Microfinance for Sanitation. Indonesia Water Supply and Sanitation Magazine PERCIK July 2005.

7/31/2019 Microfinance for Sanitation. Indonesia Water Supply and Sanitation Magazine PERCIK July 2005.

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From The Editor 1

Your Voice 2

Main Report

Sanitation Micro-credit for the Poor 3

Lesson Learned from Micro-Credit Projects Across the World 9

Experiences from Family Latrine Credit in Yogyakarta 11

Insight

Healthy Latrine and StrongPosyandu 12

Solid Waste Management through Eco-cycle Society 14

Community Participation to Support Water Supply and Environmental

Sanitation of a Settlement Area 15

Hygiene is an Investment 18

Water Supply Services: The Present and Future Challenges 20

Implementation of Capacity Building Concept in PDAM (Regional

Drinking Water Enterprise) 22

Flood and Landslide in the Wet and Drought in the Dry Season 25

Telescope

First Trial, Immediate Result 28

Communal Work to Build Latrine 29

They Only want a Closet Type 30

Building Simple Latrine 31

Reportage

When the Elites Get Better Acquainted with Their Environment 32

Interview

Community Empowerment ThroughPosyandu 34

Website Info 37

Book Info 38

CD Info 39

Around WSES 40

Around WASPOLA 46

Bibliography 54

Clinic IATPI 55

Agenda 56

Information Media for Water Supply andEnvironmental Sanitation

Published by:

Working Group for Water Supply and

Sanitation

Advisor:

Director General for Urban and

ural Development, Department of Public Works

Board of Trustee:

irector of Human Settlement and Housing,

National Development Planning Agency

Republic of IndonesiaDirector of Water and Sanitation,

Ministry of Health

irector of Urban and Rural Eastern Region,

Department of Public Works

rector of Natural Resources and Appropriate

echnology, Director General on Village and

Community Empowerment,

Department of Home Affairs

Director for Facilitation of Special Planning

Environment Management,

Department of Home Affairs

Chief Editor:

Oswar Mungkasa

Board of Editor:

Ismail, Johan Susmono,

Indar Parawansa, Poedjastanto

Editor:

raita Listyasari, Rewang Budiyana, Rheidda

Pramudhy, Joko Wartono, Essy Asiah,

Mujiyanto, Andre Kuncoroyekti

Graphics Design & Illustrator:

Rudi Kosasih

Production:

Machrudin

Distribution:

Meiza Aprizya, Agus Syuhada

Address:

Jl. Cianjur No. 4, Menteng, Jakarta Pusat

Phone/Fax.: 62-21-31904113

http://www.ampl.or.id

e-mail: [email protected]

[email protected]

[email protected]

Unsolicited article or opinion items

are welcome. Please send to our address

e-mail. Don't forget to be brief and accom-

panied by identity.

Cover by RUDI KOSASIH

This magazine is a translation of the official Bahasa version.


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Percik July 2005 1

FROM EDITOR

Dear readers, there is a good news

that we want share with you. Percik is

getting more attention from the stake-

holders of water and sanitation sector.

We are frequently receiving many sub-scription enquiries for the magazine.

Some of the readers also said that they

use Percik as one of their references.

These facts surely are pleasant things

for us, the editorial team. It means that

our goal to set Percik as one of refe-

rences in water and sanitation sector is

nearly to be achieved.

Readers, this year is the year of

micro finance. In this edition, Percik

present main report on micro finance

for sanitation, especially for latrinesconstruction. We believe that this is an

important issue, because micro finance

scheme has not been directed to facili-

tate sanitation development. Whereas

sanitation cannot be taken for granted,

as it is very important for our health. In

fact, there are many people in Indonesia

that do not have any sanitation facilities,

particularly latrines. They defecate in

any place they can find. Until today,

there is no formal form of micro finance

scheme to facilitate them. We hope, thisreport will build a discourse and further

motivates policy makers to give more

attention for these people and provide a

small portion of fund for latrine con-

struction.

For some communities, latrine con-

struction is not obstructed by fund

unavailability. It is more a matter of wil-

lingness and understanding. This is as

proved during Community Led Total

sanitation (CLTS) pilot project in

Lumajang that we will present in Teles-cope column. At first, there are many

doubts about this approach. The ques-

tion that have been tickling in some

minds is "how it's possible to build peo-

ple's awareness without any financial

intervention?". The result is unexpec-

ted. In a relatively short time, almost all

villagers in pilot project locations built

their own latrine without any financial

support from the government. All that

needed is a triggering.

Readers, the Interview column in

this edition is different from that of pre-

vious editions. We used to present an in-

terview with a central government offi-

cer and the topic is related to the Main

Report. For this edition, we interviewed

a Lumajang District official to capture

local perspective on water and sanitati-on development. There are some lessons

that can be learned by central govern-

ment and other district governments.

For instance, Lumajang District has

launched a program that named Luma-

jang Sehat 2007 (Healthy Lumajang

2007) that included in Gerbang Mas

campaign. To achieve the program's

goal, Posyandu (integrated service post)

are plotted as activity centers that not

only include health services but also

other activities such as community em-

powerment activities.

We also present reportage on a com-

munity that has a great concern about

environmental quality of their neigh-

borhood. They are part of upper-middle

class in Jakarta. We will take a close

look on their efforts.Readers, all that we present here are

not perfect. But surely we always make

efforts to present you better informa-

tion. We are looking forward for your

valuable critics and suggestions. From

the beginning, we are determining to

make this magazine as a media for in-

formation exchange between stake-

holders.

Percik reporter Mujiyanto and Andre K. (the first and the second fromthe left) with sanitarian and CLTS activists in Kertowono village,

Lumajang, East Java.


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Percik July 2005 2

YOUR VOICE

Subscription

I'm very interested with the con-

tent of Percik. I want to receive themagazine regularly to improve my

knowledge of environmental manage-

ment. I also want to receive water and

sanitation interactive CD.

How can I subscribe to the maga-

zine? I live outside Jakarta. Can I send

my paper about environmental prob-

lems in my district, Batang district?

Ir. Wisnu SuryotomoEnvironmental observer

Jl. Ahmad Yani Gang 28 (Tengger) No. 41

Kauman Kabupaten Batang,

Jawa Tengah

Percik is distributed free of

charge. You only have to send us your

request letter then we will send Percik

to your address. If the topic of your

paper is water and sanitation, you

can send us your paper and we will

publish it onPercik.

Working Group Products

I have read PercikAugust 2004

edition and we realize the value of

information on water and sanitation.

Those information are very important

to improve my knowledge. Infor-

mation summary and documentation

in form of newsletter, CD and news

clipping produced by Water and

Sanitation Working Group are effec-

tive tools for socialization to various

stakeholders.

I want to receive all Working

Group's products. I am fully support-

ing your efforts to disseminate infor-

mation on water and sanitation. I also

hope that we can build a mutualcooperation in the future.

Ir. H. Isrin Agoes

Head of Bappedalda Propinsi

West Sumatera

We have sent all that you need.

Thank you for your kind interest and

support.

Reference Books

I am the Head of Environmental

Engineering Department, Faculty of

Engineering, University of Andalas,

Padang, West Sumatera. To improve

our library, we need various reference

books especially that of related to

environmental engineering (water

supply, waste water, air quality, envi-

ronmental sanitation and hygiene)

such as regulations, technical gui-dance, journals, etc. Can Working

Group help us for that?

Denny Helard, MT.

Dept. of Environmental Engineering

Engineering Faculty, University of Andalas

Kampus Limau Manis,

Padang-25163

We will help you as we could.

However, we will help you to contact

related institution that might be able to

help.

Percik Subscription

I am, a student in IPB. I find that

Percik has a very valuable informa-

tion. Can I receive the magazine regu-

larly? I read from your website that the

magazine is free of charge. If I can'tget the hard copy, can I get the soft

copy?

Slamet Purwanto

Jln. Raya Darmaga Gg Bara I No.184B,

Kelurahan Babakan RT 01/03

Darmaga,

Bogor Barat 16680

We will send Percik to your

address.

Percik Collection

I got Percik in Waste Water

Treatment Seminar in Yogyakarta (24-

25 August 2005) and in National

Dialogue on Solid Waste in Jakarta (4

June 2005). It turned out that the con-

tents are very helpful for me to do my

tasks.

I really hope that you can help me tohave all editions of Percik, starting from

the earliest one. I only have seven edi-

tions (August 2003, October 2003,

February 2004, June 2004, August

2004, October 2004, and December

2004). How much I must pay?

Roesmani, ST

Head of Environmental Sanitation Section

Permukiman Dinas KIMTARU Propinsi

Central Java

You already have all the early edi-

tions.

We will send you all the 2005

editions.


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The village that part of Ngem-plak sub-district administra-

tion, Sleman District, Yogya-

karta Province, is changed

thanks to the help from World Bank faci-

litated by a NGO, [e] Foundation. The

amount is not big. However, it is able to

motivate the community to change their

life and create a healthier living environ-

ment.

The grant from World Bank was used

as revolving fund that can be borrowed bythe community to build or improve their

family latrines. The program then named

"Kredit Jamban Sehat" (Healthy Latrine

Credit). The amount of loan for each

household was from Rp 750 thousands to

Rp 1.275 thousands. The installment was

paid monthly in 10 - 24 months period

with 1,5% per month interest and the fine

for late repayment is 5% of the interest.

The loan cannot be used for other

A IN REPORT

Sanitation Micro-credit

for the Poor

M

People of Umbulmartani

village are now

relieved.

Open defecation habit

is drastically decreasing.

This is because

they now have family

latrine.

CARICATURE: WWW.RUDIKOZ.COM

Percik July 2005 3


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Percik July 2005

MAIN REPORT

purpose. Mandated criteria of a

healthy latrine as follows:

Equipped with cover, ventilationand adequate water for hand wash-

ing and anal cleaning.

Odorless

Cemented floor

The minimum distance form near-

by water well is 10 meters.

In August 2002 the grant already

used to facilitate 12 family latrines con-

struction and improvement. The num-

ber has reached 40 family latrines by

February 2005.

The village chief, Atok Triyudianta,explained that approximately there are

still 30% of his people that do not have

healthy latrines. If the only fund avail-

able is the World Bank grant, it will

takes ten years to provide healthy

latrines for all villagers. Therefore, the

chief ask for help to PT. Ford Motor

Indonesia (FMI) that has allocated

fund for environmental preservation.

FMI provided a grant that dis-

bursed in stages started from May

2004. The amount of the grant is Rp 41million. Up until February 2005, the

total amount of disbursed fund has

reached Rp 20,7 million. Because of

this additional grant, the loan platform

was increased up to Rp 1,5 million for

each household.

In May 2004, 11 new latrines were

built and another 15 latrines built until

February 2005. The interest that colle-

cted from the borrowers was also used

for nutrition improvement program

for under fiver year old children. Thiswas done through additional food pro-

gram in Posyandu (integrated health

service post).

"If healthy latrine program and

nutrition improvement program are

sustainable, our dream to achieve a

healthy Umbulmartani can be realized

and thus lead us to a healthy Yog-

yakarta and further healthyIndonesia", said Heny Kushayati, a

PPK (family educational program)

activist and the wife of Atok

Triyudianta.

Indonesia Condition

The Umbulmartani case is an illus-

tration of urban and rural basic sanita-

tion condition in Indonesia - it is not

entirely representative though. By the

end of 2002, the proportion of nation-

al population that have access to basicsanitation (equipped with latrine pit

and septic tank) is 63,5%. In rural area

the proportion is 52,5% while the

urban proportion is 77,5%. These

numbers regardless the quality of the

facilities, thus they don't reflect the

actual condition. The actual condition

is probably worse, many basic sanita-

tion facilities are unusable anymoreand don't meet health and environ-

mental standards.

Approximately, 73% of urban

households have on-site sanitation but

most of their septic tank facilities are

not working properly. Besides, urban

sewerage systems are not adequate

and there are not enough domestic

waste treatment plants. This condition

leads to environmental degradation,

particularly ground water and river

pollution.

Global Condition

In September 2000, the world

leaders declared Millennium Deve-

lopment Goals (MDGs), a set of tar-

gets to improve health and prosperity

of the world population. On the fol-

People defecate on this river.

SOURCE: MUJIYANTO

4


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Percik July 2005 5

MAIN REPORT

lowing two years, United Nation held a

World Summit on Sustainable

Development in Johannesburg, em-phasized MDGs as a global commit-

ment and added specific target for

sanitation and hygiene.

By the year 200, 2,4 billion people

across the globe don't have adequate

access to sanitation. Around 81 % of

them are live in rural area. More than

1,1 billion people don't have sustain-

able access to safe drinking water and

86% of them are live in rural area.

Inadequate access to safe drinking

water and sanitation causes a varietyof diseases including diarrhea. More

than 250 million people suffer water-

borne disease every year and 10 mil-

lion of die from it. Sanitation condition

in rural is worse than in urban.

Approximately, 970 million people live

in slums and urban population is

growing rapidly.

By the year 2015, the global popu-

lation is predicted to reach 7 billion.

Most of them will live in developing

countries. This growth will increasethe number of people without ade-

quate access to basic sanitation to 3,4

billion. World Health Organization

(WHO) estimates that every year there

are 150 million more people who are

need access to sanitation

Will the target be achieved? This is

both a question and a challenge. Sani-

tation development is not an easy task.

There are several major problems such

as financial unavailability, cultural

obstacles and public unawareness.Open defecation is a common practice

for certain communities in poor coun-

tries. There are also people that don't

build sanitation facility because of

financial problems. While some others

think that sanitation issue is govern-

ment's responsibility not theirs.

With regard to this condition and

limited financial capability of the gov-

ernment and community, MDGs tar-

gets can only be achieved by the year

2025. Without a strong political will

and commitment, those targets will

never be achieved. The main challengefor Indonesia is how to achieve the tar-

get with existing financial capacity.

Micro-finance

Financial challenge has overshad-

owed sanitation development globally.

Up until now, US$ 14 million have

been spent for wastewater treatment

each year. While there is still addition-

al US$ 56 million required for MDGsto be reached.

Population growth is much higher

than basic sanitation development

rate. There is a sanitation backlog.

Therefore, a new approach to acceler-

ate basic sanitation development must

be implemented to meet growing

demand.

Classic financial schemes such as

subsidy and grant to widen sanitation

service coverage are not suitable any-

more with current condition. Besidelimited financial capacity of the gov-

ernment, subsidy scheme is facing

three major problems: (i) the design

for subsidy is difficult, because it

requires detailed information for

assessing community's ability and will-

ingness to pay, finding best-suited

delivery mechanism, defining social

and health benefits; (ii) there are too

many obstacles for subsidy delivery;

(iii) Subsidy-based system is tend to be

unsustainable. However, subsidy sys-tem is part of government responsibil-

ity, thus it cannot be completely elimi-

nated from sanitation sector develop-

ment. It can only be minimized.

Some breakthroughs to develop

alternative financing for basic sanita-

tion have been made. Micro finance is

one of them. This approach considered

to be a reliable tool for poverty eradi-

cation and has gained international

recognition. This recognition is reflect-

ed in the 53rd decree of UN GeneralAssembly 1998 that proclaims the year

2005 as International Micro Finance

Year. The decree then followed by the

Launching International Year of

Micro-credit 2005, by UN Secretary

General in New York, 18 November

2004.

1,8 million of people have died

of diarrhoea and cholera. 90%

of them are children under five

years old, mostly live in devel-

oping countries.

88% of diarrhoea cases were

caused by un-safe drinking

water and poor sanitation

Provision of safe drinking water

can decrease death caused by

diarrhoea up to 21%.

Improved sanitation can

decrease death caused by diar-

rhoea up to 37,5%.

Hand washing practice can

decrease diarrhoea cases up to

35%.Water quality improvement can

decrease diarrhoea episodes up

to 45%.

Diarrhoeain the world


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Percik July 2005

MAIN REPORT

6

This event is designed to endorse

sustainable micro finance and micro

enterprise empowerment program toeradicate poverty. UN Secretary

General called upon all world leaders,

financial institutions, and donor intu-

itions to use all their expertise in micro

credit to help poor communities.

In the event, all key speakers

agreed that micro-finance is the most

successful innovation in social and

economic development and have a sig-

nificant contribution to achieve

Millennium Development Goals. To

achieve the goal, there are several nec-essary factors that have been identified

such as micro-credit promotion,

micro-finance training and capacity

building, private sector involvement

and regulation improvement that will

enable micro-finance development.

President Susilo Bambang Yudho-

yono has proclaimed Indonesia Micro-

finance Year 2005, on 26th February

2005. This will bring accommodative

atmosphere for microfinace institu-

tions as key players in small-scaleenterprise development.

Financing sanitation for the poor

is not as easy as water financing.

While water serve as basic need and

can be utilized for income generat-

ing activities, sanitation will not

bring a direct result. Many litera-

tures for water and sanitation

financing give more focus on water

sector.

Using micro-finance to support sa-

nitation has had impressive results.Several models have practiced in

Lesotho, Honduras, Ghana, South

Africa, India and Pakistan. In

Indonesia, Yayasan Dian Desa has

implemented sanitation microfinan-

cing in Yogyakarta since 1993. An ini-

tiative by WaterAid and a local NGO in

Nafadji proved that credit provisionfor sanitation could decrease preva-

lence of waterborne disease and

improve drinking water quality.

However, the use of micro-finance

for sanitation provision remains a fair-

ly new idea. There are lessons that can

be learned from those successful proj-

ects.

Key for Successful Implemen-

tation

Financing service for the poor isnot a priority for formal banking insti-

tutions. Their access to such service is

low. This condition has hindered them

to improve their life into a more pro-

ductive and efficient one. Whereas

there are some facts that low-income

communities in Asia and Africa who

were facilitated with micro-credit havesatisfying repayment records.

Several common rules of micro-

finance for water and sanitation as fol-

lows:

Local demand research to assess

appropriate financial and accoun-

ting system and thorough under-

standing of the borrower and inter-

mediary capabilities.

Interest rate -- if any -- must be

based on the cost of fund, adminis-

tration and labor costs, loan lossallowances, margin for inflation

and a return on capital. Cost reco-

very is central to the financing

mechanisms as in this way a sus-

tainable financial system is

achieved.

The aim of micro-finance organiza-

Open latrine, many villagers own this type of latrine.

SOURCE: RHEIDDAP


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Percik July 2005 7

MAIN REPORT

tion needs to be clearly defined.

Where credit is just a sideline to

other activities there is a dangerthat financial rules won't be so

strictly enforced.

Loan administration and collection

system need to be simple.

It is necessary to link financial

option to develop sanitation facility for

low-income community with produc-

tive activities to ensure repayment sus-

tainability. Inline with sanitation cred-

it, they provided with another credit

for income generating activities such

as grocery store, farming, transporta-tion service etc.

A revolving fund scheme was tried

to facilitate latrine construction in the

1990s. it was aimed to decrease non-

performing loan cases. The loan was

given to groups of 5 - 9 persons. The

group then took the responsibility of

every loan made by members. The

group served as bridging fund provider

and pressure group for the borrowing

members. Collected repayment used to

facilitate other members or groups. Insome cases, where all members already

have sanitation facility, the loan used

for another purpose. However, this

scheme is deemed to be a failure by

some micro-finance practitioners.

Sanitation micro-finance program

will be successful if the delivery and

monitoring mechanism is well

designed. Borrower's ability to repay

and awareness of their sanitation

demand are the perquisites. It is

important for the borrower to under-stand the demand. Otherwise, there is

a great risk that the loan will be mis-

used.

From the loan provider side, the

product must be targeted for a wide

range of purposes since the service cost

for single targeted loan is too expen-

sive. The most successful micro-

finance product is that of BRI's

KUPEDES which was targeted for var-ious purposes.

Cost recovery in sanitation project

is possible and credit is one of many

ways that can be used to achieve the

goal. The scheme is quite flexible and

can be combined with subsidy, grant or

ownership contribution. Credit pro-

gram is suitable as part of sanitation

strategy that based on demand driven

approach.

What if the person doesn't need the

facility? If that is the case, necessaryefforts to create demand must be

taken. Public campaign to promote

hygiene and pressure from other mem-

ber of the community are some exam-

ples. Well--managed credit service can

also motivate the community to utilize

the loan for sanitation improvement.

Credit providers must consider

available options of sanitation facility

Although they are poor, the villagers able to construct proper latrines.

SOURCE: RHEIDDAP

Sanitation micro-finance program will be

successful if the delivery and monitoring

mechanism is well designed. Borrower's ability

to repay and awareness of their sanitation

demand are the perquisites.


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Percik July 2005

MAIN REPORT

8

types for households. Low-income

households have various preferences.

Some households prefer to have thecheapest simple latrine that suitable

with their budget while some others

prefer to build the complete one.

Availability of resources for sanita-

tion facility is also an important thing to

be considered. All materials that needed

for the construction must be available in

local markets. This will include a variety

of latrine types and models. Among

other things, available technology

options must be easily adoptable by

households. Thus micro-finance is not asingle independent entity but it need to

be supported by other elements.

Credit mechanism can be managed

to minimize sanitation investment

costs. With credit facility, the client will

be able to purchase sanitation facility

materials in bulk so the supplier can

give discounts.

Existing informal intermediaries are

very useful to minimize service costs

because they already familiar with

client's character.

Timescale

Sanitation development for low--in-

come communities must have a realistic

timescale. The program will come into

failure if it only focused to widen service

coverage in a short period of time with-

out supported by efforts to build com-

munity's commitment to repay and

revolve the loan.

Relationship between credit

provider and client cannot be builtovernight. It is a result of long-term

relationship. This credit relationship

should not be managed as one-off trans-

action that only targeted for single pur-

pose. Trust and confidence are part of

credit quality development. These can

only be achieved through long-term

relationship.

Financial institution can also pro-

vide support to increase bargaining

position of low-income households in

order to ensure that their rights and the

quality of sanitation facility are fulfilled

by the contractors.

Conclusion

Sanitation development is impor-

tant not only because it benefits the

owner but also it benefits the wider

community as a whole. Good sanitation

can significantly decrease the spreading

of bad hygiene related diseases.

A limited resource -- especially

financial resource -- is not a reason to

neglect the sector. There are many

alternatives to improve sanitation con-

dition. It takes patience and determina-

tion.

Any kind of fund that provided for

sanitation development will not bringgood result if there isn't behavioral cha-

nge toward sanitation within the com-

munity. It is worth to consider mixing

sanitation credit with another profitable

credit types such as micro-enterprise

credit and water service credit so that a

cross subsidy mechanism can be deve-

loped. (MJ)

Every person want to have a clean and healthy latrine.

SOURCE: ANDRE K


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Every country has

its own method in

sanitation development.

Its experiences are valuable

to be learned by another

countries. The following are

some lessons from

micro-credit projects in

several countries.

Lesotho

T he Lesotho project was initiated in1980 as part of a wider urban deve-lopment scheme. The program provided

credit to households for investment in

VIP latrines. The program was motivated

by the household need for extended pay-

ment. In order to receive credit, house-

holds had to first dig a pit and provide a

deposit of 30 - 40 per cent of the total cost.

Loans were typically in the range US$ 50 -

300. Although the money came from theLesotho government, the Lesotho Bank

administered the loan since they had a bet-

ter record on loan defaulters.

In 1990, 600 loans had been ap-

proved in response to 4.500 enquiries,

252 latrines had been built and 81 per

cent of individuals had paid up. Close to

1000 VIP latrines were actually built in

the target area revealing that 80 per cent

had actually been built through private

initiatives highlights the success of pro-

motion program and the availability of anaffordable and acceptable sanitation op-

tion. A report written for the UNDP in

1994 identified several keys to the success

of the project:

Affordable and acceptable latrine

design;

Minimal direct grants or subsidies to

householders;

A comprehensive program of VIP

latrine promotion, health and hygiene

education;Integration of the project into existing

government structures; and

Strong coordination in policy and

planning between different depart-

ments promoting improved sanita-

tion

Looking at the credit scheme itself,

repayment with interest was supposed

to ensure that households accepted full

responsibility for sanitation. However,

administration costs for the loan were

high compared to their size and addi-tional costs like the promotion and

management of the scheme were not

charged to the borrower putting a ques-

tion mark over its long-term sustain-

ability.

This case study reveals the need for

clear aims and objectives. The project

was successful at promoting sanitation

but it did not create a sustainable micro-

finance institution.

Honduras

The Co-operative Housing Foun-

dation (CHF) program is a national stra-

tegy to provide loans for housing

improvements in Tegucigalpa the capital

of Honduras. As of 1993, the shelter pro-

gram had disbursed around US$4 million

dollars to Honduran NGOs for on-lend-

ing to some 4000 households. Sanitation

was identified as a niche in this market

and a UNICEF grant of US$350,000 was

provided to establish a revolving fund forsanitation improvements.

The goal of the CHF program was to

develop NGO capacity so that they would

be able to develop their own credit lines

from other government departments and

eventually the private banking sector.

This meant that they first had to establish

a track record of making and recovering

loans successfully.

Loan agreements were made directly

Lesson Learned from Micro-Credit Projects

A c r o s s t h e W o r l d

One of latrines in Honduras.

SOURCE: WWW.QTAWWA.ORG

A IN REPORTM

Percik July 2005 9


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with the NGO. No collateral was requiredalthough the backgrounds of borrowers

were closely investigated. Co-signers

were used to guarantee payments. Typi-

cally the loan would have a duration of 3

years and be paid off in monthly install-

ments. The average rate of interest was 15

per cent which was low compared with

alternative sources of informal finance

through money lenders or retail credit.

The NGO's achieved a very high recovery

rate 95 per cent in the early years. Some

even developed alternative credit lines asplanned. The prospects for integration

with the formal sector therefore seem

very encouraging.

The success of this scheme can be

related to the wide range of options in

terms of the type of improvement made,

the loan term and the quality of the im-

provement offered by lenders. Borrowers

could tailor their lending package to their

individual needs and hence the initiative

avoided the 'one size fits all' approach. It

was discovered that household were often

prepared to chose the high cost option if

the incremental increase in property

value was considered to be high.

The flexibility of loan terms meant

that borrower and lender could test the

loan system at lower risk to them both.

Smaller shorter-term loans for sanitation

were sometimes paid off early to be re-

placed by larger longer-term agreements

for more substantial housing improve-ments.

Provision of reliable technical advice

and help in negotiating construction con-

tracts was a key factor in attracting bor-

rowers with plans to upgrade their sanita-

tion facilities. Low income households

often did not have information necessary

to make an informed decision about sa-

nitation provision. A prime function of

the loan officer was to monitor construc-

tion quality for the customer and use the

ability to refuse disbursement to keepcontractors in line.

A large subsidy is built into the loan

program i.e. the technical support pro-

vided by the CHF but there is also provi-

sion in the financial planning for CHF to

get sufficiently close-to-market rate from

NGOs to preserve the value of the fund's

asset base. When the NGO's take over the

CHF function, the cost of expert staff will

be much lower.

India

Sulabh is an Indian NGO employing

20,000 people which was set up to

market low-cost twin pit latrines in

urban slum areas. 500,000 households

have gained access to credit through

both formal and informal mechanisms,

the latter making use of agents who

market loans and collect from pur-

chasers on flexible terms.

SULABH sets targets collection

rates for these collectors, but doesn'tburden them with formal book-keep-

ing. Although SULABH has received

grants, the extent of the latrine pro-

gram indicates that it is financially

viable and reaches the poor. The non-

transparency of loan terms may reflect

the use of truly informal systems based

on price discrimination and minimal

record keeping.

(MJ)

The success of this

scheme can be related to

the wide range of options

in terms of the type of

improvement made, the

loan term and the quality

of the improvement

offered by lenders.

A public toilet in India.

SOURCE: COMMONORGARDEN.BLOGS.COM

AIN REPORTM

Percik July 2005 10


13/60

Urban Yogyakarta is consisted of

Yogyakarta Municipality plus

several villages in Sleman

District and Bantul District. For a glance,

the city seems quite beautiful. Almost all

people own good quality sanitation facili-

ties. Nevertheless, there are many house-

holds that don't have family latrine. They

defecate on rivers, rice fields and

drainage channels during dawn and dusk.

Based on a study, there are 79% of

households in Urban Yogyakarta thathave family latrine and 21% of them

(approximately 31.500 households) don't

have any sanitation facility (5,34% defe-

cate in river; 3,09% defecate in public toi-

lets built by government, private-owned

public toilets and in their neighbor's toi-

lets ; 14,53% defecate in river, ponds,

backyards, etc).

If every person generates 0,2 kg of

feces per day, there will be 31,5 tons of

feces discharged everyday directly to the

environment by the community as awhole or roughly 945 tons of feces per

month (equal to 250 trucks fully loaded

with feces).

Several reasons why people don't

build family latrine:

Main reasons:

Financial difficulties

There is no space available

Other reasons:

Not settle enough yet.

Satisfied enough with current

condition etc.

To solve this problem, there are three

programs that can be developed:

Revolving fund for sanitation facility

provision. This program directed for

those who have financial difficulties

but already have available space for

construction.

Public toilets operated by private sec-

tor. This is for people who don't have

anymore space in their house for sa-

nitation facility.Well-planned and consistent cam-

paign for hygiene.

Sanitation Revolving Fund

Program

To solve limited fund problems, there

is a need to develop a program to revolve

soft loan within the community. The pro-

gram must be designed to suit with local

community condition. To tap fund from

formal financial institution for the pro-

gram is very complicated and difficult.Sanitation is categorized as consumption

activity while loans are only available for

productive activities. There is also a com-

mon assumption that the poor are unwill-

ing to repay their loans. However, there is

a fact that proves otherwise. A NGO,

Yayasan Dian Desa (Dian Desa

Foundation), using a small amount of

fund from SDC, conducted a pilot project

in 1995 - 1996. The program covered fol-

lowing activities:

Soft loan provision, with 8% interestper month and 30 months repayment

period.

Free of charge technical assistance for

the community.

Design for underground construction.

The design provided by Yayasan Dian

Desa to ensure the quality of the con-

struction. The design for upper gro-

und construction wsa fully customi-

zed to satisfy household's preference.

There are 150 households that partici-

pated in the project, originated from

Potorono, Tegalmanding and Condong-catur. The amount of each loan was rang-

ing from Rp 350.000 - Rp 400.000 per

latrine. Within 2 years, the result was

satisfying enough :

There are only 4,8% of non-perfor-

ming loans, 87% of total loans were

repaid as scheduled and a small pro-

portions of loans were rescheduled.

The maintenance of built facilities

were far better than those of public

facilities that built by government's

loan.Some reasons that motivate the com-

munity to build latrines as follows:

Economic reasons ((possibility of to

open hostels, food stalls, etc.)

Higher social status.

Other

There were various obstacles and dif-

ficulties during the project execution. But

was better to start something than doing

nothing. (Prianti Utami/MJ)

A IN REPORTM

Reasons why the community don't have family latrine

ReasonsFinancial difficulties

There is no space available

Not settle enough yet

Satisfied enough with current condition

Others

Yogyakarta17

37

23

11

12

Sleman57

10

4

15

14

Bantul38

8

5

35

14

Experiences from Family LatrineCredit in Yogyakarta

To solve limited fundproblems, there is a needto develop a program torevolve soft loan within

the community.The program must be

designed to suit with localcommunity condition.

Percik July 2005 11


14/60

In rural area, latrine provision is

still a problem and cannot entire-

ly solved. High population growth

and low income complicate the pro-

blem. Beside, there are reasons why

most of the community members don't

own a family latrine:

Unawareness. They think that all

sanitation matters are bared upon

the government.Cultural. For some people that live

near riverbanks or irrigation chan-

nel, it is convenient enough for

them to defecate on the river or irri-

gation channel or even on their own

backyard. Although they have to

walk as far as 500 to 1.000 meters

from their house.

Financial inability. To provide some

money to construct a latrine is not

easy. They don't get used to save

money and their income is onlyenough for daily needs.

Health service for children is also a

problem. Most of local women institu-

tion such as Posyandu (integrated

health service post) are not optimally

functioning. Nevertheless, Posyandu

roles are:

Improving and maintaining com-

munity health.

Improving social cohesion within

the community.

As a place to exchange information.

Services that provided in Posyandu

are:

Nutrition improvement

Family planning

Diarrhoea and upper trachea infec-

tion prevention

Additional activities in Posyandu

include:

Water and sanitation construction

promotion

Children and infant development

monitoringCommunicable diseases abatement

And other rural community health

efforts

It is a shame that most of these

activities and services are not available

anymore in Posyandus. Some services,

due to limited supporting facility and

fund, only available for weight mea-surement and vitamins provision for

children.

Community's inability to build la-

trine and poor performance of Posyan-

du will result in negative impacts.

Thus, it is necessary to find some ways

to empower the community and streng-

then Posyandus. One of possible ways

is revolving fund program that de-

signed together with the community to

ensure its sustainability.

Efforts and Results

Revolving credit for latrine con-

struction in Yogyakarta pioneered by

Yayasan Dian Desa. They conducted a

pilot project in 1993. the project pro-vided loan for the community to con-

struct latrine. The loan repaid within 12

months with 1% monthly interest.

Within 4 years there were 400 latrines

constructed in Potorono, Umbulmar-

tani and Condongcatur.

In 2002, [e] Foundation worked

together with Coordination Body for

Health Promotion and PKK (family

health education) of Umbulmartani

village to develop community based

development concept that combinedwith community action plan concept.

The cooperation was aimed to em-

power the community to construct

their own latrine and to strengthen the

Posyandu.

Because of positive impact resulted

from the program, in 2003 Ford Motor

Conservation and Environment Grant

provided additional fund to enlarge the

coverage of the program.

The main feature of the program

was simple. Credit was provide forlatrine construction with 24 months of

repayment period. The interest is 1,5%

per month that divided for three dif-

ferent allocations:

0,7% allocated to support Posyandu

0,3% allocated for administration

cost,

N SIG HTI

By: Momon Hermansyah*

Community's inability to

build latrine and poor

performance of Posyan-

du will result in nega-

tive impacts. Thus, it is

necessary to find someways to empower the

community and streng-

then Posyandus.

Healthy Latrine

and Strong Posyandu

Percik July 2005 12


15/60

and 0,5% allocated to

increase the capital for therevolving loan.

Lessons learned

Some lessons learned from

the program:

transparent partnership

among all parties that in-

volved in the program.

Direct involvement of wo-

men through local institution

in neighbourhood health im-

provement.Lower investment cost for

latrine construction.

Conclusion

To achieve those positive

results, trust and respect must

be given to the poor. It is based

on perspective that the poor

aren't " the have not" but rather

they are "the have little". Their

little potentials as individuals

can be united and used as aneffective tool to solve their own

problems.

At the point where communi-

ty able to solve their problems

and develop synergic and sus-

tainable way of life, community

participation in development is

achieved. The government does-

n't need to interfere any kind

matters that can be handle by

the community themselves. This

is the real principle of develop-ment. The question is "are we

willing and brave enough to do

it?".

N SIG HTI

*) Head of quality control division of

Assosiasi Konsultan Pembangunan

Permukiman Indonesia Cab. DIY dan

Staf pada Badan Koordinasi Promosi

Kesehatan - Dinas Kesehatan DIY

Repayment

Revolvingfund

Monitoring &evaluation

Latrine Construction and Posyandu Strengthening

Concept

1. Latrineconstructionand develop-

ment

2. StrengtheningPosyandu

with subsidyfrom repayment

interest

Star-upmoney

PKKwith the

Village Chiefselect eligibledebtors and

administeringcredits

target

group

PARTNERINSTITUTION

BKPK

[e]FoundationUmbulmartani's

PKK

Ford Motor

Company

[e]Foundation

Umbulmartani's

PKK

FIRSTBATCH

12 units of

latrinesRp 1.250.000,-

each

15 units of

latrines

Rp 1.500.000,-

each

BUILT LATRINEUNTIL 2004

41 units of latrines

were built,and another 29 units

of latrines were still

under construction

28 units of latrines

were built,

and another 11 units

of latrines were still

under construction

AMOUNT OF SUBSIDYFOR POSYANDU

51 Posyandus that received Rp

50.000 each. The fund was usedto buy new equipments and for

Additional Food Program

10 Posyandus that received Rp

75.000 each. The fund was used to

buy new equipments and for

Additional Food Program

[e] Foundation

Percik July 2005 13


16/60

There are many ways of

solid waste manage-

ment. All of them ha-

ve their own unique charac-

teristics. There is a model of

solid waste management that

worth to try in Indonesia.

This model is used in south-

ern Sweden.The model was developed

by SYSAV, a company owned

by 9 municipalities in south-

ern Sweden. The company

serves 500.000 citizens. Eve-

ry municipality is responsible

for collecting solid waste

from households and indus-

tries, while SYSAV is respon-

sible for further handling and

disposal of collected solid

waste.The model is called Eco-

Cycle Society, a concept of

regional closed-loop solid

waste management. The mo-

del is intended to conserve

energy and materials within

the community. The philosophy is to

reduce solid waste generation by reuse,

recycling and recovery activities.

At the picture above, can be

described that generated solid waste

can be:reused as the same original product

(i.e.; reused bottles)

recycled as raw materials for

another products (i.e.: paper

waste)

used as fuel to reduce un-renew-

able fossil fuel consumption

biologically stabilized through

composting process or digestion

and feed back to nature.

disposed safety for long term envi-

ronmental protection.

Based on eco-cycle philoso-

phy, SYSAV built various regio-

nal solid waste facilities, which

are:

Waste to Energy Plant at

Malmo

Around 25 ton solid waste con-

verted into heat every hour.

The plant connected to heatgenerator plant in Malmo and

Burlov, generates 600 GWh

heat every year.

Integrated landfill Spillepeng's

at Malmo

The facility equipped with sep-

arator, composteHousehold

Solid Waste Recycle Centre

There are 9 recycle centres,

one in each municipality. The

recycle centre only take recy-clable solid waste such as

paper, bottles, electronics,

households tools and haz-

ardous household waste (bat-

teries, neon lamps, etc)

Lund Transfer Station

The station built to achieve efficient

solid waste transport from the

source to the final disposal or han-

dling sites.

The model should be implementedin Indonesia. Even more, regarding the

WJEMP (Western Java Environmental

Management Project), an aid from

World Bank, which one of its program

is to form Jabodetabek Waste Mana-

gement Corporation (JWMC).

N SIG HT

Solid Waste management

through Eco-cycle Society

I

SumberdayaAlam

PembuanganAkhir

Produk

BahanBaku

Residu

By: Yuni Erni Agustin

The model was developed by

SYSAV, a company owned by

9 municipalities in southern

Sweden. The company serves

500.000 citizens.

Percik July 2005 14

Product

ResidueRaw

material

Naturalresources

Finaldisposal


17/60

During the New Order regime the-

re were many public facilities

built all over the country. From

water supply facility, MCK (bathing,

washing and latrine facility), hand pump,

rural road, garbage bin, and so on. But at

present most of those facilities are not

functioning. Even, the facilities built by

Directorate General of Cipta Karya, espe-

cially those for water supply and sanita-tion services are nicknamed "Cipta Karya

Monument" because they are standing

there alone and out of function. A lot of

money has been spent. Most of it came

from foreign loan. Similar case happens

with physical construction projects im-

plemented by NGOs. Project or program

failure is caused by inappropriateness

(unsuitable technology) and lack of com-

munity participation.

In the future water supply and eviron-

mental sanitation development projectsmust take into consideration the active

participation of the community

Community Participation

Community paricipatio is defined as

involvement of the respective in the plan-

ning, construction and project operation.

This includes community imvolvement

in:

Determining project objective;

Accumulation of resources;

Benefit of the project;Assessments whether the project has

achieved its objective(s);

Sustainable project management ba-

sed on the community resources.

Community participation will not

grow by itself, because the community

has never had any experience in planning

a project. Most of the times there is a lack

of awareness in the part of the communi-

ty itself. They never realize that what

they drink is water that does not meet the

qualification of drinking water. Similarly

with other hygiene facility they use daily.

It is, therefore, necessary to motivate

and push the community to actively par-ticipate in every project offered to them.

They will assume a responsibility because

they belong to it. This makes the role of a

facilitator very important. A facilitator

acts as liaison between the project

provider with the community. The faci-

litator interprets the objective and pur-

pose of the project provider to the com-

munity and conversely between the com-

munity aspiration to the project provider.

We will also see how sucessful the

development and operation of AG Tank

in Malang that was tinitiated by Agus

Gunarto. One man initiator is what is

needed to persuade the whole community

to participate in developing an environ-

mental sanitation facility of a settlemeent

area. Because it is fully supported by the

local community the AG tank is still func-

tioning up to the present.

Service Priority

Not all of the localities had the pleas-

ure of project subsidized water supply

and environmental sanitation facility. It

is limited to certain areas. It is therefore

necessary to determine the priority of

service delivery for a project subsidy. The

steps to be taken consist of:

Design a set of objective criteria to

determine the priority community.What must always be borne in mind is

the availability of reliable data and

information about the area and com-

munity condition so that the criteria

could be applied objectively and accu-

rately.

Coordinate with the government and

NGOs for site or community selection.

This is intended to avoid overlapping

of projects in a given area.

Recruitment and training of facilita-

tor to help in community educationand participatory processes. The faci-

litator recruitment should also take

into consideration the track record or

experience of the candidates.

Priority should be given to the most

needy greedy area. There must be a

definitive criteria, for instance the poor

families, rural areas or other prioritized

group. Example:

Unproductive area where income

source is wanting;

Areas where facility needs improve-ment;

Areas with endemic diseases;

Areas where water is scarce and lack

of health service facility;

Areas with poor hygiene behaviour.

For areas with middle and rich fami-

lies the awarenes to hygiene and environ-

mental sanitation is generally more fa-

vourable. For water supply and environ-

mental sanitation they won't hesitate to

N SIG HT

Community Participation to SupportWater Supply and Environmental

Sanitation of a Settlement Area

I

By: Erik Armundito*)

Winner Third Place

Article Writing Competition

Percik July 2005 15

Community participationwill not grow by itself,because the communityhas never had any expe-

rience in planning aproject. Most of the

times there is a lack ofawareness in the part of

the community itself.


18/60

spend some money to build a private or

public facility. They have left behind all

the habit that is detrimental to health.

Promoting Participation

If the performance of water supply

and environmental sanitation in a settle-

ment area is unsatisfactory, mistargeted

or non-sustaining, we have to find out the

root causes. There are several possible

reasons that must be taken into conside-

ration, they are (i) difference in opinion

between the community and the project

planner pertaining to the particular facili-

ty; (ii) the focus is set on subsidy ratherthan sustainable benefit; (iii) lack of sup-

port assistance to the community, espe-

cially after the construction.

It is necessary to identify the factors

that may trigger an active participation.

In general, demand and urgency may

stimulate active community participation

in subsidy based projects. Take for

instance demand for water supply. Water

ia a basic need for human to live and it

must be available every day. The commu-

nity demands access to drinking watersupply and this will generate an aware-

ness to help in any way possible to have a

water supply facility developed.

Similarly with environmental sanita-

tion. For instance, with the outbreak of

contagious disease because of poor habit,

the community demand for sanitation

facility is growing significantly. These are

the conditions that must be taken into

consideration by project provider when

planning a project for the community.

Sustainability of Project and Faci-

lity

A hamlet or a vllage has managed to

build an improved sanitation facility.

Water supply for drinking, washing, ba-

thing and sanitation as well as impro-

vement of their dwelling. But what about

their use. Whether they satisfy the peo-

ple? Can they manage it sustainably to

the future? It is therefore, important to

make sure about the project sustainabili-

ty. Are we going to end with physical

facility or do we want it to be used sus-

tainably and serves as an example to other

places?

After project construction and the de-

tails for reporting and publication are

completed the facility is usually transfer-

red directly to the community for opera-

tion. Problems will soon arise pertaining

to the use and management as to whatinstitution is to do the job, amount O&M

cost, how to operate the equipment, up to

the requirement for spare parts.

From the beginning the community

should be involved in organizing the res-

ponsible institution or organization to run

the facility. Whether it is the village ad-

ministration, youth group, the local

neighbourhood level administration (RT),

or a new management team. In here a

common responsibility will be nurtured.

After the formation of the management

organization the community must also be

involved in contribution for O&M cost.

The awareness and responsibility that has

been growing will make the contribution

collection easier.

Before the physical construction is

completed the community should be

given the knowledge on how to operate

the machinery such as hand pump, eletricpump, septic tank, latrine, etc. The com-

munity will later on operate those things

by themselves.

The role of facilitator in determining

the priority is to help in filling the gap

between the community and the project

management. His job is to bring the com-

munity into the direction of the project

planning because the success will signifi-

N SIG HTI

SOURCE: RHEIDDAP

Percik July 2005 16


19/60

cantly depend on the effectiveness of

partner's job.

For machineries that are used contin-uously will naturally breakdown and

spare parts must be made available. The

facility to get the spare parts must be

taken into consideration.

Selection of Facilitator

Project planners usually speak with

the community through the local leaders

who is considered as representing the

community. Male and female facilitators

could work with female and male indivi-

duals or in group depending on the typeof job that brings him or her to a planning

process.

Selection of a facilitator can be done

through an open advertisement like an

employment opportunity in a newspaper,

or through a direct individual recruit-

ment process. Or through a recommen-

dation from the local community leader,

government or NGO. A facilitator may be

recruited from the local community

members or from the neighbouring areas.

The most important thing is that he orshe must know the area, and is acceptable

by the community. In areas where the

community is deeply religious the facili-

tator can be hired from religious leader,

religious teacher, or a mosque youth

activist. For a community who is fanati-

cal to a certain political party the facilita-

tor can be hired from party functionaries.

For other areas with specific dominant

tendecy the facilitator whill have to be

adjusted with it.

A facilitator must be able to become agood listener within the community and

motivate the community to express their

opinion. A long experience and nice cha-

racter will be quite beneficial in making

water supply and environmental sanita-

tion development project especially in

settlement area a success.

List of Organization Potentials

The success of water supply and envi-

ronmental sanitation project assistance

must be supported by the locally existing

organization.The possible linkage between the

organization to the project is as an active

partner and collaborator in the project

implementation, both in terms of finan-

cing and in moral support. On the con-

trary, the organization may also act as the

main opponent.

Therefore, before starting with a pro-

ject it is necessary to make a preliminary

assesment on the existing organizations

within the project site and its vicinity.

With a better knowledge of the organiza-tions a big potential for project imple-

mentation is in hand.

What could be expected from the

partner organizations may be (i) take pre-

liminary activity for local committee

(interviewing, project promotion, fun-draising, etc); (ii) fundraising for publici-

ty, consultancy, etc.; (iii) permission for

using its organization name as sponsor,

joining one or more program for the pro-

ject; (iv) preparing a definite and clear

notice about the project in meetings or

leaflets and distribution of education

materials as means for membership edu-

cation; (v) conducting discussion in a

meeting about the project; (vi) organizing

its members to actively participate in

project assistance.

Whereas for organization that oppo-ses the project (i) opposes the project by

organizing contradiction in meeting

forum and debates that could hamper the

project implementation; and (ii) provoke

the community to deny the project assis-

tance. The attitude to be taken towards

the opposing organization should be to

accommodate the aspiration they bring

forward. An honest opposition can be

useful to test the proposal. Such a denial

may serve a strong instrument to identify

the weakness in planning, approach aswell as implementation.

If an organization opposes a plan it

doesn't always mean it is entirely against

the project. It may be that there were in

the past similar projects that were misori-

ented and unsustained. The resources

generated from within the community

were spent in vain. This should be con-

sidered as a valuable input to improve the

existing weakness. It is up to the project

provider to make approaches to the

opposing organizations in order to con-vince the value of the incoming project

and will not repeat the mistakes made by

the earlier projects.

Conclusion

From the above discussion one could

conclude that the success of a regional

level project subsidy, particularly water

supply and environmental sanitation in

settlement areas, is grossly determined

by the active participation and support of

the local community. Also by the specificissues that become the characteristic of a

given locality or community. Although

the project is intended for the communi-

ty, its sustainable use and management

also demands the respective community

participation. There is a need for coordi-

nation between the sudsidy provder, the

government, the village level govern-

ment, the community and the existing

organization therein.

N SIG HTI

If an organization opposes

a plan it doesn't always

mean it is entirely againstthe project. It may be

that there were in the

past similar projects that

were misoriented and

unsustained

Percik July 2005 17


20/60

W

e may often hear a slogan hat

reads "Hygiene is an

Investment." The statementcontains a persuasion to the community

to always keep the environment hygienic,

and the connotation of which is mostly

related to waste material dumping. But so

far, there is no clear formula, what kind of

hygiene quality is to be achieved in order

to stimulate an investment initiative, how

big is the investment value in terms of

currency that may be generated as a result

of a hygiene parameter, or conversely how

big is the real social investment building

up within the society as a consequence ofhygiene?

Parameter of Hygiene Quality

It may not be quite clear and easily

comprehensible, what kind of hygiene

quality is expected to be satisfied in an

urban environmental management. The

number of available domestic waste bas-

kets, number of roadside garbage bins,

frequency collection and transport of

waste material, capacity of collection and

transport all of the waste material pro-duced, up to cleanliness of a river that

flows past an area are measureable

parameters to quantify hygiene level.

However, each area or city, has a limi-

tation in its waste material management

capacity to support the intended hygiene

level. The main limitation must be based

on availabiliy of fund for its waste materi-

al management system. How far is the

capacity of the community and willing-

ness to pay waste management fee at a

level of the intended hygiene quality, it isthe duty of the government to formulate

the quantifiable level of hygiene as the

community desire. This can be done

through a calculation based on an ideal

situation, the size of investment needed to

reach the intended waste material man-

agement. The availability of fund is the

yardstick to measure the level of hygiene

quality to be achieved, in terms of the

ideal situation. The number garbage bins

must be adjusted, frequency of collection

and transport is reduced in accordance

with community payment capacity, waste

material collection and transport will

have to be adjusted with the availability of

cartmen and trucks that the community

can pay, up to the quality of cleanliness of

river that could be maintained at a level

commensurate with community payment

capacity. We may say that City A is clean-

er that City B. The question is how much

is communty contribution in order toreach the same level of hygiene quality? A

different level of contribution, followed

with limited government budget to pro-

vide subsidy, as well as community will-

ingness to accept a certain level of hygiene

quality as a service from the government,

is a relative characteristic from city to city.

A possible simplification is assuming that

each city has the same level of contribu-

tion capacity both from the government

and the community, and the community

has an equal taste in producing hygienequality.

This confusion and difficulty can be

overcome through creating an ideal situa-

tion of a good waste material system and

formulation of hygiene quality classifica-

tion of a city based on its community con-

tribution capacity. In this manner, we

will not blame anyone if City A is more

hygienic than City B. This is because the

paying capacity of city B community is

lower than that of city A. On the other

hand the community of city B does nothave to be jealous with hygiene quality of

city A because the community of city B is

comfortable with the hygiene condition of

N SIG HT

Hygiene is an Investment

I

By : Sandhi Eko Bramono,

S.T., MEnvEngSc.*)

SOURCE: WORKING GROUP

This confusion and

difficulty can be over-

come through creating

an ideal situation of a

good waste material

system and formulation

of hygiene quality clas-

sification of a city

based on its communitycontribution capacity.

Percik July 2005 18


21/60

its city. Thus, the hygiene quality classifi-

cation of a city should be determined as it

will become the standard criterion. Onthe other hand the central government

must also determine the standard mini-

mum cost for waste material manage-

ment system for every city in Indonesia,

one which sets a minimum hygiene qual-

ity standard of a sanitary and hygienic

community and environment.

Investment Entry

On the other hand, the entry of out-

side investment that may propel the eco-

nomic gear of one particular area or acity, is also determined by the level of its

environmental hygiene. A strategically

located city having a sufficiently good air-

and seaport, convenient access to trans-

port facility, and availability of good serv-

ice delivery system, can be adversely

affected by the level of its hygiene condi-

tion. As a consequence of poor waste

material management, it is not impossi-

ble, that a city with such a favourable

facility is less attractive to the eyes of

investors.On the contrary, a city with good

waste material management system, a

well maintained and clean waterway, well

collected and daily transported of the

entire waste material produced, not loca-

ted in a strategic located, without a suffi-

ciently good sea- nor airport, and lack of

excellent service delivery system, may

also discourage investor to come in.

In this case, it is necessary to make a

detailed cost analysis to determine the

level of investment and O&M costs of awaste material management system to

guarantee that investor would put up his

capital there. Each city does not need the

same cost because each has its specific

characteristics. It does not to expect that

the hygiene quality of city C is equal to

that of city D. With a specific cost and

difference between the two cities, a city

must be able to provide investment

expected to happen in it, and not happe-

ning somewhere else. This will eventual-

ly eases the community burden as the

waste material producers in paying con-

tribution, and reduces the amount of

waste material management subsidy by

the regional government.

Social Investment

The hygiene level of a city would cer-

tainly affect the health and quality ofenvironment of the surrounding commu-

nity. The government must be able to cal-

culate the extent of social investment

within the community as a result of an

acceptable waste material management

system. As an example, with an accept-

able waste material management system

there will a reduced epidemy from flies

and rats contaminated diseases, a reduc-

tion in infection on the upper respiratory

tract, increasing of recreational facilities,

more business from within the communi-ty, and even lessons learned and aware-

ness of the luxury and importance of

hygienic environment. These conditions

represent parameters that are quantifi-

able in terms of currency unit. Money

that was used to pay for health care

because of illness caused by unscropolous

dumping of waste material, will be substi-

tuted as a cost to buy more nutritious

foodstuff. Social friction caused by

unscrupoulous dumping of wastes, such

as the case in the Integratated Waste

Material Disposal Site at Bojong inJakarta and the Lewigajah Disposal Site

in Bandung, will never happen again.

This means that the community does not

have to pay for a social cost arising from

unrest or disaster caused by waste mate-

rial.

Limitation of Investment

The size of fund to be made available

by the community and the government to

subsidize a waste material management

system depends on three factors, namelycommunity contribution capacity, go-

vernment subsidy, and the willingness of

the community to obtain the intended

hygiene quality. The government must

determine the minimum standard cost

for waste material management that mi-

nimizes the negative effect of the hygiene

quality of the community and its environ-

ment. Ech regional government must

have determined the intended hygiene

quality for its respective area, taking into

consideration the above mentioned fac-tors.

Therefore, the central government

must determine the limit of minimun cost

and hygiene quality to be applied in the

regions. The basic and simplest mile-

stone is how much is the investment cost

and O&M cost of waste material manage-

ment system that is being planned that is

capable of providing a minimum stan-

dard hygiene quality of the sanitary and

hygienic community and the environ-

ment. In so doing, the slogan that reads"Hygiene is an Investment" can be formu-

lated and spelled out in a comprehensible

and quantifiable manner.

N SIG HTI

The entry of outsideinvestment that may

propel the economic

gear of one particular

area or a city, is also

determined by the

level of its environ-

mental hygiene

*) Graduate from School of Civil and

Environmental Engineering, UNSW, Australia.

Member of InSWA (Indonesian Solid

Waste Association) and member of IATPI,

currently UNDP Technical Consultant

for Waste Management in Maluku and

North Maluku Recovery Programme.

Percik July 2005 19


22/60

Water is a basic need of humanbeing. On the other side, water

supply is continuously decre-

asing as a consequence of environmental

degradation. The quantity and quality of

water resources in Indonesia is appre-

hensively foreboding from day to day.

Consequently water crisis is beginning to

strike areas such Java, Bali and Nusa

Tenggara Barat (NTB), Sulawesi Selatan

and other development centres, especial-

ly during the dry season.

The availability of clean water is get-ting scarcer, even in several big cities

clean water is sold as commercial goods.

Law No. 7/2004 on Water Resources

stipulates that commercial business of

water is limited to compensation of water

treatment cost to make it worthy of use.

The government owned utility companies

are obedient and submissive to the appli-

cation of the Law. How about the general

community? Bottled drinking water pro-

duced by private companies are sold

freely in the market. Is there any yard-stick about the acceptable price consid-

ered as compensation cost for treatment

of raw water into drinking water?

Challenges in Water Supply Service

Water supply management in a deve-

lopment centre should begin from change

in community attitude in utilization of the

surrounding environment. It is necessary

to build community awareness about the

importance of maintaining the balance

between nature and human environment.Hutomo indicates that there is something

remiss in the spatial planning policy in

Indonesia, especially in connection to

spatial planning of development centres.

Suitability and submission to spatial

planning has not been firmly institutio-

nalized within Indonesian community.

Hutomo further indicates that water

resources potential in Indonesia in 2005

is estimated at 15.000 cu. m/capita per

annum, more than the average of world

water supply potential which is only

8.000 m3/capita per annum. However,

the water supply potential tends to

decrease. The potential of Java, for

example, in 1930 is calculated at 4.700

m3/capita per annum, at present it has

dropped to one third, i.e. approximately

1.500 m3/capita per annum. Out of this

potential 35 percent is feasible for explo-ration commercially. With the actual po-

tential of 400 m3/capita per annum, the

population on Java must economize its

water resources. The potential is far be-

low the UN standard at 1.100 m3/capita

per annum.

Based on the UN standard and the

projection of Indonesian population in

2015 at 248,2 million, it is necessary to

increase water resources potential up to

273 billion m3 in 2015. In the meantime,

the growth in clean water consumption inIndonesia between 2000-15 is at 6,7 per-

cent a year. Assuming that 50 percent of

the water resources potetial is economi-

cally feasible for exploration, by 2015

there must be at least 136,5 billion m3

raw water reserve. While with 6.7 percent

annual growth in consumption the

demand for clean water in 2015 (asum-

ming 400 l/capita per day) is estimated at

61,3 billion m3.

Beside for clean water, the water

potential is also used for agriculture andother types of industry. In NTB, 62,5 per-

cent of raw water is used in agriculture. If

in terms of national average only 60 per-

cent of water is used for agriculture and

other industries, the remaining raw water

for clean water purpose would only be

54,6 billion m3. In this case, are we able

to protect and make available water

resources potential to satisfy the clean

water consumption of 2015?

As of today, 70 percent of the demandfor clean water of the urban and rural

communities is taken from groundwater.

The problem is, 90 percent of raw water

for industry is also supplied from ground

water reserves. Excessive groundwater

exploration is detrimental to the environ-

ment, and an indication of weakness in

water supply service in Indonesia. The-

refore, the management must take into

account the social, environmental, and

economical aspect of water resources.

In the era of regional autonomy today,it is necessary for the regional govern-

ment to strengthen inter-regional coordi-

nation in response to water resources ma-

nagement. Without mutual awareness

about the importance of forest (in terms

regulating water regime, erosion control,

protection of germ plasm and biodiversi-

ty, as well as oxygen supply it might be

possible that the water resources of a

watershed will soon be depleted. The

spatial planning policy should accommo-

date an integrated watershed develop-ment planning taking into consideration

the various different interests.

The challenge is how to satisfy the

demand for raw water in a sustainable

manner. The jargons such as integrated,

holistic, comprehensive within raw water

supply based on "one river, one plan, and

one management system" approach must

be made into reality.

Alternative Technologies

Technology is a determining elementin the provision of clean water that meets

hygiene standard. Dr. Bismo who con-

ducted the first year RKDM program in

2004-05 studied clean water provision

technology development based on several

approaches, i.e. membrane, ozon, and

zeolit technologies.

As for the recommendable technolo-

gy, in his study Bismo specifically dis-

cusses a natural zeolit clinophtilolit. The

N SIG HT

Water Supply Service:The Present and Future Challenges

I

By: Herry Suhermanto

Percik July 2005 20


23/60

first zeolit that was found in nature was

stilbit in 1756 that is used as molecular

filtration. At present there are some 45natural zeolit have been identified, and

engineering has produced more than 150

derivatives.

The porous micro structure makes it

beneficial for filtration, absorption, ion

exchange, and molecular catalyst. Zeolit

is directly useful to solve wastewater

problem and for water treatment to pro-

duce potable water. The potential of na-

tural zeolit clinophtilolit in Indonesia is

sufficiently large, and in Lampung we

even can find a source at more than 75percent purity.

Membrane technology is another ver-

sion of filtering and diffusion of fluid

absoption. This technology is more supe-

rior to evaporation and destillation tech-

nique because change in phase is not

needed (creating no latent heat). It may

even lead to endogenized process such as

thickening, fractioning, and purification

of a product. This technology is applied

throughout the water treatment process,

from the primary till the advanced stageof filtration, such as nanofiltration and

ion separation (water desalination).

Just like membrane technology,

ozone technology has a wide range of

application. Ozone

is an unstable O3

compound, short

lived (5-30 minutes)

and must be pro-

duced in situ. Ozone

has a wide variety of

benefit, among others cleaning pollutantin water and air, or colour separation,

and kills bacteria (lysis process), virus,

and protozoa.

Application of appropriate technology

in an area is subject to regional prepared-

ness in water treatment (availability of

raw water at certain quality and quantity)

including the infrastructure network to

support it.

Technically, Bismo recommends

ozone technology com-

bined with natural

zeolit catalyst, since asdesinfectant this me-

thod is six times more

effective and producing less residual

material than chlorine method. Besides,

this technology does not require too

much energy, and is modifiable and capa-

ble of being produced in Indonesia. Its

weakness is, ozone technology requires a

relatively more qualified human resour-

ces capacity, careful handling, and rela-

tively high investment cost.

Satisfying the Demand for Water

Based on the above discussion, water

resources potential is no longer capable

of satisfying the demand. The 2015 cha-

llenge has actually been felt today with

the inadequate clean water provision

capacity for the community which so far

has covered only 30 percent of the popu-lation.

The problem is propped on lack of

water resources management capacity

and shortage in raw water availability.

The solution cannot be dealt with through

sectoral approach, it requires a compre-

hensive and integrated approach sup-

ported by innovative technical and appro-

priate water treatment technology.

Appropriate technology containing

local content is needed for water supply

facility of the regions that so far are with-

out access to water supply service net-work. The effort in satisfying the demand

for cle

Microfinance for Sanitation. Indonesia Water Supply and Sanitation Magazine PERCIK July 2005.

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