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Indonesia Sanitation Report.Indd SEPTEMBER 2013 THE WORLD BANK Disclaimer The views expressed in this publication are those of the authors and not necessarily those of the Australian Agency for International Development (AusAID) Table of Contents Acknowledgments ............................................................................................................................................................................iii Abbreviations and Acronyms ...........................................................................................................................................................v Executive Summary ...........................................................................................................................................................................vii 1 Overview of the Urban Wastewater Management Sector in Indonesia ........................................................................1 1.1 Background .................................................................................................................................................................................................................................. 1 1.2 Sanitation Policy ........................................................................................................................................................................................................................ 3 1.3 Wastewater Management Technology ....................................................................................................................................................................... 5 1.4 Social Considerations ............................................................................................................................................................................................................. 7 1.5 Financing........................................................................................................................................................................................................................................ 8 1.6 Institutional Arrangements for Sanitation ................................................................................................................................................................. 9 2 Sector Performance Issues Analysis .....................................................................................................................................13 2.1 Drivers and Barriers to Sanitation in Indonesia ...................................................................................................................................................... 13 2.1.1 Current Drivers to Sanitation Development in Indonesia ................................................................................................................. 13 2.1.2 Current Barriers to Sanitation Development in Indonesia ................................................................................................................ 14 2.2 Key Issues Impacting on Sanitation Provision in Indonesia ........................................................................................................................... 16 2.2.1 Political Economy ........................................................................................................................................................................................................ 17 2.2.2 Financing .......................................................................................................................................................................................................................... 19 2.2.3 Implementation Capacity ...................................................................................................................................................................................... 20 2.2.4 Management and Regulation of Sanitation Systems ........................................................................................................................... 21 2.2.5 The Interface between Community-managed and Institutionally-managed Services .................................................. 23 2.2.6 Septage Management ............................................................................................................................................................................................. 24 3 Recommendations ...................................................................................................................................................................29 3.1 Policy Recommendations .................................................................................................................................................................................................... 30 3.2 Institutional Recommendations ...................................................................................................................................................................................... 31 3.3 Technology Recommendations ...................................................................................................................................................................................... 32 3.4 People Recommendations ................................................................................................................................................................................................. 34 3.5 Financing Recommendations ........................................................................................................................................................................................... 35 i URBAN SANITATION REVIEW: INDONESIA COUNTRY STUDY ANNEXES ..............................................................................................................................................................................................37 Annex 1: Sector Performance in Indonesia ............................................................................................................................................................................ 39 Annex 2 – City Case Studies ............................................................................................................................................................................................................. 41 Annex 2.1 -- Case Study: Banjarmasin Municipality ............................................................................................................................................ 43 Annex 2.2 -- Case Study: Medan Municipality ........................................................................................................................................................ 45 Annex 2.3 -- Case Study: Surakarta Municipality ................................................................................................................................................... 47 Annex 2.4 -- Case Study: Palembang Municipality .............................................................................................................................................. 50 REFERENCES ........................................................................................................................................................................................51 BOXES Box 2.1 Comparison of Indonesian Experience with that of Selected Latin American Countries ............................................ 16 Box 2.2 Political Economy of Sanitation in Indonesia ........................................................................................................................................... 18 Box 2.3 Investment in Indonesia’s Water Sector ....................................................................................................................................................... 19 Box 2.4 Decentralized Sewerage Systems in Malang ........................................................................................................................................... 25 FIGURES Figure 1: Wastewater and Septage Flow in Urban Indonesia ............................................................................................................................. viii Figure 1.1: History of Sanitation Development in Indonesia .................................................................................................................................. 2 Figure 1.2: Individual, Community and Institutional-based Sanitation Approaches ............................................................................... 4 Figure 1.3: Wastewater and Septage Flow in Urban Indonesia ............................................................................................................................. 6 Figure 1.4: Total National Government Sanitation Budget (2006-2012) .......................................................................................................... 8 Figure 2.1: Weaknesses in Local Government Sanitation Service Delivery .................................................................................................... 17 Figure 2.2: Proposed Arrangements for Local Governance of Sanitation Systems ................................................................................... 22 TABLES Table 1.1: Sewerage Systems in Indonesia ......................................................................................................................................................................
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