Makassar Water Authority (PDAM) Becoming a Big Customer

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Water Resources Agencies

There are three types of organizations concerning water resources: Central, Regional and Provincial government agencies, and foreign funded projects. In order to get better understanding what they have done, I will describe the water resources agencies in relation to the Jeneberang river basin management.

Central Government Agencies

The Central Government has seven agencies supporting each river basin management in Indonesia. Institution with major support to river basin management is Directorate General of Water Resources (DGWR), acting and reporting to the Ministry of Public Works (former Ministry of Human Settlement and Regional Infrastructure or Kimpraswil). They are responsible for and supporting the Regional Governments through various Directorate General, such as control of irrigation service fees under the Ministry of Home Affair (MHA). The Ministry of Agriculture (MOA) is responsible of watershed and soil management in un-forested areas and supporting services to farmers using irrigation. The regional office of watershed management is reporting to Directorate General Land Rehabilitation and Social Forestry Affairs in Ministry of Forestry and Plantations (MFP). Ministry of Stated-Owned Enterprises (MSOE-BUMN), originally part of the Ministry of Finance, is responsible for all matters concerning the establishment, operation, performance and funding. Ministry of Finance (MOF) is managing the classification and evaluation program for tax of land and property (PBB/Pajak Bumi dan Bangunan), which is redistributed to the Regional Government and can be used for operation and maintenance of irrigation funding.
Coordination Team / Tim Koordinasi, re-established under presidential decree No 123/2001, should be provided on the top-level coordination of policies and strategies in water sector. This interim arrangement has evolved into National Water Resources Council of Ministers who is responsible for various aspects of Water Resources Management (WRM). This is a central agency related to policy formulation, guidelines, development, dissemination, regulation, and control and setting standards. Some agencies are supervising and supporting the farmers. Other agencies have the responsibility and acting to collect taxes.

Regional and Provincial Government Agencies

Here we can identify eight different agencies:
(I) The Technical Implementing Unit (TIU) called Balai PSDA, who is responsible to the Provincial Water Resources Management Service (Dinas PSDA).
(II) The Coordination Committee for Water Resources at Provincial level or Panitia Tata Pengaturan Air-PTPA.
(III) The Committee for River Basin Water Resources Management (Panitia Tata.
(IV) Kabupaten / Kota level, The Kabupaten or Kota (Water Resources Service).
(V) The Water User or farmer level, responsible for operation and management of tertiary irrigation system, P3A (Water User Association) and higher level farmers. (VI) The Basin level management agencies either Provincial Technical Implementation Units (TIUs) or (Unit Pelaksana Teknik Dinas-UPTD).
(VII) The BAPPEDA (Regional Development Planning Agency) is responsible of planning and development and (VIII) The BAPEDALDA (Provincial Environmental Agency) is responsible for controlling and managing of general environments. Both of the last two agencies are responsible to the Governor of South Sulawesi Province.
Both the Central and Regional agencies have the same task but in less scale than the provincial level, such as policy formulation, administration, development, dissemination and management of technical implementation, regulation and control. Some agencies acting as supervising and procurement agencies, in order to establish the new institutional structures and financing system, and serving as more effective platform in sustainable water governance that requires efficient, effective and sustainable water management for the prosperity.
Several agencies are conducted of monthly water quality monitoring system in all rivers including Jeneberang River: BAPPEDALDA (Provincial Environmental Agency), Dinas PSDA (Provincial Water Resources Management Service), and JRBDP. The location at Bili-bili Power generator is conducted by State Power Authority-PLN and the locations monitoring of Makassar and Gowa water authorities are located at their own water treatment plant (JICA, 2004).
The commitments to the water management with good governance (government, ministers, agencies and authorities) are necessary also as well as stronger budget allocation. Support and commitments from civil society, business leaders and opinion makers are needed. Based on economic analysis reviewed both by SIWI and WHO in relation to water development and management, showed that water resources management and feasible investments in hydraulic infrastructure such as dams, irrigation schemes and flood control works can be established (SIWI, 2004).

Foreign Funded Development Projects

Foreign funded development projects in relation to River Basins are known as Proyek Induk (Proyek Induk Pengembangan Wilayah Sungai Jeneberang-PIPWS Jeneberang) or JRBDP / Jeneberang River Basin Development Project. They have published several studies: 2 Master Plans for river basin development completed in 2002, 5 Feasibility Studies for smaller dams completed in 2001 and detail design of 120 embung (small reservoirs). They planned and built water construction facilities: 48 small reservoir (called embung), a multi purpose dam completed in 1999, a rubber dam at Jeneberang river completed in 1997, a longstorage dam completed in 1993, a regional pond and a set of Pampang major drainage channel completed in 2001, major drainage channel of Kota Makassar completed in 1993, 4 sabo dams and 4 sand pockets (sabo/sand pocket are water construction for catch silt and sand) completed in 2001, raw water transmission main (RWTM) supplied from Bili bili multi purpose dam to Somba Opu water treatment plant, a Flood Control Infrastructure completed in 1993, and environment improvement around Bili bili multi purpose dam such as green belt and arboretum (JICA, 2004).

Present Condition of Water Supply Sector

2 of every 10 people on earth are lacking access to safe water supply, and 4 of 10 people are lacking access to basic sanitation services; 90 % of 5.000 people who are dying by diarrhoea disease everyday are children not older than 5 years of age. Many women and girls spend hours (often 4–6 hours) everyday fetching and ferrying water, which effectively preclude girls from obtaining an education (SIWI, 2004).
The deputy of Conservation of the Environment at Ministry of the Environment, Mr. Sudariyono, stated that the potential for water resources in Indonesia reached 15 000 cubic meter per capita each year. The number is higher than the potential in general world supplies that only reached 8.000 cubic meter per capita each year. FAO (Food and Agriculture Organisation) categorized Indonesia as the country with level of 33 of 147 countries surveyed. Actually, the figure of water allowance accessibility is only 40 percent, according to Sudariyono, which leads to a decline of the water potential in many areas. Decline in potential water was triggered not only by denudation and pollution but also many areas arrested water caused by changing function of forestry. This condition is a worst crisis; precisely it happened in various areas, especially the Java and Bali Island that experienced serious environmental damages. It also happened in the West Nusa Tenggara Province (NTB), South Sulawesi Province (Tempointeraktif, 2005).

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Large Dependence on Non Treated Water Sources: Service Area Problems

According to company profile (June 2005) the water supply service area of Makassar Water Authority covers 55.2 % of households in the service area of Makassar Municipality. In other words, a lot of people in the service area still rely on groundwater from shallow wells. Gowa water authority also has services coverage less than 50 % due to wide coverage areas. Another more than 50 % are supported by shallow wells. In 2003 Gowa Water Authority bought bulk drinking water from Makassar Water Authority of 184.350 m3. The average tariff was 1.881 Rupiah/m3 or 0,19 /m3. Data recorded is manually without computerization. The Makassar and Gowa water authorities are taking their raw water directly and indirectly from Jeneberang River for water municipality and industrial purposes. Another industrial purpose is the Sugar factory in Takalar Regency / PTPN IV (JICA, 2004).

Taxes Paid by Water Authorities to the Central and Local Government

Based on the rule of autonomy, the total amount of water used for all activities should be paid to the Central and Local governments. Both Makassar and Gowa Water Authorities of taxes have been paid annually to the Provincial government of South Sulawesi the amount of 10 Rupiah / m3 for year 2003 or $US 0,001 /m3, based on the Provincial Regulation No 3 /2002 (regarding Underground and Surface Water Use Tax and Government Regulation No 65/2001). On the other hand Gowa Water Authority has received a financial assistance from Central and Local governments through supply of distribution pipes (JICA, 2004).

General Tendency of Water Consumption

The water service ratios in surrounding regencies such as Gowa and Takalar Regency are smaller than Makassar City. The number of household served by Water Authorities and annual water production in 2000 in each Water Authorities (PDAM) are summarized in Table 3.2. JICA projected in 1985 the water demand in the Makassar service area for 2005 to a total of 326.000 m3/day or 3.780 liter/s, which consist of 72 % of domestic water demand and 28 % of non domestic water demand. The total of municipal water demand in the service areas both Makassar and Gowa Water Authorities in 2020 are projected to be 164 million cubic meters for water (5,215 liter/s) and 25.6 million cubic meters for water (810 liter/s) (JICA, 2004).

Operation and Maintenance of Water Supply Production Facilities

Bili bili multi purpose dam is providing services such as flood control and water supply to agricultural and domestic users. Power generation will be available in 2005. Those facilities provide an opportunity to improve livelihoods, increase incomes and reduce vulnerability.

Table of contents :

CHAPTER 1: INTRODUCTION
1.1 Water Resources Management in Indonesia
1.2 History of Water Management in Eastern Indonesia
1.3 Landslide Problems
CHAPTER 2: METHODS
2.1 Data Collection
2.2 Data Analysis
2.3 Data Limitations
CHAPTER 3: PRESENT CONDITIONS OF RIVER BASIN MANAGEMENT
3.1 Water Resources Agencies.
3.1.1 Central Government Agencies.
3.1.2 Regional and Provincial Government Agencies.
3.1.3 Foreign Funded Development Projects
3.2 Present Condition of Water Supply Sector
3.2.1 Large Dependence on Non Treated Water Sources: Service Area Problems
3.2.2 Existing Water Supply System
3.2.3 Taxes Paid by Water Authorities to the Central and Local Government
3.2.4 General Tendency of Water Consumption
3.2.5 Operation and Maintenance of Water Supply Production Facilities
3.2.6 Environment Law and Environmental Impact Assessment (EIA)
CHAPTER 4: HUMAN RESOURCES DEVELOPMENT REVIEW IN WATER UTILITIES
4.1 Capacity Building
4.2 Capacity of Irrigated Farmers
4.3 Millennium Development Goals (MDG)
4.4 Human Development Index and Indicators
4.5 Nature of Water
4.6 Water Utility as Urban Infrastructure
4.7 Human Resources Development in Water Utilities
4.8 Rate of Salary as Enforcements
4.9 Human Resources in River Basin Management: Solving the Problems
4.10 Human Resources in Makassar and Gowa Water Authorities
CHAPTER 5: FINDINGS AND RESULTS OF THE INTERVIEW
5.1 Introduction
5.2 Findings and Workshops Results
5.3 Method of Project Cycle Management (PCM)
Pandu SW. Ageng Master Thesis
Jeneberang River Basin Management Capacity
5.4 Results of Project Cycle Management (PCM)
5.5 Results of Sub-projects Groups PDM (Project Design Matrix)
5.6 Raw Water Tariff in Public Corporate
5.7 Institutional and Legal Framework
5.8 Water Problems
5.9 Operation & Maintenance (O&M) Problems
5.10 Turbidity
5.11 Water Regulations
5.12 Privatization or a Public Corporate?
5.13 Financial Issues
5.14 Financial Aid for Poor people
CHAPTER 6: STAKEHOLDERS PRECEPTIONS AND ARISING PROBLEMS
6.1 Central and Local Government Problems
6.2 Makassar Water Authority (PDAM) Becoming a Big Customer
6.3 Gowa Water Authority (PDAM)
6.4 Non Governmental Organizations (NGOs)
6.5 Indonesian Water Supply Association (PERPAMSI)
CHAPTER 7: FINDINGS AND RESULTS OF THE CUSTOMER QUESTIONAIRES
7.1 General Overview of the Customers
7.2 Questionnaire Responding
CHAPTER 8: DISCUSSIONS AND ANALYSIS
8.1 Existing Public Corporate in West and East Java Island
8.2 Policy, Legislations and Regulations
8.3 Effective Local Water Governance
8.4 Water Utilities in Regional Areas
8.5 Jatiluhur Public Corporate as a Facilitator: Solving problems
8.6 Set-up a Water Tariff
8.7 Analysis of the Core Problem of Human Resources
8.8 Perception and Expectation of Customers
CHAPTER 9: CONCLUSIONS AND RECOMMENDATIONS
9.1 CONCLUSIONS
9.2 RECOMMENDATIONS
REFERENCES

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