people's livelihoods

To identify urban water policies and their impacts on the livelihoods of the people living at the location of the field study, an inventory of relevant policies is made by first identifying changes in policies at national level. If there is no change in the policies at the national level, policies will be analysed at the lowest level. The lowest level can be a city or a province or ministerial decree or regulations on a certain water supply provider. To identify the relevant water policies, an interview with government officers, water supply providers and its business associations, and secondary data gathering will be undertaken. The method used for analyzing the policies' impacts is by analyzing each article or clause in the policy text. It means that the analysis is on the text of each regulation in terms of its impact on people's livelihoods.

In addition to the policy analysis, an analysis of how to change policies that contribute to the betterment of the people's livelihoods will be carried out especially if the policies do not give virtuous outcomes to people's livelihoods. The leverage to improve people's livelihoods will be based on how to cope with the degradation of assets, the ineffective 42 livelihood strategies, and the unintended outcomes.

3.3 Case study selection: Choice of sub-district and neighbourhoods According to the study made by Partners for Water (2008) in Semarang coastal area the annual land subsidence is about 9 cm. If the water table drops upto IS metres or more, the land subsidence can amount to 16.5 cm per year. In addition to land subsidence, Semarang also suffers from seawater intrusion. The worst tidal flood and polluted water occur at some places in coastal area.

Damage to coastal ecosystem poses a direct threat to human survivals especially in many parts of Asia and the Pacific (Adeel and King, 2002). Most of the victims of the pollution and damages are the poor who live in coastal area. In Semarang most of 42 slum areas in 200229 were located in the coastal area of Tugu and Semarang Utara where Tanjung Mas is located.

3.3.1 Selection of the sub-district

Among the fifteen sub-districts bordering the sea in Semarang, one sub-district is chosen as a site for a field study. The selection methods used for choosing the sub-district is as follows. The Lurah (head of a sub-district) or Sekretaris Lurah (sub-district secretary) is asked whether his/her sub-district meets two requirements for the site of the field study. These requirements are: 1. The location shows a diversity of water supply (the public, private and community-based systems). The requirement is meant to analyse each provider's contribution to people's livelihoods. The analysis aims to contribute to resolve the controversies among which provider contributes more to people's livelihoods. 2. The site should have experienced a change in the provision of water used by the inhabitants. This requirement is meant to show how the dynamics of urban water supply affect people's livelihoods and the sustainability of water resources.

29 See the research made by Sultan Agung Islamic University presented by M. Agung Ridlo in http:/A¥ww.suaramcrdeka.com/harian/0302/07/kot 10.htm downloaded on 10 February 2003. 43 Figure 3.2 Sub-districts Bordering the Sea in Semarang

Source: Interviews with districts' officers

44 Table 3.4 Sub-districts and Districts of Semarang Coastal Area

Districts Sub-districts No») Tugu Mangkang Kukm 1 Mangkang We ta π 2

Mangunharjo 3 Randu Garut 4 Karang Anyar 5 Tugu Rejo 6 Jrakah 7 Semarang Barat Tambakha^o 8 Tawangsan 9 Semarang Utara Panggung Lor 10 Bandartiarjo 11 Tanjung Mas 12 Genuk Terboyo Kulon 13 Terboyo Wetan M Tnmulyo 15 Sources: Primary data Note: *) No. I, 2, 3,... 15 see Figure 3.2

If all water provisions are found in a certain sub-district then the village monograph and the data on poor people are asked. If there are some sub-districts that meet the requirements, the sub-district chosen is the one where there is the greatest absolute - instead of relative - number of poor people found. By having a great absolute number, it is assumed that more diverse cases can be found and analysed.

All fifteen sub-district heads or secretaries confirmed that there had been a change in water provisions in the last ten years in their areas. According to them, the changes had happened because of salinisation. Most of the inhabitants in the sub-districts surveyed used to get water from shallow wells, but since the quality of the water had deteriorated, they had to use the other alternatives such as subscribing to PDAM, buying water from water peddlers or buying bottled water. Table 3.5 resumes all the data about water supply in the fifteen sub-districts.

45 Table 3.5 Water Provisions in the 15 Sub-districts of Semarang Coastal Area in 2006

Sub- PDAM Commercial Water Galon Self Water district or Kiosk Bottled Provision Peddler Community Water (Shallow Artesian Provider/ or Well Retailer Artesian Provider Well) Mangkang X V .X V V Ί Kulon Mangkang X V V X V •J Wetan Mangun- X n,a. n.a. n.a. n.a. n.a. Harjo Randu X V X X V n.a. Garut Karang X V n.a. n.a. V V Anyar Tugu Rejo V V X V V X Jrakah •i V V V V X

Tambak- •J V X V V n.a. Harjo Tawangsar, V ν ν V V V Panggung 1 V V V V V V

Bandarharjo V V X V V V Tanjung ^ V V V V V Mas Terboyo X η a. n.a. n.a. n.a. n.a. Kulon Terboyo V V X V V Wetan v Trlmulyo •J V V ν V X Sources; Interviews with sub-district officers.

Note: V : available X : not available n.a. : no data available The categorisation of commercial and community artesian well providers into one category is because most of the respondents did not know exactly about the management of the wells.

From Table 3.5 we can conclude that only three sub-districts - Tawangsari, Panggung Lor, and Tanjung Mas - had all modes of water provision. There was no exact data on the numbers of individual wells, water kiosks, shops which sold galon bottled water, and water peddlers. However, from the survey the respondents mentioned that there were many for each of them. For commercial or community artesian well providers, in one sub-district at least one commercial or community artesian well provider is enough for analysis. Usually one commercial or community artesian well is used for some houses in one or more neighbourhood organizations. To choose one of the three sub-districts, data 46 on the poor is needed in the three sub-districts.

One of the sources of data on poverty is from the National Bureau of Statistics (BPS). The BPS data is based on sampling. BPS uses a national survey which is usually conducted every ten years all over Indonesia, including all sub-districts. However, because it uses sampling method, it does not refer to the names and addresses of the poor households, which makes it difficult to hold a vulnerability assessment at household level. That is why this research does not use the data from the BPS.

In this research the poverty indicator used for the site selection is the number of the so called pre-prosperous households from the Indonesian National Coordination Bureau for Family Planning Program (BKKBN). BKKBN divides households into five categories: the pre-prosperous, prosperous I, prosperous II, prosperous ΠΙ, and prosperous ΠΙ plus. The pre-prosperous households are the most vulnerable ones. There are four economic indicators used to define a certain household to be prosperous: all household members eat at least twice a day, all household members have different set of clothes for different occasions, the largest part of the house floor is not made of earth, and the sick household members or contraceptive users use modem medical services. If a certain household fails to fulfil one of the indicators, the household belongs to the pre-prosperous category. The pre-prosperous, prosperous I and II households can be classified as poor, but the most vulnerable is the pre-prosperous (BKKBN, 2004). The data from BKKBN is based on census in every sub-district every month that is why theoretically it is possible to get the names and addresses of the pre-prosperous households to be interviewed.

For Tawangsari there were only four persons belonging to the pre-prosperous household group at the end of December 2004, while for Tanjung Mas there were 1,014 persons, and for Panggung Lor there were no pre-prosperous households. Tanjung Mas Sub- district was chosen as the location of the study because besides meeting the two requirements above, the greatest absolute number of poor people was found in this sub- district. Table 3.6 shows the number of neighbourhoods, household associations, households in Tanjung Mas Sub-district, and the number of people by sex.

47 Table 3.6 Population Characteristics of Tanjung Mas Sub-district in 2004

Neighbourhoods 16 Household 125 Associations Households 6,160 Total Houses 5,286 Male 13,438 Women 15,937 Total Inhabitants 29,375 Pre-prosperous 1,014 Persons

Source: Tanjung Mas Sub-district monograph

48 Figure 3.3 Map of Tanjung Mas Sub-district Semarang

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«S^ijp il Alteri Road

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Kt'LURAHAV PUWOOlNATAK

Source: Tanjung Mas Sub-district monograph. 49 3.3.2 Selection of neighbourhoods

Related to the selection of the neighbourhoods for the samples as mentioned previously, the two groups of respondents as selected (see 3.2.1) were asked to fill in questionnaires. Two questions related to the neighbourhood selection were "which neighbourhood was the most suffered from environmental problems" and "which was the least". The respondents were also asked to define the reasons to say so. Each respondent might answer for more than one neighbourhood.

The two groups were asked to fill in questionnaires in two different formal meetings. The formal meeting for the first group of sub-district officers and all chiefs of neighbourhood was held at the Neighbourhood Forum, a regular meeting which is held on the 25 of every month. The first group was asked to fill in the questionnaires at the meeting which was held on 25 February 2007. There were ten respondents who filled in the questionnaires. For the second group, the respondents of housewife activists were asked to fill in the questionnaires at one of their monthly meeting which was held on 7 March 2007. There were twelve respondents who filled in the questionnaires. The questionnaires included the questions on the specific vulnerability context found in Tanjung Mas Sub-district. To help them answer this question, a list of the vulnerability context found at city level was presented. The respondents had to give an explanation about how severe, how often, and other details about a certain vulnerability context found at the sub-district level. An explanation about the research and the meaning of vulnerability context were given to the two groups before they filled in the questionnaires. They were also asked about the changes in water supply experienced by the inhabitants at their neighbourhood in the last ten years.

If we combine the answers of the two groups, the most suffered neighbourhood according to the respondents was Neighbourhood XVI of Tambaklorok Seaside (five answers) and the second suffered was Tambaklorok Riverside (four answers). Considering also the results of the transect walk and in-depth interviews with the key informants, the two neighbourhoods were chosen as the samples for the most suffered neighbourhoods for this research. The Neighbourhood I of the Old City was considered as the least suffered area in Tanjung Mas according to the groups. It was also in accordance with the result of the transect walk and in-depth interviews. Neighbourhood IV of Kebonharjo was chosen as the less suffered neighbourhood. Among the less suffered here we could find the most diverse changes in water provision. For the rest of this book, in order to make it simple Neighbourhood I will be called the Old City and Neighbourhood IX will be called Tambaklorok Riverside, while Tambaklorok Seaside means Neighbourhood XVI.

3.3.3 Vulnerability assessment at sub-district level: Between plan and reality

After the least suffered, the less and the most suffered neighbourhood had been selected, the two groups were asked to suggest household respondents for the household survey. The lists on the probable household respondents made by the two groups at a certain neighbourhood were compiled and the relevant chief of neighbourhood and the relevant key informant were asked to review the new list. By 'relevant' I mean that the chief of 50 the neighbourhood, housewife activist and the key informant came from the same neighbourhood as the households they suggested to be respondents for household level interviews The new list was a compilation of the list from the housewife activist and the chief of neighbourhood from the same neighbourhood The result of the discussion on the new list between the chief of neighbourhood and the key informant was used as a fixed list of respondents30

The household survey showed that the list of household respondents, which resulted from the discussion of the chiefs of neighbourhoods, the housewife activist and the key informant, did not match the water supply changes experienced by the households For example, according to the list Madam TS was supposed to be the a household respondent for the change from artesian well to PDAM service but in reality Madam TS still used artesian well as the source for her water supply, Grandma M according to the list should be the respondent for the change from shallow well to artesian well, but the fact showed that Grandma M did not use artesian well anymore and at the time of the household survey she bought water from her neighbour who subscribed from PDAM

To replace the respondents because of such problem, a snow ball sampling method was employed However, the changes made the categorisation of the households into the least, less and the most vulnerable was not valid anymore, because there might be different criteria used by household respondents who recommended the snow ball sample Because of this problem the categorisation of household respondents into the least, less and most vulnerable was not used anymore in the research, and as a result a comparison among these three categories about the impacts of water supply changes on livelihoods could not be done The impact on the research itself is not much since the most important thing in this research is the impact of water supply changes on the most vulnerable household and these could still be identified from household level interviews

During the process of explaining the questionnaires, the process when the two groups answered the questions, and during the discussion between the chief of neighbourhood and the key informant, it was found out that they had difficulties m determining the vulnerability factors faced by the listed respondents It proved that vulnerability factors could only be found out through m-depth interviews at household level, especially to be informed about the internal side of the households The households themselves are the ones who really know whether they have sufficient assets to cope with the vulnerability context or not The household level survey shows that the changes m water provision could not be identified by sub-district officers (represented by the key informants) or even at neighbourhood level (represented by the chiefs of neighbourhood and housewife activists) They missed quite a lot in identifying the water supply changes experienced by certain households

3.4 Concluding remarks

K This process should be taken in light of the faci that the data from the BKKBK could not be used to identify the most vulnerable people There were some problems of validity and updating Most of the names in the BKKBN list were not found. Their neighbours said that they had moved or even they did not know them at all Livelihood seems to be an easy word to understand and has become a 'buzzword' in every development issue concerning the most deprived and vulnerable people. However, connecting SLA with water supply sub-sector (and other sectors either) is not an easy thing to do, since SLA comprises many aspects such as assets, context, strategies, and outcomes. At least two challenges have been proved to exist.

Developing a model on water supply for sustainable livelihoods necessitates not only a thorough understanding of theories and concepts on livelihoods, but also a deep understanding about water supply delivery practices especially for the most deprived and vulnerable people living in developing countries where many problems happen to prevent a universal access. Elaborating research variables and choosing right indicators are real problems relating to the research methodologies for applying sustainable livelihoods to urban water supply.

The second challenge is about modifying and developing research methodologies for a field study. A sampling framework cannot be figured out by asking government officers, chief of neighbourhoods and housewife activists, since the ones who know the best about the experiences on water supply changes and problems are the households' member themselves.

52 4. The context of household water supply vulnerability at Semarang City and Tanjung Mas Sub-district

Regulator: International iNanonai Regional Local

Vulnerability Context: Sustuinability Context: • Shocks • Rcological Integrity • Trends • Economic Efficiency • Seasonality • Social F.quity

Water Supply Provider: Households: • Public Companies Policy Resilience • Private Companies • Institutional· Assets •- • Community-based Sustamability • Their Combinations

Strategies -»Outcomes

53 This chapter presents the results of an assessment of the vulnerability context at the levels of Semarang City and the Tanjung Mas Sub-district. The assessment is useful in developing a list of questions for in-depth interviews to assess water supply vulnerability at a household level. This assessment is crucial since, as explained in Chapter 3, vulnerability is a quite difficult concept to be well understood by household respondents and the list of questions can and should translate the concept in an accessible and understandable way. Therefore, a good list of questions is a key to conducting a good household level vulnerability assessment.

The city level vulnerability context will be used to develop questions on the vulnerability context that might be faced by the community at Tanjung Mas Sub-district (later on when it is mentioned as Tanjung Mas, it means Tanjung Mas Sub-district). Subsequently, the vulnerability context at a city and sub-district level will be used for the same purpose, namely for in-depth interviews with household respondents in the four neighbourhoods chosen as the samples for the field study: the Old City, Kebonharjo, Tambaklorok Riverside and Tambaklorok Seaside. The results of the vulnerability assessment at a city and sub-district level are provided in this chapter, while the results at the household level are provided in Chapter 6 of this book.

As we have seen in Chapter 2, vulnerability has two sides: an external and internal side (Chambers, 1992). The external side is defined as changes from the outside that negatively affect the access of a household or a community to the resources it needs for its livelihoods. The internal side relates to the households' assets as a means to cope with these external changes. Moser (1998) defines vulnerability as insecurity and sensitivity in the well-being of individuals, households and communities in the face of a changing environment. According to DFID (1999), the (negative) external environment in which people exist constitutes the vulnerability context. When external changes negatively affect the assets and capacities of households in such a way that these do not suffice in maintaining their livelihoods, it means that the vulnerability context becomes a vulnerability factor. Whether a context will become a vulnerability factor or not depends on the assets and the strategies of the household. If the assets of a certain household are not sufficient enough to cope with the vulnerability context, then it will become a vulnerability factor for that household. A context will also become a vulnerability factor if the strategies in the long run are ineffective in coping with the context itself.

First a general description of Semarang City and Tanjung Mas will be presented. The second section deals with the results of the vulnerability assessment at a city level. There are many problems in Semarang, but I will only focus on the ones that have a direct impact on the access of the people to urban water supply, to sufficient quantity, and/or a good quality of water. The results of the assessment at the sub-district level will be discussed in the third section. Additional data from the observations at the sub-district level will be added to the description of the vulnerability context stemming from the list of quest ions.

Detailed descriptions on the context at each level are followed by the categorisation of the occurrences into shocks, trends and seasonality. Dividing the variables of 54 vulnerability into shocks, trends and seasonality is useful for policy intervention purposes, which will be the focus of Chapter 7 of this book. Shocks include natural shocks (such as flood), economic shocks (such as lay-offs) and market fluctuation. Trends include international, national, provincial and city level trends in the economy, such as commercialisation of public goods and poverty; ecological trends, such as depletion of good quality water resources; social trends, such as population growth and the political trend of increasing marginalisation. Seasonality includes seasonality of prices and of production (the availability of water supply or stock because of climate variability). The chapter ends with a brief remark on the method and the results found.

4.1 The city of Semarang and neighbourhoods in Tanjung Mas

Semarang is located between 6ο50' and 7o10' South Latitude; and between 109o35' and 110o50' East Longitude. It is the capital of Central Java Province and is the fifth most populous city in Indonesia. Formerly the city had only five districts. In 1974, the city was expanded to 373.63 square kilometres, divided into 9 districts with 117 sub-districts. Since 1992, the city has been reorganised into 16 districts and 117 sub-districts. Figure 4.1 shows the map of the sub-districts in Semarang. Tanjung Mas is located in the Semarang Utara District.

Figure 4.1 Map of Districts in Semarang

Note on the name of the districts: 1 Semarang Tengah 2 Semarang Utara 3 Semarang Timur 4 Gayam Sari 5 Genuk 55 6 Pedurungm 7 Semarang Selatan 8 Candi Sari 9 Gajah Mungkur 10 Tembalang 11 Banyumanik 12 GummgPati 13 Semarang Barat 14 Ngaliyan 15 Mijen 16 Tugu Tanjung Mas Sub-district lies in Semarang Utara District.

Semarang has a very unique topographic characteristic. The city can be divided into three parts: the lowland area with 0-2% topographic slope that is located between 0 and 3.S metres above sea level (due to land subsidence some are even below sea level), the plain area with 2-15% slope that is located between 3.S and 90 metres above sea level, and the highland area with slope of more than 15%, between 90 and 348 metres above sea level (www Kemarnnp pn id) The larger part of the city is located in the highland area. The distance between the highland and the lowland is relatively short, making some of the rivers in Semarang very steep. For example, the upper course of Bringin River lies at 230 metres above sea level, while the mouth of the river is only about 20 kilometres from the upper course. These characteristics contribute to the vulnerability of Semarang City. Improper changes in land use, such as developing conservation areas into housing or industrial areas, can lead to land slides and floods. And because of the steepness of the region, the effect of land slides and floods is relatively more severe.

The people living in the coastal area suffer the most from environmental problems caused by such land use changes in the upper part of Semarang. They also suffer from the excessive groundwater extraction, both by the people and industries established inside and outside the coastal area, which have resulted in the environmental problems of land subsidence, sea water intrusion, and tidal and rain flood. It should be noted that the inhabitants of the coastal area also contribute to the excessive groundwater extraction for their water supply because most of them are not served by PDAM Semarang City.

From the observations and the in-depth interviews with two key informants, as explained in Chapter 3, it is found that there are actually four distinct areas at Tanjung Mas in terms of the environmental problems they face. A highway named Alteri Road contributes to the distinction of the environmental problems of the area (see Figure 3.3). Tanjung Mas is divided into two parts by this highway: one, known as Tambaklorok, directly borders the sea, and the other more inland section is known as Kebonharjo. North to the highway lies Tambaklorok Seaside, where Neighbourhoods XII to XVI are situated. Most of this area gets flooded by sea tide. However, it is not negatively affected by rain flood because Alteri Road functions as a dyke to prevent rain water from flooding.

Also north of the Alteri Road lies Neighbourhood IX. This area is quite different from Tambaklorok Seaside. This area suffers from both tidal flood and rain flood from the Semarang River. This neighbourhood is located next to this river. If the pump to dram the 56 rain water malfunctions, the lower parts of this neighbourhood are flooded by the river In this research, this neighbourhood is referred to as Tambaklorok Riverside Tambaklorok Riverside is separated by Tanjung Mas Port" from Tambaklorok Seaside

The third part consists of Neighbourhoods II to VIII and Neighbourhoods X and XI All these neighbourhoods together are called Kebonharjo Some people who cannot raise or elevate the floor of their houses get flooded both by sea tide and rain This area gets flooded by sea tide through the river that passes by

The fourth part is Neighbourhood I Some parts of this neighbourhood belong to the conservation area for old buildings called Kota Lama (the Old City) That is why m this research this neighbourhood is called the Old City The Old City was the centre of Semarang City during the colonial period Nowadays, the Old City has become one of the tounst destinations in Semarang Some public facilities have been built to protect the area from flood a pond to store the water from the flood and the replacmg asphalt roads with brick roads to increase the absorption of floodwater These facilities have helped the people of the Old City to cope with flood problems From my observations, it is clear that the Old City is better off compared to the other areas in Tanjung Mas

As described in Section 3 3, the four neighbourhoods in Tanjung Mas are the case studies in this research These four represent the neighbourhoods that suffer the least, lesser and the most from environmental problems The Old City is the neighbourhood m Tanjung Mas that can be categorised as suffering the least Regarding neighbourhoods that suffer the most, two examples have been chosen because of the distinct characteristics The first is Neighbourhood XVI, as part of Tambaklorok Seaside, which badly suffers from tidal flood The second is Tambaklorok Riverside, which suffers both from tidal and ram flood The other neighbourhoods suffer less from environmental problems Neighbourhood IV, as part of Kebonharjo, is chosen as an area suffering less from the problems, because 1 find the most vanous and dynamic water provision changes here

4.2 The vulnerability context at the city level

This section will deal with the ecological, social, economic and political changes that the inhabitants of Semarang City face Please see Table 3 1 on the indicators used for assessing the vulnerability context at a city level

To get the vulnerability context at the Semarang City level, an analysis was made of relevant news published m the Suara Merdeka newspaper There may be drawbacks to using newspapers as the source of data For example, if there is no news about corruption, weaknesses of water supply management of PDAM or political problems, it does not necessarily mean that people living m Semarang do not experience problems of this kind However, such weaknesses will be covered and checked in a sub district and household level vulnerability assessment

" Tanjung Mas Port is managed independently from Tanjung Mas Sub-distncl 57 The columns from Suara Merdeka during the period from 2 January 2004 till 30 April 2005 were analysed. This period covered both the rainy and dry season. All problems related to rain flood and land sliding described in this section, for example, happened during the rainy season between 2 January 2004 and 30 April 2005, and likewise for the drought, which of course occurred during the dry season in that period. If the source of the citation is not mentioned, it means that the reference used is Suara Merdeka. Sources other than Suara Merdeka are mentioned in the text. The locations of all the occurrences are mentioned in the text below. It might be confusing for the readers who do not know Semarang or who are not interested in the details, however the detailed location might be needed by other readers especially those who are going to study the vulnerability of Semarang City inhabitants. Some important occurrences are updated using sources other than Suara Merdeka, such as publications from Semarang City local government offices (the Semarang City Development Agency, the Semarang City Research and Development Office), and NGOs such as the Semarang Legal Aid (Lembaga Bantuan Hukum Semarang).

4.2.1 Ecological problems

Ecological hazards will directly or indirectly affect the assets of the households. Some direct impacts will be described for each type of hazard. The ecological problems found are tidal flood, rain flood, land subsidence, land use changes, pollution, water table drop and drought.

Tidal flood

Large parts of northern Semarang are already below the average sea-level and are inundated by the sea water at high tides on a daily basis (Partners for Water, 2008). According to the Partners for Water's study, the flooded area caused by the high tide of the sea had reached three kilometres from the coastal line in 2006. Inundation of sea water brings not only health problems, but also problems for those using water from shallow wells and in the long run it imposes salinisation. Salinisation has made it difficult for the people living in the low areas of the city, especially along the coast, to obtain fresh water.

Among 62 rivers in Semarang, four rivers bring tidal flood to the area nearby: Banger River, Tenggang River, Semarang River and Sringin River. Actually, the local government built the east (Banjir Kanal Timur) and west (Banjir Kanal Barat) canal to control the floods, but still they cannot prevent some areas from tidal flood.

Some areas that suffer from tidal flood cover the districts of Genuk, Semarang Utara, Semarang Tengah, Semarang Timur (Kemijen Sub-district) and Gayam Sari (Tambakrejo Sub-district) (see Figure 4.1 for the location of the districts). The Semarang Utara District suffers the most. At least five sub-districts in Semarang Utara suffer from tidal flood: Bandarharjo, Kuningan, Tanah Mas housing area in Panggung Lor Sub-district, Dadapsari and Tanjung Mas. Some public utilities, such as Kaligawe Street that connects the City of Semarang with the East Java, Tawang Railway Station, Johar (the biggest 58 traditional market in Semarang) and Agus Salim Street (one of the biggest trading areas is located along this street) are not free from the problem of tidal flood. The highest tidal flood is usually in April and December every year. It is about 1 metre high.

Tidal floods occur almost every day in Tanjung Mas. The area around the Port of Tanjung Mas (Tambaklorok) suffers the most from tidal flood coupled with land subsidence. The land subsidence in this area is about IS cm per year. There are about 3,000 households in Tanjung Mas that suffer from tidal flood. At the Tawang railway station, which is also located in Tanjung Mas, the land subsidence is about 10 cm per year. In Kaligawe Street, the land subsidence is about 8-10 cm per year. Tidal flood is closely related to land subsidence. The greater the land subsidence, the worse the impact of the tidal floods (Marfai and King, 2008).

Rainflood

The low land of Semarang suffers not only from tidal but also from rain flood. Rain floods affect not only the people using water from shallow wells. Because of rain floods, the water of the shallow wells becomes muddy. Three districts are especially vulnerable to rain flood: Genuk, Semarang Barat and Pedurungan. Almost all sub-districts in these three districts get flooded from the rain. Major rivers that usually bring rain flood to the inhabitants living close to the river are Tenggang River, Gili Layut, Silandak and Sringin River.

Rain flood is also caused by the bad sewerage system and poor maintenance. For example, Terboyo bus station gets flooded because the sewerage of the eastern part of the bus station is full of garbage. Simpang Lima, the centre of the town, gets flooded because the sewerage at Ciputra Mall is badly designed. The sewerage problem is also found at Kobong market, Johar market. Raden Patah Street, the sewerage connecting Gajah Mada Street with Anggrek Street, Sriwijaya Street, and the sewerage in Semarang Selatan District. The sewerage design, garbage and sediment are three main sewerage problems that lead to flooding.

Though some sub-districts are located in the high land, it does not necessarily mean that they do not experience any problems with flood, especially muddy flood. Some areas that get muddy flood are in the Purwoyoso Sub-district in the Ngaliyan District. The mud comes from the Silandak River. Other areas get flooded because of the changes in the river courses, such as Silandak River and Tawang Mas River. The change in the course of the Silandak River is due to the expansion of the airport run-way. Though the inhabitants nearby have opposed the changing of the river courses, they can do nothing to prevent h.

The garbage and the narrowing of the river course close to the river mouth are some of the additional problems arising. Some rivers are getting narrower because there are informal settlements along the river banks, for example along Banjardowo Canal in Genuk District, Banger River, Bringin River, Tenggang River, and Banjir Kanal Barat. Because of these settlements, it is quite difficult to normalise the river and prevent rain flood problems. 59 Figure 4.2 Garbage in Banjir Kanal Timur

Source; http://www.suaramerdeka.com

In some cases, rain flood is caused by the sliding of the river embankment. Some riverbanks, such as Kaligarang riverbank in Tinjomoyo Sub-district in Banyumanik District, are vulnerable to sliding that can cause flooding. The embankment of Babon River in Sendang Mulyo Sub-district of Tembalang District, Silandak River and Stoom River in Wonotinggal Sub-district of Candisari District are some other river embankments that are vulnerable to sliding. Problems with embankments are also found at the Bringin River, Banjir Kanal Barat, Asin River, Semarang River and Baru River.

Major damage is caused by river embankment sliding. When the Bringin River embankment slid at six points in 2004, hectares of fishponds were damaged. When the embankment of Kreo River slid, 100 houses in Sadeng Sub-district in Gunung Pati District were damaged. About 1,200 houses in Kemijen Sub-district in Mlatiharjo District and Rejomulyo Sub-District in Semarang Timur District were flooded because of the river embankment sliding at Banjir Kanal Timur.

Land subsidence

Land subsidence has an impact on water supply in two ways. First, every five to seven years people have to increase the floor level of their houses in order not to get flooded. In terms of the assets in sustainable livelihoods analysis, this means that they have to spend a substantial part of their financial assets for this purpose which might decrease their capacity to cope with other problems such as water supply because of tarfflF increases. Second, land subsidence is one of the indicators of excessive groundwater extraction. Excessive groundwater extraction in turn can result in problems of salinisation which make it difficult for people especially for those who depend on shallow or artesian wells to get fresh water.

60 Land subsidence should be carefully considered in light of the unique characteristic of Semarang City. Almost all the lowland of Semarang is made of young alluvial land less than 1,400 years old, which is still in the process of consolidating. The problem of land subsidence is found mostly in this lowland. The pump house at River Banger for example suffered 10 cm land subsidence within two years. Arten Utara road near Port Tanjung Mas, bridges on Banjir Kanal Timur River and Tenggang River are some public infrastructures that get damaged because of land subsidence. Even at Simpang Lima, the centre of the town, the land subsidence was about 4 cm per year in 2004.

The other problem is that some of the lowland of Semarang used to be marshes and are currently housing and industrial areas, such as in Gayam Sari District: Kampung Sawah Besar, and Tambakrejo Sub-district; Genuk District: Muktiharjo Sub-district and Genuk Indah housing area; and Tlogosari housing area in Pedurungan District. Land-filled marshes combined with the heavy burden of housing and industrial buildings make this kind of area vulnerable to land subsidence.

Because of the land subsidence, some areas currently lie below sea level, making them more vulnerable to flooding. The area that was 0.5 metre below sea level according to the Japan International Cooperation Agency quoted by Suara Merdeka (see also Japan International Cooperation Agency, 2003) in the year of: 2001 was 1,270 ha 2010 was 2,947 ha 2019 will be 3,985 ha 2070 will be 6,697 ha.

As mentioned before, land subsidence makes the impact of tidal and rain flood worse. According to Bappeda {Badan Perencanan Pembangunan Daerah-Loca\ Office of Development Planning), the inundation area has increased from 70 ha to 190 ha (Bappeda, 2003).

Water table drop

Water table drops because the rate of groundwater extraction is more than the natural rate of groundwater replenishment (Loaciga and Leipnik, 2001). When water table drop occurs, those who depend on artesian wells have to deepen their wells to obtain water. As explained in Chapter 2, water table drop in Semarang is most probably caused by excessive groundwater exploitation.

The escalation of groundwater extraction is shown by the increasing number of artesian wells. According to the Central Java Mining and Mineral Office32 quoted by Suara Merdeka, the following numbers apply 2001 746 artesian wells 2002 780 artesian wells

32 As a government office that is responsible for issuing a permit for deep well at the time of the field study. The number of deep wells issued by the Central Java Mining and Mineral Office is only for deep wells that have official permits from this office. 61 2003 993 artesian wells.

The northern parts of Semarang are categorised as at risk for groundwater extraction. An area is categorised to be critical if the water table is more than 20 metres below sea leveL The northern parts of Semarang consist of Tugu District, Semarang Barat, Semarang Timur, Semarang Tengah, Gayamsari, Pedurungan, Genuk District and Semarang Utara, where Tanjung Mas is located. According to the Directorate Geology and Mining, these water table drops apply 1970s 0.5 - 3.5 metres 1980s 5.2 - 12.3 metres 1990s 10.3-18.9 metres 2000s 24.6 metres.

Land use changes

Changes in land use from conservation areas on the hilly part and marshes in the coastal area to industrial, housing and commercial areas have proved to bring problems to the people living in Semarang. Land use changes on the hillside cause flood problems to the people living below. Muddy floods at the Dewi Sartika housing area are suspected to be caused by such land use changes. Sand mining and the development of housing areas are sometimes reason for hill cutting, as is the case at Klipang, Mangunharjo, and Tandang Sub-district in Tembalang District. Sinar Waluyo and Ketileng housing area were developed by cutting the hill at Klipang and Mangunharjo Tembalang District.

Land use changes mostly occurred on the hillside. There are five districts in the high land that have a slope of 40%: Gunung Pati District, Mijen, Tembalang, Banyumanik and Candisari District. Due to the slope characteristics, the five districts have become conservation areas. However, there are 972 hectares of critical land in four out of five conserved districts: Gunung Pati, Mijen, Tembalang and Banyumanik. An example of a land use change is that the housing area at the upper end of Bringin River was only 311.45 hectares in 1999, while this increased to 421.21 hectares in 2003. The industrial area had increased from 104.79 hectares to 138.54 hectares. The changes not only concerned conservation areas being transformed into housing and industrial areas, but also into rice field and cattle breeding areas. The rice fields had increased from 250.2 hectares to 256.2 hectares, and the cattle breeding areas from 0.8 hectares to 1.47 hectares.

Most of the land use changes that include Marina seashore reclamation were realised without a proper Environmental Impact Assessment. The seashore reclamation is suspected to be the cause of the higher tidal flood in some areas. Because of the reclamation, Yos Sudarso Street in Semarang Utara District probably will be permanently flooded in the future. The Central Java Promotion Centre in Tawang Sari Sub-district of Semarang Barat District suffers from tidal floods because of the reclamation. All these districts belong to the low land of Semarang.

Additional problems 62 Water pollution is found at some rivers and canals that are directed to the fishponds in Tugu District Mangunharjo and Mangkang Sub-distnct According to the study by the Centre of Coastal Area Studies of the Diponegoro University as mentioned in Suara Merdeka, Semarang seashore is highly polluted According to Suhartono (2009), two parameters of water quality (Biological Oxygen Demand and Chemical Oxygen Demand) tend to be higher than the standard because of domestic waste at the mouth of Banjir Kanal Timur River

Besides pollution, some areas in Semarang are experiencing drought Some districts such as Tembalang, Ngaliyan, Gunung Pati, Tugu and Mijen District have drought problems in almost every dry season The Semarang City government usually supplies water during the drought for the people living in these districts

4.2.2 Economic problems

Economic problems are the problems relating to the urban economy that might harm households' access to water supply, and to sufficient and good quality water They are categorised into shocks, trends and seasonality The indicator for shocks is sudden market fluctuation, indicators for trends include poverty and commercialisation of public goods, while the indicator for seasonality is the inflation rate (see Table 3 1) The details found in Suara Merdeka between 2 January 2004 and 30 April 2005 are shown below

About 60,000 persons were laid-offin Semarang in 2003 Lay-off might harm the access to water since it can lead to the deterioration of households' purchasing power Besides the problem of unemployment, there were 58,970 households in Semarang that were categorised as poor and that received rice aid from the local government There were 780,840 people who were categorised as pre-prosperous (see the definition of pre- prosperous in Section 3 2 1), 191,797 of whom were women

The minimum wage m Semarang is actually the highest compared to the other cities and municipalities m Central Java It was Rp 473,600 per month in 2005 However, the average wages did not meet the minimum standard in 75% of companies In addition, the Semarang inflation rate was higher than the national inflation rate in 2001-2003 as well as in 2007 In 2007, the period of the field study, the inflation rate m Semarang on average was almost the same as the national inflation rate However, the 2005 inflation rate of 16 46% might still have impacted on the households during the period of the field study All of these findings are confirmed in the household level vulnerability assessment that is discussed m Chapter 6

63 Table 4.1 Inflation Rate, 2004-2007

Year National Semarang Inflation Inflation Rate Rate 2004 6.4 5.98 2005 17.1 16.46 2006 6.6 6.08 2007 6.59 6.75

Source: The Central Java Bureau of Statistics.

The number of lay-offs and the inflation rate make the situation more difficult to access water. On the one hand, incomes and purchasing power are decreasing, but on the other hand people have to pay for the increasing prices including the increasing tariff for water. In 2002, PDAM Semarang City increased the tariff by more than 200% on average for all tariff categories.

Another economic problem of concern is the limited budget capacity of the Semarang City local government. Because of budget constraint, some preventive actions for flood could not be realised according to plan. For example, the Tenggang River was scheduled to be the long storage in 2004 to prevent tidal flood, but it would only be built if the central or provincial government could allocate sufficient funding. For reasons of a lack of budget, Semarang City could not scrape Bringin River 10 metres wide and 4 kilometres long without the aid of the Central Java Province.

4.2.3 Social problems

Semarang has to cope with many social, including policy problems, which are often interwoven with the ecological and economic problems. For example, bad land use planning or maintenance of the sewerage system can lead to floods in certain areas and the poverty in the city has much to do with the distribution of income and power among its population. However, in this section 1 will limit myself to two social trends that cause certain households or communities to have difficult access to sufficient and good quality water: population growth and the increasing number of slum areas.

The indicators used for social problems are epidemics, strike, population trend, decreasing or increasing slum areas, and seasonal health problems. The details can be found in Section 3.2.2 and please see Table 3.1 for a summary. However, only problems relating to two indicators are found to be published in Suara Merdeka. The result of the desk study for the indicators found in Semarang is as follows.

The average population growth of Semarang was 2.35% in 2002-2003. It was higher than the national population growth of 1.92% and higher than that of the Central Java Province, which was 1.07% during the same years. The average natural population

64 growth rate in Semarang was 1.67%, which implies that the city experienced immigration from other areas. The high population growth naturally could lead to growing competition for natural resources, including water.

There were 42 slum areas in Semarang in 2002, while there were only 21 slum areas in 1963. Most of them were located on the riverbanks and concerned illegal settlements. In Semarang and also other cities in Indonesia it is illegal to settlements along riverbanks. There is no PDAM service in illegal settlements. Therefore, they have to depend on water supply services that are more expensive and of a poorer quality.

4.2.4 Shocks, trends and seasonality in ecology at city level

Due to its specific topography consisting of the hillside, plain and lowland area which consists mostly of alluvial land, the urban development of Semarang City should be realised with due care. Most of the ecological hazards that could harm the quantity and quality of water are caused by the land use changes both on the hillside and at the lowland area The catchment area on the hillside has been developed into housing or industrial area, while the changes in the lowland area concern the reclamation of the coastal area and transforming marshes into housing and mdustnal areas. All of these certainly cause problems in the hydrological cycle that result m too much water during rainy season and too little water during dry season Ram flood, tidal flood, land subsidence, water table drop, and muddy flood are the major problems found at the city level.

The sliding of river embankments caused by heavy rain floods can be considered as shocks. Economic crisis leading to massive lay-offs are another kind of shock from the perspective of the households that experience the lay-offs Temporary unemployment might lead to social problems, if only that they may lead to crimes or social unrest However, lay-offs themselves are categorised as economic problems that can be categorised as shocks. Being laid off can harm the access to water for urban dwellers. The decreasing purchasing power caused by the lay-off combined with the increasing PDAM tariff really entail a shock for those concerned

Trends that affect the vulnerability of Semarang City inhabitants are various I he fact that tidal floods are getting higher and higher every year is clearly a trend. As such, tidal floods are becoming an everyday problem for many inhabitants and almost all are well prepared to fece the nuisance. That is why they cannot be categorised as shocks. Another ecological trend is land subsidence, which makes people more vulnerable to tidal floods People have tried to cope with land subsidence by regularly raising the floor of then- houses and the roads. Other trends include land use changes both on the hillside and in the lowland, the pollution in the coastal area, water table drop, population growth, inflation, and PDAM tariff increase. Land use changes are also considered as trends because of their regular occurrence, which will only cease with appropriate measures on the part of the local government, which never happens.

Seasonality mcludes rain floods, other than floods caused by river embankment sliding, 65 and droughts. The hillside of Semarang experiences drought almost every year.

Tables 4.2 and 4.3 summarise the details of the problems of the ecological hazards that the Semarang inhabitants face and that are found in this desk study. It can be concluded from the two tables that: 1. Almost all the lowland areas are vulnerable to tidal flood. 2. Almost all the lowland has become a critical area for groundwater extraction, which is indicated by the water table drop. 3. Almost all of the Semarang coastal area is highly polluted. 4. People living near the river are vulnerable to tidal and rain flood as well. 5. Drought mostly occurs on high land that is part of the conservation area.

66 Table 4.2 Summary on Water Supply Vulnerability Analysis according to Districts in Semarang, 2004-2005

Gemik Semarang Semarang Seoiaraog Oayam Semarang PedurungaD Gajah Ngaliyan Temtalang Candiian GuDUDg Mijeo Danyu- Tugu Utara·) Timur Tencah Sari Banu Muoftkur Pati Tidal Flood "J V V V V V oa 0.8 aa 0.8 ΒΛ 0.8 aa aa aa

Rain Flood η a 0.8 ·> V V V V V V ^ V V ILS aa aa

ILS Oaitage oa oa OB D.a D.a nj oa •J ΠΛ ILB D.a V as aa

Land Use oa o.a ILS V V oa ^ aa V •1 V V V aa Changes ν Rcdajnauon 0.2 Q.a CL* 0.8 V V DM 0.8 o.a oa 0.8 n.a aa aa aa Problems

•< oa π. a oa oa V V 08 0.8 D.a 0.8 0.8 aa aa ν •

V V V V V V 0.8 oa oa OB n.B as aa Drop „' >! Droughl 0.1 • a oa o.a oa 0.8 o.a oa J Λ/ V 0.8 j aa V

Note: Tanjung Mas is located in the Semarang Utara District The analysis only found problems in 15 districts out of 16 in Semarang

Table 4.3 Summary on Water Supply Vulnerability Analysis according to Rivers in Semarang, 2004-2005

Danger Teng- Semi SriagiQ Gih Silaodak Kabgaw Tawang Dabon Sloom Bringt D Banjir Danjir Asm Dam gang ring LajTjt e Mas Kanal Kaoal

Sea Flood Λ λ' ua oa a a Ί V ua oa D Β aa oa 08 na aa

Rain aa •I V •^ S V nood >' ^ •i 4 J •v •J Ί •1

Gartege l' aa DB • a o.a 08 V ua aa oa aa na V na aa Note: '« means)ha t the pr 3blem is ft)und ; n.a τncansno t available Tambaklorok Riverside of Tanjung Mas is situated next to the Semarang River 4.3 The vulnerability context at sub-district level

As we have seen earlier, based on the characteristics of the poor, Tanjung Mas can be divided into two parts Tambaklorok and Kebonharjo The two parts have distinct characteristics regarding both the people and the environmental problems that they face Tambaklorok is well-known as a settlement of poor fishermen in Semarang They live mostly on disputed land with PT Pelindo, a state-owned company managing the Port of Tanjung Mas However, from the household interviews, it is revealed that most of the people living in Tambaklorok have already obtained the land ownership certificates, which makes the land dispute no longer a vulnerability factor The second part, Kebonharjo, is also known as an area where poor people live They have a dispute on the land where they live against PT Kereta Apt Indonesia (State-Owned Indonesian Railways Company)

This section will start with a summary of the results of the vulnerability assessment at the community level They will be structured according to the sub variables as mentioned in Table 3 1 ecological, economic, social and political Political problems were not found in the community level assessment However, it will be examined in the household level assessment whether these problems really occur or not As is the case in the city level assessment, this sub section will end with the categorisation of the problems into shocks, trends and seasonality

Ecological problems

Ecological problems dominate the vulnerability context found at the community level Some were mdicated directly by the respondents, such as sea tide, rain flood and garbage problems Other ecological problems, including land subsidence, water table drop, sea water intrusion and the decreasing amount of surface raw water, especially for PDAM, were not indicated directly as such The respondents stated the impact and/or how they coped with the problems For example, they did not mention land subsidence, but they explamed in detail how they had to heighten the floor level of their houses a minimum of 0 5 metre every five to seven years However, from their stones and the results of the vulnerability assessment at the city level as well, we can conclude that the land subsidence in the area lies at the root of the need to raise the floors

Almost all respondents stated that the tidal tide was becoming more severe from tune to tune In some parts of Tambaklorok Seaside, tidal flood had become an everyday problem for the inhabitants Here, it was very easy to find the backyards or front yards of the houses inundated by sea water, though the flood had subsided Health problems can be expected for those living in these circumstances The situation was of course worse for those who could not raise the level of the house floor

As is the case for tidal flood, rain flood too is part of the vulnerability context, especially for those who could not raise the floor of their houses, and those who lived near the nvers At Tambaklorok Riverside, for example, people depended much on the pump to draw the water from the ram to the nver They experienced flooding whenever the pump

68 did not work well. Another vulnerability context in relation to rain was that it usually caused the water supplied by PDAM to be turbid. Firstly, due to the improper treatment of the rain water that carries sediments from the upper part of the river; secondly, because some pipe infrastructures leaked, allowing muddy rain water access to the pipe.

The garbage problem was experienced especially by those who had back to back houses with a sewer in between, as is commonly found in the area. It was difficult to clean the sewer because the distance between the two back walls was very short. The garbage blocked the flow of the water in the sewer. Consequently, whenever it rained, the water overflowed into the houses that did not have wall at the backyard.

Land subsidence contributed much to the problems of poverty in this area, especially because people had to spend much of their financial assets on increasing the level of their house floor. Land subsidence also meant that the PDAM leakage pipe problem could not be solved easily, because the piping was laid deep underground after the landfill to increase the level of the roads.

Groundwater extraction could not be prevented in Tambaklorok Seaside, since no PDAM service was available. Consequently, water table drop was getting worse and worse. People who had to depend on artesian wells could not help but dig deeper and deeper wells to reach the water. In some cases, the owners had to abandon their artesian wells because the debits were getting too small. In Chapter 5, we will see that the cost of making a new artesian well is very high. As a result, some of the artesian well providers discontinued their services because they did not have enough money to make a new deeper artesian well. To deliver the water to the subscribers, all artesian well providers depended on jet pumps that run on electricity. For the subscribers of the artesian well providers, besides the reliability of the service caused by water table drop, another problem concerned the occasional lack of electricity. Another vulnerability context they faced was whenever their pumps broke down.

Water table drop also resulted in the problem of sea water intrusion, which made it difficult to get fresh water. Coupled with sea tide, no one used shallow wells for their drinking water supply service anymore. Usually people used the water for cleaning and bathing. Because of the deteriorating quality, whenever they washed their clothes or dishes or when they took a bath, they had to rinse with better quality water from other sources. Sea water intrusion had also increased the salt content of the water from artesian wells, unless people deepened the wells. Because of the bad quality of water supply sources, especially from sources other than PDAM, combined with the unhealthy environment caused by inundation, water-borne diseases could not be avoided.

Finally, the people in this area were confronted with the deteriorated quality of the PDAM service. Because of the limited raw water, PDAM was often off-service because the debit was too small or the pressure was too low. To cope with the problems of the debit and the pressure, some more affluent inhabitants used pumps to draw the water, but this implied that they had to depend on the electricity service that set the pumps into motion. Pump malfunction was another problem that could arise. Both problems made 69 those who experienced them unable to get water and they had to spend some of their financial assets to buy more expensive water. The people usually used water tanks to store PDAM water in case PDAM was off-service. Water tanks were also used as an adaptive strategy by the subscribers of commercial artesian well providers and water peddlers. Note that commercial artesian well providers and water peddlers' service were not available in 24-hours base.

Economic problems

The economic problems mentioned directly by the respondents concerned poverty and the water peddler tariff increase. Poverty was not only a matter of low income at a certain moment of time, but perhaps more, the irregularity of paid work and incomes. It was difficult to obtain a regular income if one depended upon informal work. Due to the irregularity of income, poor people often failed to pay the PDAM bills for three subsequent months and disconnection became mevitable. Poverty has made it harder for the poor to be PDAM subscribers. PDAM water was actually the cheapest compared to other sources. However, to get connected, they had to pay an incredible amount of money that they could not afford. Poverty was also the reason why many households had to obtain water from the artesian well providers using their own carts. They could not afford to install pipe infrastructure from the provider's well to their houses or to buy water from water peddlers.

The problems that people faced with PDAM were actually caused by the commercialisation of PDAM in terms that PDAM had to set a full cost recovery tariff to cover all the costs incurred. I will deal with this issue later in Chapter 7 when we are going to discuss the government policy on PDAM. One of the results of a full cost recovery tariff setting was the high connection fee. The other was that PDAM had to save costs by minimising the facilities to inject alum to cope with the e-coli bacteria. Alum injection should actually be realised for a certain length of pipe infrastructure so that the water contains the right quantity of alum. However, it seems that PDAM tried to minimise the facility to save costs. That is why its subscribers complained about the smell of alum/chlorine, especially for those whose houses are close to the facility.

Poverty also had forced people in trouble to buy water from water peddlers, particularly those who were not connected to PDAM and also to buy bottled or refilled-bottled water whenever the quality and the taste of the water from PDAM and artesian well providers were poor. Some respondents had more problems, because lately the price of the water from water peddlers increased. With a high inflation rate, which was also reflected by the increase of the PDAM tariff and the price of water from water peddlers, it became a pressure for the poor inhabitants of Tambaklorok and Kebonharjo to obtain water.

Social problems

Ecological problems caused people living in the area of the field study to suffer from social problems. The most serious one concerned health problems. These were most often caused by the inundation from the sea and rain floods due to the limited capacity of the

70 pumps to drain the water from the floods. For those living in Tambaklorok, inundation could not even be solved by using pumps since the land was below sea level, especially during sea tide. Health problems were also found among those using water from artesian wells. Some people got itchy when using this water.

Another social problem was the dispute concerning the land on which people in Tambaklorok and Kebonharjo live. Although the problem had been settled, people especially in Tambaklorok still felt the impact. Because of the dispute, no service from PDAM was available in this area. This social problem had made the extraction of groundwater more severe because they had to depend on groundwater as their water supply. There might be other social problems such as drug abuse, domestic violence, crime and illiteracy. In the research, however, there was no mention of such social problems by the respondents in the questionnaires, though this does not necessarily mean that such problems did not occur. The household vulnerability assessment conducted will ascertain whether such problems have truly happened or not (Chapter 6).

4.4 Concluding remarks

As mentioned before, vulnerability is a difficult concept to understand for the respondents. It proved to be impossible to do a community/sub-district level assessment without doing the assessment at a city level. An explanation of the results of the vulnerability assessment at a city level has helped the respondents to assess vulnerability context at a community level, as well as to better understand what is meant by vulnerability and what kind of vulnerability context at a city level might happen at a community level. In other words, this assessment requires a multi-level analysis.

For many people, vulnerability is the same as poverty. In the sustainable livelihoods analysis, poverty mainly concerns two types of assets: physical and financial assets. Vulnerability also deals with the three other assets: human assets, natural assets and social assets. Some of the respondents mentioned human assets, however, social assets tended to be neglected. No respondent mentioned the problems with social assets. Whether this is true or not will become evident in the household level vulnerability assessment in Chapter 6, where special attention will be paid to the questions that deal with these assets.

The results of the two steps assessment show a consistency between the results found at a chy level and the vulnerability context at a community/sub-district level. At a city level, the general problems of poverty concern living in a slum area, lay-offs and inflation rate. At a sub-district level, the negative external changes found are more specific, for example about the quality of PDAM service and poverty. There are no problems of land use changes and drought in Tanjung Mas. Some negative external changes that occur at a more macro level might not be realised by the community, such as the problem of population growth and the shortcomings of the Semarang City budget. However, they felt the impacts. The vulnerability context at a city level and a community level will be ftirther assessed at a household level in Chapter 6.

5. The sustainability context of water provision in Tanjung Mas"

Regulator: • International • National • Regional • Local

Vulnerability Context: Sustainability Context: • Shocks • I-cological Integrily • Trends • Economic Efficiency • Seasonality • Social Equity

Water Supply Provider Ilouscholds: • Public Companies ν · Policy Resilience • Private Companies \· Institutional- Assets ·•- • Community-based / Sustainability • Their Combinations '

Strategies Outcomes

An article based on this chapter has been published in Water Policy 11 (2009): 56-65. 34 These are the categories of providers usually distinguished in scholarly articles. PDAM falls under public companies, while the bottled water providers, water kiosks and commercial artesian well providers referred to in this chapter fall under private companies. A community-based system was not found at the location of the study. One provision that is not referred to in most scholarly articles is self-provision. Later on in this chapter we will see that water peddlers are actually some form of distribution channel legally for commercial artesian well providers and illegally for PDAM.

73 The aim of this chapter is to answer the sub research question 'What do water provisions look like in Tanjung Mas?' with a focus on the analysis of the sustainability context (ecological integrity, economic efficiency, and social equity). This chapter begins with a description of water provisions in Tanjung Mas. The second section identifies water supply changes that have occurred in the last ten years (1996-2006). As mentioned in Chapter 1, by analysing the changes, we can compare the performance of each provider in terms of its contribution to the improvement of people's livelihoods. It is followed by an analysis of the water supply sub-sector. This chapter ends with concluding remarks on the analysis of the impacts of the provisions on the sustainability context. The data are mainly based on the interviews with the chiefs of neighbourhoods and the owners of both shallow and artesian wells. Secondary sources on each provider will supplement the interviews. Sources other than the interviews will be mentioned in the text.

5,1 Water provision in Tanjung Mas

There were mainly three broad categories of water provision system found in Tanjung Mas: 1. Semarang City Public Water Supply Company (PDAM). 2. Private water supply providers, which consist of a. Artesian well providers. All of the artesian well providers in Tanjung Mas could be categorised as commercial artesian well providers.35 Commercial artesian well provider means that the artesian wells are used to make money for the owners. b. Water kiosks. Because people buy water using their own used bottles (the volume of each bottle (or galon for the Indonesian) is about 20 litres) or cans, these water kiosks are also called refilled-bottled water kiosks. c. Bottled water retailers. 3. Self-provision. Self-provision means that a household obtains water from its own source. Most households in Tanjung Mas in this category obtain water from shallow wells. Only a few of them use artesian wells.

No community-based system was found in Tanjung Mas. Water peddlers, who sell water in cans using carts or other vehicles, make up part of the distribution channels of PDAM and/or artesian well providers. In Tanjung Mas, they mainly use carts to deliver the water. They are not categorised as water supply providers, since they only deliver the water from other providers and so are sooner distributors rather than providers.

In 2007, the coverage of PDAM Semarang City was only 55.8% of the 1.5 million Semarang City inhabitants (PDAM Kota Semarang, 2008). The failure of the public water supply company in Semarang to deliver services to all inhabitants caused people to look for other alternatives to fulfil their needs for water. Some people who did not have access to the public piped-water service dug artesian wells. Because the costs to dig an artesian well were relatively high, usually only the more affluent could afford it.

Actually, artesian well providers can be divided into community-based and commercial providers. All providers in the community-based category may charge a certain lari (ζ but as long as the tariff is not aimed towards profit-making, this kind of provision falls under the category of community-based providers. 74 'Just to dig the well. I had to ipend about Rp 20 millions3' It was not including the 1 'A inch pipes, the pump and the cables which cost about Rp 12 millions, ' said Madam M the owner of one of the commercial artesian well providers at Tambaklorok Seaside

Other people had to depend on the detenorated water from shallow wells The water from shallow wells, which was free, was used only for the less value-added activities, such as watering yards, gardening and washing Others bought water from water peddlers or from artesian well providers, which was more expensive compared to PDAM water For instance, Madam M sold the water from her artesian well for 0 24 Euro per cubic metre, while Madam Κ at the Old City bought water from water peddlers for Rp 800 per can containing 20 litres, amounting to 3 13 Euro per cubic metre Compared to the PDAM tariff, which was 0.05 Euro per cubic metre at that time, the water from commercial artesian well providers and from water peddlers was 5 times and almost 70 times as expensive as PDAM water, respectively

The water from PDAM, artesian well providers and water peddlers was usually used for vanous purposes, including drinking, washing, bathing and other domestic activities Refilled-bottled water and bottled water fell under a different category, since these were used only for drinking For reasons of quality, some people bought water from refilled- bottled water kiosks or bottled water from retailers near their houses The most expensive source of drinking water was bottled water One bottle containing 20 litres cost 0 70 Euro, while refilled-bottled water cost 0 24 Euro

The results of the in-depth interviews with the chiefs of the neighbourhood about the urban water supply providers found in each neighbourhood are summarized m Table 5 1. A detailed description of each provision, starting with a general description, the ecological integrity, economic efficiency and a description of the social equity, will follow

In general, PDAM service and shallow wells were not found at Tambaklorok Seaside Despite the fact that this water was cheaper than bottled water, water kiosks were only available in three neighbourhoods at Kebonharjo and Tambaklorok Riverside Bottled water providers, in this case retailers using galon, were spread over all neighbourhoods, except at Tambaklorok Seaside where only one retailer was found Because of environmental degradation, according to the chief of the Tambaklorok Seaside neighbourhood, no shallow wells were available there

56 Euro 1 = Rp 12,800 m 2006, thus Rp 32 million is about 2500 Euro

75 Table 5.1 Urban Water Provision in Tanjung Mas by Neighbourhood in 2006

Neighbourhood PDAM Artesian Wafer Galon Self- Wells Kiosks Bottled Provision Providers Water (mostly Retailers shallow wells) I V V2 n.a V V II V V3 V V V III V V4 V V V IV V V3 n.a V v' V V V3 n.a V V VI V V3 n.a V V VII V V3 n.a %' 4 VIII V V3 n.a V •i IX V V3 V V n.a X V V3 n.a V V XI V V5 n.a V V XII n.a V3 n.a n.a n.a XIII n.a V3 n.a n.a n.a XIV n.a V3 n.a V n.a XV n.a V 3and V6 n.a n.a n.a XVI n.a V3 n.a n.a n.a Source: Interviews with the chiefs of neighbourhood (2006).

Note: -i : provision available V2 : the water was only for the mosque and taken by water peddlers. V3 : the water was sold using pipe infrastructure. V4 : the water was sold using cans. Vs : the artesian wells were located in another sub-district but the water was sold to the inhabitants of this neighbourhood. V6 : the artesian well was built by the Semarang City government n.a : not available I : the Old City II-VUI, X and XI: Kebonharjo IX : Tambaklorok Riverside ΧΠ-XVI: Tambaklorok Seaside

The problem with the water supply sources other than PDAM and shallow wells, was that these involved groundwater. Some of these sources, such as artesian well providers and some refilled-bottled water kiosks, even used groundwater from Tanjung Mas. In the following sections, we will successively discuss the sustainabihty context for each of the water supply systems in Tanjung Mas.

As has been elaborated in the preceding chapters, the sustainabihty context consists of ecological integrity, economic efficiency and social equity. A description of each variable, operational definition and the indicators can be found in Table 3.2.

5.1.1 Public water supply: PDAM Semarang City

76 PDAM Semarang City was established in 1911. Its status as the Semarang City local government's company was officially eflective in 197537. In 2002, PDAM built Kudu Water Treatment Plant (Kusuma el al., 2006), which was financed through the World Bank loan. The effort to expand its coverage through this plant has proved to cause major difficulties for PDAM. Because of many technical problems, the plant that was intended to produce 1,250 litres/second of safe water could only produce 250 litres/second. The major financial problem that PDAM faced was due to its huge debt of Rp. 358.9 million resulting from this project. From 2000 up to 2007, PDAM Semarang City was not profitable (PDAM Kota Semarang, 2008). However, since the company was owned by the city government, the burden of debt would only influence the capacity for PDAM to expand its services (it was quite impossible for PDAM to be bankrupt).

Ecological integrity

Most of the raw water used by PDAM comes from surface water. Six water treatment plants, which accounted for about 65% of the total water supply produced, used surface water from three sources: Kaligarang River, Babon River and from Klambu Dam. The water supplied to Tanjung Mas also came from one of the six water treatment plants. As mentioned before, the usage of surface water is considered more sustainable compared to the usage of groundwater, especially if the water comes from the critical area of groundwater extraction such as in Tanjung Mas.

Economic efficiency

The level of the 'unaccounted for water' had increased from 1997 to 2007. According to the data from PDAM (2008), the 'unaccounted for water' in 1997 was only 36%, increasing to 53% in 2003 and 56.45% in 2007. Illegal connections and pipe leakage contributed to this increase. In other words, in terms of the 'unaccounted for water', PDAM was not economically efficient.

All PDAMs in Indonesia, including PDAM Semarang City, charged their subscribers a conservation or progressive tariff that was usually divided into several blocks; that is why this kind of tariff is also called a block tariff. A conservation tariff is aimed to make PDAM's subscribers conserve water, because the more a subscriber uses water, the more expensive the tariff will be. A detailed description about the tariff of PDAM Semarang can be found in the PDAM social equity section. In terms of charging its subscribers a conservation tarifÇ PDAM Semarang could be categorised as having an economic efficient policy, though in terms of its performance of the 'unaccounted for water', PDAM was not economically efficient.

Social equity

As mentioned before, the PDAM coverage in 2007 was only 55.8% of the Semarang inhabitants. The coverage by PDAM was even worse in Tanjung Mas. According to

37 See the Semarang City Mayor Decree No. 27/1 OK 175, which was then superceded by Semarang City Local Govemmenl Act No. 12/1978 and No. 7/1983. 77 Tanjung Mas Sub-district statistics, there were only 2,201 people (out of 29,375 inhabitants) with piped-water supply from PDAM at the end of December 2004. In Tanjung Mas, PDAM services were only found in some parts of the Old City, Kebonharjo, Tambaklorok Riverside and in the Port of Tanjung Mas area. No PDAM water supply service was available at Tambaklorok Seaside (see Table 5.1), which borders the sea and includes the poorest area. The limited coverage of PDAM harmed social equity especially for the poor who could not afford self-provision using artesian wells or who did not have any shallow wells with good quality water.

The PDAM used a tariff structure that was approved by the Mayor of Semarang City. The tariff structure at the time of survey was based on the Semarang City Mayor Decree No. 690/303, issued in 2002. There were 22 categories of PDAM tariff (see Table 5.2). For example, category 1 was Social A. It included mosques, churches, orphanages, kindergartens, elementary schools, and Puskesmas (community health care centre). Social Β included public hydrants and public toilets. The household categories were divided into five groups: household 1 to 5, based on a somewhat complicated calculation involving the width of the land, the square metres of buildings, the quality of the houses, the category of the road in front of the houses, and the house location categories. These categories were divided again into five blocks based on the quantity of the water consumed.

The division into categories rendered it possible for PDAM to use a cross subsidy mechanism so that the more affluent pay more compared to the less affluent. This mechanism could guarantee social equity to some extent in terms that through a cross subsidy mechanism, the less affluent inhabitants could get water supply services from PDAM.

78 Table 5.2 Tariff Structure of PDAM Semarang Cky in 2006 (in Rp.)

No Tariff Category 0-10 m3 11-20 m ' 21-30 mJ 31-50 inJ >50mJ 1 Social A 600 600 940 940 1,440 2 Social Β 1,250 1,250 1,250 1,250 1,250 3 Household 1 600 850 1,090 1,200 1,985 4 Household 2 1,030 1,600 1,910 2,155 3,560 5 Households 1,425 1,985 2,730 3,075 4,265 6 Home-based enterprise 1,240 1,860 2,725 3,040 3,535 7 Educational Institution 1 1,490 1,530 2,995 3,490 4,695 8 Educational Institution 2 1,575 1,575 3,130 3,650 4,850 9 Educational Institution 3 1,665 1,665 3,265 3,805 5,025 10 Household 4 2,065 2,845 3,570 4,525 6,915 11 Household 5 2,305 3,340 4,270 5,415 8,250 12 Governmental Institution 1 1,480 2,210 2,310 2,930 5,245 13 Governmental Institution 2 1,575 2,305 2,420 3,070 5,455 14 Commercial 1 2,940 2,940 5,880 7,140 8,240 15 Commercial 2 3,230 3,230 6,370 7,735 8,940 16 Commercial 3 3,340 3,340 6,580 7,990 9,240 17 Industry 1 3,735 3,735 7,350 8,925 9,655 IS Commercial 4 4,595 4,595 8,890 10,795 11,990 19 Commercial 5 4,930 4,930 9,520 11,560 12,905 20 Commercial 6 5,170 5,170 10,010 12,155 13,485 21 Industry 2 5,880 5,880 9,840 11,950 13,135 22 Industry 3 6,520 6,520 10,905 13,245 14,485 Source: the Semarang City Mayor Decree No. 690/303 of 2002. Note: Euro 1 = Rp. 12,800 in 2006

5.1.2 Artesian well providers

The role of artesian well providers in Tanjung Mas was very important. Owing to the limited coverage of PDAM Semarang City, some inhabitants in Tanjung Mas had seen it as a business opportunity to provide water supply services to their neighbours. They used artesian wells as the sources and sold water through a PVC pipe infrastructure. The Semarang Chy government had also tried to compensate for the low coverage of the public water company by helping to build an artesian well at Tambaklorok Seaside. The well was managed by one of the inhabitants, however, to make money for him.

The closer we came to the coast, the more artesian well providers we found. This was due to a lack of PDAM service along the coast, especially Tambaklorok Seaside, and because of the deteriorating water quality, no shallow wells were available there either. The demand was very high in this area, since all households were a captive market for artesian well providers. All the inhabitants of Tambaklorok Seaside used the water from artesian well providers as their sources of supply.

Ecological integrity

The average depth of the artesian wells in Tanjung Mas was about 80 to 100 metres. One

79 problem with some artesian wells concerned the water drying up. The deeper wells show a water table drop. This is an indicator that there is a problem with the quantity of groundwater in the area. A water table drop in coastal areas might induce sea water intrusion, which can result in problems with the quality of fresh groundwater. Because of sea water intrusion, the water from the artesian wells in this area was salty.

Economic efficiency

On the one hand, in terms of the 'unaccounted for water', the water of the artesian wells was provided in an economically efficient way. No data was available for the leakage, but according to my observations leakages were insignificant. This is firstly because the pipe infrastructure is relatively new compared to the leaking PDAM pipe infrastructure, which was built during the colonial period and secondly because the coverage was only for neighbouring households, and so it was easy for the owner to check in case there was a problem of leakage. On the other hand, none of the artesian well providers used a conservation tariff, which means that they did not motivate their subscribers to save water. The tariff charged will be described in the next section.

Social equity

There was no standardized tariff for the water sold from the artesian wells. Some charged the households 0.2 Euro, while others charged 0.24 Euro per cubic metre. Others who did not have a water-meter charged households based on the length of the time that the households were serviced.

They charged the same tariff for all subscribers. The practice of charging the same tariff can harm social equity, as the less affluent have to spend a larger proportion of their household budget on water compared to the more affluent, given the feet that the minimum quantity of water for a healthy lifestyle is the same. The positive point of the social equity of artesian well providers was that no households complained of being discriminated against to get the service.

5.1.3 Water kiosks

Water kiosks were found only at Kebonharjo and Tambaklorok Riverside. Raw water is processed into drinking water using a certain machine. The owners of the kiosks do not how the process works. They simply follow the instructions for use. At Tambaklorok Riverside, the raw water of one of water kiosks was from an artesian well in the neighbourhood, while at Kebonharjo the raw water was from a mountain spring in the higher area of Ungaran Kabupaten (Municipality) Semarang. Most of the customers of the water kiosks concerned households with a PDAM piped-waler connection or that used artesian well providers and the households that had no piped-water connection. They used the water only for drinking.

Ecological integrity

80 There would be a problem of ecological integrity if water kiosks used groundwater from Tanjung Mas, such as the water kiosk at Tambaklorok Riverside. This problem would not exist for the water kiosks at Kebonharjo, which used spring water from Ungaran, at least from the Semarang coastal area perspective.

Economic efficiency

The water losses for the water kiosks were insignificant, because the providers transport the raw water from the source using a water tank vehicle. Before the water is processed using the machine referred to above, the water is kept in the provider's water tank. In terms of the tariff, the price of the water was the same for all quantities and customers, but because the tariff was so high, the customers tended to save on the consumption of the water by using it as drinking water only.

Social equity

For the poor who were concerned with their health, making use of the water kiosks was a big problem, since the water was expensive. In some cases, they spent more money on water from refilled-bottled water kiosks than on the water that they used for other purposes. In other words, the price discriminated the poor from consuming this kind of water.

5.1.4 Bottled water retailers

Bottled water retailers in galon were found at the Old City, Kebonharjo and Tambaklorok Riverside. At Tambaklorok Seaside, the providers - retailers in this case - were found only in one neighbourhood. In Indonesia, bottled water is considered the most reliable water source for drinking, because people do not doubt its quality. For this reason, people in Semarang are becoming increasingly dependent on bottled water for drinking (see Table 5.3). However, at the time of the research, no data on the results of the water quality test for the bottled water industry was available.

The history of bottled water started in 1973. At that time, there was only one bottled water company in Indonesia that was Aqua and the production capacity was only 6 million litres. In 2004, there were 413 companies with a capacity of 9,100 million litres.Table 5.3 shows the growth of the bottled water industry in Indonesia. Unfortunately, there were no data on the growth of the bottled water industry in Semarang City. The growth of bottled water shows the increasing dependency of the people on bottled water as their source of drinking water.

81 Table 5.3 Growth of Bottled Water Industry in Indonesia

Year Companies Production Capacity (in million Member of Number litre) ASPADIN 1973 1 6 - 1983 5 10 - 1990 5 399 - 1991 125 637 13 1992 132 1,321 36 1993 140 1,590 45 1994 165 1,832 45 1995 184 2,055 51 1996 184 2,215 51 1997 184 2,500 62 1998 184 2,000 62 1999 184 2,400 62 2000 184 3,700 71 2001 246 5,400 71 2002 350 7,100 71 2003 413 8,100 108 2004 413 9,100 141 Source: Interview with die Secretary General of ASPADIN in 2005

Ecological integrity

From the survey, the brands of the bottled water sold in Tanjung Mas were Aqua, Java, Aguaria, Total, Sega, Lov, Yora, and MQ. Aqua, Java, Aguaria and Total were on the lists of the members of ASPADIN and of the Semarang City Industry and Commerce Office. According to this government office, only Aguaria had its head office in Semarang City. There was no information on the location of the water sources used by Aguaria. Seen in the perspective of the coastal area of Semarang, there was no problem with the ecological integrity about bottled water.

Economic efficiency

Since water is generally bottled close to its source, the problem of economic efficiency is insignificant. The same goes for the water kiosks, because the price of bottled water was three times that of refilled-bottled water, and so the customers tended to save on the consumption of the water by only using it for drinking.

Social equity

As the price of bottled water was the highest compared to the other sources, bottled water was usually consumed by better-off inhabitants. The price discriminated the poor from consuming it.

5.1.5 Self-provision

82 The self-provision households in Tanjung Mas mostly used shallow wells as the sources for their water supply. Many households at the Old City, Kebonharjo and Tambaklorok Riverside, which did not directly border the sea, had and used shallow wells, even when they had a piped-water connection from PDAM. It was quite easy to get water from shallow wells, since water could be obtained by digging only 2-3 metres deep. Some of the inhabitants used pumps and others used buckets to draw the water. The use of pumps meant having to pay the costs of electricity.

Ecological integrity

The problem with the ecological integrity of shallow wells in all the neighbourhoods concerned the poor quality of the water: it was salty, yellowish and turbid. Regarding the shallow wells at Tambaklorok Seaside, the water deteriorated because of tidal flood and seawater intrusion. As a result, the Tambaklorok Seaside inhabitants had abandoned using shallow wells as a source of water.

Economic efficiency

Most of the inhabitants used the water from shallow wells for cleaning, washing and gardening. Since the water from shallow wells is categorised as surface water, which is more sustainable than groundwater and, moreover, no water tariff applies, there was no problem with economic efficiency. The problem of economic efficiency occurred when artesian wells were used for self-provision. As mentioned before, excessive groundwater extraction from artesian wells generated many environmental problems. And because there was no monitoring by the government of how much water was extracted and the extraction of groundwater involved only insignificant costs of electricity to draw the water, there was a potential problem regarding the economic efficiency.

Social equity

Contrary to the water from artesian wells that was intended to make a profit, shallow wells were treated as public utilities despite the fact that they were located on private property. None of the owners of the wells objected when his/her neighbours obtained water from the wells. In other words, they contributed to social equity. However, this was not the case with the owners of the artesian wells. They used artesian wells to make a profit or for their own interests.

5.2 Changes in water provision in Tanjung Mas

Table 5.4 summarises the changes that occurred in water provision in Tanjung Mas based on the interviews with the chiefs of the neighbourhoods. The changes indicated are the most prominent and relate to changes from shallow wells to PDAM services or artesian well providers and from artesian wells to PDAM. At Tambaklorok Seaside, households remained the same. Only the infrastructure changed.

83 Table 5.4 Changes in Water Provision in Tanjung Mas, 1996-2006

Neighbourhood The Year Notes Chinges Happened I 1995 Shallow wells to PDAM services Π n.a. Shallow wells to PDAM and artesian well providers. ΠΙ 1988 Artesian well providers to PDAM services IV 1982 Shallow wells and artesian well providers to PDAM services ν 1982 Artesian well providers to PDAM services VI n.a. n.a. vu 1992 Artesian well providers to PDAM services vin 1988 Shallow wells and artesian well providers to PDAM services IX n.a. Shallow wells to PDAM services χ 1988 Shallow wells and artesian well providers to PDAM services XI 1985 Artesian well providers to PDAM services XlI-XVI 2003 Non piped artesian well providers to piped artesian well providers Sources: interviews with the chiefs of the neighbourhoods in 2006

Note: n.a means data is not available.

5.3 Water supply sub-sector analysis

Figure S.l shows the interaction among water supply providers as described above. It is a modification of the sub sector analysis mentioned in Chapter 2. Water supply sub-sector analysis shows us that we can analyse the ecological integrity in the study area in terms of the sources of water used by the providers, whether they treated the raw water or not, what kind of infrastructure or distribution they used, and whether they supplied households with or without PDAM connection.

84 Figure 5.1 Water Supply Provision Map in Tanjung Mas Semarang in 2005

PDAM Commercial Refilled-Bottled Bottled- Artesian Water Water Wells I

Raw Water Surface Groundwater Spring Water

Treatment Water Trey^ment Treatment: Ozone, etc. Plant

Distribution Channels Piped

Households Households with PDAM piped connection Households without PDAM piped connection

Source: A revised version from Hadipuro and Indriyanti (2009)

so S.4 Concluding remarks

In terms of the sustainability context, each water supply provision system had its own strengths and weaknesses. This section presents the results of the analysis of the context in the area studied. In general, PDAM was the best alternative in terms of ecological integrity, economic efficiency and social equity. This is explained below.

Ecological integrity

From the ecological point of view, the performance of PDAM was the best since it used surface water as its water source. The quality of the water was better than that from the self-provision (shallow wells), although this water is also surface water. The PDAM treats the water before it is distributed. The provision system that affected ecological integrity the most, concerns the artesian well providers, since they used groundwater from an area critical for groundwater extraction. Refilled-bottled water kiosks that used groundwater from Tanjung Mas as a source also endangered the ecological integrity. Bottled water was relatively safe for the ecological integrity in the Semarang coastal area, because although they used groundwater, the sources were outside the city.

Economic efficiency

In terms of economic efficiency, PDAM was the only provider that used a conservation tariff; but it had a problem with 'unaccounted for water'. There was no problem with economic efficiency for self-provision, because no tariff was charged and the water of shallow wells was categorised as surface water, which was more sustainable than groundwater. Artesian well providers did not use a conservation tariff. This situation might lead to excessive groundwater extraction, especially for those who thought that the price was cheap, and for the owners of the wells for whom the extraction only involved the insignificant additional cost for pumping the water. Though water kiosks and bottled water providers did not use a conservation tariff their prices are quite high, and because this water was used as drinking water only, the customers are not likely to waste it.

Social equity

PDAM was the only provider that charges an equitable tariff to the users. Artesian well providers charged the same tariff for all subscribers, which reduced the access of the poor. Bottled water is the most expensive, followed by refilled-bottled water, artesian well provision and PDAM. The higher the price, the lower the accessibility for poor households. Whether the tariff was in line with the quality can, of course, be in question.

86 6. Household water supply vulnerability

Regulator: • International • National • Regional • Local

Vulnerability Context: Sustainabilily Context: • Shocks • Rcologtcal Integrity • Trends • Economic Efficiency • Seasonality • Social Equity

Water Supply Provider: Households: • Public Companies ν · Policy Resilience • Private Companies \· Institutional- Assets -4- • Community-based / Sustainabilily • Their Combinations '

Strategies Outcomes

87 The aim of this chapter is to elaborate and analyse the changes in urban water provision from the perspective of households, especially with regard to the impacts of the changes on the individual livelihoods of more vulnerable inhabitants. During ten years (1996- 2006) several changes in water provision occurred in Tanjung Mas. By analysing the changes, we can see the impacts of a certain provision on households - which provision brought the most improvement in their livelihoods.

The chapter starts with a detailed explanation of water supply and its changes from the households' perspective: what kind of changes occurred and why households remained unchanged? This is elaborated in section 6.1, starting with the community cases, namely the Old City, Kebonharjo, Tambaklorok Riverside and Tambaklorok Seaside; and it ends with a summary of the changes in the four cases. Following the discussion in Chapter 2 of a model in which assets, besides strategies, play a very important role in coping with the vulnerability context faced by households, the discussion in Section 6.2 focuses on the role of assets in people's livelihoods. Section 6.3 continues with the vulnerability factors and livelihood strategies used by households to cope with the context. Next, Section 6.4 presents the outcomes of the strategies. The chapter ends with concluding remarks on the results of the household water supply vulnerability analysis. The description of all sections is based on semi-structured interviews with 88 respondents: 13 from the Old City, 45 from Kebonharjo, 21 from Tambaklorok Riverside and 9 from Tambaklorok Seaside, covering all the water supply changes experienced by Tanjung Mas inhabitants.

6.1 Why households change water supply providers?

Following Thompson et al. (2000), this research differentiates water supply usage into three categories: consumption, hygiene and amenities. The use of water for consumption concerns, for example, drinking and cooking, while hygiene concerns cleaning: washing dishes and clothes, and taking a bath. Amenities include watering yards, gardening, washing motorcycles and the like. The five modes of provision - PDAM, commercial artesian well providers, refilled-bottled water kiosks, bottled water retailers and self- provision using shallow and artesian wells - are identified in terms of the purposes for which the water is used. This research also identifies which provider is the main supplier of water for certain households and to which provision the major household's expenditure for water is going. The main water supply provider is understood to mean the provider that supplies the largest quantity of the water used by a certain household.

6.1.1 The Old City

During my fieldwork in 2005 and 2007, PDAM was the main source for the majority of the households living in the Old City. As the former centre of the town, it was normal that this area was covered by PDAM. Actually, the history of PDAM starts here. Commercial artesian providers were not available in the Old City. Because most of the inhabitants already had a PDAM connection, it was not feasible for commercial artesian providers to service this area: the revenues from potential subscribers were too small compared to the investment needed to dig an artesian well and to build its infrastructure. 88 Bottled water or refilled-bottled water was the common source for drinking. The cost of this water was about 30% to 90% compared to the cost of their main sources of water: the PDAM or the water peddlers. This means that, if the cost of the main water supply is approx. 10 Euro a month, then the costs of bottled water and water from the kiosks will vary between 3 to 9 Euro per month. And so cost of drinking water contributed highly to the households' water expenses. It was quite irrational, especially for the poor, to spend so much money on bottled or refilled-bottled water, while the PDAM water was in fact drinkable if it was boiled.38 In other words, a concern with respect to the human asset health was their main reason to spend their money for bottled and refilled-bottled water.

Some respondents from the Old City still used water from shallow wells. However, they used the water only for washing, flushing the toilets and watering the yards. Another kind of self-provision found in the Old City, besides shallow wells, was artesian wells. There were contradictory opinions concerning the quality. Madam R (RC70C) said that in 1975 she dug an artesian well but the water was salty. Madam TS (RC120C), another dweller, had been using an artesian well as the source of her water supply since 2004 and she said that the quality of the water was good, though she did not use it for drinking.

Summarised, the majority of the households in the Old City used PDAM or artesian well water for hygienic purposes, but not for consumption. In the latter case they preferred bottled water or water from kiosks. Water from water peddlers was bought only when PDAM was out of service.

Changes in water provision and the reasons to change

Those who were not connected to PDAM tended to switch to PDAM as a provider, both directly as subscribers and indirectly by buying or asking for water from PDAM subscribers. The reasons to switch to PDAM were diverse: the water quality from their artesian and shallow wells deteriorated; a free water service from the train station, where some households used to get water, stopped; and the preference for PDAM water to other sources. Examples are given below.

Madam R (RC70C) used to obtain water from artesian well providers before she changed to PDAM service.

'I moved here in 1975. I dug an artesian well ai that time, but the water was salty Since 1975 to 19801 got water from my neighbour's artesian well I collected it using buckets Because the water deteriorated, in 1980 I decided to be a PDAM subscriber ', said Madam R.

Madam S (RC1 IOC) used to collect artesian well water from the railways station for free before she changed to PDAM service.

31 The cost of 20 litres of refilled-bottled water was Rp. 3,000. This means that one cubic metre of water cost 50 times Rp. 3,000, which came to Rp. 150,000. One cubic metre of PDAM water cost Rp. 600. The difference, Rp. 144,400, was too big compared to die energy and labour used to boil PDAM water. To illustrate the big gap, Rupiah were purposely used instead of Euro. 89 'In 19751 used to obtain -waterfrom the railways station for free. It was distributed using pipe infrastructure. But then the service was out, so I decided to be a PDAM subscriber. It was about ten years ago. '

Madam Sg (RC10OC) once bought water from water peddlers before she decided to be a PDAM subscriber in 1987. She explained:

'I live in the house of the company where 1 had worked before I retired I moved here first, then Madam M (RC60C). Madam M subscribed waterfrom PDAM then I shared with her together with Madam K. One water meter is used for the three of us. '

Another case is Madam S (RC90C) who got PDAM water from her employer. She used to buy water from water peddlers for consumption and take the water for cleaning from her neighbour's shallow well. She worked as a maid. The owner of the house where she worked subscribed water from PDAM and allowed Madam S to obtain water from her house. It was quite strange that, even though she was not rich and lived in an illegal house, she consumed bottled water for drinking and used a water dispenser.

"I live here with my husband and two kids' twelve and four years old I use the water from the shallow well for washing our clothes and dishes. Every day I used to buy water from water peddlers for 0.16 Euro. Then my employer offered me the option of obtaining PDAM water from her tap. For drinking 1 buy bottled water and use this dispenser Every week 1 buy one 'galon ' and It costs 0.75 Euro ', said Madam S.

Every month Madam S used to spend 4.8 Euro on the water she bought from water peddlers. At the time of the interview, she spent 3 Euro for four galons of bottled water for drinking purposes. Madam S was a good example of the poor who are apparently willing to spend such a lot of money on drinking water.

PDAM actually prohibited households from selling or giving water to their neighbours. To get connected to PDAM, households should pay for a connection fee. Households that buy or ask for water from PDAM subscribers do not pay the connection fee. If PDAM was informed about the practice of giving or selling PDAM water to non-subscribers, it could opt to terminate the connection.

Some households, although better-off, attempt to be more economical regarding water expenditures both by buying PDAM water indirectly from their neighbours or by choosing another source, such as sharing an artesian well with a mosque. Madam Β (RC20C) had a second house in another part of Semarang, owned motor vehicles, a water pump, a telephone, and consumed bottled water for drinking. Before buying water from a neighbouring PDAM subscriber, she used to be a PDAM subscriber herself. It was not because she experienced difficulty paying the connection fee to PDAM. She lived in a house owned by the company where her husband worked. There used to be a PDAM service in the house, but when the company did not pay for the PDAM service any more, the service was terminated by PDAM. She did not want to get reconnected, because she did not want to pay the re-connection fee.

'I ask for water for cooking at the PKPN office (a government office, the author). I pay 1.6 Euro a month. Every month, I ask for water twice Usually, I ask the guard of the

90 PKPN office lo open the tap lo my house before or after office hours ', answered Madam Β Ιο the question on how she requested water and how much the paid for the service

Madam TS (RC120C), also better-ofÇ shared an artesian well with a mosque for daily needs except for drinking purposes, for which she used bottled water. For her, it was more economical to share the artesian well with the mosque since she only had to pay for the electricity. She said:

'This house is owned by my husband's company I moved here 3 years ago At that time, there was a PDAM connection, but then I did not know where the PDAM water meter was We decided to use the water from the artesian well ofthat mosque. The mosque was built at the same time as my house and at the same place We share the front yard We have one motorcycle Yeah we have an automobile though it is not a good one It is very bad '

Why households remained unchanged

PDAM was the first choice for the majority of the households living in the Old City, which is evident from the fact that those who had once been connected to PDAM maintained their connection. Usually, these households could be categorised as better-off. Those not connected to the PDAM (or in trouble with PDAM) were poor and living in illegal houses, because they could not afford to pay the connection fee.

Compared to those who maintained their PDAM connection, a much smaller number of poor people living in the Old City did not change the provider from which they obtained water. For example. Grandma Ν (RC130C) who lived in the Old City since 1985, was 70 years old and very poor. She lived together with her son in-law, five grandchildren and two small children who were left behind by their parents. Pointing to a shallow well near her house, she said:

'I collect water for my daily needs, except for drinking, from that shallow well It is a public well Many people collect water from the shallow well For drinking purposes, I buy water from water peddlers I buy two jerry cans (about 20 litres, the author^ for 0 12 Euro It is for two days of my daily needs Well, I sell roast com Everyday I earn about 0 7 Euro to 117 Euro My son in-law is a part-time carpenter He rarely gets a job

Not only the poor have difficulties connecting directly to PDAM, the same goes for the more affluent living in an illegal settlement. After she got married in 2004, Sister Τ (RC140C) built the house where she and her family currently live. She got a permit from the sub-district office to use the land for building a small modest shop, but then she decided to use it as their home. She worried in case some day her house would be demolished. Actually, she was wealthy enough She had a mobile phone and a modest shop, and her husband had a permanent job.

"My mother lives next door, just behind the bathroom Previously, I got PDAM water from my mother, who subscribed PDAM water But in 2007, a few months ago, it was terminated because my mother could not afford to pay the bill Since then, I buy water from water peddlers', Sister Τ said

Poor people and those living in illegal houses had no other choice but to buy water from 91 water peddlers as their main water supply source. In the more affluent area, there were not many such households. Therefore, none would like to deliver piped water service from an artesian well. The investment to dig a well and to build infrastructure could not possibly be covered by such a small number of subscribers.

General picture

The case of the Old City shows that some households generally preferred PDAM as their main water supply provider. For their main water supply, households tended to be more economical by being indirectly connected to PDAM, which means that they did not pay the connection fee. Because of this desire to be economical, they were willing to use the worst quality of water. However, this did not apply to drinking water. Households, including the poor, were willing to spend money for the best quality of water for drinking. The case of the Old City also shows that the poor and illegal had to depend on the more expensive but lower quality of water from water peddlers because they could not get connected to PDAM.

6.1.2 Kebonharjo

The two major water supply providers in Kebonharjo were PDAM and commercial artesian well providers. The price per cubic metre of PDAM water was cheaper than the water from artesian well providers. However, the PDAM connection fee was again too expensive for some households. Therefore, they had to rely on the artesian well providers, who charged no connection fees.

Although respondents spent only 1.6 Euro to 2.3 Euro for their main water supply per month, while they consumed the more expensive bottled and refilled-bottled water for drinking. They paid 0.7 Euro for one galon (20 litres) of bottled water. In fact, their expenses for drinking water exceeded the costs of all the water they used for other purposes. Poverty did not prevent them from neglecting their concern on a human asset, in this case their health. Two examples were Madam Τ (RC46KH) and Madam M (RC18KH).

'I take four buckets of water from a PDAM subscriber everyday. That is enough for one day and it costs 0.08 Euro. For drinking I buy bottled water ', explained Madam T. 'It is because I did not have much money that I could not connect to PDAM. I subscribe water from an artesian well provider. I pay 1.6 Euro a month. Sometimes I buy refilled- bottled water for drinking', said Madam M

To save on the costs of water, some respondents were still using water from shallow wells, in spite the fact that the quality of the water was poor. Madam S (RC24KH) gave a picture of the uses of water from shallow wells.

"Now I have a shallow well. Sometimes the colour of the water is black 1 use it only for washing. I rinsed the dishes or the clothes with water from the artesian well provider. I also do the same when I take a bath '

Changes in water provision and the reasons to change 92 There were five typical changes in water provision. Households living at Kebonharjo showed a tendency to switch to artesian well providers and PDAM. Firstly, households switched from shallow wells to piped distribution artesian well providers. The second typical change concerned switching from non-piped distribution to piped distribution artesian well providers. Thirdly, households switched from artesian well providers to buying water from PDAM subscribers. The fourth was switching from shallow wells to PDAM service, while the fifth concerned switching from artesian well providers to PDAM service.

Due to the deteriorating quality of the water from their shallow wells, some respondents changed to artesian well providers.

We started to live m this house in 1969 We had a shallow well The water was good We used it for washing, while we obtained water from Tawangsan for drinking All of us, including our children, collected water everyday About ten years ago ( 1997, the author) we started to subscribe water to Mr D. (an artesian well provider, the author,) We could not afford to subscribe to PDAM because the connection fee was expensive Before subscribing to water from him, we bought water from Mr Κ using carts Mr Κ passed away and Air D started to supply the service, which is why we changed to Mr D as a subscriber', told Madam M (RC18KH) She added 'We had to look for the alternative for the waterfrom our shallow well because the water of our shallow well was black and smelly especially if by accident we dropped soap m it '

Madam S (RC26KH), for reasons of taste, continued to subscribe to an artesian well provider She only switched from a non-piped to a piped artesian well provider Though she was aware that the PDAM tariff was much cheaper than the water from the artesian well provider, she did not have any interest in being a PDAM subscriber because of the taste

We started to live here m 1986 My husband is a 'becak ' (tricycles) driver He obtained water for our everyday needs from the weaving factory He collected it himself using carts and 'galons 'from the weaving factory We had a limited water tank capacity that is why my husband had to collect water every two days In my opinion the water is bad if it is smelly like PDAM water. Two years ago (2005, the author) we changed to a piped artesian well provider', said Madam S 'I was tired of collecting water with the cart and also because the provider offered me the service', added Mr S, who accompanied his wife during the interview

Most of the respondents switched to a PDAM subscription, because, firstly, the tariff was lower, even for those who buy PDAM water from their neighbours, than the tariff of artesian well providers.

'I decided to buy waterfrom a PDAM subscriber because it (the tanff, the author) was cheaper than the artesian well provuler's tariff,'saidMadam T(RC10KH) when she ivas asked why she chose to buy waterfrom a PDA M subscriber

Secondly, the quality and the taste of the PDAM water were better.

When Madam D (RC21KH) was asked why she chose to be a PDAM subscriber, she said 'In my opinion the waterfrom artesian wells comes from underground that is why the

93 taste is sally. PDAM water comes from a river which is then treated that is why the taste is ... (betlCT, the author). Yeah, it is cleaner ' 'My name is SI. I am Madam S (RC34KH) 's daughter We have been living here since 1976. We have a shallow well but the water was yellowish and salty Every month we drained the well and put some alum in it to make the water cleaner and the taste less salty. We used the water for washing and bathing. Thank God, thanks to this well, we have never experienced water shortages. For drinking we bought water from water peddlers once in two days. Later on we subscribed to an artesian well provider. In 1996. PDAM started to provide services and we switched to PDAM We think that PDAM water is better than the artesian well water. '

The third reason relates to conveniences. They had to queue when they subscribed water from artesian well providers.

'/ changed to PDAM on 24 May 2007. It was about a month ago. It is more convenient for me. I just turn on the tap to gel the water. It is not necessary to queue like 1 had to when I subscribed to water from the artesian well provider', Madam Sr (RC28KH) argued when she was asked the reason of changing providers.

For drinking, the respondents tended to use bottled water and refilled-bottled water. The taste and the quality were the main reasons why they consumed bottled or refilled-bottled water.

7 used to drink waterfrom an artesian well. Then I changed to PDA M. In my opinion the waterfrom PDAM smelled like alum ', said Madam Κ (RC23KH). 'However, my mother does not like drinking bottled water, so I also boil PDAM waterfor her drinking. ' 'In my opinion PDAM water is smelly. It is like soil or alum. I do not like it', Madam Sr (RC28KH) remarked when she talked about consuming bottled water for drinking.

Why households remained unchanged

The personal taste of the households living at Kebonharjo influenced their decision in choosing a provider, including a provider for their drinking water. The mother of one of the respondents did not like the taste of bottled water. That is why the household did not consume bottled water for drinking purposes, although they believed that the quality of bottled water was better than any other sources.

General picture

Again, the consumption of bottled or refilled-bottled water was not a matter of wealth. Their concern for human assets, in this case their health and taste, played an important role in choosing a water supply system. As was the case in the Old City, households tended to save costs on their main water supply, but not on their drinking water. To save costs, households were even willing to use water from their shallow wells, the quality of which was not good. However, because of the deteriorating water quality, in some cases households had to abandon their shallow wells.

Because Kebonharjo is not dominated by the better-off, there were water supply services from artesian well providers. The expensive connection fee was their main reason to opt to be subscribers of artesian well providers. Actually, they preferred to be PDAM

94 subscribers because of the low tariff per cubic metre, the better water quality and also the convenience of just turning the tap to get the water. Because of the PDAM connection fee, the poor had to depend on the worse quality and service, combined with the more expensive tariff of artesian well providers.

6.1.3 Tambaklorok Riverside

The two major modes of provision at Tambaklorok Riverside were PDAM and commercial artesian well providers. Before PDAM delivered the service to this area, most of the inhabitants depended on commercial artesian well providers. At that time, the biggest commercial artesian well provider was owned by Mr. J. When PDAM began supplying the service in this area, Mr. J stopped his service because most of the inhabitants preferred to be PDAM subscribers.

'Currently I use water from PDAM I subscribe directly to PDAM, ' told Madam DR (RCI1TR) 'It was because Mr J did not deliver the water from his artesian well anymore. All his subscribers switched to PDAM I just went with the flow', she added when she was asked why she changed providers

There was an artesian well provider at Tambaklorok Riverside owned by Madam H (RC12TR), whose water was not only delivered to her neighbours but also used for her vehicle washing service business.

"There had been an artesian well in this house since the beginning I moved here in 1997', said Madam H 'I use the water from the artesian well for washing trucks, some of my own and 1 also provide a washing service for the other people's trucks ', she added

Refilled-bottled and bottled water consumption was not only found for artesian well subscribers, but also for PDAM subscribers. Though there was no specific data, on average, the percentage of the cost for bottled or refilled-bottled water to the costs for their mam water supply sources was big. The monthly bill for the main water supply sources was 1.18 Euro to 2.35 Euro, while the price for one galon of refilled-bottled water was 0.24 Euro and 0.7 Euro for bottled water.

'I pay 118 Euro on average per month for PDAM water Sometimes I buy refilled-bottled water for drinking', said Madam S (RC9TR) 'For the five of us, we pay 1 57 Euro to 2 35 Euro per month for PDAMwater, whilefor drinking we buy bottled water ', explained Madam DR (RC11TR) 'Each month 1 give contribution of I 96 Euro for PDAM water, which if mbscnbed by my father I only use it for drinking tea or coffee, but for fresh water I buy refilled-bottled water', said Madam L (RC3TR)

Changes in water provision and the reasons to change

There were four kinds of changes in water provision at Tambaklorok Riversde The first concerned switchmg from artesian well providers to the PDAM service. The second concerned switching from artesian well providers to buying water from PDAM subscribers, while the third concerned switching from artesian well providers to requesting water from PDAM subscribers. It is relevant to distinguish the second and the third from the first. When households buy PDAM water from their neighbours, it means 95 that they pay more than the official PDAM tariff, however, they do not pay for the connection fee. Requesting PDAM water means that households do not pay any tariffand connection fee, while a direct connection to the PDAM means that they have to pay the connection fee. The fourth kind of change concerned switching from water peddlers to buying water from PDAM subscribers.

There were several reasons to change from artesian well providers to PDAM: the PDAM tanff was lower, the queuing when a household became a subscnber of an artesian well provider, and the quality of the artesian well water (salty). Besides, an artesian well provider sometimes stopped the service.

7 use the water from a shallow well to wash the dishes Then I rinse them with PDAM water It has been quite a long time ago since I subscribed PDAM waterfrom Madam E It is not directlyfrom PDA M Might be it has been almostfive years 1 pay 2 35 Euro per month for the water and I think it is cheaper than when I subscribed water from an artesian well provider ', said Madam Ν (RC17TR). 'I changed providers because my son could afford to connect to PDAM We had to pay 47 Euro for the connection fee in instalments We paid the instalment 3 14 per month. Ough, I had to wait for the water till midnight and the water was only m drips Tthal is why I decided to switch from the artesian well provider to PDAM', Madam D (RCIOTR) 's remarked on the question why she changedprovuiers

The subscribers did not get the service from artesian well providers every day It was based on the enquiry of the subscribers. The payment for the service of artesian well providers was based on how many tunes each subscriber used the service

Nevertheless, there were some constraints relating to the changes to PDAM· the PDAM connection fee. A credit facility scheme was effective to overcome the problem of the connection fee. Unfortunately, it was given only at the beginning when PDAM started to deliver the service to this area.

'I changed to PDAM in 1987 or 1989 At that time there was a credit scheme for the connection fee I only had to pay 3 92 Euro in cash and the remainder could be paid m instalments The total amount for the connection fee was 27.43 Euro ', said Madam W (RC6TR) She added, 'It was about a year ago that the connection to PDAM was terminated I could not pay the bill My husband did not have a job It was a difficult time for us Now I buy PDAM water from my neighbour ' '

When the PDAM stopped the credit facility scheme, the price of the connection really became a problem. Grandpa M (RC16TR) actually wanted to be a subscriber of PDAM, but since the connection fee was too expensive for him, he finally bought water from a PDAM subscriber

I used lo buy water from water peddlers, but since most of the people here had already connected to PDAM, no water peddlers gave the service anymore Then 1 decided to buy waterfrom a PDAM subscriber next door Icannot qfford to pay the connection fee lam not a wealthy man ', he murmured when he was asked why he dui not directly connect to PDAM

Another constraint was when the respondents rented the house in which they lived.

96 Madam L (RC3TR) could not be a PDAM subscriber directly since she rented the house where she currently lived.

'I request PDAM water from my father who is living next door. I share half of the cost every month with him. My father is a PDAM subscriber. Actually, I want to directly subscribe to PDAM but I rent the house so it is impossible to do that ', remarked Madam L 'If we get used to drinking PDAM water, then we can taste that the artesian well water is a little bit salty ', she added.

Regarding the taste, there were three different cases. Respondents might change involuntarily, voluntarily or refuse to change. The first case of Madam M (RC8TR) shows how an external change forced a respondent to change providers though she actually still preferred the taste. She actually preferred drinking water from artesian well to drinking PDAM water, but because the provider stopped the service she had to change providers. The second case of Madam S (RC5TR) shows a respondent who voluntarily changed providers because of the external change. She used to be an artesian well provider. She dug an artesian well in 1993, but because the water was salty, she then became a subscriber to PDAM in 1998. The third case of Madam Mu (RC14TR) is that of a respondent who experienced an external change but she preferred to stay. The external change was that the taste of the water from the artesian well became salty. Since 1972, Madam Mu was a subscriber of an artesian well provider. Lately, the water was salty but she remained being a subscriber of the artesian well provider.

Why households remained unchanged

Those who did not change providers were subscribers of artesian well providers from the beginning they lived there. The taste reason and the unaffordable PDAM connection fee were two main causes why households did not change providers.

General picture

The new case found at Tambaklorok Riverside was that because PDAM expanded the service in this area, an artesian well provider and water peddlers stopped the service. This finding is very important. The expansion of the public water supply company might be in conflict with providers that used to give the service. Or it might be the other way round, such as the phenomenon at Tambaklorok Seaside where the providers were so influential that households might not be interested at all in changing providers.

The four changes found show that households tended to switch to PDAM. The reasons were the same as in the case of Kebonharjo: the lower tariff, the quality and the convenience of not having to queue up. Another new case concerned households that rented houses and did not want to spend their money on connecting PDAM to their rented houses.

In this place, in some cases the households' spending on bottled water or refilled-bottled water exceeded their main water supply spending. Concern for their health was the reason why they consumed refilled-bottled water or bottled water, though the costs of these were higher than the costs of their main water supplier. 97 Because people in this area mostly worked in the informal sector, which means that they received wages on a daily or weekly basis, they had trouble paying a monthly basis PDAM bill, though actually the tariff per cubic metre was lower if they directly connected to PDAM compared to the tariff if they bought PDAM water indirectly. However, in the latter case, people paid the water in daily or weekly basis.

At Tambaklorok Riverside, we can see that households were inclined not to save water from their artesian wells. They even used the water from their wells, which actually came from a critical area for groundwater extraction, for a motor vehicle washing service, for example. Without a proper regulation and supervision, this kind of practice would endanger groundwater ecological integrity. At Tambaklorok Riverside, we also could still find households that used water from their shallow wells.

6.1.4 Tambaklorok Seaside

All of the respondents in this area used artesian wells as the source of supply. We can say that there had been no changes at all in water provision at Tambaklorok Seaside. The changes were only on the basis of the charges from time-based to cubic metre water consumed, and on the owner of the providers.

Most of the respondents at Tambaklorok Seaside were subscribers to Madam M (RC1TS), the owner of an artesian well provider. Madam M, as told by Mr. Ms, the grandson of Grandma M (RC9TS), was a saviour for them because they could get water through her, and it was also possible for them not to pay the bill on time.

'If someday there is a PDAM service, we will not change providers We have already got sufficient water from Madam M Mr M (Hie husband of the owner of the artesian provider, the author^ is our neighbour He has helped us a lot. That is why in my opinion we have to help him. He is really a good person. Once J could not pay for the charges for three months and he did not complain at all. 1 will not change providers, even though there is another alternative ', said Mr. Ms, the son of Grandma M

Mr. A (RC8TS) had almost the same opinion. He said that Madam M, the owner of the artesian well provider, was very responsive in giving the service. Because of Madam M's water provision, none of the inhabitants experienced water shortages, he said. Mr. A was a household association chief at Tambaklorok Seaside.

Regarding the change of the basis for the payment of bills, the policy to sell water was first based on the length of time the service was used. Under this system, according to Madam M, there were subscribers who tried to cheat. Some of them opened the stoppers to their house when somebody in the same channel requested the service so they could get water without paying the service. Currently, the service was based on the cubic metre consumed. Each household had a water meter and every week Madam M's son checked the consumption and asked money for the service. For one cubic metre, the subscribers paid 0.24 Euro. Mr. M (Madam M's husband) used to be the neighbourhood organisation chief.

98 'The first who had an artesian well was Mr D. then Mr. Haji (Haji means someone who has had the pilgrimage to Mecca. Usually when someone has undertaken the pilgrimage he becomes a religious leader in the area where he lives, the author/ and the third was the mosque My husband managed the artesian well of the mosque The artesian well was built usmg the money from the village financial support program m 1980s Later on. my husband became a neighbourhood organisation chief, explained Madam M (RCITS) about the history before she built her own artesian well in 1989

According to Grandma M (RC6TS), there was a public hydrant from PDAM at one time, but according to her the taste was not good.

7 used to get water from the river nearby for washing, and the water from the ram for cooking and drinking When I had water shortages, 1 asked for water from the government What is that? ' she asked the organisation who gave her water to Mr J\ his neighbour, who accompanied her during the interview 'Once there was a PDAM service The service was available because the inhabitants asked for water from the government But the taste was not good Nobody liked it They finally stopped the service It was a public hydrant ', explained Mr Js 'The water tasted like alum, ' Grandma Madded

The dependency of the inhabitants at Tambaklorok Seaside on artesian well providers was very high. When, for example, the water from Mr. T's and Mr. D's artesian wells dried up, Madam M replaced the service for the inhabitants. No other alternative was available, including shallow wells in this area.

The location of Tambaklorok Seaside was very unique compared to the other locations since Tambaklorok Seaside bordered directly along the sea. This area was located at the bank of a canal that used to be a nver before it was blocked by Arten Road It was a pity that the development of Arten Road had made it impossible for the inhabitants at Tambaklorok Seaside to collect water from the canal that used to be a river as their water supply source. The water from upstream was blocked. Therefore, the water in the canal came from the sea.

Only two respondents (Madam S, RC2TS; and Grandma M, RC6TS) who used to get water from the river that currently became a canal. Madam S (70 years old) and Grandma M (77 years old) belonged to the indigenous. They had lived at this place since they were kids. Grandma M was even bom there. The experience of these two respondents proves that a nver at that time could be the source for water supply, though not for drinking

Madam W (RC5TS) was the only respondent who bought bottled water for drinking

'I buy two 'galons ' of bottled water a week', said Madam W 'While for other purposes I use water from Madam M's artesian well 1 pay 1 18 Euro to 1 41 Euro a week to Madam M', Madam W continued

Madam W spent 1.41 Euro on bottled water. It was almost 100% of the cost of the water for other purposes that she got from the artesian well provider.

General picture

In this area that suffers the most from tidal flood and sea water intrusion, and the place

99 where poor people lived, no other water supply service was available, except for artesian well providers. Because of tidal flood and sea water intrusion, shallow wells were not available in this area. By depending so much on artesian wells as their water supply, it means that the people living in this area would make the ecological integrity of groundwater worse. Interlocking relationships among public figures has made the monopoly position of supplying artesian well water became inevitable. As a subordinate of Mr. M, Mr. A would logically persuade the people living in his household association to keep subscribing water to Mr. M's wife. The result was the persons like Mr. Ms who did not want to change providers, even though he knew that the new provider was better and cheaper.

Poverty had made other providers such as PDAM, refilled-bottled kiosks and bottled water providers - including water peddler distribution channel service - reluctant to provide the service. And because of the severe poverty problems, most of the households at this place tended not to consume refilled-bottled and bottled water as their supply for drinking.

The characteristics of artesian well providers were well suited to the conditions of the households living in this area. First of all, the payment of bills on a weekly basis was in accordance with the basis of the Wages of the people. Secondly, social capital in the sense that the provider personally knew the subscribers, because all of them were the provider's neighbour, made it possible for the subscribers to be late in paying the bill. No cases of termination were found here.

6.1.5 Provider changes: The relevant factors

This research shows that in general, there were two patterns of the households' experience in water provision at Tanjung Mas. The first is 'no changes at all' in their water provision. The second is that they experienced water supply changes because of many reasons. An explanation is given below.

The first pattern 'no changes at all' was experienced by the respondents in the Old City, Tambaklorok Seaside, and Kebonharjo. In the Old City, it was not only the better-off with a PDAM connection who remained unchanged, but also the poor who used water peddlers' services. It was very unfortunate for the poor living in an area that was dominated by the better-οΕζ because the public service was not meant for them. Therefore, they had to rely on the most expensive main urban water distribution channel from water peddlers.

A different story was shown at Tambaklorok Seaside. Seawater intrusion and tidal flood had made it impossible for the households living in this area to have shallow wells. This area was well known as the poor area. No service from the public water supply company was available in this area. They had to depend on artesian well providers from the very beginning. In this area, the better-off could profit from delivering services as artesian well providers.

100 It is paradoxical that the area of the Old City suffering the least, where the better-off households lived, was served by the public water supply company and got the cheapest tariff while the area of Tambaldorolc Seaside suffering the most, where the poor people lived, had no public water supply service and they had to rely on poorer quality at a more expensive tariff. And it is very paradoxical too that the poor people living in a better-off area could not get service from the public water supply company.

In a small number of cases at Kebonharjo, there were two reasons why households tended to remain subscribers to their current providers. First, because they preferred the taste of the water from the artesian wells. Second, because they actually wanted to change providers from artesian wells to PDAM, but they could not afford to pay the PDAM connection fee.

In general, we can divide the reasons for switching providers into three categories. First, households changed providers because of the vulnerability and sustainability context they faced: the deteriorating quality of the former provider. Second, because of the provider's policy: the former provider stopped the service and the new provider offered a cheaper tariff. The last category consists of asset changes. Table 6.1 summarises the details of water provision changes at all neighbourhoods.

101 Table 6.1 O Main Water Provision Changes and the Causes of the Changes, 1996-2006

No Original Provision Current Provision Old City KeboD River Sea Causes of the Changes or No Change harjo side Side No Changes 1 Water Peddlers Water Peddlers No choice because of poverty PDAM PDAM In accordance with their preference 3 Share an Artesian Well Share an Artesian Well More economical Changes: deteriorating quality of former provider Shallow wells Piped-Artesian well providers Water from shallow wells deteriorated Shallow wells PDAM Water from shallow wells detenormed Ir ilWInMilMlil Water from artesian wells deteriorated Artesian well providers Ask water from PDAM Water from artesian wells gets salty and because of social subscribers asset Changes: former providers stopped the service and new provider offered a cheaper tariff Pick water for free PDAM The free service stopped Water Peddlers Buy water from PDAM The service stopped suhsenbers Cheaper Artesian well providers Buy water from PDAM Cheaper subscribers 12 Water Peddlers Cheaper Waler Peddleni Ask waler from PDAM Social asset subscribers Changes: increasing or decreasing assets Convenience reason

Taste better and convenience reasons {not to queue and just turn the tap) No choice because of living in illegal houses

Tenninated by PDAM because of unpaid bills

Note: means available n.a not available the changes occurred for more than one reason Figure 6.1 Pattern of the Main Water Supply Provider Changes in Each Area, 1996-2006 Area Shallow Water Non-piped Piped/Self 3uyPDAM AskPDAM PDAM Well Peddlers Artesian Artesian Water Water Subscriber Old City • • • — " *•

Kebonharjo

— ' ' Tambaklorok Riverside

•

Tambaklorok Seaside

Note; · means that there is no change at all [ Means the change from ... to .... 6.2 The role of assets

The analysis for sustainable livelihoods is based on the five assets in the model of urban water supply for sustainable livelihoods. The five assets are natural, physical, human, financial and social assets (Carney, 1998). For the definition and indicators used, please see Table 3.3 in Chapter 3.

As we have seen, assets play a very important role in deploying certain livelihood strategies in coping with vulnerability context. In the case of a tsunami shock, those who are alive and safe could make use of their social assets of kinship by moving to or putting claims on their relatives. Moving and claiming are components of livelihood strategies. To cope with the trend of water supply commodification, a household can make use of its shallow well, which is a part of its natural assets; or make use of its social assets by deploying livelihood strategies of cliversijy and claim by asking for water for hygienic purposes from those who own shallow wells. Assets such as water tanks combined with stint livelihood strategies can also be used to cope with water shortages caused by seasonality. Stint means reducing a household's current consumption and/or lowering the quality of water it uses. For the details of livelihood strategies that are available, please refer to Chapter 3, Section 3.2.3. In a livelihoods analysis, it is quite impossible to isolate a discussion on assets without relating them to livelihood strategies and context (both sustainability and vulnerability). In other words, in order to deploy a livelihood strategy, a household should have a certain asset or should convert a certain asset to another. The discussion below might prove the overlaps.

This section will deal with the role of each asset in coping with the vulnerability context faced by the households. It means that assets are actually a potential to be used as livelihood strategies to cope with vulnerability context However, later on, we will see that the respondents did not deploy all of these potencies.There are many other indicators of each asset. However, what will be described below are the assets that, according to the respondents, play a very important role in accessing water supply.

6.2.1 Natural assets

In general, having a shallow well or at least being able to share a shallow well meant a lot for the households. According to Madam S (RC48KH), it would be very costly if she did not have a shallow well.

'Almost all my neighbours now have shallow wells, though sometimes the water û contaminated by liquid waste. However, they still use the water from the wells, ' said Madam S. 'We have to spend a lot of money if we do not have shallow wells, especially for those who have a big family with a lot of children If they have to meet all their daily needs with PDA M water, then il will be very costly, ' added Madam S' suter who was listening to the interview and sometimes gave some comments on her sister's remark.

Most of the owners of shallow wells, such as Madam Β (RC42KH), had no objection if neighbours collected water from the shallow well. For most of the households, shallow wells became public utilities. Madam W (RC13KH), for example, was happy when her neighbours collected water from her shallow well. 104 When Madam W vas asked whether she ever asked for voter from her neighbour* or the neighbours asked water from her, she said, 'It is customary We just ask water from our neighbours next door whenever we get shortages There have been so many people here who subscribe to PDAM water Therefore, it is easier for us who subscribe water from artesian well provider whenever the electricity is off (which means that the service from the artesian well is also oS, the author) For me, it is not a problem if my neighbours ask for water from my shallow well The water from my shallow well used to be yellowish, smelly and salty, but now it is getting better There are many people using the water from my shallow well for washing the dishes and they do not rinse them I still rinse the dishes because I am used to it Of course, I do not mind if my neighbours collect water from my shallow well I am very happy The more the water is used, the better the quality of the water will be '

The changes in the quality of the water from the shallow wells in Kebonharjo differed. Sometimes the quality had improved, while in other cases the water was deteriorating. In the other areas, the water from shallow wells increasingly deteriorated because of seawater intrusion and tidal flood. However, according to Madam M (RC41KH), the water from her shallow well was good since she moved to her house.

7 used to live in the house in front I moved to this house more than ten years ago If I am not mistaken it was in 1995. Since the beginning there had been already a shallow well The water is good until today It is not smelly or salty Whenever it gets smelly I put some alum in it, ' Madam M said when she was asked about the quality of the water from her shallow well

It was very beneficial for those who had good quality of water in their shallow wells. These households could deploy a livelihood strategy of stint, which is lowering the quality of water they use in case there is a problem with their better quality of water supply. They could also protect the quality of the water of their shallow wells by applying simple technology as mentioned above. It is even possible for the neighbouring owner of a shallow well to claim water in case they experienced a water shortage Having a good quality of shallow well water means that households could save their financial assets. They could decrease their water expenses because they did not need to pay for the water they used from their shallow wells, although the shallow well was owned by their neighbour

6.2.2 Physical assets

Regarding the role of houses as physical assets, it was impossible for those who lived in illegal houses or settlements to acquire PDAM water. PDAM had a policy of not providing connections to illegal houses or settlements. Another case regarding physical assets was house ownership. In the short term, it was also quite impossible for those who rented houses to get connected to PDAM and artesian well providers. These two providers required investing in the pipe infrastructure and having to wait a long time for the payback.

Another physical asset mentioned in the interviews was a telephone connection. A telephone mattered, for example to contact a water tank vehicle provider when there was a water problem. But this only worked for those who had big water tanks or who had a

105 neighbour who would share the purchased water Madam A (RCIOC) and Madam S (RC110C), both from the Old City, were two examples of respondents who had bought water from a water tank vehicle provider. This never happened in the other areas.

'Yes, I made a call to the provider to send me a tank of 5,000 litre of water 1 often used that service at that time. The price was 3 92 Euro for 5,000 litres It was sufficient for one week, ' said Madam A 'Whenever PDAM iervice was off, I bought waterfrom water peddlers Sometimes my son who lives next door buys water from a water tank vehicle provider He takes a half of the tank and 1 lake the other half, ' said Madam S

A telephone can also be used to buy refilled-bottled water from a kiosk or to contact PDAM in case any problems happened with the service. A water pump was another tool used by the respondents who were PDAM subscribers, especially the more affluent ones, to pump water from the PDAM pipe or from their water tanks to the tap.

In short, house ownership was a pre-requisite to get connected to PDAM and artesian well providers. Other physical assets mentioned by respondents· a telephone connection, water tanks and a water pump played a more limited role compared to house ownership A telephone connection and water pumps made it more convenient for them to contact and draw water, while water tanks could be used to store water

6.2.3 Human assets

Children could be human assets and an investment for the future Among my respondents. Madam S (RC80C) and Madam H (RC40C) were financially supported by their children, including the payment of their water bills See the contrast when respondents did not have any children, such as Grandma M (RC6TS). Sometimes Grandma M could only have a meal once a day and she had to depend on her neighbours for the water and the electricity.

'I live alone I do not have any children. 1 have nothing Once 1 got married, but I decided to divorce because there was nothing good during our marriage I have my meal every evening 1 buy some food for 8 to 11 cents Euro That is if I have some money If I do not have any money, then I cannot buy food My neighbours give me some food All my neighbours are good people, ' said Grandma Ai 'If 1 get water shortages Sipah (her neighbour, (he author) asks me to take a bath at her house. What? Electricity7 I get it also from my neighbour, ' added Grandma M

But havmg children does not necessarily mean that they would like to help their parents to collect water from wells that were far away from their homes. In most cases, it did really help, though we cannot generalise. The case of Madam Τ showed the discrepancy None of Madam T's (RC10KH) kids would like to help their parents. However, in general, having children means that there is a better chance of asking them to help their parents collect water.

A lot of household members also mean a lot of taste preferences. The detailed explanation in section 6.1 on water supply changes shows that sometimes the taste preference contributed to the choice of the provider they chose. 106 In other cases, having the skill to clean the water from shallow wells was also an advantage. The case of Madam S (RC34KH) was a good example. The water of her shallow well was yellowish and salty. However, because she knew how to cope with it (by draining the well every month and using alum) she could make the water cleaner and less salty. She could use it for washing and bathing and never experienced water shortages.

Being a widow could potentially result in a problem. Madam Sr (RC29KH) was a good example. Because she was a widow, she was not invited to household association meetings39. In one of the meetings, there was information about the offer from PDAM to apply for subscription collectively. That is why she did not know of this offer and lost the chance to pay the connection fee in instalments.

Health also played an important role. Using deteriorated water could result in people having problems with their health, especially for those who had an allergy. Madam S (RC40KH)'s children were good examples of this. They got itchy every time that they used artesian well water.

The description above shows that good human assets increase the chance of successfully coping with the current water supply problems. Human assets, in this case having children, are also an investment for the future, especially when the time to retire comes. One of the consequences of having a lot of household members, though it is not totally negative, was that there were a lot of taste preferences that had to be considered in choosing a water supply system. Having a husband was an advantage, because most of the official information was provided in a formal village meeting that was attended by male-headed households. The last human asset mentioned was good health, which could make people cope better when using bad quality water.

6.2.4 Financial assets

It goes without saying that financial assets have an impact on what kind of water provider a household uses. We have seen earlier on in the discussion on the price to be paid for obtaining a connection to PDAM or to buy bottled water. Financial assets were also very important for households to cope with the land subsidence problem. Usually there was aid from local government to raise the roads in their neighbourhood, though the aid sometimes could not cover all the costs.

"We had lo share 3. S3 Euro per household for the costs of railing the paths in our neighbourhood and paving them with bricks. It really helps to cover theflood problem, " Madam Ν (RC8KH) told us.

But the costs of raising the floor of their houses had to be covered by the owners of the houses themselves. Whenever they did not have enough money to raise the floor they had to accept that their houses could get flooded.

39 Although they were invited, it was quite rare that women, either widow or not, wanted to attend such meetings.

107 Most of the households who had ever borrowed money from money lenders were the have-nots. The very high interest rate of money lenders was a disincentive for the poor to borrow money to pay PDAM connection fee. The better-off households had many financial resources to choose from whenever they needed some funds. They could borrow money from arisan PKK (lottery by the neighbourhood wives) or many similar sources or from banks such as BRI (Bank Rakyat Indonesia).

Madam W (RC6TR) told us that once she borrowed money from a 'bank thilhil ' (a money lender): "Once I borrowed 7.54 Euro and 1 had to pay daily instalments ofO. 39 Euro for 24 days. ' 7 have never borrowed money from banks. Sometimes f borrowed some money from the PJKA (the old name of the Stale-Owned Indonesian Railways Company) or ibu-ibu PKK, ' explained Madam R (RC70C) when she was asked about what she did when she had a financial problem.

The availability of financial assets, including credit facilities, proved to enable households to be more flexible in choosing water supply providers. Credit facilities could actually be a solution for those who cannot afford to pay PDAM connection fee. Being connected to PDAM means that households could get the cheapest water supply system in terms of the tariff per cubic metre that they had to pay. Unfortunately, these credit facilities were only available to the more affluent. The less affluent had to depend on money lenders, which made it impossible to use as an alternative to paying for the PDAM connection fee.

6.2.5 Social assets

In the cases of water shortages, social relations played a positive role in water provision. Kinship especially among neighbours or among relatives living in the same area proved to be a good social safety net if there was a problem with the water. Whenever the respondents had water problems, they asked for help from their neighbours or their relatives living nearby. This goes for both the less as well as the more affluent.

However, in some cases social assets could also prevent households from getting connected to a better provider in terms of tariff service and water quality. Social assets contributed to the decision to choose a certain provider. The stronger the ties between a provider and the subscribers, the more difficult it is to break the ties between them. It is not only a matter of kinship. The higher the position of the owner of the provider in an area was, the stronger the ties will be. For example, in Tambaklorok Seaside, there was an inclination that households were hesitant to change providers because they had already been the subscribers of Madam M water supply provider. Her husband was not only a former chief in the neighbourhood, but also a manager of the mosque at Tambaklorok Seaside, which explains the hesitation to change.

6.3 Vulnerability factors and livelihood strategics

A list of the components of the vulnerability context found at the city and community level as referred to in Chapter 4 was presented to each respondent household. The guided 108 questions for the semi-structured interviews can be found in Annex 5. Based on these interviews, we can distinguish between three categories of vulnerability actors that will impact negatively on assets. It appears that vulnerability factors could be the result of three sets of causes. The first set comprises vulnerability factors caused by the policies of the water supply providers; the second concerns factors due to environmental problems and the third set concerns vulnerability factors caused by the decreasing assets of the households.

We have discussed in Chapter 2 and 3 that households become vulnerable and then non- resilient when they do not have sufficient assets to cope with the vulnerability context. Therefore, the PDAM policy of charging a connection fee also affects the vulnerability of households, as they did not have the financial assets. The same goes for vulnerability factors caused by environmental problems. These might not be a problem at all if the household has sufficient human or social assets or can deploy an effective livelihood strategy. Therefore, the vulnerability fectors mentioned in this section do not necessarily make a household become non-resilient. A household will become non-resilient only if in the long term the consumption declines and/or assets are depleted or even lost permanently.

6.3.1 Strategies towards PDAM policy

Vulnerability factors relating to the policies of water supply providers were the PDAM connection fee, unreliable water supply and temporary service off.

PDAM connection fee

When the people living in the area where PDAM service was available had to switch to PDAM because of environmental problems or because the former provider stopped the service, the PDAM connection fee policy meant a vulnerability factor, specifically for those who lived in illegal or rented houses and/or were poor, since it impacted negatively on their financial assets.

As has been described in the physical assets section, house ownership was important in getting connected to PDAM. The impact of failing to get connected to PDAM was that they had to spend more money on water by buying from water peddlers or had to use an inferior quality of water such as from shallow wells.

The strategy the respondents took to overcome the connection fee problem was to look for other main water supply providers, including trying to get PDAM water from PDAM subscribers so that they did not have to pay the connection fee. In other words, households use a livelihood strategy of diversification by seeking new sources of water supply instead of PDAM.

Unreliable water supply and temporary service off

The subscribers to PDAM had trouble with the unreliable service. The service was often 109 off for one or two days and the debit was often too small. It was not only the debit but also the quality. Complaints usually concerned the smell of the alum used to disinfect the water from e-coli bacteria. Sometimes the water was also muddy. In these cases, using a water tank was a common strategy for the households to cope with these problems. There were many types of tanks. A big brick water tank on the ground was the most common for the more affluent, while poor people usually used plastic water tanks. Water tanks were also used to get rid of the smell. The smell would usually disappear if the water was kept in a tank for at least one day.

Figure 6.2 Water Tanks

Water tanks were also a common strategy for those who subscribed water from artesian well providers or for those who bought water from water peddlers. It was because they could not get the service every time they needed it. Due to the capacity of the pump, the service from artesian well providers was usually managed based on time and channel. The providers could not give the service at the same time to all subscribers. In many cases people had to wait their tum in a long queue.

Another strategy to cope with the problem of the unreliable service was being thrifty in using water. Madam Κ (RC50C) for example washed their clothes once in five days.

'Yes, of course. For example, if we usually use two buckets for taking a bath, then we would use only one bucket If there were problems with the water supply. Until today I always wash our clothes every five days, ' explained Madam Κ when she was asked what she did if the service was off.

Using a water tank as a livelihood strategy in coping with an unreliable water supply and temporary lack of service means that households use a livelihood strategy of hoard or store water in case the supply stops. By being thrifty, it means that Madam Κ is using a livelihood strategy of stint or reducing her current consumption.

6.3.2 Strategies towards environmental problems no Vulnerability factors relating to environmental problems were seawater intrusion, water table drop and land subsidence, which made the impact of tidal and rain flood worse. Sea water intrusion and tidal and rain flood proved to deteriorate the water from shallow wells; and water table drop made artesian wells dry up.

Seawater intrusion and water table drop

All artesian well providers used groundwater as the source. The excessive groundwater exploitation proves to have a detrimental effect of seawater intrusion and water table drop. We can say that there is an excessive groundwater extraction if the rate of groundwater extraction is more than the natural rate of groundwater replenishment, as is the case in Tanjung Mas, as explained in Chapter 5. There are many factors affecting the seawater intrusion phenomenon. At Tanjung Mas, there were so many groundwater extractions besides what had been extracted by artesian well providers. Examples include industries and the port. The other factors are the availability of water to be absorbed and the capacity of the land to absorb water. Seawater intrusion made it difficult for the people living in this area to get fresh water. In other words, sea water intrusion struck their natural assets, in this case shallow and artesian wells.

The strategy households used to cope with water table drop was deepening their deep wells and looking for other water supply sources. When they could not find new sources, they had to depend on the deteriorated water from their shallow wells. Looking for new water supply service by digging a new deeper well means that these households are using a livelihood strategy of diversify, though the source is the same, an artesian well. This is not a good strategy in terms of the ecological integrity of groundwater in the area of the study. When households are using deteriorated water from shallow wells to cope with the problem of water table drop, it means that they are using a livelihood strategy of stint, in this case using a lower quality of water.

Land subsidence

In general, the vulnerability context that the households faced concerned tidal and rain flood and land subsidence. Actually, land subsidence does not directly relate to the water supply. Therefore, livelihood strategies such as discussed in Chapter 3 Section 3.2.3 cannot be applied. Land subsidence made the impact of tidal and rain flood worse. The strategies they used involved raising the floor of their houses and the roads in front of their houses.

Madam M (RC41KH), for example, said that she had to raise the floor of her house at least once every ten years. She also said that the roads were usually raised once every five to seven years. Currently the road was at the same level as the roof of her original house before the floor had been heightened. It became a vulnerability factor for those who did not have enough financial assets to raise the floor.

"The condition of my house is worse now. Il used to be higher than anybody else's and it was also higher than the road But now it is lower. How can I raise the floor7 I have lo

111 spend a lot on school fees for my children, " said Madam Τ (RC46KH).

Raising the roads led to problems if the PDAM pipe infrastructure was broken. On average, the piping could be found at a depth of one metre.

Some respondents who could not raise the floor of their houses used a strategy to block the flood, especially from the drainage in front of their houses or in their backyards. The level of the water in the canals during rain episodes was higher than the backyard or even the floor of the houses. That is why they had to build a small dyke using sand or brick to prevent water from flooding their houses and bringing the garbage into the houses.

"The water in the drainage canals cannot flow well because the canals are full of garbage. Everyone dumps garbage everywhere. Whenever there is flood, the garbage comes into my house. That is why 1 had to build a small dyke, but it can only help against the garbage, not the water from the flood, " Madam S (RC40KH) complained

Those who lived in the Old City were fortunate because, since the development of Tawang pond, they did not get flooded anymore.

"Before the development of Tawang pond, we always got flooded because of the sea tide and rain. But now we only getflooded whenever it rains heavily, " Madam M (RC60C) expressed her relief.

People at Tambaklorok Riverside also felt that the project of the Semarang City government to pump water from the rain really relieved them the floods. However, those living at Tambaklorok Seaside had no choice. They had to accept floods due to sea tide at least on the roads, or the increasing flooding of their front or backyard from time to time.

"Sea tide is getting worse. This table was drowned during the tide, " told Madam M (RC4TS) pointing at the mark left by tidal flood.

Figures 6.3 and 6.4 show the condition of the houses whose owners could not afford to heighten the floor of their houses.

112 Figure 6.3 Grandma M's House cPlP

·. Figure 6.4 Madam N's House

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113 6.3.3 Strategies relating to decreasing assets

Vulnerability factors that related to the households' decreasing assets were 'getting old and retired', 'lack of social assets' and 'being a widow'.

Gelling old and retired

Some of the respondents became vulnerable when they got old and retired Whenever they had a job like Madam M (RC60C), they could earn money in addition to the retirement fund that they received

7 live alone I used lo work for PT Cipla Nwga ('Cipta Niaga is a state-owned company, the author^ My retirement fund is only 30 Euro Now I help my relative at Puspanjolo She usually keeps the store m the morning, while my turn is in the afternoon. "

or whenever they had children who had grown up and had permanent jobs, like Madam H (RC40C) She was a widow Her husband had passed away years before

/ get 39 18 Euro to 47 Euro from my husband's retirement fund, she said when she was asked about the percentage of her income that she used lo buy water She did not want to tell the amount she got from her children. "I get finançai support from my children, but don't ask me how much It is enough to cover all my spending which is around 196 Euro

Being dependent on their children and looking for another job were the strategies they used to cope with the problem of getting old and retired Whenever they could not use these strategies, they had to depend on their neighbour's pity, including getting water and electricity Being dependent on others, including their neighbour's pity, to some extent means that they use a livelihood strategy of claim.

Lack of social assets

Two female respondents felt that they were marginalised because they were poor Because of their stale of poverty, they did not want to join in the meeting of the housewives in the area, but the result was that they subsequently did not get any aid facilities, such as fuel subsidies and the aids for the nine basic needs. So, actually they were not marginalised. It was because of their feelings that they expenenced a decrease of their social assets.

Madam Ν (RC17TR) was crying when she answered the question about what she would do if she expenenced a shortage of water And at the end of the interview she said "I have never received money from the government for fuel subsidies " 'All who attend the PKK meeting receive aid from government Even though you know that all of the participants at the meeting are the haves, they get the aid from the government, two kilograms rice and the other basic needs, ' said Madam M (RC8TR)

They adopted no strategies to cope with this vulnerability fector

114 Being a widow

As a widow and having to work all day, Madam Sr (RC29KH) felt that she was being discriminated against and marginalised. When there was an offer to subscribe to PDAM collectively, the chief household association did not inform her accordingly. She had to acquire the information herself to get connected, but the result was that she could not pay the connection fee in instalments. This kind of strategy she used is a claim to PDAM, though the claim bears consequences of paying more money than it should be.

6.4 Livelihood outcomes

Livelihood outcomes are the results of the people's livelihood strategies as presented in the section above. Positive outcomes lead to a virtuous cycle that might result in a better quality of livelihoods, while negative outcomes lead to the contrary. Negative outcomes may lead to the condition of non-resilence for certain households, if the outcomes deplete assets and increase the households' vulnerability in the future. First, the discussion on the characteristics of each provider and its impact on households' assets (see Table 6.2) is presented. A discussion of the outcomes will then follow.

One positive point of being connected to PDAM was firstly that PDAM was the most convenient provider for the subscribers in terms that they could obtain water just by turning the tap. Secondly, the tariff was the lowest compared to other providers, excluding the free of charge water from self-provision. Thirdly, the quality of the water supplied was under inspection according to the Ministry of Health drinking water standard. If the inspection was done properly, then consuming PDAM water was safe for human health. In practice, despite the inspection of the water, subscribers should still boil the water before consumption. The subscribers of PDAM also had another advantage. Because of the cross subsidy mechanism, it was possible for the poor to get PDAM water at a subsidised price. We will discuss the latter in Chapter 7.

However, because the service was often off and/or the debit was small, households needed to have water tanks or water pumps. There were some other problems found relating to PDAM. The connection fee and the alum smell of the water were two main problems. The other problem concerned the fact that PDAM was a big company, and so there was no personal relationship between the management of the company and the subscribers. There were cases in which the respondents could not pay the bills and PDAM immediately terminated the service. Excuses were not accepted, as in the case of artesian well providers.

Regarding artesian well providers, the plus point was that they charged no connection fee, though their tariff per cubic metre was higher than PDAM. This means that the poor did not have any problems in getting connected to artesian well providers. The other plus point was that no case could be found in which artesian well providers terminated the connection because the subscribers had not paid the bill for three subsequent months. Social asset, in this case the providers and the subscribers knew each other personally because they were neighbours, made it possible that there was no termination. The 115 problem with artesian well providers was that the service was not available all the time. People had to ask for the service and queue for their turn to get the service. That is why a water tank was a must for the subscribers of artesian well providers. Being dependent upon artesian wells in the future would endanger the ecological integrity of groundwater in the area.

Refilled-bottled and bottled water were the only water supplies that were used only for drinking. The quality was more superior compared to the other providers in terms that it was not only in accordance with the Ministry of Health standard but people might also directly drink it without any other processes needed. However, bottled water was the most expensive source of water which was followed by refilled-bottled water. To get the service, people had to own a bottle or can. There was a delivery service for both refilled- bottled and bottled water. As it was only a market transaction between a buyer and a seller there was no social assets involved.

Shallow wells, though on private land, were usually considered public property. For those who still used the water from shallow wells, they could save a lot of money because the water was free. Ownership of natural assets made it possible to save financial assets. Unfortunately, since the water was deteriorating, many households did not use it as the main source anymore. They used it for less value-added activities such as watering the yards. A bucket was traditionally used to collect the water. The more modem and affluent used a water pumpto draw the water.

116 Table 6.2 Water Supply Providers Compared: Service and the Impacts on Households' Assets, 1996-2006

Providers PDAM Artesian Well Water Kiosks Bottled Water Self-Provision Providers (Shallow Well) Service Just turn the tap Queue In some cases there In some cases there is a Freely take the water is a delivery salice delivery service (without any charges) Assets: Natural Assets No No No No Yes Ownership Physical Assets Needed Watertank Water tank Bottle or can Bottle Bucket or water Water pump if pump necessary Human Assets the In accordance with No research In accordance with In accordance with the No respondents Impact on Health the Ministry of about it yet the Ministry of Ministry of Health found using the Health Decree for Health Decree for Decree for Drinking water for drinking Drinking Water Drinking Water Water Standard plus Standard Standard standardised quality through SMI number40 Financial Assets Tariff Charged 0.05 Euro/cubic 0 24 Euro/cubic 12 Euro/cubic metre 35 Euro/cubic metre Free metre metre Connection Fee No Not applied Not applied No Charged Yes (54.86 Euro) Social Assets. No Yes No No Yes Availabihty between Ihe 'Provider' and the 'Subscriber'

See the details about this standard in Section 7 1 4 of Chapter 7

-j Table 6.3 Water Provision Changes and Their Impacts on People's Livelihoods, 1996-2006

No Original Provision Current Provision Old Kebon River Sea Impacts on People's Livelihoods City hirjo side Side 1 Water Peddlers Water Peddlers V n.a n.a η a Not relevant 2 PDAM PDAM V n.a η a n.a Not relevant J Share an Artesian Well Share an Artesian Well V o-a n.a n.a Not relevant 4 Artesian well providers Artesian well providers na n.a V V Not relevant 5 PDAM Buy from PDAM subscribers V n.a η a n.a Positive but illegal 6 Artesian well providers Buy water from PDAM na Λ/ >/ n.B Positive but illegal subscnbos 7 Water Peddlers Buy water from PDAM na n.a V n.a Positive but illegal subscribers 8 Water Peddlers Ask water from PDAM V na n.a n.a Positive but illegal subscribers 9 Artesian well providers Ask water from PDAM na na V n.a Positive but illegal subscribers lU Ask water from PDAM Water Peddlers Λ/ na na n.a Neganve subscribers 11 Shallow wells PDAM na V u.a n.a Positive/Negative 12 Shallow wells Piped Artesian well providers na V na na Positive/Negative IJ Artesian Well Provider PDAM V V V n.a Positive 14 Pick water for free PDAM V n.a n.a aa Positive/Negative 15 Water Peddlers PDAM V •La π a η a Positive 16 Non piped artesian well Piped Artesian well providers na V n.a η a Positive providers

Note V means available; η a means not available Table 6.3 summarises the impacts of water provision changes on people's livelihoods as described in Section 6.3. In most cases, the changes had positive impacts on people's livelihoods.

The changes to buy or request water from PDAM subscribers were positive but illegal. It was positive because they did not need to pay the PDAM connection fee andthey got the best water provision in terms of quality, price and convenience. It was illegal because PDAM prohibited the subscribers from selling or giving the water to other households.

A negative impact was the switch from requesting PDAM water to buying water from water peddlers. Unfortunately, the poor living in the area dominated by the better-off households experienced this. It was negative because the tariff was higher and the quality of the water was worse.

The change from shallow wells to PDAM or to artesian well providers was positive and negative at the same time. It was positive because the quality of the water was better, but negative because the respondents had to allocate their financial assets for water from the new provider. The other switches to PDAM had also a negative impact in terms that households had to pay the connection fee. It was also negative if the former provider did not charge for the water, such as collecting water for free from the train station or other places.

The change from non-piped artesian well provision to piped artesian well provision was positive because it was more convenient for the households. However, switching to artesian well providers generally had a very negative impact because, asmentioned before, they endangered the ecological integrity of groundwater in the area.

All of the positive impacts will only happen if individual households can cope with the vulnerability context by using effective livelihood strategies. Whether the livelihood outcomes would be positive, neutral or negative depends on the livelihood strategies of the individual household: positive if the livelihood strategies were effective and negative if the livelihood strategies were ineffective. Though the changes generally had a positive impact, if the households could not deploy an effective livelihood strategy - including not having enough assets - it might lead to non-resilence.

The asset analysis of the household level survey shows that there are some similar characteristics of the households that fell under a non-resilient category that make them different from the currently resilient ones. Decreasing and/or lacking human assets play a very significant role in making them non-resilient. By decreasing and/or lacking human assets, I mean getting old and retired, no-husband (female-headed household), many dependents (such as sick and jobless husband and dependent children), having no children or the children do not live together with them. Decreasing and/or lacking human assets, which are intensified with the problem of financial assets, in this case they do not have a good/permanent job or any job at all, have proved to make a certain household become non-resilient. So far they still survived because of social assets. They depended on their neighbours' generosity especially for the water they needed for their living. 119 6.5. Concluding remarks

The empirical findings show that in the area suffering the least most of the households depended on PDAM. People living in the area suffering the most, such as Tambaklorok Seaside, had to depend on commercial artesian providers. Unfortunately, the latter caused people living in this area to suffer from the environmental problems in the long run.

When households changed providers they did not show consideration for the environmental problems caused by the changes. The reasons were more personal and 'selfish', such as: taste, better quality, more economical, the former provider stopped the service, convenience, and deteriorated water quality of the former. Based on the interviews, it appears that most households were aware of the impacts of their decision on choosing a certain provider, especially if they subscribed to an artesian well provider. However, they tended to neglect the problem because of the personal reasons referred to above.

PDAM was actually the provider most in demand at three out of four locations of the study. The exception was Tambaklorok Seaside. The majority of the households preferred to subscribe to commercial artesian well providers. These findings show the doublesidedness of social assets. Social assets can play a very positive role when people help other households that experience water shortages, but they can also prevent households from obtaining better and cheaper service. The higher the position of the owner of the provider system in an area is, the more difficult it will be for the subscribers to break the ties with the provider. This supports Jaglin's finding that small-scale private providers might constrain the extension of better quality public services to low-income- neighbourhoods (Jaglin, 2002).

Having natural assets such as wells proved to be more economical. Households could save their financial assets. The water from shallow wells had a very distinctive characteristic in terms that households treated it as a public good that was shared with others without any objection from the owner. We have also seen that physical assets of house ownership played a very important role if households wanted to connect to a provider of which the connection required investments for the pipe infrastructure. To cover the investment, financial assets were the key. The discussion also shows the importance of human assets, especially the knowledge and skills to purify water, good health, and members of a household: children and husband. Those who are getting old and retired, who lack social assets, and who are widows, are more susceptible of becoming non-resilient.

Regarding livelihood strategies, there is no evidence from the field study of households that moved from one place to another because of water problems. There is no case either of households that sold their assets to buy water. It is also strange that in this environmentally suffering area, no-body preserved water ecologically as their strategy.

The livelihood outcome analysis shows that a switch of providers to PDAM, whether

120 directly or indirectly, proved to have positive impacts on people's livelihoods. The contradictory impacts on livelihoods, both positive and negative, occurred when households switched from shallow to artesian well providers or to PDAM. It is positive in terms that households received better quality water, but it is also negative for poor households because they had to spend their money on the new providers and sometimes could not afford the connection fee. However, the impacts of the changes were mostly positive. All households could obtain water. However, the poor spent relatively (in terms of the percentage of the costs for water compared to their total incomes) and absolutely (in terms of the tariff they pay) more than the affluent.

Paradoxically, as we have seen, the inhabitants in the areas suffering the least, where the more affluent lived, got the cheapest tariff and the best water supply services from the public water supply company. The inhabitants of the area suffering most, where the majority of poor people lived, had to depend on the poor quality of water from artesian well providers, whose price was five times the tarififof the public water supply company. It is also paradoxical that the poor living in the areas suffering the least could not get access to the service of public water supply company, because of their poverty and/or the fact that they live in illegal houses.

The small-scale artesian well providers in Tanjung Mas used groundwater resources in the critical groundwater extraction area, which harmed the ecological integrity and resulted in many environmental problems. Another problem concerned the distrust of households regarding the quality of PDAM water, which made them depend on bottled water for their drinking. Parag and Roberts (2009) show that the environmental impact of the increasing consumption of bottled water is 100 times higher than that of drinking tap water, because of its collection, processing, packaging, transport, and disposal. By comparison, the water footprint of a sugar-containing carbonated beverage has a water footprint of 150 to 300 litres of water per 0.5 litre bottle (Ercin et al., 2011).

The above findings should be considered if we want to realise water supply services for sustainable livelihoods. All of these will be discussed in more detail in Chapter 7 and Chapter 8 as part of reflecting upon the research findings.

121

7. The regulations on urban water provision and their impacts on people's livelihoods'"

Regulator: International onal Regional Local

Sustainability Context: • Ecological Integrity • Economic Efficiency • Social Equity

Water Supply Provider: Households: • Public Companies Policy Resilience • Private Companies Institutional- Assets •<- • Community-based Sustainability • Their Combinations

Strategics Outcomes

41 This chapter was published in Water Alternatives 3, 3 (2010): 475-491 under the title of Indonesia's Water Supply Regulatory Framewotk: between Commercialisation and Public Service? 123 In this chapter 1 describe and analyze the current policies relating to water provision in Indonesia and at the location of the study The aim is to lay a basis for recommendations to the national and local government to improve water provision for the urban poor The recommendations will be presented in Chapter 8 This chapter will start with the current water supply regulatory framework It will consist of a new regulation at national level namely Law No 7/2004 on water resources, and relevant regulations for each water supply provider, respectively starting from PDAM, artesian well providers, bottled water industry, and refilled-botlled water business In my knowledge, the regulations on self- provision (shallow wells) do not exist The next section is about the analysis on the regulations described in Section 7 1, especially on private sector participation and groundwater extraction The logical consequences that might happen in the future will be the topic of Section 7 3 Concluding remarks will end this chapter

7.1 Current water supply regulatory framework

Urban water supply in a specific area is influenced directly or indirectly by policies issued by the government, a business entity or its association, civil society and even by multilateral agencies such as the World Bank42 Whether public water supply companies will prioritise coverage expansion or the generation of profits tor local income, and whether or not these two objectives can be combined, will depend on the policies that regulate public water supply companies Hall and Lobina (2006), for example, write "The existence of public water supplies depends on a political commitment to deliver clean water for all " The roles of the private sector m Indonesia, in the form of the growth of bottled water and refilled-bottled water businesses, and m participation m PDAM management, arc influenced directly or indirectly by government regulations and the role of its business associations

Urban water supply is a highly regulated business in Indonesia, a multitude of regulations on urban water supply are issued by dilferent governmental institutions at difTerent levels An inventory of relevant policies will be presented, after which qualitative content analysis'1 will be carried out to determine the potential impacts of these policies on people's livelihoods The inventory will be produced by first identilymg changes m policies at a national level The relerral order of the policies in Indonesia places the Constitution at the top, followed by laws as the legal products of executive (the government) and legislative (parliament), presidential, ministerial, provincial, and city legal products If there is no change in the policies at national level, they will be analysed at the lowest level, which can be at city, province or ministerial level, or regulations on a certain water supply provider To identify the relevant water policies, interviews with goveminent officers, water supply providers and their business associations, as well as

A descnplion ul the controversies surrounding Ihe World Bank's influence on country policy can be lound in Tliomas (2004) A good example ol (he World Hank s role in a certain country s water seclor can be seen from one ol the World Bank s documents, The World Bank Lending Inummenls Rewurtet foi Development Impact It slates "Adaptable Program Loans are used when sustained changes in institutions, organisai ions or behaviour are keys lo suiceulully implementing a program They can be used to support a phased program ol sector restructuring, or systemic reform in (he power, water and hcallh sector" (World Dank, 2001) QualilaliM content analysis involves extracting inlormalion Iront a large quantity oflcMual material thai is relevant for the researcher (Verschuren and Doorewuard, 2005) 124 Presidential Decree No. 118/2000 on the possibility for foreign investors to own 95 per cent shares of water supply companies), because these presidential decrees refer to foreign direct investment law (Law No. 1/1967, which was superseded by Law No. 11/1970) rather than water law. As mentioned above, water law No. 11/1974 does not mention the possibility of a profit-motivated private sector to deliver water supply services in Indonesia.

Since the 1980s, the Government of Indonesia has been inclined to follow World Bank policy. From 1983 to 2003, 27 water project loans were financed by the World Bank, amounting to USD 2,921.75 million (Hadipuro, 2003). The World Bank can exert its influence on the Indonesian water sector through conditions attached to its loans.

The involvement of the private sector in urban water provision and water commoditisation are two World Bank principles that have been adopted in the new Indonesian water law through the conditionality of the Water Sector Adjustment Loan from the World Bank to the Indonesian Government. To disburse the third tranche of the loan45, which amounts to USD 150 million, the Government of Indonesia must meet the following requirement: "Adoption of a national water resources policy and related implementation plan, acceptable to the Bank" (World Bank, 1999). A more elaborative explanation about the policy acceptable to the Bank can be found in Objective 1 of the Water Resources and Irrigation Reform Program Policy Matrix Implementation Plan (see the letter from Boediono as the Minister of Development Planning/the Head of the National Planning Agency on 23 April 1999 number 2565/MK4/1999 to James D. Wolfensohn as the president of the World Bank). The conditionality of the loan is that the Government of Indonesia should revise the water law and its implementing regulations. The national water resource policy acceptable to the World Bank is based on the fourth Dublin principle (World Bank, 1993), which states that water has an economic value in all its competing uses and should be recognised as an economic good4 .

Given the provisions in Law No. 7/2004 and Government Act No. 16/2005, the role of the profit motivated private sector will grow larger in the future. Furthermore, according to Ministry of Home Affairs Decree No. 23/2006, PDAMs, although still in public hands, could be a source for profit making.

From this point, the discussion will now be directed toward the lowest level policies for each urban water provision: PDAM, bottled water company, refilled-bottled water kiosks and Central Java Province groundwater extraction policies related to artesian well provision. Except for self-provision, for which regulation is non-existent, the relevant policies are discussed for each provider separately.

Because of the opposition to this law, there were a number of delays in fulfilling this condition. According to an interview in 2004 with a World Bank staff member in Indonesia, the disbursement was delayed three times, following which the World Bank eventually cancelled it. Nevertheless, the law itself is still deeply influenced by the World Bank's principles. 46 The Dublin Statements and Principles are the products of the International Conference on Water and the Environment: Development Issues for the 21st Century in Dublin, Ireland, January 1992. This fourth point is also quoted in the World Bank Policy Paper (World Bank, 2003). The complete statements and principles are available at htlp:/Avww.gwpforum.orp. secondary data gathering, were undertaken.

At the national level, there was a change in Indonesia's water law in 2004. However, the regulations surrounding implementation (Government Acts, Ministerial Decrees and Provincial- and City-level Acts) to make this law fully and officially effective are still in process. In Indonesia, to be officially effective a law should have implementing regulations that elaborate on the details of the articles or the clauses of the law. Some implementing regulations issued for Law No 7/2004 are Government Act No. 16/2005 on the development of the water supply system, the Ministry of Public Works Decree No. 438/KPTS/M/2006 and No. 432/KPTS/M/2007 on the establishment process of the National Water Board, and the Ministry of Home Affairs Decree No. 23/2006 on guidelines for PDAM tariff setting. At the time this book was written, the process for issuing a Government Act on water rights was still ongoing.

Because there is a time lag in the issuance of all implementing regulations for the new water law, some implementing regulations mentioned in this chapter are actually based on the old water law. Some are not even based on water law. For example, Presidential Decree No. 96/2000 about private sector participation in urban water supply delivery is based on the foreign direct investment law. Again, because of timeframe, an inventory of implementing regulations will be undertaken by identifying policies at the lowest level.

7.1.1 Law No. 7/2004 on water resources

In 2004, the Government of Indonesia issued a new law on water resources, which acted as a starting point for ideological change in managing water supply in the country. What makes Law No. 7/2004 on Water Resources different from the superseded Law No. 11/1974 is that the new law gives more room to the private sector through Article 9 on commercial water rights and Article 40 clause 3 on participation in water supply delivery. According to the old law, water supply should be in public hands, or at least managed by an institution based on a cooperative spirit.

Private sector involvement is also mentioned in Government Act No. 16/2005 on the development of the water supply system, specifically in Article 1 clause 9. Article 60 of the Act states that profit is included in the calculation of the water supply tariff; water has become a profit-making commodity44. The Ministry of Home Affairs Decree No. 23/2006 Article 20 clause 3 states explicitly that, even though a PDAM is still in public hands, the tariff should guarantee that the PDAM can achieve full cost recovery. The same decree also stipulates the normal rate of return as 10 per cent of the productive asset (Article 5 clause 4).

Law No. 7/2004 and Government Act No. 16/2005 provide a more solid legal standing on the role of the private sector than Presidential Decree No. 96/2000 (superseded by

As an economic good, users can be signalled regarding the value of water through a variety of incentives, including price. Pricing is aimed at signalling the opportunity cost associated with the use of water (Tivvari and Dinar, undated). Treating water as an economic good is an official policy of the World Bank (World Bank, 1993). Commoditisation means turning a free good into a commercial good, which then can be sold and bought at market price (Baillât, 2005). . , 7.1.2 Relevant regulations on PDAMs

The goals to achieve full cost recovery and make a profit, as stipulated by the Ministry of Home Affairs Decree No. 23/2006, are behind many PDAMs increasing their tariff. Even if a PDAM cannot contribute a great deal to local income, it should still, at the very least, not be a liability for local budgets. Increasing the tariff is the easiest way to achieve the goals of full cost recovery and profit generation. Consequently, the expansion of the coverage, especially to the poor who pay a subsidised tariff, is nol the first priority for a PDAM, a city or a municipal government.

Maintaining existing subscribers is more profitable than expanding services to new customers, based on the hypothesis that if the service is available 24 hours a day, then the consumption of the existing subscribers will increase. An increase in consumption means they will need to pay the higher rate of the block tariff, which will in tum create profit for the PDAM. If the PDAM expands its coverage, then many subscribers will be paying the first block, which is a subsidised tariff (see Table 7.1). This provides no additional profit and may actually result in a net loss to the PDAM.

The Ministry of Home Affairs Decree No. 2/1998 and the Ministry of Home Affairs Instruction No. 8/1998 on the guidelines of drinking water tariff calculation (superseded by the Ministry of Home Affairs Decree No. 23/2006) are not fully effective in increasing the coverage to the poor, because of the strategy of PDAMs to maintain their coverage for existing subscribers. Potentially, these regulations could play a great role in making PDAMs serve the poor, such as those living at Tambaklorok Seaside, through cross- subsidy mechanisms, but it is apparent that presently they do not do so practically. According to these regulations, subscribers who belong to group 3 pay a full cost tariff, which includes profit for PDAMs. Group 2 subscribers pay a full cost tariff, but only for consumption that exceeds 10 m3 per month; below this they pay a break-even tariff. Group I subscribers pay a subsidised lariff for consumption below 10 m and the break even tariff for consumption over 10 in3. Table 7.1 shows the tariff setting according to the decree. Poor people living at Tanjung Mas paid a subsidised tariff and break even tariff because most of them belong to Group 1 of the subscriber classification.

127 Table 7.1 The Tanfi" for Fach PDAM Subscriber Group

Subscriber Minimum Daily Basic ï-IOm' /month Classification Need Consumption of lOmVmonth Group 1 Subsidised Tariff Break-even Tariff Group 2 Break-even Tariff Full Cost Tari IT Group 3 Full Cost Tariff Full Cost Tariff- Special Group Based on Agreement Based on Agreement

Source: Ministry oCHomi; AlTuirs Decree Nu. 23 of 2006 Arlicle 9 and 10.

Nowadays, PDAM tariffs are set by local governments and do not necessarily follow the decrees mentioned above. For example, the PDAM Semarang City new tariff was legalised through the Semarang City Mayor Decree No. 17/2009. However, because the empirical study was conducted in 2005-2007, the tariff structure used for the analysis was still governed by the Semarang City Mayor Decree No. 690/303 issued in 2002 (sec Table 5.2) which only for the first 10 cubic meter for meeting the daily basic needs followed the tariff schedule as shown in Tabic 7.1.

The Ministry of Home Affairs Decree No. 47/1999 on guidelines for evaluating the performances of PDAMs is also losing power because of the regional autonomy law. This decree is attempting to push PDAMs to improve their financial, operational and administrative performance. If the decree from the Ministry of Home Affairs No. 47/1999, which deals with the performance evaluation of PDAMs, functions effectively, PDAMs may have strong motivation to increase service coverage. Service coverage is one of operational aspects evaluated.

Regular tests on the quality of PDAM water are carried out, but unfortunately these results have never been made available to the public. Even if the test shows that PDAM water meets all the requirements regulated under the Ministiy of Health Decree, most subscribers still do not dare drink directly from the tap; people all over Indonesia usually boil PDAM water before they drink it. Some PDAMs attempt to make the water drinkable directly from the tap in some limited coverage areas under the Pelavanan Air Minum Prima (the best quality drinking water service) program, but at the time of writing this book no such reports had been made regarding the results of this system. Pelayanan Air Minum Prima will certainly challenge the bottled water business, especially appeal I ing to people who buy bottled water for convenience reasons, such as those who do not want to boil their water before drinking, and health reasons.

7.1.3 Relevant regulations on water provision using artesian wells

Two regulations relate to water provision using artesian wells, both of which were issued by the Central Java Province47. The first is the Central Java Provincial Act No. 6/2002 on

The aulhorily to regulate groundwater liei with the Central Java Province Mining Office. In 2008, the Govcmmcnl uf Indonesia issued Government Act No. 43 on groundwater. According to this Act. a permit 128 groundwater extraction and the second is the Central Java Provincial Act No. 7/2002 on groundwater extraction tax.

According to Article 2 of the Central Java Provincial Act No. 6/2002 on groundwater extraction, it is not necessary for those who use groundwater for drinking and domestic usage at a consumption of less than 100 m3 per month, or less than a two-inch diameter pipe for their groundwater wells, to ask for a groundwater extraction permit. Furthermore, according to Article 4 of the Central Java Provincial Act No. 7/2002 on groundwater extraction tax, groundwater extraction for domestic purposes is not subject to groundwater extraction tax.

All commercial groundwater well providers at Tanjung Mas in Semarang who are selling water to the local neighbourhood do not have groundwater extraction permits, even though the water extracted exceeds 100 m3 per month. Without the permit, tax and water meter, excessive groundwater extraction cannot be avoided. As a result, groundwater ecological integrity is in question (Hadipuro and Indriyanti, 2009).

7.1.4 Relevant regulations for the bottled water industry

The bottled water industry is regulated under Ministry of Industry and Trade Decree No. 705/MPP/Kep/l 1/2003. According to this decree, a number of requirements are in place to ensure the quality of bottled water products:

1. Indonesian National Standard No. 01-3553-1996 is used as the standard for product quality. To check whether a certain bottled water company meets the standard, the company should be inspected by an accredited institution at least once a year. 2. Products should also meet the requirements specified in Ministry of Health Decree No. 907/MENKES/SK/VIT/2002 on inspections for drinking water quality. To meet the requirements, bottled water producers must conduct a periodical test: once a week for e-coli bacteria, once every three months for chemical and physical components and a radioactivity analysis once every four years. 3. To ensure that the product is safe for human consumption, the producer must ask for an MD (domestic food) number from the Medicine and Food Watch Office or ML (foreign food) when the product is imported from other countries. 4. All the materials used should be of food grade.

An interview with one of the officers of the Association for Bottled Water Companies in Indonesian (ASPADIN) revealed that the ministerial decree was prepared by the association, and was supposed to be a barrier to entry in to the water supply business, especially for refilled-bottled water suppliers. According to this informant in this interview, the bankruptcy of the biggest bottled water company in Bangkok - as a direct result of competition from refilled-bottled water kiosks - inspired the association to to extract groundwater is issued by the regent or the mayor of the area where the extraction occurs. However, many cities or municipalities are not ready to accept the transfer of authority from provincial government. The consequence of the transfer is that, for Semarang for example, a new Act on groundwater extraction and the tax that will be levied should be issued by Semarang City local government. 129 propose this decree. Through the decree, the association was trying to differentiate bottled water from refilled-bottled water.

7.1.5 Relevant regulations on refilled-bottled water kiosks

The regulation governing refilled-bottled water kiosks was issued by the Ministry of Industry and Trade in 2004 through Decree No. 651/MPP/Kep/10/2004 regarding the technical requirements for water kiosks and their position in the water trade. According to this decree, refilled-bottled water kiosks belong to the category of small-scale industry. The requirements for producing drinking water are mostly the same as the requirements for bottled water companies; however, certain differences are:

1. There is no Indonesian National Standard on drinking water for refilled-bottled water kiosks. 2. The regulation for drinking water quality assurance is the same as for bottled water (refilled-bottled water kiosks should also meet the requirement for drinking water quality according to Ministry of Health Decree No. 907/MENKES/SK/VII/2002), but the requisite periodical tests are less stringent - once a month for e-coli bacteria and twice a year for chemical and physical tests. 3. The inspection of water quality lies within provincial and city jurisdiction. Since the budget needed to inspect all water kiosks is quite substantial, and given the size of provincial and city budgets, inspections are usually carried out once a year using a sampling method (i.e. not all refilled-bottled water kiosks are inspected). (See the survey report prepared by the Central Java Health Office in 2003 and 2004). 4. If, for bottled water companies, the test for drinking water quality should be reported once a year, the requirement for refilled-bottled water kiosks is once every six months. 5. Refilled-bottled water kiosks are prohibited from using 20-litre bottles or cans with the brand of other companies printed on them. They are also prohibited from keeping an inventory of water in bottles or cans that are ready for sale. Water kiosks should only fill customers' bottles or cans at the time at which they bring the receptacles to buy water. Nevertheless, all the machines and processes needed to produce drinking water atre the same as those required for bottled water.

Often, there is an association for refilled-bottled water kiosk businesses in each area. In Semarang, for example, there is a business association known as Aspami. These small- scale business associations are not necessarily members of the two national business associations, namely Apdamindo and Aspada. According Apdamindo staff in Jakarta, the head office of Aspada is in Surabaya, while Apdamindo's is in Jakarta. There is no relationship between these two national associations, and their role is weak in terms of the issuance of regulations.

7.2 The regulatory framework's probable impacts

Indonesia is now at a crossroads as to whether the state maintains control of water supply management or relinquishes its management to a commercialised regime. In a public 130 water supply administration it is the duty of government to ensure that its citizens have access to water supply - at any cost. Commercialisation refers to a reworking of management institutions (rules, norms and customs), and entails the introduction of markets as allocation mechanisms (Bakker, 2003a) or the utilisation of market proxies in the management of water supply. In such a case, the state still runs the services but uses private sector criteria such as efficiency, cost recovery and competitiveness. The problem faced by Indonesian water supply management can be seen in the regulatory framework. Some of the regulations can be categorised as leading to the utilisation of market proxies such as cost recovery, or the involvement of the private sector in managing water supply.

This section aims to document the impacts of similar approaches in other countries that have implemented the same regulations or policies, as well as past cases in Indonesia. The intention is to identify anticipated similar impacts in Indonesia's future and hopefully take steps to avoid their occurrence.

7.2.1 Private sector participation

Inviting the private sector in to water supply delivery does not necessarily improve access for the poor. According to one of the books published by the ADB, private concessionaries are not particularly eager to connect the poor because they do not buy much water, cannot pay for connection fees upfront and often lack the security of land tenure (Mcintosh, 2003), which could cause significant long-term issues in Indonesia at the expense of service provision for the poor.

In some cases, private operators tend to 'cherry pick' (Castro, 2004; Swyngedouw, 2003) areas that they believe will produce profits, and then leave other areas to public companies. For example, the private partner of PDAM Semarang Municipality, PT Sarana Tirta Ungaran, prefers to supply water for industries in the Semarang municipality, which require less in terms of quality but pay a higher tariff. This kind of partnership affects the financial capacity of the PDAM to implement the cross-subsidy mechanism, because the PDAM has to share any profit with the private partner. Another example demonstrating how much profit a private company can obtain is in the case of the proposal from a consortium involving an Indonesian company, PT Karyadcka Griya Semesta, and a Dutch water supply company, Waterleiding Maatschappij Noord-West- Brabant (WNWB), to provide water supply services to the people and industries of West Semarang. West Semarang is an area of huge prospective economic growth, since a large number of industries currently use groundwater as their water supply and there are many affluent housing developments. According to the feasibility study of the project, sponsored by Senter, an operating agency of the Dutch Ministry of Economic Affairs, and undertaken by a consultant named Witteveen+Bos, the break-even point would be reached in 10 years. To reach this point in such a short time is amazing, as generally around two-thirds of the costs are capital costs for infrastructure (Marques, 2008). Usually, it takes longer to reach the break-even point, which is the reason why for such a partnership the concession period is typically about 25 years.

Private sector participation in urban water supply also requires a good mechanism to control the tariffs charged by private providers. Water supply services operate under a 131 natural monopoly characterised by high, long-lasting and sunken capital for developing infrastructures and building water treatment plants (Marques, 2008). Under a monopoly, there is a tendency for private operators to set the price high so that they produce a larger profit. Furthermore, water can be classified as an inelastic good, especially as it meets essential needs (Nauges and Thomas, 2000, cited in Marques, 2008). In this way, there may be no choice for the subscribers but to accept the price set by the providers. Government legislation and regulation are needed to resolve these problems. Unfortunately, it is not easy to set a tariff that can balance the interest of the private sector to maximise profit alongside the interests of the people that need the service. All regulations and mechanisms used by Ofwat in England and Wales, for example, limit the profit of water supply companies to the normal rate of return, namely 7 per cent (before financing and corporate taxes). However, the water industry's actual rates of return have not dropped below 9 per cent since privatisation (Miller-Bakewell, 1998, cited in Bakker, 2003b; Loftus and McDonald, 2001).

The current experience of privatisation has largely failed to resolve the balance between public and private interests, despite the financial regulatory regime within which it operates (Buller, 1996). Regulation for setting the tariffs for services delivered by private operators is a big problem, especially in a developing country such as Indonesia which has poor law enforcement. Moreover, a pseudo competition mechanism such as that implemented in England and Wales to control private sector profit is quite impossible to implement in Indonesia. As earlier mentioned, local governments tend to dominate the management of PDAMs and ignore regulations issued by central government, including the regulation controlling a PDAM's profit. This is particularly understandable when one considers that big PDAM profit means a big contribution to local government income.

7.2.2 Groundwater extraction

The limited coverage of public water supply companies is a business opportunity for small-scale water supply providers, almost all of which, and all Indonesian PDAM alternatives, prefer to use groundwater as their source. It is quite impossible, especially for small-scale water supply providers, to build a water treatment plant to convert surface water into safe drinking water in light of the huge investment needed.

The water supply case study of the Tanjung Mas in Semarang shows exactly this phenomenon. Groundwater is exploited widely for private and industrial uses (Hadipuro and Indriyanti, 2009), although impacts on the environment include land subsidence, water table drop and sea water intrusion. There are 16 neighbourhood associations in this sub-district and always at least one artesian well in each association, from which water is sold to the neighbourhood.

In many situations in the world, including in some major cities in Indonesia, groundwater is a common property resource, which often leads to a race to pumpage by the owners of the land overlying the aquifers. In Bandung, for example, 0.2 million m' of good quality groundwater per day in 2001 was extracted for various industrial purposes (Soetrisno, 2002, cited in Hendrayana, 2002), while in Jakarta and Semarang the daily average rates in 2008 were 60,000 m3 and 20,000 m3, respectively (Amrta Institute and Tifa 132 Foundation, 2009) Users try to extract as much groundwater as possible in order to capture the benefits for themselves before the resource is exhausted, the result of which is a negative externality because the depletion and degradation caused by the excessive pumpage of groundwater will affect all continuous aquifer systems that can extend across multiple geographic, administrative and political regions Legislation and regulation from the government or other public or private bodies are therefore urgently needed to solve these problems (Burke and Moench, 2000, Palma, 2003)

Excessive pumpage clearly has a severe and detrimental effect upon groundwater reservoirs, water tables drop, significantly altering groundwater flow directions Moreover, where excessive pumpage exists, saline seawater tends to intrude in to the fresh water inland reservoirs, a phenomenon which can make salmisation almost irreversible (Hoekstra 1998), and can cause hydraulic cones of depression Groundwater flows inward towards these depressions, where chemical and biological parameters have accumulated and concentrated, leading to deterioration in groundwater quality and a danger to public health (Collins and Melloul, 2001) As a consequence of excessive pumpage, some major cities in Indonesia, such as Jakarta and Semarang, are expenencing water table drop In most parts of Jakarta, for example, current water table levels are more than 20 metres below sea water level In addition, northern parts of Semarang are now categonsed as being in danger due to groundwater extraction An area is categonsed as critical for groundwater extraction if the water table is more than 20 metres below sea water level Unlike surface water systems, much of the depletion and degradation of groundwater systems is irreversible - and therefore far more enti cal

The poorer the coverage of the public water supply company, the greater the necessity to regulate groundwater extraction, because people will be highly dependent on groundwater sources to replace the absence of public water supply (Hadipuro and Indnyanti, 2009) Unfortunately, regulations in Semarang from the Central Java Province on groundwater extraction and groundwater extraction tax do not cover extraction by artesian well providers The consequence of excessive groundwater extraction is that Semarang is currently expenencing land subsidence

7.3 The logical consequences: Ways forward

On the one hand, to participate in water supply delivery m Indonesia's private sector, interests have been guaranteed One such guarantee is that commercial water nghts will ensure companies' access to raw water On the other hand, the private sector might be reluctant to be mvolved in piped water supply if the Ministry of Home Affairs Decree No 23/2006 about the maximum 10 per cent4 profit becomes effective Since the water supply business is characterised by high, long-lasting and sunken capital, the 10 per cent maximum profit ceiling implies a longer penod in which to reach a break-even point, which increases the size of the risk If the pnvate sector is still interested m water supply, companies will look for alternatives to directly delivering water, such as management contracts or managing water treatment plants whose water is sold to PDAMs, as the a In Jakarta, for example, according to the cooperation agreement, the Internal Rate of Return of Thames Pam Jaya (now Aetra) and Palyja (a subsidiary company of Suez Lyonnaise des Eaux), as PDAM Jaya partners, is 22 per cent 133 maximum 10 per cent profit limit is not sufficient for them to cover their investment If they are still willing to deliver the service, they will keep their investment as low as possible and finance this through loans, which might result in a higher cost of production because of the associated interests Higher cost of production will therefore result in higher tanffs charged to subscribers

If pn vate companies do become involved in piped water, there should be a mechanism that can balance the interests of these private companies and those of the people, to create a reliable and fair water supply service From the description of the model used in England and Wales, achieving this is not an easy task for the Government of Indonesia - at any level

If PDAMs remain in public hands, the 10 per cent profit level might encourage local governments to use them to generate local income Even without such regulation, when a certain PDAM expenences losses, it does not necessarily mean that it does not have to contribute to local income or other local government interests 9 The consequence is that PDAMs will not increase their coverage, especially to the poor The same decree mentioning that PDAMs should achieve full cost recovery, and that the total costs for a household should not exceed 4 per cent of its income which means the price for the poor is quite low, will only strengthen their reluctance to cover the poor

The result is, firstly, the poor have to depend on more expensive sources Secondly, people who have no piped water connection, including industries, will exploit groundwater to meet their demands Consequently, pressure on the environment, principally in the highly susceptible city to groundwater problem such as Semarang will be higher and therefore threaten groundwater ecological integrity

This pressure will not only come from artesian well providers, such as in Tanjung Mas mentioned earlier, but also from bottled water companies and refilled-bottled water kiosks, since all of them use groundwater as their source Lifestyles, the convenience of not needing to boil water and the real demand for good quality drinking water will enable bottled and refilled-bottled water businesses to grow significantly

Government regulations, for example issuing an SNI for bottled water, have influenced people to believe bottled water is the safest source of drinking water However, there have been no reports published about the results of the bottled water laboratory tests Such one-sided information will influence people's preferences, which in tum could affect livelihoods People, including the poor, will spend more money for a supply of water that they think is safer and healthier, even though the facts might state otherwise

7.4 Concluding remarks

Although PDAM Semarang City has many financial problems, Ihe Mayor of Semarang City acknowledged "Once I borrowed Rp 1,000 million from the PDAM to support Semarang City Football Club " Semarang City Football Club was managed by the Mayor's son Available at www kompas com/komDas-cetak/0205/27 iati.nii/sava26 htm Accessed on 28 April 2003 134 Based on the discussion above are some findings on the current regulations and their impacts, or potential impacts. First, the commercialisation of water coupled with the trend to force PDAMs not only to adopt a full cost recovery concept, but also to contribute to the local income of the city or the municipality, will challenge the livelihoods of people, especially the poor. With its tariff structure, the expansion of coverage to the poor will result in no additional profit and may actually cause a net loss to the PDAM because of poor returns on the subsidised tariff. Because of these the poor could not expect to be covered by PDAM service, it means that they had to depend on the more expensive source and on the worse quality of water. And these will negatively affect their livelihoods, especially their financial and human assets.

Second, assigning an SNl, coupled with the results of regular tests on the quality of PDAM water have never been made available to the public, has resulted in bottled water becoming the most reliable drinking water. With this positive perceived image of bottled water quality households did not want to boil PDAM water, even though boiling PDAM water could save costs and was still safe for their health. The growth of bottled water production proves that the SNl strategy has benefited the bottled water industry.

Third, the lack of regulations on all water supply providers for ensuring water conservation will harm the ecological integrity of groundwater in the long term. The tendency of artesian well providers to extract groundwater in larger quantities cannot currently be avoided, as there is no need to request a permit or pay tax, even though they sell their service to the neighbourhood. The issue of making water accessible to everyone is worsened due to the many serious problems faced by PDAMs such as debt burden and the pressure to generate local income.

It is not too late for the Government of Indonesia to change its regulations at all levels to cope with the problems outlined. All the findings mentioned above will become a basis for recommendations to the government at all levels to improve the situation faced by the inhabitants of Tanjung Mas as has been analysed in the preceding chapters. What kind of solutions and recommendations proposed will be elaborated in Chapter 8.

135

8. Conclusions and recommendations Many people lack access to safe drinking water. They are the most vulnerable people in the world. As we have seen from the results of the field study, the most vulnerable people of Tanjung Mas were not supported by the government to obtain access to a safe water supply . This situation, both in the short and the long run, makes them even more susceptible to suffering from consuming unhealthy water, experiencing environmental problems and decreasing financial assets.

The first section of this chapter provides a summary of the book. The next section deals with synthesis and reflection on the most important findings. Section 8.3 explains how the field study contributed to the methods and the model developed. This is followed by a reflection on the societal debate on the role of public and private systems to solve the problems of the livelihoods of these most vulnerable people. It includes the author's position on the debate. Last but not least, general recommendations and final remarks are presented.

8.1 The summary of the book

In Chapter 1, the relevance of the thesis is described both scientifically and practically (for society). Starting with the explanation of the problem of urban inhabitants to obtain safe drinking water caused by poverty, the utilisation of the market proxy mechanism in managing the water supply and environmental problems, I argue that it is important to analyse the problem by focusing on the livelihoods of the people. Therefore, I developed a model of urban water supply for sustainable livelihoods and subsequently applied the model in an area located in the Semarang coastal area, where many poor and vulnerable people live. In this way, I intend to contribute to debates and controversies regarding the role of private, public and community-based urban water provision in low-income countries; and the utilisation of the market proxy mechanism to realise the water supply. Further on, the results of the study are meant to formulate policy recommendations for the Government of Indonesia at all levels to improve the performances of each provision.

On the basis of a literature overview in Chapter 2, it was argued that it is necessary to develop a new model on urban water provision. There are contradictory research results in which providers - public, private or community-based system - benefit the livelihoods of the poor and vulnerable people the most. So far, there is no model that includes an analysis of the role of the providers to the livelihoods of the people. For that reason, I amended the sustainable livelihoods framework as introduced by DFID (1999) as a basis for developing a comprehensive model on urban water supply for sustainable livelihoods.

The model is built on three blocks of actors and two context boxes. The three blocks of actors are the regulators who act on the international, national, regional and the local

Guaranteed safe for their health. 137 levels; the water supply providers that consist of private, public and community-based systems, self-provision (or its combinations) with its policies and institutional sustainability; and the households as the centre of the model. In the household block, an analysis of the households' assets, their livelihood strategies and outcomes determines whether the households are resilient or non-resilient regarding the negative external changes of the vulnerability and sustainability context. The vulnerability context consists of shocks, trends and seasonality, while the sustainability context deals with the ecological integrity, the economic efficiency and the social equity of urban water resources. The analysis of the vulnerability context is made on the city, sub-district and household level.

Chapter 3 is about the research methods. The research is divided into seven steps and each step has its own methods. Figure 3.1 summarises the conceptual model of the research, the steps and the structure of the book. First, theoretical concepts and perspectives were developed by confronting the research results of the contributions of public, private and community-based system (or their combinations) with sustainable livelihoods analysis. The result is a model of urban water supply for sustainable livelihoods. The next step involves developing assessment criteria to evaluate the performances of the providers to the improvement of the livelihoods of the people. It is followed by an analysis of the contribution of policies in water supply sub-sector to the livelihoods of the people. And lastly, an analysis of how to lever policy was done in case the policies did not contribute to the improvement of people's livelihoods.

The vulnerability assessment on the city and sub-district level is described in Chapter 4. At the Semarang City level, there were some negative external changes that were categorised into shocks, trends and seasonality. Shocks include lay-off and rain flood caused by river embankment sliding. Trends include the increasing tidal flood in terms of its frequency and depth, land subsidence, water table drop, pollution and land use changes. The other trends are population growth, inflation rate (including the PDAM tariff increase), the increasing number of slum areas and the limited capacity of the Semarang City budget. Seasonality includes rain flood and drought On a sub-district level, there were eighteen negative external changes as perceived by respondents. Some details of the negative external changes found on the city level were elaborated in the sub-district level assessment. Regarding inflation rates, the respondents were complaining about its impact on the high cost they had to pay for bottled water and the increasing tariff of the water from water peddlers. Many other details mentioned concerned PDAM: leakage from pipes, the smell and turbidity of the water and the difficulties to get connected. Some new negative external changes mentioned by the respondents were the health problems, the garbage problems, the problems with water pumps, the lack of water tanks, and the inconvenience of having to drag along water carts whenever people have to pick up water themselves. All the negative external changes on the city and sub-district level were checked with the households to see whether or not these changes had become vulnerability factors that negatively influenced their insufficient assets. The results of the household level of the assessment are reported in Chapter 6. 138 In-depth interviews with the chiefs of neighbourhoods and guided interviews with water supply providers showed that there are five kinds of water supply provision in Tanjung Mas, which could be categorised into three broad categories: public, private and self- provision. The private providers are further divided into commercial artesian well providers, refilled-bottled water kiosks and bottled water retailers in galon. Therefore, the five kinds of water provision were PDAM, commercial artesian well providers, refilled- bottled water kiosks, bottled water retailers, and self-provision using artesian wells and shallow wells. Water peddlers were considered to be a part of the distribution channels of PDAM and commercial artesian well providers. The description of each water supply provider can be found in Chapter 5. Figure 5.1 shows the interaction among providers and the process of the provision for each provider from the raw water, the treatment, distribution channels to the characteristics of household subscribers. It is evident from this figurethat : 1. Only PDAM used surface water, 2. Artesian well providers did not treat the water before it was distributed, 3. Providers other than PDAM used groundwater and spring water as the sources, and 4. Not all households were connected to the PDAM pipe water supply service. Based on the sustainability context analysis, even though PDAM had a problem regarding 'unaccounted for water', PDAM was the best alternative in terms of ecological integrity, economic efficiency and social equity.

In Chapter 6 the changes in water provision are analysed from a household's perspective, the causes of the changes, and their impacts on households' livelihoods. They will be elaborated in the next session of the synthesis of the main findings.

An inventory on the policies and regulations was first made by tracing the changes of policies and regulations at the national level. Secondly, interviews took place with the government officers on a provincial, city and village level and with the providers. The description of the policies on water supply providers found in Tanjung Mas Scmarang is presented in Chapter 7. It was also discovered that there was a trend of water commoditisation (see the definition in footnote no. 4 in Chapter 7) in Indonesia. The commoditisation of water is supported by government policy, e.g. the adoption of full cost recovery tarifÇ the maximum 10% profit (not only for private operators, but also PDAMs), and the issuance of the Indonesian National Standard number for bottled water. This chapter also explains that the lack of regulation on groundwater extraction for commercial artesian well providers was one of the reasons why there was excessive groundwater exploitation in the areas that were not covered by PDAM service.

8.2 Main findings

The interviews with household respondents that were carried out during the fieldwork (see Chapter 6) showed the pattern of changes in water provision in Tanjung Mas during 1996-2006: 1. In the better-off area of the Old City, which was also the area that suffered the least from the environmental problems in Tanjung Mas, the public water supply

139 was the main source, except for the poor and those living in illegal or rented houses. The latter had to depend on the more expensive source: water peddlers. 2. In the area of Kebonharjo, which suffered leas from the environmental problems, the changes mainly concerned a switch from many kinds of sources to public water supply services or to commercial artesian well providers. The same pattern could be found at Tambaklorok Riverside, which is an area that suffers the most. 3. In the other areas that suffer the most from the environmental problems, Tambaklorok Seaside, people were becoming highly dependent on commercial artesian well providers, which - due to environmental degradation - actually made them more vulnerable in the long run. 4. Due to the deteriorating water quality, more and more people in all four neighbourhoods had abandoned their shallow wells and if they still used them, the water was usually used only for washing, bathing and watering the yards.

The change in water provision, especially from shallow wells to other sources (see Table 5.4 for the details), had an impact on the household assets and there was a tendency of natural and social assets being replaced more and more by physical and financial assets. For example, due to the deterioration of natural assets (shallow wells), households now had to change providers and pay for water from artesian well providers or PDAM, which required financial assets.

Social assets played contradictory roles. On the one hand, because of their social networks, households could get water cheaper by obtaining water from the owners of shallow wells. They could also obtain or buy water from their neighbours if these were PDAM subscribers, instead of subscribing to PDAM and paying a connection fee. This was not risk-free, as this practice was prohibited by PDAM and it could mean sanctions, such as the termination of the connection, if it were discovered that a certain household was giving or selling its water to its neighbours. Without such social assets of trust and good relationships, the subscribers of PDAM would not give or sell water to their neighbours, since this meant the risk of the termination of the PDAM connection. On the other hand, it was because of social assets that households were sometimes 'imprisoned' by commercial artesian well providers in the neighbourhood. To maintain friendly relationships, they could be reluctant to change to a new provider even if it were cheaper, of a better quality, and more environmentally friendly. As is the case in Tambaklorok Seaside, where Mr. Ms represented the feelings of the majority of the inhabitants when he said:

'If someday there is a PDAM service, we will not change providers. We have already got sufficient water from Madam M. Mr. M (the husband of the owner of the artesian provider; author) is our neighbour. He has helped us a lot That is why in my opinion we have to help him. He is really a good person Once I could not pay for the charges for three months and he did not complain at all. 1 will not change providers, even though there is another alternative ', said Mr Ms, the son of Grandma M (RC9TS).

To be a PDAM subscriber, a household had to pay a connection fee that was too expensive and unaffordable for the poor. Being poor and living in a better-off area where most of the inhabitants were connected to PDAM and where, by consequence, other water providers were lacking, forced them to buy the more expensive water from water 140 peddlers.

Changes in the water provision were also due to the fact that households, regardless whether they were the 'haves' or the 'haves-not', were paying increasingly more attention to the impact of water on their health (human assets). In their search for better quality water, they not only tended to avoid consuming the deteriorated water from their shallow wells, but even the PDAM water. Unfortunately, this implied that they had to pay more for water (financial assets). Bottled water was perceived as the best quality for drinking water. Due to this, households did not make an economically rational decision and spent more money on drinking water than necessary. They were in a 'health-trap'. The policies on the drinking water (which have been discussed in Chapter 7) contributed to this impression. The water supplied by PDAM was actually much cheaper than bottled and refilled-bottled water, and it was drinkable although people had to boil it first. Doth the 'haves' and the 'haves-not' tended to spend 30% to more than 100% for bottled or refilled-bottled water compared to the costs for their main water supply. It is true that life style and convenience may have contributed to their decisions. However, if government policies did not give people the impression that the safest drinking water was bottled water, then households would be more economically rational in choosing water for their drinking.

The limited coverage of PDAM had created new opportunities in the water supply business. Bottled water business, water kiosks, water peddlers, and small-scale water supply providers using artesian wells as the source had become promising businesses. The growth of these businesses, especially bottled water and water kiosks, was good for the economy since the government received more money from tax and they opened up more opportunities for employment. And for PDAM itselÇ the change from tap water to bottled and refilled-bottled water for drinking had very little impact on PDAM's revenue. That is why governments and water supply companies everywhere did not care about this change. However, the impact on individual households' spending for water was substantial. Moreover, the environmental impact of the increasing consumption of bottled water was over 100 times higher than drinking tap water (Parag and Roberts, 2009).

The other alternative for the limited coverage of PDAM was that the better-off inhabitants dug deep wells for their water supply, while the poor had to depend on the deteriorating water from their shallow wells. These developments created a vicious circle of environmental problems for the people living in the coastal area. The more they became dependent on extracting groundwater, the more severe the problems of land subsidence, tidal flood (because of land subsidence, tidal flood was getting more severe) and seawater intrusion became. A vicious circle of the dependency on groundwater and the environmental degradation occurred.

An analysis of the impacts of the changes in water provision shows that PDAM was overall the best alternative since it 1. used surface water; 2. offered a cheaper price compared to other alternatives; 3. was the most convenient alternative; 141 4. was suitable as drinking water, because the quality was assured by the Ministry ofHealth. From the perspective of people's livelihoods, PDAM water - in light of the advantages mentioned above - could be used for consumption and hygienic purposes, while water from shallow wells, which was free of charge, supplemented PDAM water for less value-added activities. By using water from shallow wells for these activities, households could save a lot of money. The combination of a supply from PDAM and shallow wells was the best alternative for improving individual households' livelihoods and the livelihoods of households in general. (This, since households still maintained their ownership of the natural assets of shallow well water, shallow wells - considered public utilities - could maintain social assets, the water from shallow wells was free and so households could save on financial assets, and the consumption of guaranteed drinking water quality of PDAM water by the Ministry ofHealth was good for the health of the households' members).

8.3 Field study: Methodological and theoretical implications

The field study contributes to the methodology on assessing vulnerability in sustainable livelihoods analysis. First, the three tiers of vulnerability assessment proposed in this research (city, community and household level) have proven to be useful. On the one hand, without vulnerability assessments on a city and community level, it is quite difficult for a researcher to establish the vulnerability context faced by the households.

Second, the field study shows that the vulnerability context does not only originate from negative external changes, but it also possibly comes from negative internal asset changes. Becoming a widow, getting old and retired without a retirement fund and with many dependents, and deteriorated natural assets, are some of the examples. Certain households may become vulnerable due to these negative internal asset changes. IÇ in the long run, a household's consumption declines and/or assets are depleted or even lost permanently, then the household will become non-resilient.

The findings above show that the model on urban water provision to evaluate and improve the performances of the providers from the perspective of the livelihoods of the people is essential. The surplus value of the model is that water supply policies can be tailored to specific problems faced by households. By applying the model on the water supply for sustainable livelihoods, those vulnerability factors can also be directly linked to the policy of the providers, especially when the households have to change providers. The policy of charging a connection fee from the public water supply company inhibits certain households from switching to a better provider. For those who are dependent on water from shallow, deep and artesian wells, the problem of ecological integrity directly affects the households' natural assets. And it might become a vulnerability factor for them if they do not have sufficient financial assets to compensate them. Government policies on all levels further to coping with these problems can be recommended based on the application of the model.

However, applying this model necessitates intensive fieldwork, which can be time- and

142 also budget-consuming The development of rapid appraisal for household level vulnerability assessment might solve the problems Because this research is focusing on households and their domestic water supply, this might disparage other boxes of the model, especially the Water Supply Provider Box The discussion on the Water Supply Provider Box is not thoroughly examined either, for example about the policy of each provider and its institutional sustainability The future application of the model in more case studies will surely bring further improvements to the model

8.4 Public and private provision debate and livelihoods

None of the water supply providers, whether public or private, have a comprehensive view on people's livelihoods PDAM's positive contribution is that PDAM uses surface water, which makes it ecologically sound and through the cross subsidy mechanism PDAM can charge the poor a lower tariff However, the field study shows that the positive PDAM's contribution as such is outweighed by its policy of charging a connection fee for all its subscribers If PDAM is concerned with the livelihoods of the people, then it should aim for a policy to improve the water supply of the most vulnerable people If they cannot afford the connection fee, then a policy to pay it in instalments should be made The extent to which the poor can afford the instalments depends on their spending capacity, which can be assessed through a survey The positive PDAM's contribution is also outweighed by the policy from PDAM of prioritising to serve the area where the better-off people live and to leave out the area suffering from water resource problems and the area where poor people live

Regarding the artesian well providers, not only do they use groundwater from a danger area of groundwater extraction, but they also make money off vulnerable people by charging a tariff that is five times that of the PDAM tariff, although they do not treat the water at all One of the providers in the field study even used the artesian well for a car- wash service, which again threatened the economic efficiency of sustainable groundwater resources In the future, because of their extraction, it will be difficult for the people living in Tanjung Mas to get fresh water In other words, it will increase the pressures on the vulnerability context of the people living in this area

Regarding shallow wells, there is no effort on the part of the community (please contrast with the individual who owns the well) to make this water suitable for more value-added activities, such as consumption The water is only used for cleaning, bathing, gardening and watering the yards The tragedy of the commons is evident for the shallow wells m Tanjung Mas As long as the water is good, the shallow wells are publicly owned, but when the water deteriorates it becomes the responsibility of the owners to make it better There is no sense of common ownership of the shallow wells, especially in terms of improving or maintaining the quality of the water These findings in fact contradict the proposition that where social capital is high (where people are connected with each other and involved m community issues), social capital ensures that the community co-operates to address the issue of water pollution (Miller and Buys, 2008)

In view of the above, it is not strange that the poor households have difficulties in 143 accessing safe drinking water and that without any proper policy intervention from the regulators they have to depend on either the worst quality and/or the most expensive source of water.

The field study shows that the debates or the controversies on public, private and community-based system that have arisen since 1980s are really missing the most important point of the livelihoods of the people whom the systems supply. Existing studies mainly consider small aspects of the livelihoods of the people. Expanding public piped water supply coverage is not necessarily beneficial to the vulnerable people. For example, a bwer tariff and better quality as provided by PDAM means nothing to the poor, because this policy has been outweighed by a requirement of ownership and legality of the houses, which in some cases is difficult to be fulfilled by the poor.

The main concern should be the livelihoods of the people supplied by water supply providers as a holistic concept of assets, strategies, outcomes and the resilience of households. Any policy of regulators nationally as well as locally on water provision should include a livelihood approach. With the recent trend of privatisation and decentralisation of water and water supply management as seen in Indonesia, which is discussed in Chapter 7, it should be questioned whether they have brought positive impacts on the livelihoods of the people especially when it comes to the vulnerable people.

8.5 General policy recommendations

Confronting the policies described in Chapter 7 with the findings on the water supply sub-sector analysis (Chapter 5) and the household analysis (Chapter 6), three basic recommendations for local and national governments can be made. These are examined in the paragraphs below.

8.5.1 On quality

As the government cannot supply piped water to all inhabitants and many of them have to depend on self-provision or commercial artesian well providers, as was the case at the location of the field study, it is an obligation of the government to regularly check the quality of self-provision and commercial artesian well providers' water and inform the results to the public. It is also an obligation of the local government to ensure the good quality of the water from these sources, especially where people use it for consumption, through its policy on conservation and pollution control. Basically all provisions, except self-provision and commercial artesian well provision, should meet the standard quality of drinking water issued by the Ministry of Health. The problem is the general idea that the best quality for drinking water is bottled water because of the Indonesian Industrial Standard (SNI) Number given for bottled water (see Chapter 7 Section 7.1.4) from the national government. A general idea of this kind makes those who are concerned with their health tend to consume bottled water, even though they are poor. And because bottled water is the most expensive source, it means that they have to spend more of their financial assets. The policy that results from this idea should be corrected. The

144 government should guarantee that all providers who aim to supply water for consumption meet standards for drinking water, though there is not an SNI number51 According to Parag and Roberts (2009), increased transparency on the results of the quality test, better risk communication, such as labelling on bottled water concerning the environmental impacts, and improved enforcement are essential to lead to a more rational consideration in choosing a certain provider Labelling on bottled water is under the jurisdiction of national government

8.5.2 On expanding PDAM coverage

The policy to expand PDAM coverage especially to the poor should be implemented by the Semarang City local government since it is the responsibility of the local government as the owner of the PDAM It is not only the policy to expand the coverage, but also the expansion should concern surface water so as not to make the environmental problems faced by the Semarang inhabitants in general and the people living in Tanjung Mas in particular even worse Such polity is needed since the vulnerable people in Ttinjung Mas pay the lowest household tariff which is below the production cost I he proposed policy is important in light of the fact that another policy stipulates PDAM to achieve a full cost recovery condition PDAM will certainly not prioritise to expand the coverage to the area where the potential subscribers pay a tariff that is below a full cost recovery tariff Support Irom the local government in the form ofdirecl financial aid to the poor, or water service vouchers, or subsidies from the local government to PDAM to expand the services to the poor are recommended The policy to expand PDAM coverage should be supplemented by the policy to decrease the amount of the 'unaccounted for water' 5" The 'unaccounted for water' amounted to 44,122,616 cubic metres in 2007 (PDAM, 2008) Therefore, the decrease by only 10% will account for about 4 5 million cubic metres It is a huge amount as a source of water to expand the service coverage

8.5.3 On coping with excessive groundwater extraction

There are two aspects of artesian well providers that might harm the livelihoods of the people and the groundwater ecological integrity The first concerns the fact that the providers are imposing the same tariff on every subscriber, regardless of who they arc and how many cubic metres of water they consume The second problem is that there is no policy that motivates users (the haves who consume excessive water) and the owners of artesian wells to conserve water Conserving water relates to the ecological integrity The recommended policies for local government for the first and second problem are imposing a block tariff and monitoring the amount of the water extracted A block tariff means that the consumption of households in cubic metres is divided into several categories For the first block often cubic metres for example, households pay the lowest tariff, and the tariff increases in accordance with the consumption for the second and the

51 As a SNI number is for manufactured products and Ihcrc is no similar number Tor non mninil'acuircd products, il is impossible to apply this number as the quality standard for shallow and artesian wells water However a drinking water standard issued by (he Ministry ot Health is suflicient ^ There arc many probable solutions to decrease the 'unaccounted for water' starting from replacing all broken pipe infrastructure (which requires a huge in\estment), applying district meter zone to identify physical and 'administrative' leakage, to lowering the water pressure on the distribution pipes third block. The recommended policy will only be effective if the local government changes the regulation on the groundwater extraction tax. As discussed in Chapter 7, the Semarang City local government has jurisdiction to impose the tax for groundwater extraction. If the water extracted exceeds a certain limit, then the providers should pay a tax. The proposed policy will prevent the trend of water table drop from getting worse.

8.6 Final remarks

The national context in which the analysis as presented in this book took place is one of neoliberal market primacy and the hollowing out of the state. Hollowing out of the state includes the devolution of regulatory responsibilities to local levels of government without proportional transfers of power or capacity, and a shift from binding to increasingly voluntarisms, neo-corporatist regulatory framework involving non-binding standards and rules, public-private co-operation, and self-regulation (McCarthy and Prudham, 2004). The other characteristic is the use of market proxies in the residual public sector (i.e. the state-led attempt to run remaining public services along private sector lines as efficient and competitive businesses (Castrée, undated). Handing over the responsibilities to provide water supply to PDAMs fits with the characteristics mentioned above. The state, in this case the government at all levels, hands over its responsibilities to provide safe water to a state agency, in this case PDAMs, led by the principles of financial efficiency and/or a profit driven of private sector. If these organisations are not able to provide the service to all households under their responsibility, then the separate households become responsible to get the water by themselves.

Due to this situation, both the providers and the households take 'rational' decisions. It is very 'rational' that a water supply provider who wants to make money from delivering water supply services tries to cut treatment costs by using groundwater that is better in quality compared to surface water. Unfortunately, this leads to the detriment of sustainability of the natural environment. It is 'rational' too if the same provider is reluctant to expand the service to the poor, who should obtain safe water at a subsidised tariff. On the other hand, it is also 'rational' when households look for providers who offer direct advantages and benefits, although their decisions might have a negative impact in the long run and/or to other people, by for example choosing to subscribe to a provider who uses groundwater from a critical groundwater area. In the long run, this decision will result in seawater intrusion and land subsidence, which affects all households (including themselves) living in the area. The result of the market ideology and the hollowing out of the state are short run 'rational' considerations that will affect the quality of life in the long run.

In urban areas where the competition for survival of the fittest is higher than in rural areas, especially for water sources, this situation creates problems for the poor and the natural environment as well. The urban poor do not have any other choice but to make a 'rational' decision as mentioned above, because there are no good quality water sources, as a part of natural assets, available to them. They cannot depend on the water from shallow wells (the only natural assets of water available in urban areas and affordable for them) anymore due to environmental problems of increasing salinisation and tidal flood. 146 Some better-off inhabitants see it as a business opportunity to dig artesian wells and sell the water to poor households that are not covered by a public water supply provider. This 'good' combination of demand and supply causes more pressure on the urban environment since the result is exhaustion of groundwater resources and environmental degradation.

Water as a merit good service is fer from ideal in the context mentioned above, and even more so in developing countries where governments do not consider safe water supply services to be a priority. Governments are hiding from their responsibility to provide safe water by reasoning of the shortages of their financial budgets but one wonders how these shortages are created.53 Without a political will, shortages in the financial budget will continue to be a logical reason of shifting the responsibility to provide safe water to public entities such as PDAMs, which use the market proxy mechanism, to the private sector with its profit motive and to poor households who have to look for individual solutions to obtain safe water.

This book aims to contribute scientifically to the improvement of the safe water supply to the urban poor. I consider it the role of science and scientists to warn against a situation that has bad consequences for both the poor and the natural environment. By developing and promoting a sustainable livelihoods approach and putting the approach in context, this book will hopefiilly trigger other researchers to develop or enhance ideas and other approaches in a search to improve the current dangerous situation. Lastly, hopefully by these scientific efforts, all the actors in urban water supply will become aware of the consequences of the current decisions they make.

13 Mismanagement and corruption for example. Even in the case of Semarang, it was proved that the mayor at least once used the PDAM money for supporting the city football club which was managed by his son. Available at www.lcompas.coni/kompas-cetak/0205/27/iateng/sava26.htm. Accessed on 28 April 2003.

147

Annex 1 Water supply providers using artesian wells in Tanjung Mas in 2005

Honehold Number Note: the Name of the Owners and the Purpose of Organization Association Extracting Water (Total Household Associations) 1(9) - 2 For the mosque and as water sources of the water peddlers 11(8) 2 8 ΙΠ(9) 3 Munaji*) 4 Siti Mursidah IV (8) 4 Suyono, Dawam, and Nganmin V(10) 8 Harjono VI (10) 8 Sarjono vn(io) 1 Nasimun Vin (8) 2 DC (8) 2 HenSutanto'^andH Rasi 4 Jatmiko X(6) 1 Sukemi 2 UsedbyPDAM XI (8) - XII (3) 7*") 2 Muiiono and Abdul Razak 8 2 Ta'in and Sugtono xm(6) 1 1 Yanto 3 1 Widodo 4 1 Joko XIV (9) 1 1 Maryo 2 2 Η HasimandH Mashun 3 I Zaenudin 4 2 Η SuhenandMrs Kamiah 5 2 Supamo and Sueb 7 1 Misron 8 1 Samnun XV (9) 1 2 Nasir and Imam Mahmudi (from the government aid) 3 2 Η Tashm and Solikin 4 1 Sayudi 5 1 Mulyono XVI (5) 1 1 Masrukan 2 1 Margone 4 2 Moti Tarom and Suwito Sources Interviews with the Chiefs Neighbourhood Organization

Note *) the water was sold using cans, people bnng their cans from their houses **) also as water sources of the water peddlers ***) The Houehold Association started from 6 to 8

149 Annex 2 Questionnaire for village head or secretary

Part 1 : Water Supply Provision

The Current Water Supply Provision

Please identify if there is water supply at your kelurahan provided by: 1. PDAM Yes/No if Yes mention the RT/RW 2. Deep or shallow wells: Private wells Yes/No if Yes mention the RT/RW Community/public wells Yes/No if Yes mention the RT/RW 3. Refilled-bottled water kiosk Yes/No How many kiosks unit Address in RT/RW 4. Bottled water (sold in 20 Utre/galon): How many producers of bottled water, if any unit Address: Is there any retailer of bottled water sold in galon? Yes/No If Yes, how many unit Address: 5. Water Peddlers: Is there water peddler in the kelurahan? Yes/No Is the water peddler the inhabitant of the kelurahan?Yss/No If Yes, what is the address? 6. Are there any other sources of water supply? Yes/No If Yes, mention

Please identify if there is any changes in water supply in the last 10 years.

1. Water sources before 2. When the changes happened? 3. Why there is a change?

Part 2:

Village Monograph

For the village monograph, we will use the available monograph prepared by each kelurahan, although there is a possibility that the monographs do not use the same format or standard. For example, the monograph of Kelurahan Tawangsari is different from the monograph of Kelurahan Panggung Lor and Kelurahan Tanjung Mas in the grouping of the inhabitants' age.

150 Annex 3 Tidal flood at Port Tanjung Mas

Source: Kompas Central Java Edition 2 June 2005: A.

151 Annex 4 Tidal flood at Johar Market

Source: Kompas Central Java Edition I June 2005: A.

152 Annex 5 Guided interview topics

General Information

Respondent's name: Address:

How many people are living in your house? Please mention your relationship with them. How old are they? What do they do? Does he/she have a permanent job? What kind of temporary jobs do they have?

The Condition in the Past

When did you move to your current house? Tell me the assets you have when first you moved (natural, physical, financial, social, and human)

1. Natural assets: Did you have any wells? Did you have land to dig a well? I low was the quality of the water? 2. Physical assets: If you get water shortages: did you have any vehicle/buckets to pick water? Did you have any water tank? Did you own the house? Did you have a water pump? Was it possible to buy the water by phone? 3. Financial assets: If you have any financial problems, what did you do (borrow some money to banks/money lenders/relatives/neighbours)? 4. Human assets: Have you ever got sick because of the water? What kind of sickness? Was it serious? Who was sick besides you? Did you know about the quality of the water? Please explain how to recognize that the water was bad? Did you know how to improve the quality of the water (please describe the technique)? 5. Social assets: If you got water shortages to whom did you ask for help?

When did the changes in water supply provision happen? Why did the changes happen? Why did you choose the provider? Who was the new provider (was it the same)? Were there any problems during the changing period? How did you overcome the problem of water shortages?

1. Be thrifty in using water? 2. Built or buy a water tank? 3. Looked for a way to improve the quality? How? 4. Borrowed some money or sold your belongings to overcome the problems? 5. Asked your neighbours/relatives? Asked the village ofTicer or other government officers? . -. 6. Moved?

The Current Conditions

What environmental problems do you face nowadays? (Note for the interviewer: please cross check with the environmental problems at the city and the community level; and check whether there are specific problems they face)

At the city level, the environmental problems are: sea flood, rain flood, water pollution, sea water intrusion, water table drop, and drought

At the community level: 1. The leaked water supply pipes. 2. The electricity off. 3. The depth of the artesian wells. 4. The sea tide. 5. The rain flood. 6. The smell ofthePDAM water. 7. The bad quality of the water from shallow wells. 8. The salty water of the artesian wells. 9. The economic and financial problems. 10. The health problems. 11. The garbage problems. 12. The increasing tariff of the water, especially from water peddlers. 13. The problems on water pump. 14. No watertanks. 15. The inconveniences to drag water cart whenever the people have to take the water themselves. 16. The difficulties to get connected to PDAM. 17. The turbid water from PDAM. 18. The high cost to buy bottled water for drinking.

How is the current condition? Is it better? Compare the assets in the past and the assets nowadays, for example the condition of the house, the ownership of motor vehicles, etc.

Who is the current water supply provider? If there is more than one provider please mention and what for the water from each provider. Does your neighbour subscribe from the same provider? If it is not, why? What are the problems you face with the current provider? Does every body face the same problems? Does it get worse? What do you usually do to overcome the problems? What is the impact of the problems you face on your assets? Do you have any suggestion to overcome the problems? How many cubic metres or how much do you pay for the water every month on average? How many percent of the incomes of all people living in this house is used for the water. 154 Annex 6 The original and new list of respondents

Neighbourhood Household Water Supply Chanees Vulnerability Share Artesian PDAM Services Artesian Wells to Water Peddlers Buy Water from Category Wells since the BeRinnrng PDAM Services PDAM Subscribers Old City x/MadamS Madam M x/Grandma Ν x/Madam S (RC80C) (RC60C) (RC130C) (RC90C) Basuki/x x/SisterT (RC140C) Madam Sg (RC10OC) x/MadamK Srtt x/Madam Β (RC50C) (RC20Q Madam S (RC110C) Madam A/x x/MadamTS x/MadamH Madam H/x (RC120C) (RC40C) x/Madam A HBarl/x (RCIOC) Madam TS/x x/Madam R (RC70C)

Note 1 the name behind the slash is the replacing respondent 2 χ before the slash means actually there is no respondent recommended on the original list 3 χ after the slash means that there is no replacing respondent, and 4 Ihe number between brackets is Ihe respondent's code «η

Neighbourhood Vulnerability Water Supply Changes Category Shallow Wells to Shallow Wells to Artesian Wells to PDAM Non-piped Artesian Others Artesian Wells PDAM Services Services WeUs to Piped Artesian Wells Kebonharjo Madam M M/Madam Sut Sut/Madam Τ (RC10KH) Tug/Madam Sur Madam Tuk (RC19KH) (RC14KH) (RCI1KH) (RCISKH) P/Madam S S u/Madam E Y/Madam D(RC21KH) W/Madam Fm Madam War (RC7KH) (RC27KH) (RC9KH) (RC39KH) R/Madam D Madam Muh K/Madam Da (RC30KH) Madam K/Madam S MadamN(RC8KH) (RC38KH) (RC12KH) (RC26KH) l/Madam S Suy/Madam S Madam Sr (RC29KH) W/Madam Mug x/Madam Τ (RC46KH) (RC40KH) (RC34KH) (RC2SKH) N/Madam M Sun/Madam Sur Das/Madam F (RC33KH) Mur/Madam S x/Madam Tasr (RC18KH) (RC36KH) (RC24KH) (RC47KH) R/Madam W W/Madam AS K/Madam Sul (RC43KH) R/Madam Sum x/Madam S (RC48KH) (RC13KH) (RC45KH) (RC31KH) S/Madam Sa Madam Sai/Madam M/Madam Κ (RC23KH) Madam D/Madam J x/Madam Suw (RC37KH) Ν (RC20KH) (RC16KH) (RC49KH) S/Madam M Madam F/Madam Τ Sal/Madam Sr (RC28KH) Sam/MadamH x/Madam Mar (RC41KH) (RC22KH) (RC52KH) (RC50KH) S/Madam Β Madam Sugi T/Madam Suh (RC44KH) Jon/Madam Teg x/Madam Sup (RCSIKH) (RC42KH) (RC32KH) (RC34KH)

Note: 1. the name behind the slash is the replacing respondent 2. χ before the slash means actually there is no respondent recommended on the original list 3. χ after the slash means that there is no replacing respondent, and 4. Ihe number between brackets is the respondent's code Neighbourhood Hnuwhold Water Supply Changes Vulnerabihty Artesian Wells Shallow Wells to Artesian Wells to Non-piped Artesian Wells Buy/ask from Category PDAM Services PDAM Services to Piped Artesian Wells PDAM subscribers Tambaklorok Grandma Madam L/Madam S x/GrandmaK Riverside M/GrandmaMa (RC9TR) (RC13TR) DR/Madam Mu Madam M (RC8TR) x/MadamL (RC14TR) (RC3TR) Madam W/Madam Grandma K/Madam x/GrandpaM Sam(RC19TR) D (RC10TR) (RC16TR) D/x P/Madam DR x/MadamN (RC11TR) (RC17TR) Mu/x G/MadamR x/MadamW (RC18TR) (RC6TR) Muj/x Madam Sut x/Madaml (RC20TR) (RC2TR) Madam H Sg/Madam Mu x/Mnihrn Sud (RC12TR) (RC15TR) (RC7TR) H Dj Si/Madam S x/MadamSug (RC5TRÌ (RC21TR) HRas/x Rus/Madam AS x/MadamRas (RC1TR) (RC4TR) Note 1 the name behind the slash is the replacing respondent 2. χ before the slash means actually there is no respondent recommended on the original list 3 χ after the slash means that there is no replacing respondent, and 4 the number between brackets is the respondent's code so

Neighbourhood Household Water Supply Changes Vulnerability Shallow Wells to Shallow Wells to Artesian Wells to Non-piped Artesian Wells Buy from Category Artesian Wells PDAM Services PDAM Services to Piped Artesian Wells PDAM subscribers Tamboklorok Grandpa SU (RC7TS) Seaside MadamS(RC2TS) Grandma M (RC6TS) MadamM(RC4TS) MiA(RC8TS) Grandma M (RC9TS) Madam M (RC ITS) Madam W(RC5TS) R/MrMs(RC3TS)

Note 1. the name behind the slash is the replacing respondent 2. χ before the slash means actually there is no respondent recommended on die onginal list 3 χ after the slash means that there is no replacing respondent, and 4. the number between brackets is the respondent's code References

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Regulations

Central Java Provincial Act No. 6/2002 on groundwater extraction. Central Java Provincial Act No. 7/2002 on groundwater extraction tax. 165 Government Act No. 16/2005 on the development of the water supply system. Government Act No. 43 on groundwater. Law No. 1/1967 on foreign direct investment. Law No. 11/1970 on foreign direct investment. Law No. 11/1974 on irrigation. Law No. 7 of 2004 on water resources. Ministry of Health Decree No. 907/MENKES/SK/VII/2002 on inspections for drinking water quality. Ministry of Home Affairs Decree No. 2/1998 on the guidelines of drinking water tariff calculation. Ministry of Home Affairs Decree No. 23/2006 on the guidelines for PDAM tariff setting. Ministry of Home Affairs Decree No. 47/1999 on guidelines for evaluating the performances of PDAMs Ministry of Home Affairs Instruction No. 8/1998 on the guideline instruction of drinking water tariff calculation. Ministry of Industry and Trade Decree No. 705/MPP/Kep/l 1/2003 on bottled water. Ministry of Industry and Trade in 2004 through Decree No. 651/MPP/Kep/I0/2004 on the technical requirements for water kiosks and their position in the water trade. Ministry of Public Works Decree No. 438/KPTS/M/2006 and No. 432/KPTS/M/2007 on the establishment process of the National Water Board. Presidential Decree No. 118/2000 on private sector participation in urban water supply delivery. Presidential Decree No. 96/2000 on private sector participation in urban water supply delivery. Semarang City Mayor Decree No. 17/2009 on PDAM tariff. Semarang City Mayor Decree No. 690/303/2002 on PDAM tariff.

166 About the author

Wijanto Hadipuro was bom on 21 September 1963. Between 1983 and 1987 he studied at two different universities: the Department of Management, Faculty of Economics Atmajaya University and the Department of English, Faculty of Letters Gajahmada University, both in Yogyakarta. He graduated from Atmajaya University in 1987 and obtained his Bachelor of Arts from Gajahmada University in 1985. After eight years working as a professional in some companies in Bandung, in 1996 be took a master prgramme on industrial engineering at Bandung Institute of Technology majoring in Industral Policy.

In 1999 after his graduation at Bandung Institute of Technology, he started his carreer as a lecturer at Soegijapranata Catholic University in Semarang. He is a full time lecturer at the Department of Management, Faculty of Economics and Business in this university and as a part time lecturer at Post Graduate Programme on Environment and Urban Studies in the same university.

Since 2002, he has been intensively giving inputs and criticism on the Law No. 7 of 2004 on water resources. Besides becoming a resource person in many seminars and discussions on the law, he wrote articles in newspapers and scientific journals, both national and international, on urban water management. His activities brought him to attend two World Water Forums, in Kyoto Japan in 2003 and in Mexico in 2006, the World Water and Environmental Congress American Society of Civil Engineers (ASCE) in Sah Lake City, Utah the United States in 2004, and a research fellowship on Green Governance Project at the University of California Berkeley in Fall Semester 2007.

He is a member of the Environmental and Water Resource Institute ASCE. Facilitated by the fellowship programme of the Radboud University Nijmegen, the Netherlands, Wijanto started his PLD. study at the Department of Geography, of the same university in 2004. hadipuro@,vahoo.com and [email protected]. id

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