PT Sarana Multi Infrastruktur (SMI) and USAID IUWASH Tangguh signed an MoU to provide alternative financing for the local governments and local government-owned enterprises in water and domestic wastewater to build safely managed drinking water and sanitation.
PT SMI Director, Faaris Pranawa, and the Chief of Party of USAID IUWASH Tangguh signed the MoU in Jakarta on January 18th, 2023. The signing was also witnessed by the Deputy Director of USAID Indonesia Environmental Office, Mark Newtown.
In line with the Sustainable Development Goals targets, the Government of Indonesia aims to achieve 100 percent access to drinking water and sanitation, including 45 percent access to safely managed drinking water and 30 percent to safely managed sanitation in 2030.
A study conducted by the Government of Indonesia showed that the country requires an investment of more than IDR 500 trillion to achieve the targets. Due to limited national and local government budgets available, alternative financing such as public private partnership, corporate social responsibility and microfinance are required to fill in the gap.
With the MoU signed, the alternative financing from PT SMI is accessible by local governments, water utilities, and domestic wastewater operators in 38 USAID IUWASH Tangguh’s supported municipalities.
“The active roles of private sector and financial institutions, including financing from PT SMI, will support the Government of Indonesia to achieve its development goal, moving toward resilient and democratic Indonesian people,” said Mark Newtown.
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