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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: redaksipercik@yahoo.com
redaksi@ampl.or.id
oswar@bappenas.go.id
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
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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
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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.
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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
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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
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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
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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.
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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
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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
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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.
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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.
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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
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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
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