Consultant for Strengthening Microfinance for Water and Sanitation

Background:

Indonesia has an ambitious target on improved and safely managed water and sanitation in 2030. As part of its new national mid-term development plan (RPJMN) 2025 - 2030,” Indonesia seeks to increase access to improved and safe water and sanitation for all by 100 percent access to improved water supply system, 30 percent safely managed sanitation and 45 percent safely managed drinking water. In 2024, Indonesia has successfully achieved 80 per cent of improved water, 15 percent of safely managed drinking water and 12 percent of safely managed sanitation.   

To achieve the above ambitious target on water and sanitation, it takes massive investment in water and sanitation infrastructure. Currently, the government of Indonesia (GoI) have limited resources to be allocated to improve WASH sector. Many WASH infrastructures are not working appropriately. Due to its investment shortage, many households lack access to safely managed drinking water and sanitation. 

WASH sector can’t only depend on government investment, but also requires household investments and expenditures. Financing mechanisms such as microfinance provide alternative financing schemes to support the households, particularly households with low income in reaching access to WASH products and services.  

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