Major Threats and Strategy for Sustainability of Water Supply Industry Operation (Case Study in Indonesia)

Abstract

Various threats in the operation of water supply industry (PDAMs) in Indonesia were identified, this paper highlighted six major threats, they may include; limited scale of PDAMs service coverage; limited access to capital investment; low water tariff and poor cost recovery to pay debts and project operation; poor staff performances, high levels of unaccounted for water, and political as well as environmental risks. Strategic plans for mitigation of the threats were proposed at three levels of authority: (i) at the Central Government level; (ii) local/regional governments; and (iii) water utilities. By understanding the nature of the PDAMs threats, and better preparation of holistic strategy for managing the identified threats at various governmental levels, it is expected that sustainability of PDAMs operation might be achieved systematically.