Indonesia has ambitious plans to achieve national water resilience. Agus Sunara, Ahmad Zazili and Nur Azizah chart the country’s progress and strategy for success.
Water is more than a basic necessity; it is the foundation of life, essential for public health, vital to economic development, and intrinsically tied to Indonesia’s national identity. From the verdant highlands of Papua to the dynamic urban sprawl of Jakarta, water connects the archipelago. It sustains agriculture, enables industry, nourishes families and balances ecosystems. Yet, in an era marked by climate volatility, urbanisation and social disparity, our approach to water management must evolve. It is imperative that we treat water not only as a service, but also as a strategic priority to be governed equitably and sustainably.
This is the essence of Swasembada Air, Indonesia’s bold National Water Self-Sufficiency Initiative, launched under the leadership of President Prabowo Subianto for the 2024–2029 period. It marks a fundamental shift. Water is no longer just about infrastructure; it is a national mission underpinning sovereignty, social justice and long-term resilience.
Ambitious task ahead
The challenge is significant. In 2023, only 22% of Indonesian households – approximately 16 million connections – had access to piped water. Meeting the 2029 national target of 40% coverage will require connecting an additional 13 million households and mobilising more than IDR 195tn ($12bn) in investment. Yet capital alone is not enough. Achieving water sovereignty demands a paradigm shift in governance, multi-stakeholder collaboration and shared national commitment.
This is our opportunity to reimagine how we finance, manage and value water. Sovereignty over water is not an abstraction. It is a practical, achievable objective that can secure a fairer and more resilient Indonesia for generations to come.
A new chapter in Indonesia’s water story
Expanding water access requires more than pipelines and treatment plants – it requires a change in mindset. Water must be viewed not as a commodity, but as a human right and a long-term investment in public wellbeing, environmental stewardship and economic equity.
Arief Wisnu Cahyono, Chair of Persatuan Perusahaan Air Minum Seluruh Indonesia (PERPAMSI – the Indonesian Water Supply Association) and Managing Director of Perumda Surya Sembada (Surabaya), emphasises: “To achieve water sovereignty, we must reduce our reliance on central and local budgets. Courage to innovate is essential.”
Signs of innovation are already emerging. While the Indonesian water sector holds approximately IDR 40tn ($2.5bn) in assets, it remains overly dependent on state financing. With only IDR 6tn ($370m) in liabilities, there is substantial fiscal room for alternative financing models.
Regional water utilities (BUMD Air Minum) are exploring new funding pathways, including:
- Public-private partnerships with no government guarantees
- Green and climate finance from entities such as the Green Climate Fund, World Bank and Asian Development Bank
- Blended finance schemes for remote and underdeveloped regions
- Performance-based contracts that reward efficiency, such as leak reduction or customer expansion
- Community-driven finance, involving cooperatives, corporate social responsibility initiatives and zakat funds
These financing innovations do more than close funding gaps – they foster institutional maturity, improve governance, and enhance trust in service delivery.
Surabaya and Bogor lead the way
Cities such as Surabaya and Bogor are exemplars of strategic investment and operational excellence. Perumda Surya Sembada (Surabaya) has secured IDR 160bn ($9.8m) in funding, while Perumda Tirta Pakuan (Bogor) has mobilised IDR 170.4bn ($10.5m) – both through PT Sarana Multi Infrastruktur, a state-owned infrastructure financing institution.
These cases demonstrate that financially sound and well-managed utilities can attract capital and channel it into tangible service improvements. More importantly, they signal a shift from expansion to resilience – building systems that are not only broader, but also cleaner, smarter and more sustainable.
Rino Indira Gusniawan, Secretary General of PERPAMSI and Managing Director of Perumda Tirta Pakuan, says: “Our ambition is not just about water access. It’s about building a system that endures.” The takeaway is clear: when utilities are technically capable, well governed and open to innovation, they become catalysts for national progress.
after rainfall on a cloudy day in Bali, Indonesia. The
rice terrace is surrounded by tropical green rainforest © iStock.com / Tobiasjo
Rebuilding water governance
Realising water sovereignty requires structural reform. Many regional utilities continue to face significant challenges. Between 2019 and 2023, technical coverage declined from 30.66% to 26.77%, while administrative coverage dropped from 22.91% to 22.17%. Connection growth remains sluggish, averaging only 500,000 to 700,000 new households annually.
Key issues include infrastructure leaks, fragmented mandates and limited service outreach. These challenges, however, are surmountable through targeted reforms.
Dr Subekti, Executive Director of PERPAMSI, outlines a transformative agenda:
- Enactment of a Water Supply and Sanitation Law that delineates institutional roles and responsibilities
- Implementation of fiscal incentives, such as VAT exemptions for water investments
- Consolidation of smaller utilities to achieve economies of scale and operational strength
- Creation of a dedicated Ministry of Water Affairs to oversee national water governance
- Establishment of a National Water Regulator to uphold service standards, pricing fairness and consumer rights.
Such reforms will lay the foundation for accountable, efficient and future-proofed water services nationwide.
Driving collaborative progress
At the heart of these reforms is PERPAMSI. With 519 members (445 public utilities and 74 private sector partners), we see it as Southeast Asia’s largest and most dynamic water network.
PERPAMSI is more than a professional association – it is an engine for capacity building and systemic transformation. Key programmes include:
- Water Operation Partnership – a solidarity-based mentorship programme linking high-performing and developing utilities
- Field-based training for frontline water workers
- A technical clinic offering responsive advisory services
- Scholarships for emerging professionals in the sector
- Conferences and international exchanges that foster innovation and knowledge sharing
Through these initiatives, even the smallest utilities gain access to national support and global insight.
Building a water-secure nation
Indonesia stands at a pivotal moment. One path sustains the status quo: fragmented systems and inequitable access. The other path – Swasembada Air – envisions universal access to clean, safe and reliable water. To walk this path, collaboration is essential. Public utilities, government bodies, the private sector, academia and media must align under the pentahelix model – a five-pronged approach to holistic development.
PERPAMSI, supported by global platforms such as IWA, the Southeast Asia Water Utility Network, and UN-Habitat’s Global Water Operators’ Partnerships Alliance, is leading this movement.
Indonesia is not merely catching up – it is charting new ground. When commitment meets creativity, transformation follows. This is more than a policy. It is a national mission. One rooted in dignity, equity, and a promise: that water will no longer be a privilege, but a universal right. Because water is not just a utility – it is life, sovereignty and our collective future.
The authors: Agus Sunara is Expert Advisor, Ahmad Zazili is Head of Magazine and Website, and Nur Azizah is Secretary of PERPAMSI
Indonesia joins IWA as a Governing Member
Strengthening IWA’s international reach, Indonesia has joined the Association as a Governing Member (GM).
At the heart of IWA’s efforts to advance a vision of a water wise world, GMs are vital to IWA’s work at national and regional level. GMs provide a country focus, convening people locally to share best practice and explore new ways of innovating water solutions, nurturing and growing the IWA network, and sharing the latest science, technology and best practice from across the sector.
IWA’s 70 GMs reflect the diversity of the water sector at country level, mirroring the breadth and strength of IWA’s global network. They strengthen the water industry by bridging divides between sectors and disciplines to create real change in water policy, practice and management on the ground.
Led by committees of representatives from across the water sector, GMs, importantly, convene for the IWA Governing Assembly and are supported in their work by access to the Connect Plus platform, facilitating interaction among individual members and creating opportunities to generate ideas and share best practice.
