ADB Grants $2.8 Million to Improve Water Resource Management and Sanitation in Indonesia

JAKARTA, INDONESIA - The Asian Development Bank (ADB) and the Indonesian Ministry of Finance signed two technical assistance (TA) agreements today totaling $2.8 million to improve the government’s ability to manage water resources and promote community sanitation programs in poor urban neighborhoods.

The TAs are financed by a grant from the Government of Japan through the Japan Fund for Poverty Reduction (JFPR).

Jon D. Lindborg, Country Director of ADB’s Indonesia Resident Mission and Ayu Sukorini the Acting Director of Funds, the Ministry of Finance, signed and exchanged the letters of agreement in a ceremony at the Ministry of Finance.

The first TA of $1.8 million will help the government improve the capacity of six pilot river basin councils in North Sulawesi and Aceh. The TA will also include the endorsement of a national strategy for capacity building in water resource management in the participating provinces.

The Water Law was passed in 2004 to promote sustainable management of water resources, but its implementation has been hampered by a shortage of trained water sector professionals and insufficient expertise on integrated water resource management. 

“The technical assistance will improve the capacity of decentralized water resource agencies for effective Water Law implementation and will also support civil society participation in the river basin councils,” said Mr. Lindborg.

The implementing agency for the TA is the Directorate General of Water Resources, Ministry of Public Works.

The second TA of $1 million will assist the government to promote advocacy and training programs related to sanitation. It will also support education on clean water use, hygienic practices and community sanitation in poor urban neighborhoods.

The program is to complement ADB’s project on Urban Sanitation and Rural Infrastructure Support to the National Program for Community Empowerment (PNPM Mandiri).

The TA will be implemented in 2011-2013. The Directorate General for Human Settlements of the Ministry of Public Works is the executing agency of the program.

ADB, based in Manila, is dedicated to reducing poverty in Asia and the Pacific through inclusive economic growth, environmentally sustainable growth and regional integration. Established in 1966, it is owned by 67 members – 48 from the region. In 2010, ADB approvals, including co-financing, totaled $17.51 billion. In addition, ADB's ongoing Trade Finance Program supported $2.8 billion in trade.