Asia Waterloss 2010 Firdaus Ali

REGULATION INSTRUMENT IN THE EFFORT TO REDUCE NRW AND

IMPROVEMENT OF WATER SERVICE PERFORMANCE IN THE JAKARTA METROPOLITAN AREA

FIRDAUS ALI, PhD.JAKARTA WATER SUPPLY REGULATORY BODY

AND UNIVERSITY OF INDONESIA

2ND WATERLOSS ASIA CONFERENCE AND EXHIBITION 2010: OCTOBER 13-15, 2010 – KUALA LUMPUR, MALAYSIA

ROYALE CHULAN HOTEL,KUALA LUMPUR, MALAYSIA, OCTOBER 15, 2010

JAKARTA METROPOLITAN AT A GLANCE

JAKARTA WATER SUPPLY SERVICES CONDITION

CHALENGES AND OPPORTUNITY

NRW REDUCTION AND STRATEGY

NEW POLICY APPROACH FOR NRW REDUCTION

JATILUHUR WATER SUPPLY PROJECT

REMARKS

OUTLINE

INDONESIA: Geographical: 16,346 Islands & 33 Provinces Population + 238 millions (2010) Population Annual Growth: 1,36% GNI per capita : USD 1,250 Largest archipelago country (2/3 of country

area is seas)

JAKARTA METROPOLITAN AT GLANCE

Jakarta

JAKARTA: Geographical Status : Capital City of Indonesia Population : + 12,5 millions (1.04%) Total Area : 662 km2 Consist of 5 Cities & 1 Regency

MAP OF JAKARTA

MAP OF INDONESIA

MAIN ISSUES IN WATER RESOURCES MANAGEMENT IN JAKARTA METROPOLITAN CITY

1.CLIMATE CHANGE

2. PEAK TIDAL CYCLE

SEA WATER INTRUSION

FLOOD THREAT AND TIDAL SEA WATER1.INCREASING FLOOD PRONE

AREAS.2.DECREASING ELEVATION OF

COASTAL RIVER EMBANKMENT IN COASTAL AREA.

3.DECREASING ELEVATION OF DRAINAGE SYSTEM (MACRO & MICRO) CAUSING LOW URBAN DRAINAGE CAPACITY

LAND SUBSIDENCE

GROUNDWATERWATER SUPPLY WASTEWATER

1. HIGH GROUND WATER ABSTRACTION DUE TO LOW COVERAGE.

2. LOW RECHARGE CAPACITY.3. POLLUTED SHALLOW

GROUND WATER BY WASTEWATER.

4. VERY LOW GROUND WATER CHARGE/TARIFF.

1. LOW SERVICE COVERAGE RATIO

2. VERY HIGH WATER LOSSES (48,9%).

3. RAW WATER BECOMING CRITICAL

4. AVERAGE TARIFF INCREASING (RP. 7,225/M3).

5. WATER QUALITY NOT DRINKABLE.

1. VERY LOW SERVICE COVERAGE (2,8%).

2. LACK OF WASTEWATER FACILITIES.

3. INCREASINGLY HIGH POLLUTION OF SURFACE WATER AND GROUND WATER BODIES.

1. DEPLETION OF QUANTITY AND QUALITY OF RAW WATER

RAW WATER

ECOLOGICAL ISSUES IN THE COASTAL AREA WATER SUPPLY CRISIS

LAND SUBSIDENCE RATE IN SEVERAL REGION IN JAKARTA BEETWEN 1993 - 2005

Source: Office of Jakarta Mining and Energy, 2007

WATER STRESS AREA MAPFOR NORTH JAKARTA MUNICIPALITY

PENJARINGAN

0,41

JAKARTA WATER SUPPLY SERVICE CONDITION:SOURCE OF RAW WATER AND WATER TREATMENT PLANT CAPACITY

No. OPERATOR & WTPsPRODUCTION

CAPACITY (L/Second)

SOURCE OF RAW WATER NOTE

1 AETRA: FOR EASTERN REGION OF JAKARTA

1.1 • BUARAN 1 WTP 2.000 JATILUHUR DAM99% DEPEND ON SUPPLY FROM JATILUHUR MULTI

PURPOSES DAM1.2 • BUARAN II WTP 3.000 JATILUHUR DAM

1.3 • P. GADUNG WTP 4.000 JATILUHUR DAM

2 PALYJA: FOR WESTERN REGION OF JAKARTA

2.1 • PEJOMPONGAN I WTP 2.000 JATILUHUR DAM64% DEPEND ON SUPPLY FROM JATILUHUR MULTI

PURPOSES DAM (THROUGH WEST TARUM

CANAL)

2.2 • PEJOMPONGAN II WTP 3.600 JATILUHUR DAM

2.3 • CILANDAK MINI WTP 400 KRUKUT RIVER

2.4 • BULK WATER SUPPLY 2.800 CISADANE R.

TOTAL DISTRIBUTION CAPACITY 17.800

Sources: JWSRB Analysis, 2008

JAKARTA WATER BALANCE & WATER DEMAND 2010-2025

No Design Parameter Unit

YearNote201

0 2015 2020 2025

1 Total Population (1.000) capita 11.437

12.333 13.272 14.258Incude commuters

2 Service Coverage Target % 70 80*) 85 100 *) City MDG Target by 2015

3Suggested Groundwater Extraction Level

% 30 20 15 0Jakarta GW reduction strategy in order to control sea water intrusion and land subsidence.

4 Total Pop. Supplied (1.000)

capita 8.006 9.866 11.945 14.258

5Domestic Consumption Rate

l/c/d 160 175 200 200

6 Domestic Water Demand l/s14.82

619.983 27.650 33.005

7Non-Domestic Water Demand

l/s 4.892 6.594 9.125 10.89230% of Domestic Water Demand

8 Non Revenue Water (NRW)

% 40 35 30 25

9 Total Water Demand l/s 27.605

35.879 47.808 54.871

10 Total Raw Water Demand l/s 28.985

37.673 50.199 57.614

11Total Production Capacity l/s

15.000

21.828 21.828 21.828After upgrading all WTPs facilities

12 Bulk Water Treated from TKR

l/s 2.800 2.800 0 0 Supply treated bulk water from TKR will be decreased over time

13 WATER DEFISIT l/s11.185

13.045 28.370 35.786

Sources: JWSRB Analysis, 2009

DRIVING FORCE OF THE COOPERATION AGREEMENT BETWEEN PAM JAYA* AND

PRIVATE OPERATORS**

• GROUNDWATER OVER ABSTRACTION (59%)

• LOW SERVICE COVERAGE (41%)

• HIGH NRW/UFW (57%)

• LOW VOLUME SOLD (176 MILLION M3)

1998 CONDITION

• NEED FOR CAPITAL INVESTMENT

• NEED FOR MANAGEMENT IMPROVEMENT

• NEED FOR TECHNOLOGY IMPROVEMENT

PRIVATE SECTOR PARTICIPATION

• REDUCING GROUNDWATER ABSTRACTION

• INCREASING SERVICE COVERAGE RATION (70%)

• DECREASING NRW/UFEW (BELOW 35%)

• INCREASING VOLUME SOLD (397 MILLION M3)

2008 EXPECTATION

25 YEARS OF CONCESSION CONTRACT WITH

RELATIVELY VERY HIGH IRR (22 %)

* LOCAL JAKARTA GOVERNMENT OWNED WATER SUPPLY COMPANY** PALYJA AND AETRA (PREVIOUSLY WAS THAMES PAM JAYA/TPJ)

JAKARTA WATER SUPPLY SERVICE CONDITION

No. PARAMETERS UNIT

1998 2009 2010 *)

TPJ PALYJA JKT AETRA PALYJA JKT AETRA PALYJA JKT

1 TOTAL POPULATION (1,000)

Cap 4,312 5,118 9,430 4,449 4,461 8,910 4,490 4,480 8,970

2 SERVICE COVERAGE % 60.98 33.28 45.89 59.67 63.93 61.80 59.65 64.09 61.80

4 HOUSE CONNECTION

Unit 278,083 209,895 487,978 382,693 412,595 795,288 383,455 414,930 798,385

5 RAW WATER DEMAND L/sec 8,129 5,349 13,478 9,530 6,430 15,960 8,780 6,080 14,860

6WATER PRODUCTION

L/sec 7,799 4,771 12,570 8,300 5,110 13,410 4,230 2,690 6,920

7 VOLUME SOLD L/sec 2,916 2,827 5,744 4,060 4,370 8,430 2,100 2,310 4,410

8UNACCOUNTED FOR WATER (UFW)

% 61.3 58.63 61.17 51.07 44.34 48.40 50.45 43.14 46.80

Soucres: PSES Operators Report & JWRSB Analysis, 2010*) Up until September 2010

JAKARTA WATER SUPPLY SERVICES DESEMBER 2009 CONDITION

WATER PRODUCTION

VOLUME SOLD

HOUSE CONNECTION

SERVICE COVERAGE

UFW/NRW

• 247.8 Million M3

• 264.1 Million M3

• 76.4 % • 61.63 % • 35.25 %• 46.19 %

• 147.8 Million M3

• 135.5 Million M3

• 380,987 HC• 397,428 HC

WATER PRODUCTION

VOLUME SOLD

HOUSE CONNECTION

SERVICE COVERAGE

UFW/NRW

• 247.6 Million M3

• 261.8 Million M3

• 75.5 % • 59.67 %

• 38.6 %• 51.07 %

• 153.5 Million M3

• 128.1 Million M3

• 403,038 HC• 382.693 HC

1,2 Juta Samb 1,52 Juta Samb 2,73 Juta Samb 1,86 Juta Samb 1,03 Juta Samb 3,8 Juta Samb 0,097 Juta Samb 0,403 Juta Samb 0,382 Juta Samb 0.795 Juta SambSingapore Kuala Lumpur Hong Kong Bangkok Manila Water Taipei Brunei PDAM Kota

SurabayaPDAM Batam PDAM Jakarta

-

2,000

4,000

6,000

8,000

10,000

12,000

14,000

16,000

18,000

20,000

2,841

1,360

4,992

2,389

1,390 1,445 727

350 920 1,050

12,684 11,590 10,860

4,445

6,836

2,196

7,265

10,000

14,400 14,650

Perbandingan Tarif Maksimum & Minimum Air MinumBeberapa Kota Besar di Asia dan Indonesia Tahun 2010

Rp

./m3

14.40014.650

KUALA LUMPUR

HONG KONG

BANGKOK MANILA

Rp

./m3

KUALA LUMPUR

HONG KONG

BANGKOK MANILA TAIPE BRUNEI

Rp

./m3

KUALA LUMPUR

HONG KONG

BANGKOK MANILAKUALA LUMPUR

HONG KONG

BANGKOK MANILA TAIPE BRUNEI SURABAYA BATAM JAKARTA

www.pub.gov.sg www.sybas.com.my www.gov.hk www.mwa.co.th www.manilawater.com www.waterpark.twd.gov.tw www.aseankorea.org Peraturan Walikota No 55 / 2005

SK Ketua Otorita Batam106/KPTS/KA/XII/2007 Peraturan Gubernur

No 11 / 2007

SINGAPORE

Tariff Jakarta Singapore Kuala Lumpur

Manila Bangkok Brunei Hong Kong

Taipei

Lowest 0,11 0,31 0,14 0,15 0,26 0,08 0,55 0,16

Highest 1,61 1,39 1,27 0,75 0,48 0,84 1,19 0,24

MULTIPLE STAKEHOLDERSMULTIPLE STAKEHOLDERS

CONFLICTING INTERESTSCONFLICTING INTERESTS

(FINES, SANCTIONS, PUNITIVE ACTIONS)

FORCE OF LAW

- PUBLIC INTEREST PROTECTION

- HARNESS MARKET

COMMAND & CONTROL

(MARKET FORCES, RELIABLE INFORMATION,

BENCHMARKING & SOCIAL CONTROL)

ECONOMIC INCENTIVE

B A L A N C E D I N T E R E S T

OTHER

CHALLENGES FOR THE JAKARTA WATER SUPPLY REGULATORY BODY TO BALANCE THE INTEREST OF THE PARTIES

JAKARTA WATER SUPPLY REGULATORY BODY

NRW AS “KEY PERFORMANCE INDICATOR”

SYSTEM INPUT

VOLUME

AUTHORIZED CONSUMPTIO

N

BILLEDAUTHORISED

CONSUMPTION

BILLED METERED CONSUMPTION(INCLUDING WATER EXPORTED) REVENU

EWATERBILLED UNMETERED

CONSUMPTIONUNBILLED

AUTHORIZEDCONSUMPTION

UNBILLED METERED CONSUMPTION

NON REVENUE WATER

UNBILLED UNMETERED CONSUMPTION

WATER LOSSES

APPARENT LOSSESUNAUTHORISED CONSUMPTION

CUSTOMER METERING INACCURACIES

REAL LOSSES

RAW WATER MAINS AND AT THE TREATMENT WORKS (IF

APPLICABLE)LEAKAGE ON TRANSMISSION

AND/OR DISTRIBUTION MAINSLEAKAGE & OVERFLOWS AT UTILITY’S STORAGE TANKS

LEAKAGE ON SERVICE CONNECTIONS UP TO POINT OF

CUSTOMER METERING

WHY NRW LEVEL IS CALLED AS “COMPANY HEALTH”

NRW LEVEL HEALTH INDICATOR

TREATMENT NEEDED

0% - 10% HEALTHY LIFE AS USUAL10% - 15% LESS HEALTHY BE CAREFUL. MANAGE YOUR

DIET.15% - 20% UNHEALTHY GO TO THE DOCTOR20% - 25% SICK STAY IN THE HOSPITAL

ABOVE 25% STROKE ICCU

• PUT BURDEN ON CUSTO-MERS SIDE

• BUSINESS SUSTAINABILITY

• FORCING DGW OVER EXTRACTION

• CREATE ECOLOGY RISK

• High Opex, Low Revenue

• High NRW/UFW

• DEPLETION OF QUANTITY AND QUALITY RAW

WATER SCARCIT

YSYSTEM

IN-EFFICIEN

CY VERY HIGH

WATER TARIF

LOW SERVICE COVERA

GE

WATER SUPPLY SERVICE MAIN CHALLENGES IN JAKARTA

• SIGNIFICANTLY REDUCE NRW

• OPTIMIZE OPEX FOR REVENUE

• PROVIDE AND SECURE RAW WATER

• High Opex, Low Revenue

• High NRW/UFW

• CONTROL

RAW WATER

SCARCITY

SYSTEM IN-

EFFICIENCY

OPERATORS RESPONSIBILI

TYGOVERNMENT

RESPONSIBILTY

POLICY AND STRATEGY FOR IMPROVEMENT

UNAVOIDABLE ANNUAL

APPARENT LOSSES

POTENTIALLY RECOVERABLE APPARENT

LOSSES

DATA TRANSFER ERRORSBETWEEN METERS

AND ARCHIVES; POOR CUSTOMER ACCOUNTABILITY

UNAUTHORIZEDCONSUMPTION

DATA ANALYSISERRORS BETWEENARCHIVED DATA AND DATA USED

FOR BILLING/WATERBALANCE

CUSTOMERMETER

INACCURACY

TARGETTING “THE DEVIL”

ILLEGALCONNECTION

METTERS IN- ACURACY

ILLEGAL CONSUMTION

METERS READING

ERROR

TARGETTING “THE DEVIL”

NEEDED GOVERNMENT INTERVENTION

REGULATION & ENFORCEMENT

APPROACH

PROPOSED NEW JAKARTA WATER SUPPLY PROJECT

KI MPRASWI L 206 April 2004

JAKARTA WATER SUPPLY SERVICE NEED VERY SIGNIFICANT IMPROVEMENT IN ORDER TO MITIGATE ECOLOGY DISASTER.

PERFORMANCE BASED WATER CHARGE HAS BEEN INTRODUCE TO FORCE BOTH OPERATORS (PALYJA AND AETRA) TO IMPROVE THEIR PERFORMANCE.

NRW/UFW REDUCTION NEEDS SOME GOVERNMENT SUPPORTS.

ESTABLISHMENT OF WATER SPECIAL LAW ENFORCEMENT (WATER POLICE) IS AN ALTERNATIVE TO CONTROL AND MINIMIZE ILLEGAL CONNECTION AS WELL AS ILLEGAL CONSUMPTION.

A NEW JATILUHUR WATER SUPPLY PROJECT HAS BEEN PROPOSES TO THE GOVERNMENT IN ORDER TO SOLVE RAW WATER SCARCITY PROBLEM FOR JAKARTA.

REMARKS