On February 18, 2021, USAID IUWASH PLUS facilitated a Focus Group Discussion (FGD) to initiate the cooperation between BPR Nusumma Malang (Nusumma rural bank of Malang office) and PDAM Tirta Kanjuruhan of Malang district. The cooperation aims to help households who have not had access to PDAM water service to finance the cost of new house water connection construction.
Objectives of the FGD among others were to have linkage BPR Nusumma Malang and PDAM Tirta Kanjuruhan to establish a cooperation in financing the construction of new house water connection as well as to explore potential cooperation between the two business entities. This FGD was conducted for the first time for PDAM Tirta Kanjuruhan and BPR Nusumma Malang.
During the meeting, the PDAM shared with all participants that around 65 percent of 437 thousand households in Malang district have not had access to PDAM service. These households are the potential markets for the PDAM’s new house connections and some of them might need credit from the BPR to finance to build the new house water connections. Moreover, PDAM Tirta Kanjuruhan has a target to build 6,000 new house connections every year, half of which are for the low income families. By collaborating with BPR Nusumma Malang, PDAM hopes that it will accelerate the target achievement. During the meeting, both the PDAM and BPR expressed their commitment to establishing a cooperation on the financing for the construction of the on the new house water connection.
As a follow up, both the BPR and PDAM will conduct internal discussions in their respective office on the potential cooperation. Following the internal discussions, USAID IUWASH PLUS plans to facilitate further meetings to discuss the cooperation between the PDAM and BPR in more details, including preparing for the cooperation agreement draft, technical issues, and risk management.
