INDONESIA INFRASTRUCTURE INITIATIVE-Picture

Developing an integrative water supply provision to save the ecosystemAn agenda for water supply reform in Indonesia

INDONESIA INFRASTRUCTURE INITIATIVE

Developing an integrative water supply provision to save the ecosystemAn agenda for water supply reform in Indonesia

AIIRA RESEARCH REPORT

30th June, 2015

INDONESIA INFRASTRUCTURE INITIATIVE

This document has been published by the Indonesia Infrastructure Initiative (IndII), an Australian Government funded project designed to promote economic growth in Indonesia by enhancing the relevance, quality and quantum of infrastructure investment.

The views expressed in this report do not necessarily reflect the views of the Australia Indonesia Partnership or the Australian Government. Please direct any comments or questions to the IndII Director, tel. +62 (21) 7278-0538, fax +62 (21) 7278-0539. Website: www.indii.co.id.

ACKNOWLEDGEMENTS

This report has been prepared by an Indonesian and International Research Partnership comprising Center for Management Studies and Development Soegijapranata Catholic University, and Crawford School of Public Policy the Australian National University, engaged under the Indonesia Infrastructure Initiative (IndII), an Australian Aid project managed by SMEC on behalf of the Australian Government, as part of the Australia Indonesia Infrastructure Research Awards (AIIRA) Program

The support provided by Indii, CMSD team (Richardus Indra Gunawan, Monika Palupi, Sokadinah Kacasungkana, Kusyana, Benny D. Setianto, and Agatha Ferijani) and Erik Olbrei is gratefully acknowledged. The report draws on Indii’s Project P255-01-CON. Any errors of fact or interpretation are solely those of the author.

Wijanto Hadipuro and Daniel Connel

Semarang and Canberra

30th June, 2015

© IndII 2015

The title to all Intellectual Property rights in or in relation to Agreement Material created during the course of the Activity vests in the Organisation upon its creation. The Organisation grants to DFAT a world-wide, irrevocable, royalty-free licence to use, reproduce, adapt or otherwise exploit the Agreement Material. The licence granted under this clause includes the right of DFAT to sub-licence any of its employees, agents or contractors to use, reproduce or otherwise exploit the Agreement Material for the purposes of performing functions, responsibilities, activities or services for, or on behalf of, DFAT. This clause does not affect the ownership of Intellectual Property in any Prior Material incorporated into the Agreement Material, but the Organisation grants to DFAT a permanent, irrevocable, non-exclusive, world-wide, royalty-free licence to use, reproduce, adapt and otherwise exploit such Prior Material in conjunction with the Agreement Material.

TABLE OF CONTENTS

ACRONYMS.........................................................................IIIEXECUTIVE SUMMARY.........................................................IIICHAPTER 1: BACKGROUND / INTRODUCTION..........................3CHAPTER 2: GOAL AND OBJECTIVES...............................................3CHAPTER 3: TEAM COMPOSITION.................................................3CHAPTER 4: GENERAL ISSUES.......................................................3CHAPTER 5: DESCRIPTION OF RESEARCH COMPLETED.............................3CHAPTER 6: SCHEDULTE OF KEY EVENTS...........................................3CHAPTER 7: BACKGROUND MATERIALS/REFERENCES.................................................3

ANNEXES.............................................................................3ANNEXE 1: ************......................................3ANNEXE 2: ************......................................3ANNEXE 3: ************......................................3ANNEXE 4: ************......................................3

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LIST OF TABLES

LIST OF FIGURES

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ACRONYMS

AIIRA Australia Indonesia Infrastructure Research Awards

Bappeda Provincial/Municipal/City Planning Office

BPPSPAMNational Supporting Agency for Water Supply System

Development

CMSD Center for Management Studies and Development

CSR Corporate Social Responsibility

DFAT Department of Foreign Affairs and Trade

FGD Focus Group Discussion

PAM Jaya Jakarta Local Government Water Supply Company

PDAM Local Government Water Supply Company

PES Payment for Environmental Services

PWS Payment for Watershed Services

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EXECUTIVE SUMMARY

Type in text here….

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CHAPTER I: BACKGROUND/INTRODUCTION

CHAPTER 1: BACKGROUND / INTRODUCTION

In 2014 only 20%1 of Indonesian population could be served by piped drinking water and 50% served by protected sources of water (Natsir, oral explanation in Kompas and P3M FEB Unika Soegijapranata discussion on 21st May, 2015). The 50% served by protected sources of water includes the wealthier families, industries and commercial areas which depend on groundwater sources of their own deep or artesian wells. With their financial and technological capacities, they can use better quality of groundwater sources. Another 30% which was not served by the two sources have to depend on the unprotected water sources (in some cases they depend on the degraded water sources from rivers and shallow wells). Studies on the issue of providing water for all, especially for the poor, show that it brings benefits by as 60 times of the costs; considering the fact that water services cater to social objectives and thus are considered as merit goods. It means that the consumption of water has a benefit to society beyond that which accrues to the individuals consuming it.

The target of the Government of Indonesia is that in 2019 100% Indonesian population will be served by both piped water supply and protected water supply sources (60% supplied by piped water services and 40% served by protected water supply services). To reach the target, according to the calculation of the Directorate General Cipta Karya of the Department of Public Works and Housing the fund needed is Rp. 253 trilion. With the cancellation of Law No. 7 issued in 2014 which anulled the role of private sector, the needed fund will rely on the national, regional and municipal/city budget. According to Natsir, the Directorate General Cipta Karya can only cover about 20% while the regional and local budget can contribute only about 15% of the needed fund. A big financial gap exists to reach the universal access target by the GoI in 2019.

Although the fund is available, there is no guarantee that the universal access will be met. A decrease of raw water supply will become another main obstacle to meet the target. In the last 30 years, the debit of the rivers in Indonesia is experiencing a decrease significantly. For example, Bengawan Solo River, Serayu and Cisadane River are experiencing a decrease about 45 cubic meter per second. In the case of Jakarta, two private partners of PAM Jaya, Palyja and Aetra are experiencing the same problem. Palyja predicted that the deficit in 2015 would be 9.1 m3/second. By 2023 this would increase to 13.1 m3/second. The availability for Jakarta inhabitants’ water supply in 2011 was only 17 m3/second. For Aetra, the inadequate supply of raw water from Jatiluhur Dam

1 The number is slightly different compared to Firdaus Ali’s presentation in the same discussion. According to Ali, the coverage of piped drinking water supply in 2014 was 47% for urban areas, 11% for rural areas, and 29% nationally.

DEVELOPING AN INTEGRATIVE WATER SUPPLY PROVISION TO SAVE THE ECOSYSTEM

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has resulted in a decrease of 1.9 million m3 in potential water volume supplied in 2012. Limited raw water supply is also experienced by PDAM Ambon City. This PDAM uses groundwater supply from deep wells and spring water. The capacity of raw water supply needed is 451 litre/second, while the availability is only about 248.5 litre/second.

One of the causes of the decrease in quantity is the problem at the catchment areas. In Lombok, for example, 21% (34,681 ha) of the forest out of 159,681 ha was damaged; six river basins are critical and four experiences water deficit; 40% springs have disappeared (Zaini, 2015); and there were about 500 ha of critical forest. In North Sumatra, the decrease of the forest area was officially ‘planned’. According to the decree of the Ministry of Forest No. 579 issued in 2014 the forest area was decreasing from 3,742,120 ha to 3,055,795 ha (18.4% decrease). In Ambon, the deficit was the result of hydrological changes caused by extensive deforestation in an area where only 15% of the original primary forest cover remains. Setyowati and Suharini (2011) in Muhammad (2013) also shows the same phenomenon in Semarang. Garang River Basin where water supply services for Semarang City inhabitants locate is experiencing land use changes at the upper side. From 1995 to 2010, 27.24 km2 (44.24%) area was changed to housing and industrial areas.

It is not only about the quantity, the quality in some of the locations of the study also experiences a decrease. For example, in Semarang Garang River Basin, the main source of raw surface water used by PDAM Tirta Moedal Semarang City can be categorized as second class with moderate to high contamination, which cannot be the source for raw water for PDAM. According to Central Java Governor Decree No. 156 issued in 2010, the quality of the water in Garang River should be the first class so that it can be an input for PDAM raw water. The problem of quality is also experienced by PAM Jaya. According to Governor of Jakarta Decree No. 582 issued in 1996 there are six indicators used to justify the quality of raw water (turbidity, Fe, coliform, Total Suspended Solid, organic and COD). And in 2014 in average all indicators were above the standard level (Kaderi, 2015).

An intervention to conserve catchment area is constrained by the limited budget for that purpose. A study made by Amrta Institute and Tifa Foundation (2009) shows that in Klaten, Boyolali, Sleman and Magelang Munipalities in 2000 – 2004 the budget for water conservation was only 7.1% of the budget for water spending. Allocating spending for conserving the catchment areas is not a priority in most of Indonesian munipalities. It is true that there are water tax and retribution, but there is no direct mechanism that the incomes from water tax and retribution will be disbursed to conserve water. Water tax and retribution belong to general fund of local budget and the allocation of the spending is based on political decision.

2DEVELOPING AN INTEGRATIVE WATER

SUPPLY PROVISION TO SAVE THE ECOSYSTEM


The fact that only 20% Indonesian population was covered by piped water supply delivered mostly by PDAM brings about, first, financial problem for PDAM. The covered population by PDAM mostly pay subsidized tariff to PDAM. In Jakarta (Aetra, 2011) and PDAM Semarang City (2014), for example, about 70% water distributed in a subsidized tariff. For Jakarta - in this case Palyja, one of the private partners of PAM Jaya, the break-even tariff in 2012 was Rp. 7,904. According to the Governor’s decree No. 17 issued in 2006, the tariff structure for PAM Jaya subscribers, which is still officially used, is divided into six categories. Four categories which constitute 62.69% of the subscribers are below the break-even tariff.

The classical example of poor tariff-setting, one which is found in almost all PDAMs in Indonesia, is due to the low contributions from both commerce and industry subscribers as a proportion of the total revenue of PDAMs. In PDAM Tirta Moedal of Semarang City for example, these two categories contributed less than 16% of the PDAM’s total annual revenue (just under Rp. 28 billion compared to just under Rp. 180 billion).

The dependence of the wealthier part of society to their own deep or artesian wells makes cross-subsidy mechanism cannot be implemented. And this results in the second problem of environmental degradation of seawater intrusion, land subsidence, water level drop such as experienced by Semarang and Jakarta. However, they cannot escape from this dependency, because of the limited capacity of piped water supply companies owned by local governments (PDAMs). The limited capacity of PDAMs concerns about their financial capacity and the raw water sources to expand the service.

The above problems, unfortunately, were not well addressed both by the GoI and also the multilateral and international developmental agencies. The GoI and some developmental agencies only see the limited financial capacity without relating it to the facts that PDAMs mostly serve the poor with a subsidized tariff, while the better off, industries and commercial areas which pay the commercial tariff do not use the service from PDAMs. This makes the cross subsidy mechanism does not work well. Moreover, because there is no solid system in charging the use of deep or artesian wells, this option is more likely to be chosen.

Some developmental agencies also only see that the limited PDAMs’ capacity is related only to the financial aspects, though the facts show that it is also caused by the decreasing amount of raw water supply both in quantity and also quality. Facilitating cross subsidy mechanism by changing the modes of supply of the better off, industries and commerce; and coping with the decreasing raw water supply, will surely promote investment to water supply sector.


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To cope with the limited capacity of PDAMs, many governmental institutions both at the national and local level give various aids to those uncovered by the PDAMs. For example, the Department of Public Works and Hosuing through its program Community-based Water Provision (Pamsimas) and local governments through almost the same program are trying to cope with the limited capacity of PDAMs. The problem is that all these programs use groundwater as their sources. As a matter of fact groundwater is more unsustainable compared to surface water which is the main source of bulk water of PDAMs. The other fact is that there is no coordination between and among these institutions with PDAMs. What is meant by coordination is that PDAMs are not involved in these programs and this has made communities served by these program are reluctant to change from groundwater sources to surface water sources when PDAMs are ready to give services to these communities.

Until today there is no discussion on how to make PDAMs as the only organizations which manage water supply in a certain area without considering whether the water is treated by PDAMs or not. In some cities/municipalities PDAMs have been involved in giving groundwater extraction permits by local governments for industries and commerce. What we need is not only involvement, but also the possibilities for PDAMs to be the organizations in charge in the management of ‘private’ water supplies (by better off households, industries and commerce). By this, PDAMs’ cross subsidy mechanism and also the efforts to maintain or even increase raw water can work well.

Maintaining or even increasing raw water is possible if only payment for environmental services (PES) can be applied to those who use water, especially groundwater from their own wells. The case of Cidanau River Basin in West Java and Rinjani in Lombok, in this case PDAM Mataram and West Lombok, are good examples of applying PES.

Payment for environmental services (PES) schemes are usually defined as market-based instruments where an environmental service (such as protection of forests) is bought by users or beneficiaries of that service. This involves a payment, either in cash or kind from a `buyer’ of the service to the `seller’ of that service (Neef and Thomas 2009, 2015). However, it should be noted that the terminology used in the research literature for such schemes is `watershed PES schemes’ rather than the more correct term, `catchment PES schemes’.2 In accordance with usual international practice, this report will also use the term `watershed PES schemes’ (PWS=Payment for Watershed Services).

2 Strictly speaking, a watershed is a drainage divide which marks the boundary of a catchment. In North American usage the meaning is used to refer to a catchment or water basin (hence the usage in the research literature). In other English-speaking countries it has retained its original meaning, although curiously Porras’s review, published in the UK, uses the US terminology.




Thus in the case of downstream water users (for example urban residents in a city or town below a water catchment) might choose to purchase services in the form of land-use improvements (e.g. erosion control and reduced pesticide use) from farmers in upstream catchment areas. This is seen as a win-win scenario where downstream water users benefit from a better supply and improved quality of drinking water, while upstream land users, who are often impoverished and marginalised, benefit from an additional income stream (Engel, Pagiola et al. 2008). In addition, there is an overall environmental improvement resulting from more sustainable land-use practices.

Table 1 summarizes the context of the research.


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Table 1. The Context of the Research

Problem Direct cause Reason Solution Issues to be investigated

Urban water utilities (PDAMs) unable to

provide effective water supply

Urban water utilities (PDAMs) starved of funds

Wealthy households and businesses opt out of the piped water system

All water users to contribute funds

Need to ensure that funds collected for PES actually go to PES, not to local government.

PDAMs lack authority to deal with problems.

Fragmented system of governance

A single agency with authority over all water-related functions

Options for establishing a single agency to manage all aspects of water supply and development

Groundwater extraction leads to land subsidence and seawater intrusion in coastal cities

Wealthy households and businesses opt out of the piped water system.

Fragmented governance system

1. A single agency to manage all aspects of water supply and development - including groundwater use?2. Effective approaches to controlling groundwater use.

Quality and quantity of raw water supply from catchments declining.

Upstream land degradation problems

Marginalised communities, land insecurity, poverty, all leading to poor land use practices

PES scheme aimed at watershed protection and rehabilitation

1. How can watershed PES schemes increase raw water quantity and quality?2. What lessons from other watershed PES schemes?




The project proposed is about a thorough study on the possibility of making PDAMs as an organization which is responsible for water resources management in a certain administrative area, including the supply and the efforts to maintain and increase the supply. In other words, the proposed project will try to promote governance reform and support an integrated approach to water supply and water resources management.

As a matter of fact, the management of PDAMs is quite complex, as many government institutions are responsible for their operation. The Ministry of Home Affairs through its decree of 2006 Number 233 is involved in setting the standard of PDAM tariff, which is then operationalized in accordance with the local condition through Local Government Acts. The same ministry also involves in the managerial aspects of PDAMs. Through its decree Number 12/PRT/M/2010, the Ministry of Public Works is stipulating about the guidelines for making a cooperation agreement in the development of water supply system. The latter is also responsible for the technical matters of infrastructure and surface water resource management. Financial matters are under the jurisdiction of the Department of Finance, whilst the Department of Health is responsible for setting the requirements for drinking water quality. The situation is getting more complicated since the ownership of PDAMs lies with the city, municipal or provincial governments.

Besides the complexity of the management of PDAMs, water supply system which uses groundwater as its source is involving the Department of Energy and Mineral Resources. The permits of using groundwater are issued by this department or its offices at the local level. As mentioned before, only a small number of PDAMs are being involved in the issuance of the permits.

Applying PWS also involves many other issues such as spatial planning both at national and local level, and when it relates to conserving catchment areas we should also consider the role of the Department of Forestry and its offices at the local level. It is not only in the management of conservation that is matter, the financial mechanism also shows a potential problem since there is no direct mechanism that the payment for environmental services paid by users will directly be used to conserve catchment areas. As mentioned above, the existing mechanism is that the payment will become a general fund of the revenue of local governments and its allocation will depend on the political decision of local parliaments.

With all its complexity, however, applying PWS potentially can solve the problems faced by PDAMs in terms of their financial and sustainability aspects

3 Although this degree has been annulled by the Constitution Court because it refers to Law No 7 of 2004, there is no substitute decree untuil this report is made.


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of raw water supply. And with a good arrangement, PWS mechanism proposed in this research can also solve the problems of uncoordination and can assure that the payments will be used to conserve catchment areas. PDAM Mataram and PDAM West Lombok have proved that. However, the two PDAMs only manage payments from their subscribers. The ideal condition is that payments are also paid by those who are not subscribing water from PDAMs and use groundwater sources from their own wells.

The adoption of PWS is actually in accordance with Law No. 32 of 2009 on environmental protection and management specifically Article 43 poin 1 (c) on the mechanism of payment of environmental services between and among regions; and poin 3 (e) on the development of payment for environmental services, which will be regulated through Government Act. To the time this research proposal is made, the Government Act on payment for environmental services has not been issued.

This research potentially can contribute to the issuance of the Government Act which then can also be integrated to water resources management in general and specifically to water supply management of PDAMs. The latter will potentially also contribute to the betterment of financial aspects of PDAMs to expand their services for all, and to the sustainability of water resources management which in turn can supply raw water to PDAMs.

1.1 Research Approach

This is an exploratory research to implement Payment for Watershed Services to strengthen PDAM service delivery in terms of its financial aspects and its raw water supply. As an exploratory research, the research uses a qualitative approach applying in-depth interviews and focus group discussion plus content or textual analysis for regulation analysis. The details of the research steps are as follow.

Examine the Operation of the PDAMs and Their Approach to Their Own Problems

A field study at the area served by five PDAM samples – Medan, Jakarta, Semarang, Mataram and Ambon - will be done to identify the performance and problems faced by PDAMs. The questions include bulk water sources, the trend of bulk water supply for each source, whether the bulk water is sufficient to reach the MDGs target, the service coverage and the composition of subscribers’ categories and the amount of water paid for each tariff category, the source and actors where the uncovered by PDAMs get water from and whether they are willing to change providers to PDAMs, what problems faced by the uncovered people by PDAMs, what regulations related to PDAMs and




water supply in general, financial performance of PDAMs related to the expansion of service coverage, whether there has been regulations on PWS and the obligation for PDAMs to do conservation activities, whether PDAMs being involved in the issuance of groundwater extraction permits, and how PDAMs cope with the problems they are facing.

This step will include the identification and in-depth interviews with the actors involved in providing water supply (regulators, local government offices, housing developers, NGOs or community-based water supply providers, industries and commerce), other stakeholders such as people from universities, and of course the subscribers of PDAMs.

After analizing the results of this step, a focus group discussion with stakeholders will be held at the area to confirm the results of the field study. The results will be used as the first deliverables of the project.

Examine the Regulatory Framework

An inventory and content analysis on regulations related to water supply system and PWS mechanism will be undertaken to get the possibilities of integrating PWS to water supply provision by PDAMs, starting from the lowest level. We use the lowest level as the starting point because usually in Indonesia, a certain regulation will mention the referred regulations in its considerations. Focus Group Discussions with relevant government officers at local, regional and national levels will be conducted to reconfirm relevant regulations on PES, water supply system and the relationship between the two and the possibilities of integrating the two into one comprehensive regulation.

Based on the results of the first and second step a plan for dealing with gaps will be developed. The results of the second step will become the second deliverables of the project.

Investigate Existing PWS: International Research Literature and Existing PWS in Indonesia

Literature review will be conducted about the PWS, the management of water supply services which is sustainable in terms of economic viability and hydrological sustainability, the integration of PWS mechanism in this case catchment areas to water supply system, and related regulations needed. Access to publications of relevant literature, including electronic international journals, is vital for this step. Crawford School Public Policy of the Australian National University can fill in the limited access of the Indonesian partner to these sources.


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This step includes visits and field studies of the existing PES in Indonesia, such as Cidanau River Basin in West Java and Rinjani in Lombok, in this case PDAM Mataram and PDAM West Lombok. Pre-liminary survey has been conducted to PDAM Mataram and West Lombok. Secondary data which have been collected during pre-liminary survey will be used as the basis for conducting visits and field studies. The questions to be answered during visits and field studies are how the payments which have collected by PDAMs are delivered to finance the conservation activities, how its impacts on water supply and the well-being of the communities doing the conservation activities, the opinions of the communities on this scheme and the parties involved in the disbursement of the fund.

Examine Whether PWS Can Be Linked to PDAM Issues: Stakeholder Analysis

Considering the capacity of PDAMs, content analysis of relevant regulations, and the results of literature review, an academic policy paper of the possibilities of integrating water supply system will be developed and the draft of the policy paper will be presented at the beginning of workshops. Workshops will be held at local, regional and national levels involving all categories of stakeholder to finalise the paper.

Based on the results of the process undertaken before, an academic background of the policy of applying an integrative approach of supplying water will be rewritten and presented at the stakeholder forum (seminar) involving relevant government institutions. The final draft of revised policy based on the inputs from the stakeholders will be the final result of this proposed project.

1.2 Linkages with Indii, DFAT and GoI Infrastructure Objectives and Policies

From the background there are some main issues of concern which link with Indii, DFAT and GoI infrastrycture objectives and policies:

Limited Coverage of PDAMs to the Poor and High Dependency on Groundwater

The limited capacity of PDAMs concerns about, first, the coverage of the service to the poor. Though there is no statistical data, the main concern of the limited PDAMs coverage is might be only for less than 10% of population which cannot dig artesian or deep wells and have to depend on shallow wells or other sources such as rivers and rain water or other degraded or unprotected water sources. This makes this project is in-line with the AusAID Core Strategic Goal of promoting opportunities for all to get access to safe water. Although it is not directly connected, these opportunities can save lives of vulnerable people from dying from water borne diseases.




Secondly is the high dependency on groundwater for those who are not covered by PDAMs. It is not a problem for the wealthier, including industries and commerce, for not being covered by PDAMs. Since they have financial capacity, they can easily dig artesian or deep wells to supply the water they need for their basic needs. Even, they prefer to use groundwater because of the quality reason and that it is cheaper for them, especially industries and commerce, compared to subscribing to PDAMs. They need not pay tariff as when they subscribe to PDAMs. From environmental perspective, it is problematic since there is no mechanism to control them from overconsumption. This high dependency proves to have detrimental effects to groundwater management. Coping with this problem will be in line with the AusAID Core Strategic Goals of sustainable economic development and effective governance.

Limited Capacity of PDAMs in terms of Financial Aspects and Raw Water

Expanding water to the poor is not a strategic favourable decision for the management of PDAMs since the poor pay a subsidized tariff, and in some cases they live in illegal settlements. In the era of regional autonomy where PDAMs should cover all the expenses from their revenue, expanding the service involves big amount of money and when those who will be covered by the expansion cannot pay a commercial tariff, this expansion will bring PDAMs to financially worsening condition. Among 328 PDAMs listed in BPP SPAM in 2012, only 52% could be categorized in healthy condition. PDAM in healthy condition does not necessarily mean that they are healthy financially since financial condition only contributes 25% of healthy condition category. And, out of the 328 PDAMs, 17% was ‘sick’.

Besides the limited capacity in financial aspect, PDAMs are facing decreasing raw water supply. The preceding paragraphs show the details of this fact.

If the above two problems can be solved, it means that this project is directly related to the AusAID Core Strategic Goal of developing an effective governance, especially in coping with the problems of PDAMs’ service and in coping with the problems in the catchment areas, which in turn will bring sustainable economic development in water supply provision. It is also alligned with Indii activities of bringing better governance and financial capacity of PDAMs by making an institutional reform in water supply management.

The Partial Management of Water Supply System

Water supply system in Indonesia according to Ministrial Decree of Public Works No. 18/PRT/M/2007 can be divided into two systems: piped and non-piped (see also Ministrial Decree of Public Works No. 01/PRT/M/2009). The two


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systems actually according to Ministrial Decree of Public Works No. 18/PRT/M/2007 should be integrated one with another in the a long-term strategic plan of the development of water supply system (see Article 5 point 1). Non-piped system is actually a temporary system as a piped system has not been developed yet. And it is the responsibility of local governments to improve the non-piped system to the piped ones (see Article 29 Ministrial Decree of Public Works No. 01/PRT/M/2009).

However, in practice coordination and integration, as mandated to be in one strategic master plan, at present is far from ideal. As mentioned before the National Planning Agency propagates Community-based Water Supply Provision or Pamsimas; local governments through financial aids from local government budget help the uncovered community by PDAMs by digging wells and hand on the management to communities; the energy and mineral resources offices issue groundwater extraction permits to industries, hotels, hospitals and companies; all without coordination with PDAMs and in most cases without any long-term strategic planning.

The Potential of Implementing Payment for Environmental Services

The adoption of PES is actually in accordance with Law No. 32 of 2009 on environmental protection and management specifically Article 43 poin 1 (c) on the mechanism of payment of environmental services between and among regions; and poin 3 (e) on the development of payment for environmental services, which will be regulated through Government Act. To the time this research proposal is made, the Government Act on payment for environmental services has not been issued.

This research potentially can contribute to the issuance of the Government Act which then can also be integrated to water resources management in general and specifically to water supply management of PDAMs. The latter will potentially also contribute to the betterment of financial aspects of PDAMs to expand their services for all, and to the sustainability of water resources management which in turn can supply raw water to PDAMs.

The Need of Better Coordination among Governmental Institutions at All Levels

The problem of the unintegrative water supply provision is because each government level with each department and office has its own responsibilities and job descriptions (1) without any clarity of the leading department or office or organization in delivering water supply for all, and (2) weak coordination because of ego-sectoral thinking. The challenge to make an integrative approach for water supply will come from the departments/offices/organizations which will have a disadvantage position




because of this integrative approach. However, there are some opportunities to make these ‘opposing’ parties accept the new approach: (1) the new approach will give better support for the government at all levels to reach the MDG target related to water supply, (2) usually through soft loans or grants, especially from foreign donors, a new idea is easier to be adopted by government institutions in Indonesia, and (3) by using a participatory approach the challenges hopefully can be tackled more easily.

Water for all has been a theme of the Asian Development Bank and other institutions, such as Ausaid, to help developing countries to give safe water services including to the poor living in urban areas. Sub themes such as financing water for all and community-based water supply system have been recognized as the solutions for achieving water for all. However, these organizations forget about the power of cross subsidy mechanism. And by letting the powerful in terms of financial capacity and technologies seek for their water supply themselves, it means that cross subsidy mechanism is left out. This also means that government at all levels with the financial aids from developmental agencies will be the ones which are responsible for giving services especially for the unserved of the piped water supply through programs such as Pamsimas, and other CBOs model. This has made the water supply system more fractional and makes it difficult to achieve water for all because of the limited financial capacity and the fragmented water supply management system. This project is trying to fill such gap. By using an integrative approach for water supply provision, it will relieve financial burden of PDAMs and governments at all levels, and developmental agencies; and that it will make sure that the supply of raw water through PES mechanism will sustain the business of PDAMs. And by this integrative approach, water for all including for social equity target will be easier to achieve.

The Need of Better Regulatory Framework as A Solution

Applying PES can be potensially a solution for PDAMs to cope with their financial and raw water problems. As stipulated by Law No. 32 of 2009, PES can be used as a disinsentive for groundwater users from private wells to change their modes of supply to PDAMs. And as groundwater users are dominated by wealthier society including industries and commerce, their change to becoming PDAMs’ subscribers may facilitate the cross subsidy mechanism to work.

Applying PES can also be potentially solve the problems of funding to conserve cathment areas. However, it will happen if only there is a guarantee that the payments will directly be used for that purpose. Existing mechanism where retribution becomes a general fund of local government budget does not give such guarantee.


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As mentioned before actually PES has been mandated by Law No. 32 of 2009 to be used as an instrument for development planning and conservation activities funding, and as an incentive/disinsentive to conserve the environment. If all explanations in the above paragraphs can be integrated into a better regulatory framework, it can be a good solution for not only conserving catchment areas but also assuring water supply for all Indonesian inhabitants.




CHAPTER 2: GOAL AND OBJECTIVES

2.1 Goal (or Hypothesis)

The objective of the proposed project is to develop policy recommendations to reform the governance arrangements applying to the water supply systems of Indonesian cities and payment for watershed services (PWS) schemes to improve financial performance and raw water supply of PDAMs.

2.2 Research Objectives

Central research question: What are the policies needed for PDAMs to maintain their existence as public water supply?

Objective (1) To get information from which do households get water supply; and to seek the way how to expand the coverage of PDAMs to include the groundwater users.

Objective (2) To analyse regulation that makes it possible for PDAMs to supervise and control all water supplies for households (besides from PDAMs).

Objective (3) To propose mechanism how PDAMs can contribute to the conservation of water sources.


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CHAPTER 3: TEAM COMPOSITION

3.1 Research Team Members

Wijanto Hadipuro

Wijanto got his PhD from Radboud University Nijmegen the Netherlands with his thesis entitled Water Supply and Urban Livelihoods. By applying sustainable livelihoods analysis, he tries to show the contribution of water supply providers in urban area of Semarang.

His publication can be found in many national and international journals such as International Journal of Water; Water Alternatives; Water Policy; Journal of Environmental Assessment Policy and Management; and Water Supply, Sanitation and Hygiene for Development.

His research includes a comparative study on the performance of PDAM Bogor City and Batam; the allocation of water from West Tarum Canal of Jatiluhur Dam where the source of bulk water for Jakarta comes from; the management of PDAM Semarang City, PDAM Solo and PDAM Salatiga; the analysis of business contract between PAM Jaya and its two private partners.

Since 2002 he has been a resource person for the management of water in general and specifically water supply in Indonesia. He has presented papers in many international seminars such as International Conference on Environment Research in Surat India, Environment and Water Resources Congress in Salt Lake City Utah, and an attendance of the third and fourth World Water Forum. In 2007 he was a research fellow for Green Governance Project in University of California Berkeley.

Benny D Setianto

Benny D Setianto received his first Master degree from Monash University, Australia, in which he encountered for the first time with environmental justice terminology. In deepening that terminology he did another Master Degree in the University of Nottingham, UK. Currently he is writing his dissertation on environmental governance in Semarang dealing with among other things solid waste collection, water management and conflict resolution for Radboud University Nijmegen- the Netherlands.

Since 2003, he has been involved in the process of adopting Netherlands Polder System into Indonesian flood management. The Process began when there was an agreement between the Kingdom of Netherland and the Republic of




Indonesia in tackling flood in major cities in Indonesia. Following that agreement, Semarang municipality is chosen to be the site of the Pilot Project on how the Dutch Water Board system may be applied in Indonesian. He was involved in setting the guidelines of Semarang Polder Board, setting the statute of the board, as well as disseminating the role of polder board to inhabitants, business sectors, and even for government apparatus.

His research interests, apart from issues related to water, are human rights, community development, public participation and governance. His publication can be found in many national and international journals. He also presents paper in seminars and conference related to his research interest.

Agatha Ferijani

Agatha Ferijani got her PhD from Brawijaya University, Malang, Indonesia with her thesis entitled The Impact of Manager Orientation and Typology toward the Implementation of Corporate Social Responsibility Activities (The Case Study of PT Sidomuncul). She got her master from the Philippines.

Her research interests are community development, human resources development, Corporate Social Responsibility, micro industry, and gender issues. Besides her activities as a lecturer and researcher, she joins and leads some professional organisations. She is the 2nd Vice Director for Organisational Development of Human Resource Management Association. Since 2010, she has become the Secretary of the Department of Education and Training & Research and Development in Corporate Forum for Community Development in Central Java, with the main duty of socializing Corporate Social Responsibility and Community Development for Poverty Alleviation to Provincial and Local Government-Owned Companies and Private Companies.

Since 2009, she has been participating in national and International conferences related to Corporate Social Responsibility issue, such as the International Forum on Corporate Social Responsibility in Jakarta.

Daniel Connell

Dr Daniel Connell is a well published author on governance issues related to water management. He brings to the project considerable experience in the analysis of issues involved in stakeholder consultation and public participation. In the Crawford School at the Australian National University he teaches courses dealing with environmental policy and trans-boundary rivers. His publications include Water Politics in the Murray-Darling Basin published in 2007 and Basin Futures co-edited with Quentin Grafton and published in 2011. His current research focusses on issues related to institutional design and governance


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arrangements applying to rivers in federal or multi-layered political systems such as Australia, South Africa, United States, Mexico, European Union (Spain), India, China and Brazil.

Richardus Indra Gunawan

Richardus Indra Gunawan, known as Indra recently is taking advance master study in Environment and Urban Study to improve his knowledge in urban and environmental issue and policy.

Previously he worked for Indonesia Business Links as the Program Manager in Semarang. In daily basis he prepared database information, administrative issues, community participation approach, and updating information from the field needed by the project and generated a monthly report. He is also responsible for a comprehensive report to show the improvement of the project. These activities have made him become a flexible person with a strong personal ethic and have a good integrity and eager to improve.

His previous occupation in World Vision International Indonesia as the Monitoring, Learning and Evaluation Coordinator based in Jakarta and Pontianak City and also as Program Officer in the World Vision International Indonesia based in Jogjakarta makes him learn a lot of communication and community development matters. In Jogjakarta the program he joined with, called Jogjakarta Earthquake Emergency Response (JEER), has given him a good opportunity to meet and share a lot of information with other International NGO Staffs about assertive approach and economic development. A lot of coordination meeting and training he has attended, gave him a basis for active communication and facilitation skills to the participants regarding to the community development which needs serious program handling. From the meetings and trainings, he got the skills to design and deliver training needed for the program, monitor, to make an evaluation, and implement programs to the community especially for children and women.

Erik Olbrei

Erik is currently undertaking doctoral research (PhD) in climate change at Crawford School of Public Policy, Australian National University (ANU), under scholarship awarded by the ANU. My research focus is on the political economy of deforestation in Indonesia, and on how reductions in deforestation emissions might be achieved through civil society efforts to combat governance failures and capture of forest resources by various elite groups.

He has a strong background in public sector policy development, systems and processes following more than 20 years with Australian Agency for International Development (AusAID), three years with the National Water




Commission, and one year with the Department of Sustainability, Environment, Water, Population and Communities (SEWPAC). Prepared wide range of Ministerial submissions, policy papers, and reports for senior management.

With his education background and working experiences, Erik will contribute to this project by making a literature review on PES/PWS both in Indonesia and also outside Indonesia.

Table 1. Main Research Team Members and Their Roles

Name Role Current Department/ Organization

Qualifications

Wijanto Hadipuro Project Team Leader CMSD of Soegijapranata Catholic University (SCU)

Water Supply Management Expert

Benny D Setianto Member Post Graduate on Environment and Urban Studies of SCU

Water and Environmental Law Expert

Agatha Ferijani Member Community Service of SCU

CBO Empowerment Expert

Daniel Connell Technical Expert Crawford School of Public Policy, The Australian National University

Water Management and Governance Reform Specialist

Richardus Indra Gunawan

Technical Assistant Indonesia Business Links, Resource Centre for Corporate Citizenship

CBO Supervisory Technical Assistant

Erik Olbrei Technical Expert Crawford School of Public Policy, The Australian National University

Public sector policy development, systems and processes

3.2 Distribution of Tasks across Partners

This project involves Centre for Management Studies and Development of Faculty of Economics and Business, Soegijapranata Catholic University of Semarang-Indonesia and Crawford School of Public Policy, Australian National University of Canberra-Australia.

The team from Crawford School of Public Policy will be responsible for conducting the international literature study and if necessary field researches for the implementation of Payment for Environmental Services related to water supply provision in other countries.


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The team from Centre for Management Studies and Development will be responsible for conducting the Indonesian regulation analysis and field research related to developing an academic policy paper for implementing Payment Environmental Services in Indonesia.

The two teams will be responsible for making the progress and final research report. The members of the teams will consult, at regular intervals, to consider the progress and to evaluate the project. Each party has signed a letter of associations and has exchanged signed copies.




CHAPTER 4: GENERAL ISSUES

4.1 Management of Activity

This project is involving experts from Crawford School of Public Policy of Australian National University and Center for Management Studies and Development of Soegijapranata Catholic University in Semarang Indonesia. Daniel Connel leads the team from Crawford School of Public Policy. He functions as a technical expert, while Erik Olbrei is in charge for doing literature review on PES. From Soegijapranata Catholic University, Wijanto Hadipuro leads the team which consists of Benny D. Setianto, Agatha Ferijani and Richardus Indra Gunawan as team research team members; Monika Palupi as treasurer and Maria Alextrisananda as adminsitrative staff.

Wijanto Hadipuro’s task is to assure that all research activities will be done according to the plan. Specifically he will be in charged of activities related to water resources management and payment for environmental services. Benny will take care of regulatory analysis framework and the legal aspects of the development of academic background of policy proposed as the results of this project. Agatha Ferijani will complete the expertise of the SCU team from her dissertation and activities related to community service and development, while Richardus Indra Gunawan will be in charge for supervising field research activities of this project.

The team will also involve students from both sides. Erik Olbrei is a PhD student from Crawford School of Public Policy, while from Soegijapranata Catholic University there are two students namely Kusyana and Sokadinah Kacasungkana. Kusyana consentrates in doing case study on PES implementation at Cidanau River Basin, while Sokadinah is focusing on studying gender aspect and local wisdom of the implementation of PES in West Lombok.

We are also involving local partners in Ambon (staff of Politeknik Negeri Ambon), in Mataram (staff of Mataram University), in Medan (an NGO named Suluh Muda Indonesia), and in Jakarta (an NGO staff of People’s Coalition for the Right to Water). They are all responsible for collecting data (secondary data from PDAM and in-depth interviews for PDAM’s subscribers and non PDAM’s subscribers) for each area and facilitating for focus group, discussion and seminar.

4.2 Internal Quality Assurance

To give assurance for the research results, we use both triangulation of sources and methods. For example, the results of the analysis of a review on PDAM


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secondary data and the results of in-depth interviews with both subscribers of PDAM and non PDAM subscribers are validated in a focus group discussion with PDAM management and related government officers. A triangulation of methods is also used for the results of content analysis on related regulations by validating the results in a focus group discussion with related government officers.

The concept of triangulation was based on the assumption that any bias inherent in particular data sources and method would be neutralized when used in conjunction with other data sources and methods (Jick, 1979 in Creswell, 1994).

In terms of financial aspects of the research, all financial data and report are kept in a manner that permits them to be conveniently and properly audited. Monika Palupi, the person in charge for this matter, is a PhD in accountancy. Therefore, there is no doubt for her expertise to assure the quality of the financial data, accounts, and report.

4.3 Partnership’s responses to Mid-Term Report

Executive Summary / Introduction

Neither the Executive Summary nor the Introduction mention the research goals and objective, as well as the scope. The research team experienced constraints from the beginning of the work - mainly logistical/administrative problems. Other constraints relate to the operational issues of the PDAM. These issues have dominated the content of the Exec. Summary, while the Introduction was mainly an update on current status, resulting in two project deliverables achieved so far, while also reporting on logistical/ administrative constraints. The targets to be achieved, the scope of the research, and the general method/approach, however, do not appear anywhere in either the Exec. Summary or the Introduction.

The introduction describes research resulting in policy recommendations from (1) Investigating how wealthier sections of urban communities can be involved in extending the coverage of the PDAMs, (2) Analysing legislative, administrative and financial policy arrangements applying to PDAMs and PES, (3) literature review, and (4) Designing a payment policy for environmental services schemes. The MTR is not specific about the magnitude of the remaining tasks, and it does not include a GANTT chart. (While a Gantt chart is not essential for every research program, it does demonstrate that someone has quantified tasks and considered potential impediments such as Christmas/New Year hiatus. The research team must remember that they are responsible for finishing the research on time, and an extension of time is not contemplated.)

The MTR is clearly written, and it gives confidence that the team will finish on time. There is no apparent hypothesis because this is policy-oriented research that should provide useful materials for local governments that want to charge for environmental services.




Note: A rewritten, more comprehensive Executive Summary requested.

Tables and Figures

The use of charts is limited to two pie charts showing the preliminary results of the research, related to PDAM healthiness and cost recovery tariffs the charts are reasonably informative and useful. No tables or other diagrams, etc have been included in the report.

The Annex data doesn't appear to be central to the main point of the study, which is implementation of PES. The data from the spreadsheet called "Status Kinerja 2013" appears to be a compilation of the 2013 BPKP performance audit results for 350 PDAMs compiled annually by BPP SPAM. The compilation seems to refer only to the section of the MTR stating that PDAM performance nationwide is generally poor and that the PDAM cross-subsidy tariff system (set in stone by Permendagri 23/2006) has many deficiencies. PDAM performance or tariffs are not as relevant to PES as the obvious need to conserve the quality and quantity of surface and groundwater resources.

It may be advisable to make use of graph/charts to present the proposed approach and research methodology – to communicate ideas in a simple form and easily understood by the readers. Perhaps the conceptual approach of the research could be presented in graphic form, in the Final Report.

Approach and Methods

From the original proposal, the scope of the research is quite interesting and could be very useful for the PDAMs to improve their performance in general, and their revenue in particular. For the research to be meaningful, in developing policy recommendations it requires an assessment in a wider spectrum beyond PDAM management. The method used for the research is presented, but it is not concise enough to lead to the conclusion that the proposed methods are robust. For instance, in introducing environmental fee, it is not clear how would the current regulatory framework support this proposal, what would be the enabling environment that ensures the law is enforced, etc.

The methodology does not depend so much on numerical data analysis. It consists mainly of focus group discussions and workshops with qualitative data. The next steps include data validation and workshops at municipal/city, provincial and national level. The team also needs to stimulate interest in the subject among local governments and PDAMs. Interviews and local newspaper articles describing workshops increase interest, and results of any workshops or FGD should be publicised, say, in PERPAMSI's Air Bersih magazine and any chat rooms/information sharing facilities in Jejaring AMPL

If there are any potential successes of PES, it may be possible to estimate them through time series data. If there are not, the study would do better to focus more on lessons learned by


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jurisdictions that have instituted PES.

While the selection of PDAMs to be interviewed provides a good range of sizes and problems, it would be advisable to “set boundaries”, and avoid entering into the problem of PDAM management/operations, which could direct the research activity into an unnecessarily complicated exercise, or research with little value; more complex issues lay outside those of PDAM management.

Suggest changing on page iv of MTR, "70% of PDAMs have tariffs which are below the break-even point (caused by the fact that potential subscribers prefer to use groundwater)" to "70% of PDAMs have tariffs which are below the break-even point (caused by many factors including the fact that potential subscribers prefer to use groundwater)." Many factors, such as reluctance of Bupatis to raise tariffs before elections or dissatisfaction with PDAM service, can contribute to low tariffs.

It might be good to mention that PDAMs have other sources of income, such as from sale of trucked or packaged drinking water or sale of new household connections, so PDAMs may be in cost recovery even though their tariff is below the break-even point.

Results to date

Existing PES legislation in several jurisdictions has been collected, as has secondary data from five PDAMs. Interviews have been conducted with PDAM representatives, groundwater providers and self-provisioners, but no preliminary outcomes are mentioned in the MTR.

The conclusion drawn under Chapter 2 (Results) provides some preliminary results that need to be further investigated in the next phase of the research.

AIIRA needs to be confident that valid results will emerge from the findings to date; to ensure this, the researchers will need to obtain sufficient information that can lead to identifying important findings - this depends on the team’s ability to reveal these findings clearly and effectively.

Challenges identified

The challenges, particularly of a logistical/ administrative nature, seemed to be able to be resolved.

The researchers cite reorganisation of the Jakarta city administration and corruption charges against the Director of PDAM Tirta Nadi, Medan, as being obstacles to meeting people and gathering data, but they have taken steps to overcome these temporary setbacks. While the choice of PDAMs is appropriate, if Medan is taking too much time and may delay the exercise, it would be advisable to choose a replacement.




General comments (including next steps, if not addressed in sections above)

The report is more like a brief progress report rather than the Mid Term Report. While it provides sufficient information on the status and progress, It lacks of information regarding the proposed research methods and analysis, particularly on areas beyond internal PDAM management.

If BPP SPAM agrees, it may be worthwhile if the outcome of this study could be presented as a toolkit in Bahasa Indonesia for local governments/PDAMs that want to implement PES, including wording of sample legislation. If BPP SPAM provides even a small amount of funds for any follow-on activities, it would be a sign that the results were useful.

Whether or not to have a toolkit and its contents would depend on interest/demand from FGD, workshops, and needs expressed to BPP SPAM. The toolkit might contain a quick summary of the advantages and main obstacles that have been encountered to date in other jurisdictions implementing PES. Second, it would provide if possible a classification of categories of PES. Third, it would describe the first steps, such as market testing, in establishing a PES mechanism that suits local conditions, and Fourth, it would provide sample wording for regulations and the e-mail/phone contacts of jurisdictions that already have experience in PES.

NOTE: Page 5, Conclusion: Suggest changing:" From the above findings, it is clear that regulation on PES is absolutely needed." to " From the above findings, it is clear that regulation on PES is absolutely needed in jurisdictions where there is potential to implement PES."

Of concerns is the (apparent) limited involvement of the Australian partner – Crawford School at ANU; a genuine partnership is essential, and required, and must be demonstrated / evidenced in all reporting

4.4 Secondary Data Collection, In-depth Interviews, Focus Groups Discussions and Seminars conducted

Secondary data collection and reviewing are aimed to obtain a quick overview of the situation under study, in this case about the problems faced by PDAM samples in terms of their financial condition and the trends of their raw water.

In-depth interviews was undertaken to get data from non PDAM subscribers. It was quite difficult to get the data from this group. Most of them refused to be respondents. It might be related to the fact that there was a problem in groundwater extraction permit, the amount of water they reported to local government, and the tax they laid for groundwater extracted. Although it was not efficient since our local researcher partner had to ask more than twice persons and only less than half who would like to be respondents.


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Focus group is used to get data from PDAM subscribers and from local government officers. It is also used to validate the results of analysis. And seminars were held besides for final validation of the research results also to dissminate the research results.

Table 2. Summary of Research Steps

No Research Subject ActivityI PDAMs Collecting secondary data on PDAMs

Groundwater Users Collecting primary data on each category of usersLocal Government Offices

Colecting recent and draft of relevant policies

II PDAMs’ Subscribers Focus Group Discussions with (1) three categories of household subscribers in three different areas covered by PDAM, (2) two categories of subscribers under the category of industry and commerce, and (3) other category of subscribers (social and government offices)

III National Government Institutions

Collecting recent and draft of relevant policies

IV Government Institutions at Local, Provincial and National Level

Focus Group Discussions with government officers at (1) local, (provincial), and (3) national level

V Local and Provincial Government Institutions

Workshop and Seminar on validating and disseminating research results

VI National Government Institutions

Workshop and Seminar on validating and disseminating research results

VII BPP SPAM Consultation

4.5 Gender and social inclusion

Gender aspect and the inclusion of especially the minority were tried to considered well in every aspect of the research, for example in all research steps we always include women as respondents and participants of focus group. We even did a case study for West Lombok, whether the practice of PES involving women in policy formation, its implementation and evaluation.

We also include those who are still practicing local wisdom such as awig-awig in West Lombok and Sasi in Ambon, including minority, Hindus, in Mataram in focus group discussion.

4.6 Lessons learned from partnership approach

What did running well?

1. Comprehensive and thoroughly communication made the team work according to the plan and find out the relevant information and local knowledge particularly




about best practices of the implementation of Payment Environmental Services in Lombok and Cidanau River Basin as the running PES in Indonesia.

2. Good relationship with local government and PDAM’s Directors made this research could find the major problems related to the provision of water supply in the areas under study.

3. Mutual relationship between BPPSPAM and team research resulted the PES tool kit that is relevant to the local need in the pilot project areas that have not applied PES (Medan, Semarang, Jakarta, and Ambon).

4. Good coordination among partners: Crawford School Public Policy, CMSD, local partners in Ambon, Mataram, Semarang, Jakarta and Medan, made it possible to conduct the research as planned.

What didn’t running well?

1. Recommendation from BPP SPAM did not work well especially for PDAM Medan to get especially the data from PDAM Medan. The key to get the data from PDAMs and also to gather local government officers for focus group is the recommendation from mayor/regent/governor or the city/regent secretary which is not easy to get. We have to change the method from focus group to in-depth interview to relevant provincial government officers because we cannot get the recommendation from the Governor of Jakarta.

2. In some cases, the local person in charge needed should be trained to make them more proactive and have initiative when participating in the focus group discussion and local meeting.

3. Payment from Indii should be more on time. The delay of the payment postponed the activities after the Mid-Term Report.

RECOMMENDATIONS:

1. In the beginning, it is needed to have more visits in the pilot project area to make sure the local person in charge is a person that comprehends the goal of the research and methodologies.

2. The research would be better directly cooperating with the local government and local press media that already have sufficient information and community basis.

4.7 Budget Expended


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ANNEXES

ANNEXE 1: ************

28 REPORT TITLE

CHAPTER/ANNEX TITLE

ANNEXE 2: ************

REPORT TITLE 29

ANNEXE 3: ************

30 REPORT TITLE

CHAPTER/ANNEX TITLE

ANNEXE 4: ************

…. etc….

Photo:

REPORT TITLE 31

Local Seminar at Medan about water supply Issue

Nasional Discussion Panel at Kompas about water supply Issue

FGD PDAM Customer at Jakarta about water supply Issue

Local Seminar at Medan about water supply Issue

32 REPORT TITLE

FGD PDAM Customer at Lombok about water supply Issue

CHAPTER/ANNEX TITLE

REPORT TITLE 33

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