Source: The Jakarta Post
Date: 2 June 2020

The government aims to provide additional clean water access for 3.9 million residents in the dense Greater Jakarta region by 2023 by developing the Ir. H. Djuanda drinking water system (SPAM) in Purwakarta, West Java.

The water system would improve access to drinking water and reduce groundwater extraction in Greater Jakarta, which occurs due to the lack of a drinking water piping system.

The project, which will distribute water from the country's largest dam in Jatiluhur at a maximum of 9,350 liters per second, is currently in the public consultation phase.

It will then be followed by a feasibility study and memorandum of understanding (MoU) with potential buyers between June and August this year, according to the Public Works and Housing Ministry.

"With the [future] completion of SPAM Djuanda, we hope that it can reduce intensive groundwater extraction in Greater Jakarta, which has caused the city to sink by around 1 to 20 centimeters per year," the ministry's residential infrastructure funding director, Haryo Bekti Martoyopedo, said last Thursday during a public consultation.

A study from the Bandung Institute of Technology (ITB), based on a data collected between 1925 and 2015, shows that Jakarta subsides 1 to 15 cm per year, making it one of the fastest-sinking cities in the world.

Massive groundwater extraction is blamed by experts as the cause of significant land subsidence in the capital city. Experts also predict that a large part of Jakarta will be submerged by 2050.

The SPAM will be connected to 19 districts in six regions, namely South Jakarta, East Jakarta, Bekasi city, Bekasi regency, Karawang regency and Bogor regency.

Statistics Indonesia (BPS) data in 2018 show that just 74 percent of the population had access to clean drinking water, with the number even lower for nonurban areas.

The project was initiated in 2018 by a consortium of private companies consisting of Philippine-based utility company Maynilad Water Services Inc. and MetroPac Water Investments Corp., state-owned construction company PP and PP Infrastructure, and local company Varsha Zamindo Lestari.

The ministry's infrastructure financing director general, Eko Djoeli Heripoerwanto, said the project was financed through a government-to-business cooperation (KPBU) scheme, where private companies would provide end-to-end funding for the project.

The consortium will be given a build-operate-transfer contract of 30 years with investment return to be sourced from the water cost.

"We hope that the KPBU scheme will provide us leverage from the investment, so we could use the remaining funds to finance other infrastructure projects," Eko said during the public consultation.

The project's construction is slated to begin next year.

"While the timeframe could still change in the future, we hope that the commercial operation will begin in 2023," he said.

SPAM Djuanda is part of the government's priority initiative to provide 10 million drinking water pipelines listed under the National Medium-Term Development Plan (RPJMN).

Forty-one priority projects are listed under the RPJMN, which will cost an estimated Rp 7.4 quadrillion between 2020 and 2024.