Indonesia has a population of over 268 million people but the majority do not have access to piped water and are dependent on river water or bottled water. For the 20% of the population that has a water main connection, the quality of the municipal water supply is low, and drinking tap water is discouraged. Nearly 28 million Indonesians lack safe water.

Investments in Water Treatment

The government has put in a lot of effort to build sufficient infrastructure for water treatment so that the drinking water sector is not left behind.

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.

In line with the Indonesian government’s initiative to enhance clean water supply across the archipelago, many companies are eager to participate in the water treatment sector in Indonesia.

In 2020, Ranhill formed a consortium to bid for Jakarta water system projects. Together with its consortium partners comprising Ranhill, Perusahaan Perseroan PT Pembangunan Perumahan TBK and PT Varsha Zamindo had initiated a source-to-tap project to provide drinking water to clearly identified service areas in DKI Jakarta, Kota and Kabupaten Bekasi as well as Kabupaten Bogor

In 2021, the government of Indonesia upgraded the status of the proposal to National Strategic Project thus giving it priority and importance. The acceptance of the feasibility study by the relevant off-takers followed by the ministry in charge, Kementerian Pekerjaan Umum dan Perumahan Rakyat (PUPR), Indonesia, is expected to take place in July 2022. Upon acceptance of the feasibility study by PUPR, the consortium will be awarded initiator status thereafter PUPR will commence the project tender process. It aims to extract 7,000 litres per second (605 MLD) of raw water sourced from the Jatiluhur Dam. The project entails the development of drinking water system that will include the construction of a Water Treatment Plant in Jatiluhur Dam, 99 km of treated water transmission pipeline and a distribution pipeline to the consumers.

According to International Trade Administration, Indonesia has a total of $1.9 billion in water supply and wastewater treatment projects.

As a result, if Ranhill successfully executes this project together with its consortium, the company would open up a number of opportunities in Indonesia given the current situation scarcity of clean water.