- freely available
Water 2019, 11(10), 1985; https://doi.org/10.3390/w11101985
2. Commercialization of Water Services
3. Community-Based Organizations as (Commercial) Water Providers
4. Community-Based Organizations in Lamongan Regency, Indonesia
5. Community-Based Organizations in Lamongan Regency, Indonesia
- Water service as an economic good–The policy highlights a need to change “existing public perceptions” that water “has no economic value”. By increasing “awareness and understanding of water’s status of an economic good, overall practices of water use will improve, leading to a reduction in exploitation, and increased efficiency in use and a greater ‘willingness to sacrifice’ to obtain water”.
- Demand-Responsive Approach–This approach is emphasized as it “places the community in the role of decision-maker in the selection, financing, and management of the (water supply and environmental sanitation) system”.
- The Government as Facilitator–The government’s role, particularly at the municipal and district level, is seen as providing technical and non-technical advisory services, with an aim to empower the community.
- The Cost-Recovery Principle–The policy highlights that, in light of the insufficient government funds available for water supply, future development and management of water supply and environmental sanitation infrastructure should be “based on the principle of cost recovery, meaning that all financial components of development (such as budget planning, physical construction, O&M, and depreciation) have to be considered and accounted for”. The principle of cost-recovery is forwarded as crucial in order to “ensure sustainability”.
The Introduction of Commercial CBOs in Lamongan Regency
6. Deviations from the Commercial Ideal
6.1. Alternatives to Sanctions
6.2. Reducing Costs
Between the Ideal and the Practice
Conflicts of Interest
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|Responsible for operations and maintenance, collection of revenues and expansion of network||Informed about tariff design and other HIPPAM related changes. Not required to be formally consulted.||Funding of basic infrastructure and support through trainings at the beginning of the project.||Facilitating agent. In practice, far removed from directly intervening in the operations of the HIPPAMs|
|Type||Tlanak||Kemlagi Gede||Geger||Karangwedoro||Sukomulyo||Trepan||Pawer Siwa||Pengumbula-Nadi|
|Billing collection rate (%)||95||95||80||95||80||90||85||98|
|Gross Profit (IDR million/month)||11.55||6||6||5||2||2||3.5||4|
|Contribution to Village||Yes||Yes||Yes||Yes||Yes||Yes||Yes||Yes|
|Average Personnel Cost (IDR)||616,667||166,667||210,000||205,556||438,889||375,000||337,500||250,000|
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