/Improving Drinking Water Services in DKI Jakarta, Ministry of Public Works and Public Housing Signs Credit Facility with Syndicated Loan Lender

Improving Drinking Water Services in DKI Jakarta, Ministry of Public Works and Public Housing Signs Credit Facility with Syndicated Loan Lender

Jakarta, Indonesia, ABIM (21/2/2023)– Basuki Hadimuljono, Minister of Public Works and Public Housing (PUPR), attended the signing of the Credit Facility agreement between PT Air Bersih Jakarta and the Syndicated Loan lender from Banking Institutions and Financial Institutions on Monday (20/02) at the Ministry of PUPR Auditorium in Jakarta.

Minister Basuki stated that in order to achieve the target of 100% drinking water service and to follow up on the Memorandum of Understanding signed on January 3, 2022 by the Minister of PUPR, Minister of Home Affairs, and the Governor of DKI Jakarta, the Ministry of PUPR and the Provincial Government of DKI Jakarta collaborated to develop a Drinking Water Supply System (SPAM) on both the upstream and downstream sides.

“If we can complete all of these SPAM projects according to the timeline and can supply water for the people of DKI Jakarta, then in 2030, the Government can announce to the people to stop using groundwater. Groundwater levels in DKI Jakarta can only be preserved by these actions,” Minister Basuki said.

DKI Jakarta faces the difficulty of declining groundwater levels due to groundwater extraction. To meet this challenge, it is required to upgrade piped drinking water supplies, where coverage is now only 65%. In order to attain 100% coverage of piped drinking water services by 2030, a water supply of 31,875 liters per second is required.

Upstream construction includes Jatiluhur I Regional SPAM with a capacity of 4,000 liters per second, Karian-Serpong Regional SPAM with a capacity of 3,200 liters per second, and SPAM Ir. H. Djuanda with a capacity of 2,054 liters per second. Meanwhile, the Provincial Government of DKI Jakarta is optimizing existing SPAM assets and new construction to support Jatiluhur I Regional SPAM and Karian-Serpong Regional SPAM, with a capital cost of IDR 26.7 trillion.
“Today, downstream financing will be implemented through the signing of a credit facility for the first two years between PT Air Bersih Jakarta and the Syndicated Loan lender with a capital cost of IDR 12 trillion consisting of loans of IDR 8.8 trillion and shareholder equity,” Minister Basuki added.
Minister Basuki hopes that this credit facility would help to improve DKI Jakarta’s drinking water services while also supporting Indonesia’s investment climate, particularly in the drinking water industry. “I commend and thank the Syndicated Loan Lender for their support of the Indonesian Government’s PPP scheme to serve the people. The current coverage of piped drinking water services is still 65%, and with these three projects, the objective of 100% by 2030 can be achieved “Minister Basuki said.

Mohamad Selim, CEO of PT Moya Indonesia, thanked the Indonesian government, particularly the Ministry of PUPR and the DKI Jakarta Provincial Government. “The signing of the credit facility by PT Air Bersih Jakarta and eight financial consortiums marks the beginning of the DKI Jakarta SPAM milestone project. We intend to build 2500 kilometers of pipe in the first two years, serving 350,000 house connections (HC). If no significant impediments arise, we will begin this project in April “Mohamad Selim explained.
Meanwhile, Antonius Widodo Mulyono, Director of Bank BCA Tbk, who is leading the banking institution in this project, stated that the financial sector is dedicated to supporting basic infrastructure finance for the Government of Indonesia, including projects other than drinking water.

“Thank you to all stakeholders involved in this project; we represent the financial sector and we hope that this project may go as planned,” Antonius stated.(ABIM)