USAID URBAN WATER SANITATION AND HYGIENE

QUARTERLY PROGRESS REPORT 8 JANUARY - MARCH 2013

APRIL 2013 This report is made possible by the support of the American People through the United States Agency for International Development (USAID). The contents of this report are the sole responsibility of DAI and do not necessarily reflect the views of USAID or the United States Government.

Cover Photo The Mayor of Tebing Tinggi City, Ir. H. Umar Zunaidi Hasibuan (in gray shirt) looks at photos of Hebat Program activities, with Gulbakhri Siregar, SIP, MSi, Head of the Regional Development Planning Board of Tebing Tinggi City (in government staff uniform) and Louis O'Brien (in Batik shirt) during a Partnership Workshop for the Hebat Program on February 27, 2013.

The Hebat Program (Energetic, Clean and Healthy Living Program) is a USAID IUWASH grant program implemented by Yakmi, a non-governmental organization, to promote clean and healthy living by promoting the use of public bathing, washing and toilet facilities and communal wastewater treatment plant by local communities in Tebing Tinggi City.

Photo credit: Sie Ket Liong, IUWASH North Sumatra.

USAID INDONESIA URBAN WATER SANITATION AND HYGIENE

QUARTERLY PROGRESS REPORT 8 JANUARY - MARCH 2013

Program Title: USAID Indonesia Urban Water Sanitation and Hygiene

Sponsoring USAID Office: USAID/Indonesia Office of Environment

Contract Number: AID-497-C-11-00001

Contractor: DAI

Date of Publication: APRIL 2013

Author: DAI

This report is made possible by the support of the American People through the United States Agency for International Development (USAID). The contents of this report are the sole responsibility of DAI and do not necessarily reflect the views of USAID or the United States Government.

TABLE OF CONTENTS

TABLE OF CONTENTS ...... II LIST OF ACRONYMS ...... IV

COVER STORY ...... VIII A HAPPY-END FOR HEBAT PROGRAM ...... VIII

EXECUTIVE SUMMARY ...... XI

INTRODUCTION ...... 1 IUWASH IN BRIEF ...... 2 SUMMARY OF ACHIEVEMENTS ...... 3 HIGH LEVEL RESULTS & COMPONENT LEVEL PROGRESS ...... 4 INTRODUCTION ...... 4 HIGH LEVEL RESULTS ...... 5 WATER SUPPLY SECTOR ...... 7 Program WS 1: Improved PDAM Operational Aspects ...... 9 Program WS 2: Improved PDAM Financial Aspects ...... 12 Program WS 3: Improved PDAM Customer Engagement Aspects ...... 13 Program WS 4: Raw Water Management and Climate Change Adaptation Planning ...... 14 Program WS 5: Microfinance ...... 16 Program WS 6: Master Meter ...... 16 Program WS 7: Long-Term Finance ...... 17 Program WS 8: PDAM Institutional Support ...... 18

SANITATION SECTOR ...... 20 Program SAN 1. Increased access through Individual Sanitation Systems ...... 22 Program SAN 2. Increased sanitation access through communal systems ...... 24 Program SAN 3: Increase access through off-site sanitation (sewerage) ...... 25 Program SAN 4: Improved Urban Sludge Management ...... 27 Program SAN 5: Support for Pokja Sanitasi/AMPL ...... 28

CROSSCUTTING SECTOR ...... 30 Program CC-1: Increased Number of PEMDA Policies ...... 30 Program CC-2: Increased Local Government Budget (APBD) ...... 31 Program CC-3: Improved Citizen Engagement...... 32 Program CC 4: Increased Practices in Point of Use Water and Hand Washing with Soap ...... 33 Program CC 5: Gender Mainstreaming ...... 34 Program CC-6: Mobilize Corporate Social Responsibility (CSR) Funding ...... 36

GRANTS PROGRAM ...... 38

NATIONAL ACTIVITIES & KEY UPCOMING EVENTS ...... 43 1. General Project Management ...... 43 2. Project Communications and Reporting ...... 44 3. Monitoring and Evaluation ...... 45 4. Environmental Compliance ...... 47

ii REGIONAL HIGHLIGHTS & CLUSTER REPORTS ...... 48 NORTH SUMATRA ...... 50 Summary ...... 51 Success Stories ...... 51 Regional highlights by sector ...... 53 Upcoming Events ...... 55 Cluster Report ...... 56

WEST JAVA/DKI JAKARTA/BANTEN ...... 66 Summary ...... 67 Success Stories ...... 68 Regional highlights by sector ...... 70 Upcoming events ...... 72 Cluster Reports ...... 73

CENTRAL JAVA ...... 81 Summary ...... 82 Success Stories ...... 83 Regional Highlights by Sector ...... 85 Upcoming events ...... 87 Cluster Reports ...... 88

EAST JAVA ...... 94 Summary ...... 95 Success Stories ...... 96 Regional highlights by sector ...... 98 Upcoming events ...... 100 Cluster Report ...... 101

SOUTH SULAWESI/EASTERN INDONESIA ...... 108 Summary ...... 109 Success Stories ...... 110 Regional highlights by sector ...... 112 Upcoming Events ...... 114 Cluster Report ...... 114 PROJECT MONITORING & EVALUATION ...... 124 INTRODUCTION ...... 124 IUWASH PROGRESS BASED ON PMP ...... 125 ANNEXES ...... 138 ANNEX 1: IMPLEMENTATION OF IUWASH PROGRAM FRAMEWORK ...... 138 ANNEX 2: WATER SUPPLY MATRIX ...... 139 ANNEX 3: SANITATION MATRIX ...... 140 ANNEX 4: LIST OF POLICIES DEVELOPED ACROSS THE IUWASH REGION ...... 141 ANNEX 5: STATUS OF DEVELOPMENT OF PARTNERSHIP AGREEMENTS ...... 143 ANNEX 6: MATRIX MANAGEMENT CHART ...... 145 ANNEX 7: ACHIEVEMENT OF IUWASH PMP OUTCOMES, STATUS OF MARCH 2013 ...... 146 ANNEX 8: TRAINING, WORKSHOP AND SEMINAR ACTIVITIES OF SECOND QUARTER OF THIRD YEAR ...... 178

iii LIST OF ACRONYMS

The following is a list of acronyms commonly used in this report and on the project as a whole.

ADB Asian Development Bank AIDAR Agency for International Development Acquisition Regulations Akatirta Wiyata Akademi Teknik Tirta Wiyata / Tirta Wiyata Technical Academy AMPL Air Minum dan Penyehatan Lingkungan / Drinking Water and Environmental Health APBD Anggaran Pendapatan dan Belanja Daerah / Local Government Budget APBN Anggaran Pendapatan dan Belanja Negara / National Government Budget APOKSI Aliansi Kota Peduli Sanitasi / Alliance of Cities Concerned about Sanitation AusAID Australian Agency for International Development Bappeda Badan Perencanaan dan Pembangunan Daerah / Local Development Planning Agency Bapemas Badan Pemberdayaan Masyaraka Bappenas Badan Perencanaan dan Pembangunan Nasional / National Development Planning Agency Bawasda Badan Pengawas Daerah / Regional Supervisory Board BCC Behavior Change Communications BJB PT Bank Pembangunan Daerah Jabar Banten / Regional Development Bank of West Java and Banten BKM Badan Keswadayaan Masyarakat/ civil society organization BNI Bank Nasional Indonesia BPKP Badan Pengawasan Keuangan dan Pembangunan / Finance and Development Audit Board BPRS Bank Pembiayaan Rakyat Syariah / Sharia Rural Bank BRI Bank Rakyat Indonesia BSM Bank Syariah Mandiri BTPN Bank Tabungan Pensiunan Nasional / National Pensioners’ Savings Bank C1 Component One C2 Component Two C3 Component Three CBO Community-Based Organization CC Climate Change CCVA Climate Change Vulnerability Assessment CEM Citizen Engagement Mechanism CJ Central Java CLTS Community Led Total Sanitation COP Chief of Party COR Contracting Officer’s Representative CSO Civil Society Organization CSR Corporate Social Responsibility CSS Citywide Sanitation Strategy CWL Creditworthiness Ladder DAI Development Alternatives Inc. (IUWASH prime contractor) DAK Special Allocation Fund DD Diarrheal Disease DED Detailed Engineering Design DEWATS Decentralized Wastewater Treatment Systems DCOP Deputy Chief of Party DPIU District Project Implementation Unit

iv DPRD Dewan Perwakilan Rakyat Daerah / Local House of Representatives EJ ECO-Asia Environmental Cooperation – Asia (USAID) EE Enabling Environment (for improved service delivery, Component 3) EMMP Environmental Mitigation and Monitoring Plan ESP Environmental Services Program (USAID) FTL Field Technical Liaison GCM Global Circulation Model GEC Grant Evaluation Committee GIS Geographic Information Systems GUC Grants under Contract HWWS Handwashing with Soap IBL Indonesia Business Links IC Improved Capacity (for service delivery, Component 2) ICED Indonesia Clean Energy Development Project (USAID) IDR Indonesian rupiah IEE Initial Environmental Examination IndII Indonesia Infrastructure Initiative (AusAID) IPA Instalasi Pengelolaan Air Minum/ Water Treatment Plan IR Intermediate Result ISSDP Indonesia Sanitation Sector Development Program ITS Surabaya Technology Institute IUWASH Indonesia Urban Water, Sanitation and Hygiene JICA Japan International Cooperation Agency KSM Kelompok Swadaya Masyarakat (Community-based Group) KSR Kupedes untuk Sambungan Rumah / Rural Development Credit for Household Connections Kupedes Kredit Umum Pedesaan/ Village Credit LG Local Government M&E Monitoring and Evaluation MBR Masyarakat Berpenghasilan Rendah / Low-income communities MC Microfinance Specialist MCK++ Mandi Cuci Kakus plus plus / Bathe, Wash, Latrine “plus plus” MD Mobilized Demand (for improved service delivery, Component 1) MFI Micro-Financing Institution MLD PT. Mitra Lingkungan Dutaconsult (IUWASH subcontractor) MOF Kementerian Keuangan / Ministry of Finance MOFA Kementerian Luar Negeri / Ministry of Foreign Affairs MOH Kementerian Kesehatan / Ministry of Health MOHA Kementerian Dalam Negeri / Ministry of Home Affairs MPSS Memorandum Program Sektor Sanitasi/ Sanitation Sector Programme Memorandum MPW Kementerian Pekerjaan Umum / Ministry of Public Works MOU Memorandum of Understanding MSMHP Metropolitan Sanitation Management and Health Project Musrenbang Musyawarah Perencanaan Pembangunan / Development Planning Consultation process NGO Non Governmental Organization NRW Non-Revenue Water O&M Operations and Maintenance PDAM Perusahaan Daerah Air Minum / Local Drinking Water Company Pefindo Pemeringkat Efek Indonesia (Rating Firm) PEMDA Pemerintah Daerah / Local Government

v PERPAMSI Persatuan Perusahaan Air Minum Seluruh Indonesia / Union of Indonesian Water Supply Enterprises Perbup Peraturan Bupati / Regent Regulation Perpres Peraturan Presiden / Presidential Regulation Perwal Peraturan Walikota / Mayor Regulation PII Penjaminan Infrastruktur Indonesia / Indonesia Infrastructure Assurance PKK Pemberdayaan Kesejahteraan Keluarga / Family Welfare Empowerment PKS Perjanjian Kerja Sama / Cooperation Agreement PMK Peraturan Menteri Keuangan / MOF Decree PMP Performance Monitoring Plan PNPM Mandiri Program Nasional Pemberdayaan Masyarakat Mandiri / National Program for Community Self-Empowerment Pokja Kelompok Kerja / Working Group Pokja PUG Pokja Pengarusutamaan Gender/ Gender Mainstreaming Working Group Pokja-San Kelompok Kerja Sanitasi / Sanitation Working Group Posyandu Pos Pelayanan Terpadu / Integrated (health) Services Post POU Point of Use PPKM Program Peningkatan Keberdayaan Masyarakat / Increased Community Empowerment Program PPP Public Private Partnership PPRG Perencanaan dan Penganggaran Responsif Gender PPSP Percepatan Pembangunan Sanitasi Perkotaan / Accelerated Urban Sanitation Development PTI Participant Training Information PU Pekerjaan Umum / (Ministry of) Public Works QPR Quarterly Progress Report RAD Rencana Aksi Daerah / Local Action Plan RT Rukun Tetangga / Neighborhood Association RW Rukun Warga / Community Association, equal to Ward Sanimas Sanitasi Berbasis Masyarakat / Community-Based Sanitation SDG Sanitation Donor Group SLBM Sanitasi Lingkungan Berbasis Masyarakat/ Community-Based Environmental Sanitation SME Small and Medium Enterprises SMI Sarana Multi Infrastruktur (Infrastructure finance intermediary) SOP Standard Operating Procedures SOW Scope of Work SS/EI South Sulawesi and Eastern Indonesia SSK Strategi Sanitasi Kota / Citywide Sanitation Strategy (see CSS) SSLT Sludge Service System STBM Sanitasi Total Berbasis Masyarakat / Community-Based Total Sanitation STTA Short Term Technical Assistance TA Technical Asistance TAMIS Technical and Administrative Management Information System TMG The Manoff Group (IUWASH subcontractor) UPTD Unit Pelaksana Teknis Daerah/ Regional Technical Unit USAID United States Agency for International Development USD United States dollars USDP Urban Sanitation Development Program USRI Urban Sanitation and Rural Infrastructure WASPOLA Water Supply and Sanitation Policy Formulation and Action Planning Watsan Water and Sanitation WES Water, Environment and Sanitation

vi WRM Water Resource Management WSP Water and Sanitation Program (World Bank) WTP Water Treatment Plant WWTP Wastewater Treatment Plant YLKI Yayasan Lembaga Konsumen Indonesia / Indonesian Consumer Institute Foundation

vii COVER STORY

A HAPPY-END FOR HEBAT PROGRAM

The boy took a deep breath as he got ready. The stage for the closing ceremony of the Hebat Program in Tanjung Marulak Hilir Village, Tebing Tinggi City was awaiting his arrival. Twleve-year-old Rocky Rangkuti quickly climbed up onto the stage. where he recited a poem he had written.

“..You take us to play and to have fun And you also teach us knowledge

We didn’t care about health IUWASH Nort Sumatra But now we do Rocky Rangkuti takes the stage and reads a poem of appreciation for the Hebat Program during a We didn’t dare to speak out Partnership Workshop for the Hebat Program on February 27, 2013 in Tebing Tinggi City. But now we do.”

Rocky’s short poem expressed his appreciation for the Hebat Program (Hebat is an acronym for Energetic, Clean and Healthy Living) implemented by Yakmi, a non-governmental organization that received grants from USAID-IUWASH to promote clean and healthy living in the local communities of Tebing Tinggi City through the use of public bathing, washing and toilet facilities and a communal wastewater treatment plant.

Rocky learned about the Hebat Program from a group of local women. As users of public bathing, washing and toilet facilities, they had been involved with Hebat Program for some time. The women asked Rocky to join the program since it included activities for children.

Under the Hebat Program, Yakmi encouraged people living in the local community to stop defecating in the open by using existing public bathing, washing and toilet facilities in the neighborhood. It also encouraged the people to form a community group to manage and maintain these facilities. Each family using the facilities pays Rp 1,000 per day, regardless of the number of visits or the size of the family.

A unique feature of the Hebat Program was its focus on children. They were taught basic hygiene, were remidned to wash their hands properly at five important times each day, and were educated as to why open defecation needs to stop. These children became active agents of change who urged their families and other children to lead clean and healthy lifestyles.

As an active participant in the program, Rocky understood that defecating in the fields (a common behavior for kids his age) brought shame and disease. He also practiced washing his hands properly at home.

The Hebat Program was appreciated by both the community and the local government. In Tebing Tinggi and Tanjungbalai, where the program was active in six urban villages, the local government was keen to scale up the Hebat Program to include other locations.

viii Ir. H. Umar Zunaidi Hasibuan, the Mayor of Tebing Tinggi said, “The community groups will become agents of change in their communities. We are planning to scale up the Hebat Program under the watch of the related Local Government Work Unit (SKPD).”

By the time the program ended in January 2013, the Hebat Program had ensured that 1,205 people living in Tebing Tinggi and Tanjungbalai gained access to improved sanitation services, 354 households were willing to pay for sanitation improvements, 13 civil society groups had implemented programs to mobilize improved access to safe drinking water and adequate sanitation, and 954 people had participated in training activities.

ix x

EXECUTIVE SUMMARY

This is the eighth Quarterly Progress Report (QPR) of the USAID Indonesia Urban Water, Sanitation and Hygiene (IUWASH) project, covering the period from January through March 2013. IUWASH is a five-year program aimed at substantially increasing access to safe water supply and improved sanitation across Indonesia’s urban landscape, with a particular focus on improving access to these services for the urban poor. With USAID funding of US$33.7 million dollars, the Project is expected to result in the following benefits to Indonesia: • Two million people in urban areas gain access to improved water supply; • 200,000 people in urban areas gain access to improved sanitation facilities; and • The per-unit water cost paid by the poor in targeted communities decreases by at least 20%.

This report covers the second quarter under what is referred to as IUWASH Project Year 3 (PY3) which runs from October 2012 through September 2013. The Annual Workplan for PY3 is designed to take advantage of the platform that IUWASH put into place in previous project years through further engaging and supporting stakeholders in: matching sector needs at the local level with resources available from local budgets, national programs and the private sector; substantially advancing in the process of increasing coverage rates; and improving the ability of local partners to sustainably manage sector improvements. This focus recognizes that there is currently a ‘window of opportunity’ within which to make substantive progress in the sector and that IUWASH is uniquely placed to facilitate such progress on a broad range of fronts.

Main Achievements Notable achievements during the reporting period as concerns the High Level results targeted by IUWASH included: 501,670 people gaining access to safe water supply (note that this is a result registered over a six month period and not only the past quarter); 11.990 people gaining access to improved sanitation; and a decrease of 35% in water costs for poor people. A total of 3,559 people were also trained in IUWASH-related areas, with women accounting for 34.36% of all training participants. Additional information on the above and other results targeted by IUWASH is provided in the main body and annexes to this report.

Partnerships During the Quarter, IUWASH continued to expand and build upon relationships with key partners among central government agencies, local governments and service providers, donors, the private sector and CSOs in all work areas. This notably involved the establishment of formal agreements with: · Bank Syariah Mandiri (BSM) in support of microfinance lending to improve the ability of low income populations to pay for piped water and sanitation facility installation costs; and · Perum Perhutani, the state-run forestry company, to support programs aimed at improviiong the recharge of springs that serve important urban populations. · Additional municipalities for overall cooperation with IUWASH, bringing the total number of Partnership Agreements signed with local governments to 47.

In addition to the above, IUWASH began providing assistance in the development of an MOU which may be used to engage Miya, a private sector company, in support of Non-Revenue Water (NRW) work.

As concerns specific programmatic areas which contribute to overall IUWASH progress these are divided into four (4) main areas: water supply, sanitation, cross-cutting areas, and grants. Specific progress under each is detailed below.

xi

Water Supply (WS) Programs One of the primary objectives of IUWASH is to increase access to improved water for two million people. This involves supporting local water utilities (PDAMs) in improving their overall operational issues, as well as addressing important concerns related to governance, customer feedback, raw water availability, long-term finance, and similar areas. Grouped under eight programmatic areas of intervention, some highlights during the Quarter included: · Initiation of four (4) Energy Efficiency Audits for PDAMs in North Sumatra, as well as agreement with Ministry of Public Works and USAID Indonesia Clean Energy Development (ICED) project on the development of Energy Efficiency Audit (of EEA) Guidelines. · In the area of Non-Revenue Water (NRW) reduction, introduction to several municipalities of a possible Performance Based Contracting (P