Tirta Raya water utility in Kubu Raya district, West Kalimantan signed an agreement with a local rural Bank named BPR Ukabima to provide microcredit with total value of IDR 15 billion for the installation of new house connections (08/24/2023).
This partnership will support the water utility to implement its plan, installing ten thousand new house connections.
The microcredit scheme allows customers to receive new piped water connections without the need for the up-front investment. The bank pre-finances the installation and the water utility company cover the 15% deposit installment fee and provide customers a two-month grace period.
The Director of Tirta Raya Water Utility, Mr. Mula Putra, hopes that this business model will attract more customers: “We hope this can be one of the solutions for people in Kubu Raya who need access to loans for new house water connections.”
The Regional Secretary of Kubu Raya District, Mr. Yusran Anizam, will encourage all stakeholders in the future to support this microfinance initiative so that they can achieve the water supply service targets in Kubu Raya.
USAID IUWASH Tangguh supports the partnership between the water utility and the local rural bank as a part of its assistance for Kubu Raya district government in the drinking water sector. The program continues to promote private sector stakeholders’ engagement to help provide Indonesians with more affordable piped water connections through the provision of alternative financing and create a healthier and more sustainable environment.
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