How Can Frameworks Improve Rural Water Services in Indonesia?

The Government of Indonesia has set ambitious targets for access to adequate and safely managed drinking water, as outlined in the National Medium-Term Development Plan (RPJMN) 2020–2024. While progress has been made, significant gaps remain between rural and urban areas.

This document, produced by USAID REAL-Water, reviews Indonesia’s legal and policy framework governing rural water services, identifies key gaps and challenges, and provides recommendations to improve equitable and sustainable access to safe drinking water in rural areas.

As an essential service, drinking water provision is a “mandatory-concurrent” affair. This means local governments (cities, regencies, and provinces) must prioritize its implementation and meet the minimum coverage targets determined by the central government.

In rural water provision in Indonesia, community-based organizations (CBOs) play a crucial role. The Community-Based Water Policy issued by Indonesia’s Ministry and National Development Planning (Bappenas) initiated the concept of community-based water management in 2003. Indonesia’s flagship rural water supply program, Community-Based Drinking Water Supply and Sanitation Program (PAMSIMAS) adopted this model, where communities are involved actively from implementation through ongoing operation and maintenance.

To ensure the sustainability of rural drinking water services in Indonesia, it is imperative to address significant gaps identified in the current institutional framework. Key recommendations include shifting policies to support post-construction maintenance, enacting dedicated legislation for water services, and creating clear standards for water safety and service delivery. Updated policies should emphasize government support for CBOs, including technical assistance and streamlined funding processes. Improved regulations are needed to resolve ambiguities around CBOs’ legal status and operations while ensuring transparent asset management.

_{DISCLAIMER: This brief is made possible by the support of the American people through the United States Agency for International Development (USAID). The contents of this brief are the sole responsibility of The Aquaya Institute and REAL-Water consortium members. They do not necessarily reflect the views of USAID or the United States Government.}