The Ministry of Home Affairs mandated that local government-owned water utilities (PDAMs) create five-year business plans to ensure effective management of sustainable water services. However, many PDAMs face challenges in developing effective business plans.
From July 29 to 31, USAID’s flagship climate resilient water and sanitation activity (IUWASH Tangguh) collaborated with the North Sumatera Provincial Government and the Water Utility Association of Indonesia (PERPAMSI) organized a business plan training, which attracted 83 participants from 19 PDAMs across the province.
During the three-day training, USAID IUWASH Tangguh experts guided participants through the process of developing business strategies that align with the regional water master plan, local government development strategy, and water safety plans. This included assessing the company’s current condition, analyzing drinking water needs and production capacity, conducting a real demand survey, and evaluating customer satisfaction. Robust business plans will enhance the performance of PDAMs, helping to meet the provincial target of 10.9% access to safely managed drinking water by 2024 and contribute to the national goal of 45% access to safely managed drinking water by 2030.
Additionally, the training covered tariff calculation in accordance with the Decree of the Governor of North Sumatra. Erwin Putra, the Chairman of PERPAMSI North Sumatra and Acting President Director of PDAM North Sumatra Province hopes that all PDAMs can calculate reasonable water tariff to achieve full cost recovery.
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