WASHINGTON D.C., June 6, 2018 – Six million Indonesians, including three million women, should have access to water through piped connections to their homes, due to a new US$100 million project approved today by the World Bank’s Board of Executive Directors. The biggest beneficiaries are expected to be the three million women who are disproportionately, truly affected by lack of access to clean water at home.
The National Urban Water Supply Project seeks to support Indonesia’s development through improved access to water sources and enhanced performance of water service providers in underserved urban areas. Today, nearly one out of two Indonesians lacks access to safe water, and more than 70 percent of the nation’s 260 million people rely on potentially contaminated sources.
“Stunting is one of the most urgent public policy challenges in Indonesia today. Our experience around the world has taught us that a multisector response is necessary, including improvement in basic services such as water and sanitation,” said Rodrigo A. Chaves, World Bank Country Director for Indonesia and Timor-Leste. “And with more than half of Indonesia’s population living in urban areas, the potential for gaining the development benefits of urbanization can only be realized if the need for such basic public services is met.”
The Government of Indonesia has set the goal of achieving universal access to water supply and sanitation by the end of 2019. This financing is part of a broader effort that will also combine national, provincial and local resources and the private sector’s collaboration.
Despite robust economic growth and significant poverty reduction, Indonesia’s inequality remains high. About one-third of this inequality can be traced back to inequality of opportunity, such as lack of access to clean water, leading to long-term consequences to human development such as stunting and malnutrition.
“The Bank’s investment will contribute to the government’s financing, targeting specific investments and technical assistance to directly increase water access and improve the efficiency of local water service providers,” said Irma Magdalena Setiono, World Bank Water Supply and Sanitation Specialist in Indonesia.
A key component of this project will support the central government in providing investment support to at least 40 local governments and local government owned water supply enterprises. Some 200 local governments and local government owned water supply enterprises will benefit through better capacity and performance, as well as improved credit worthiness and climate resilience.
The World Bank’s support to Indonesia’s water and sanitation sector is an important component of the World Bank Group’s Country Partnership Framework for Indonesia, which focuses on government priorities that have potentially transformational impact.
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