Indonesia PPP Projects

in Water Supply Sector

By Ir. Henry M. Limbong. MM
Jakarta, September 17st 2019

MINISTRY OF PUBLIC WORKS AND HOUSING

National Agency For Water Supply System Improvement
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BPPSPAM TASK AND ROLES

(Based on Precidential Regulation No. 90 of Year 2016)

Support Government and Local Government in improving water supply services

managed by state-owned and/or local-owned enterprises.

Assess the performance of water supply services managed by state-

1 owned and regional-owned enterprises in relation to quality, quantity and
continuity requirements in water supply services.

2 Facilitate the improvement of water supply services performance managed

by state-owned and regional-owned enterprises in relation to quality, quantity
and continuity requirements in water supply services

Provide recommendations to the central and local government to

3 improve water supply services performance conducted by state-owned
enterprises and regional-owned enterprises

4 Provide recommendations to the central and local government to

maintain the balance interests between water supply provider and its
customers

MINISTRY OF PUBLIC WORKS AND HOUSING

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National Agency For Water Supply System Improvement
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BPPSPAM STRUCTURE ORGANIZATION

MINISTRY OF PUBLIC WORKS AND HOUSING

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National Agency For Water Supply System Improvement
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REKAPITULASI KINERJA PDAM TAHUN 2015-2019
250 382
Tahun 2019, 380
380
Tahun 2017, 378 223 223

200 209 378

196 198

376

150 374
Tahun 2018, 374
372
Tahun 2016, 371
100 Tahun 2015, 368 108 370
100 103 103
99

368
72
65 66
50 366
52 54

364

0 362
Tahun 2015 Tahun 2016 Tahun 2017 Tahun 2018 Tahun 2019
Sehat 196 198 209 223 223
Kurang Sehat 100 108 103 99 103
Sakit 72 65 66 52 54
Jumlah 368 371 378 374 380

MINISTRY OF PUBLIC WORKS AND HOUSING

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National Agency For Water Supply System Improvement
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SUMMARY OF PDAM PERFORMANCE IN 2018

TOTAL CUSTOMER
PERFORMANCE 11.428.132 HOUSEHOLD
OF 374 PDAM CONNECTION
IN 2018
AVERAGE TARIF
Rp 4.819/m3
52, 14%
COST OF PRODUCTION
380 WITH REAL NRW Rp 4.726/m3
99, 26% PDAM 223,
60% 133 PDAM FULL COST RECOVERY
240 NON FULL COST RECOVERY

NATIONAL AVERAGE RATE OF

NON REVENUE WATER
(NRW) 33,2%
MINISTRY OF PUBLIC WORKS AND HOUSING
National Agency For Water Supply System Improvement 5
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WATER SUPPLY SECTOR ISSUES
National Medium Term Planning (RPJM) 2020-2024 Target: 100% safe access of
drinking water supply in 2024

Safe access coverage for drinking water is 72,04%. However, pipeline system
coverage by Indonesia water enterprises (PDAM) is only around 17%.
(Source: Dit.SPAM, 2018)

limited capacity of State Budget (APBN) for Infrastructure Development

Total investment needed to achieve 100% access to drinking water supply is IDR 253,8 trillion. It is
planned to be funded by State budget plan as much as IDR 67,5 trillion (27%), APBD of IDR 199,23
trillion (47%) and private funds are expected as much as IDR 49,05 trillion (27%).
(Source: Dit. Pengembangan SPAM CK, 2017)

Low Performance Management of Water Supply Enterprises (PDAM)

PDAM in Good performance is only 60%, Average Performance is 26% and Low Performance is 14% .
(Source: BPSPPAM, 2018)

MINISTRY OF PUBLIC WORKS AND HOUSING

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National Agency For Water Supply System Improvement 6
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100%
Drinking
Water

0%
Slump

100%
Sanitation

REALIZATION

Budgeting IDR 73,71 T Budgeting IDR 82,78 T

MINISTRY OF PUBLIC WORKS AND HOUSING

National Agency For Water Supply System Improvement
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STRATEGIES TO IMPROVE PDAM

PERFORMANCE

MINISTRY
MINISTRY OF
OF PUBLIC
PUBLIC WORKS
WORKS AND
AND HOUSING
HOUSING 8
National
National Agency
Agency For
For Water
Water Supply
Supply System
System Improvement
Improvement
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OUR COLLABORATIVE PARTNERSHIP SCHEME

PDAM Funds
Action Plan Unhealthy and Less
(Recommendation) healthy PDAM
Central/Local
Government Funds

Investment Alternative
Healthy PDAM Financing (CSR,
Model
commercial bank
loan, etc)

Bilateral /
Balancing interests of Customer
Multilateral Donor
and water supply provider
Agency

PPP/B to B

BPPSPAM Facilitates in:

-Performance Evaluation BPPSPAM
-Performance Improvement Facilitates in:
-Balancing interests between -Planning
BPPSPAM customer and provider -Preparation 9
-Transaction BPPSPAM

MINISTRY OF PUBLIC WORKS AND HOUSING

National Agency For Water Supply System Improvement
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BPPSPAM COLLABORATIVE PARTNERS

Donors Governments Others

NUWSP – World Bank Directorate General of Water

(National Urban Water Supply Project) Resources IIGF

Providing urban water supply development

Directorate of Water Supply System
platform
Development
PT. SMI

IUWASH PLUS National Development

(INDONESIA URBAN WATER SANITATION & HYGINE)
Planning Board
Perum Jasa Tirta
Support GOI to improve water supply and sanitation
access especially to the Low Income Community Ministry of Finance
PERPAMSI

KIAT Ministry of Home Affairs

(KEMITRAAN INDONESIA AUSTRALIA UNTUK INFRASTRUKTUR)

Provide the performance based grant scheme for

Finance and Development Business Entity
water utility Auditor

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Synergy with Donors

Summary to Improve IUWASH dan NUWSP (TACB

151 Less Healthy and Unhealthy & Stimulan):
Performing PDAM through 1.PDAM Kota Tebing Tinggi
2.PDAM Kab. Deli Serdang
Collaboration
IUWASH dan NUWSP (TACB):
IUWASH 1.PDAM Kab. Bulukumba
IUWASH PERP PLUS 2.PDAM Kab. Barru
BPPSPAM NUWSP KIAT 5 PDAM 3.PDAM Jayapura
PLUS AMSI
NUWSP
67 PDAM KIAT
1.PDAM Kab. Ngawi
151 67 5 1 1 KIAT dan NUWSP (TACB):
BPPSPAM
PDAM
151 PDAM

• TA. 2020-2022: 33 PDAM

BPPSPAM - NUWSP
• TA. 2018: 19 PDAM
• TA. 2019: 15 PDAM

Keterangan:
TACB = Technical Assistance and Capacity Building

MINISTRY OF PUBLIC WORKS AND HOUSING

National Agency For Water Supply System Improvement 11
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PRIORITY STRATEGIES TOWARDS HEALTHY PDAM

1. Implementation of Full Cost Recovery tariff (Re-class & tariff adjustment)

2. Improvement of Operational Service Hour (reservoir Volume, Distribution system)

3. Reducing Non Revenue Water rates (physical & commercial)

4. Improvement of Efficiency in Production (Capacity optimization)

5. Improvement of Water consumption (Reservoir Volume, Distribution System, NRW)

6. Water meter Replacement (Fund allocation, Trade credit, water meter verification)

7. Investment fund model to improve coverage (State Budget, Local State Budget, PPP, B to B,
Trade Credit)

8. Improvement of human resource competency (Inline with SKKNI SPAM, training and
recruitment)

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National Agency For Water Supply System Improvement
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FUNDING NEEDS
State Budget
39% IDR 95.3 Trillion Resources Rp (T) %

Human Settlement (APBN) 95.3 39%

39 Regional Budget (APBD) 75.8 31%

PPP 24.4 10%

Special Allocation fund (DAK) 48.9 20%

TOTAL 244.44 100%

61 Non State Budget
61% IDR 149,1 Trillion

Regional Budget PPP

Achieving the target of 100% access requires Special

± Rp 244,4 Triliun State Budget Allocation
fund (DAK)

STATE + Non State Budget Fund

Source : BAPPENAS

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National Agency For Water Supply System Improvement
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Regulation on Investment Cooperation
of Water Supply Sector
Government Regulation Number 121 Year 2015 on Water
PP No 121 Year 2015
1 Resources Management

Government Regulation Number 122 Year 2015 on Water

2 PP No 122 Year 2015
Supply System

Presidental Regulation Number 38 Year 2015 on Cooperation Between

Perpes 38 Year 2015
3 Government and Businnes Entities In Infrastructure Provision

Regulation of Minister of National Planning and Development Number 4 of 2015 on

Permen PPN/Bappenas Procedures for Cooperation Between Government and Businnes Entities in
4 No. 4 Year 2015 Infrastructure

Regulation of Head of National Public Procurement Agency (LKPP) Number 29 Year 2018 on
Perka LKPP No. 29 Year 2018
5 PROCEDURES FOR PROCUREMENT OF PROVISIONS FOR IMPLEMENTING BUSINESS AGENCIES
INFRASTRUCTURE THROUGH GOVERNMENT COOPERATION WITH THE AGENCY
BUSINESS FOR INITIATING MINISTER / HEAD OF INSTITUTION / REGIONAL HEAD

Regulation of Minister of Public Works and Housing Number 19 of 2016 on the Provision of
Permen PUPR
Support by the Central Government and / or Regional Government in the Cooperation of
6 No. 19 Year 2016 Implementation of Drinking Water Supply System

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National Agency For Water Supply System Improvement 14
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The Stages of PPP

PLANNING PREPARATION TRANSACTION PPP IMPLEMENTATION

Preparation of Outline Location Establishment of

the PPP Plan Business Case Arrangement the project
company
Construction

Market Prequalification
Preliminary Study Sounding Signing of PPP Operation and
and Public Agreement Transfer
Consultation
Preparation of Land
Request for
Procurement Proposal & Bid Financial Close
Documents Including Submission The PPP
Submission of Location
Value for Money Determination (if Agreement comes
Assessment needed) to an end

Evaluation &
Application for
Deciding the
Government Support winning bidder
Decision on PPP
/ Guarantee Plan (if
Continue / No any)

Final Business
Case

Implemented by
Contracting Based on Regulation of Minister of National Planning and Development Number 4 of 2015
Agency on Procedures for Cooperation Between Government and Businnes Entities in Infrastructure

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National Agency For Water Supply System Improvement
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PRINCIPLES IN WATER SUPPLY PARTNERSHIP
Based on Minister of Public Works and Housing Regulation No. 19 of 2016 on the Provision of Support by
the Central Government and / or Regional Government in the Cooperation of Implementation of Drinking
Water Supply System

GOVERNMENT
SCHEMES CONTRACTING AGENCY
PROCUREMENT

Public Private Partnership

▪ Need government supports
▪ Risks are shared by parties
Business to Business
▪ Without Government
Support
▪ Risks are shared by both
parties
Partnership with Private Sector
either through PPP or B to B
scheme can only be done by
State - Owned Enterprise
(BUMN) / Regional - Owned
Enterprise (PDAM) as the
Government Contracting
Agency (CA)
Both PPP and B to B
schemes must ensure the
Principles of free
competition, tranparency
and fairness (Conducted
through Open Auction /
Tender)

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National Agency For Water Supply System Improvement
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PARTNERSHIP SCOPE IN WATER SUPPLY SECTOR

Build Operate Transfer (BOT)

Intake/Broncaptering House
Water Treatment
Connection
Plant (WTP)
House
Reservoar Connection
Secondary &
Raw Water Transmition Tertier Pipeline
Pipeline
Bulk Water Main Distribution
Tranmition Pipeline Pipeline (JDU)

Raw Water Unit Production Unit Distribution Unit

SCOPE
ACTIVITIES
Raw Water Unit Production Unit Distribution Unit
Build • Directorate General of Private Sector • Directorate General of Human Settlement
Water Resource (SDA) (CK) and/or
and/or • Private Sector and/or
• Private Sector • Local Government and/or
• Regional-Owned Enterprise/ ROE (PDAM).
Operation &
Maintenance Private Sector Private Sector Water Enterprise (PDAM)
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PROGRAMS REQUIRED
TO IMPROVE WATER SUPPLY SYSTEM DEVELOPMENT

PDAM Performance
1. Assists PDAMs in reducing NRW and improving efficiency in production process
2. Assists unhealthy PDAM in preparing Feasibility Study for expansion of water supply
systems
3. Assists PDAM in preparing Business Plan and recommend action plans to improve
water supply performance.
4. Assists PDAMs in implementing Good Coorporate Gorvenance (GCG).
5. Capacity Building on water supply system development.

Investment Improvement
1. Preparing Business Plan
2. Financial Experts
Review Financial Projection KPBU and BtoB Unsolicited

MINISTRYOF
MINISTRY OFPUBLIC
PUBLICWORKS
WORKSAND
ANDHOUSING
HOUSING
18 NationalAgency
National AgencyFor
ForWater
WaterSupply
SupplySystem
SystemImprovement
Improvement
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Gap Investment

6,429
PPP Investment Realization
26.3 % IDR 6,429 Trillion

17,971
Invessment Need
73, % IDR 17,97 Trillion
NUWSP
67 PDAM

Now Gap

Investment Funds Needs from PPP IDR 24,4 Triliun.

Gap Investment ± IDR 17,971 Triliun

MINISTRYOF
MINISTRY OFPUBLIC
PUBLICWORKS
WORKSAND
ANDHOUSING
HOUSING
NationalAgency
National AgencyFor
ForWater
WaterSupply
SupplySystem
SystemImprovement
Improvement
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PARTNERSHIP OPPORTUNITY
IN PDAM PERFORMANCE’S IMPROVEMENT

1 Reducing Non-Revenue Water (NRW) to 20% (national target)

2 Implementing Full Cost Recovery (FCR) tariff on PDAM

Assisting PDAM in preparing business plan and recommend action plans to improve water
3
service performance

4 Improving efficiency in PDAMs’ production process to >90%

5 Expanding PDAMs’ service coverage from 60%➔ 100%

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PPP PROJECT IN WATER SUPPLY SECTOR ON PROGRESS

Bandar USD 74 Million 1 USD = IDR 14.766

Dumai Lampung 750
450 ltr/sec Ltr/detik Preparation Stage

Rp, 0.45 Rp, 1,1

Transaction Stage
Consruction Stage
TRILIUN TRILIUN
USD 30 Million Pekanbaru
500 ltr/sec

Rp, 0.33
TRILIUN USD 47 Million

KARIAN
SERPONG
4600 Ltr/sec

Rp,
2
TRILIUN
USD 135 Million
Jatigede Kamijoro
Jatiluhur I 1500 Ltr/sec 300 Lt/sec West
5000 Ltr/sec Semarang Umbulan
1000 Lt/sec 4000 Lt/sec Sarbagikun

2 2,1 Rp, 0,45 g

Rp,
TRILIUN
Rp,
TRILIUN TRILIUN Rp, 1,1 Rp,
2.05 3.200 Lt/sec

USD 74 Million USD 30 Million

TRILIUN TRILIUN Rp,
3.2
USD 135 Million TRILIUN
USD 74 Million USD 138 Million
USD 213 Million

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LIST OF INDONESIA PPP WATER SUPPLY PROJECTS
Subject Kamijoro DIY Jatigede Karian- Serpong Sarbagikung
Raw Water Source Progo River Jatigede Dam Karian Dam Unda river
Capacity 500 liter/ second 1.500 liter/second 4.600 liter/second 3.200 liter/second
Estimated Investment IDR 0.45 Trillion IDR 2,1 Trillion IDR 2 Trillion IDR 3,2 trilion
200.000 people 600.000 People, 120.000 2.2 Million People, 539.000 920.000 people
Benefit Recipients
40.000 house connections House Connections House Connections 84.000 house connection
Cooperation Period 25 years 30 years 30 years 25 years
PPP Metode KPBU Solicited KPBU Solicited KPBU Unsoliceted KPBU Unsoliceted
There has been no
There has been no
Director of DIY PDAB (in assignment from the Director of PDAB Provinsi
Contracting Agency assignment from the
process) Minister of Public Works Bali
Governor of West Java
and Public Housing

Integrated economic area

(KAPET) of Kulon Progo, 9
5 Offtakers (Cirebon City, 3 Offtakers (PAM Jaya : PDAM Denpasar, 200 lps;
sub-districts (Wates,
Cirebon District, Sumedang 3.200 lps, PDAM PDAM PDAM Badung, 2.000 lps;
Service Area Bendungan/ Panjatan,
District, Majalengka Tangerang City: 750 lps, PT PDAM Gianyar, 50 lps;
Temon, Pengasih,Lendah,
District, Indramayu District) PITS : 650 lps) PDAM Klungkung 50 lps
Galur, Sentolo, Girimulyo)
and Bantul Regency

Preparation of pre- Preparation of pre- Finalisation of Feasibility Finalisation of Feasibility

Status
Feasibility Study Feasibility Study Study Study

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National Agency For Water Supply System Improvement
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LIST OF INDONESIA PPP WATER SUPPLY PROJECTS

Subject Pekanbaru Jatiluhur I Dumai Umbulan Bandar Lampung West Semarang
Umbulan Spring Way Sekampung
Raw Water Source Siak River Jatiluhur Dam Masjid river Jatibarang Dam
Water River
Capacity 500 liter/second 5.000 liter/second 450 liter/second 4.000 liter/second 750 liter/second 1.000 liter/second
Estimated
IDR 0.49 Trillion IDR 2 Trillion IDR 0.45 Trillion IDR 2,05 Trillion IDR 1,1 Trillion IDR 1,1 Trillion
Investment
200.000 People, 2 Million People, 170.000 people, 1,3 Million People, 300.000 People, 450.000 People,
Benefit Recipients 40.000 House 400.000 House 32.000 house 310.000 Houses 60.000 Houses 80.000 House
Connections Connections connections Connection Connection Connections
Cooperation Period 25 years 27 years 25 years 25 years 25 years 25 years
PPP Metode KPBU Solicited KPBU Unsolicited KPBU Unsolicited KPBU Solicited KPBU Solicited KPBU Solicited
Head Director of Head Director of Head Director of
Director of Director of PDAM Governor of East
Contracting Agency Perum Jasa Tirta II PDAM Bandar PDAM Semarang
Pekanbaru PDAM Dumai city Java
(PJT II) Lampung City
6 Offtakers (PDAM
Surabaya City: 1.000
4 Offtakers (PAM lps, PDAM Pasuruan 8 Sub-Districts
6 Sub-Districts
Jaya : 4.000 lps, District: 410 lps, (Rajabasa, Labuhan
(Payung Sekaki, 3 Sub-Districts
PDAM Bekasi City : 3 Sub-districs (West PDAM Pasuruan Ratu, Way Halim,
Sukajadi, Sail City, (Tugu, Ngaliyan,
Service Area 300 lps, PDAM Dumai, Dumai City, City: 110 lps, PDAM Kedaton, Tanjung
Senapelah, Lima Semarang Barat Sub-
Bekasi District : 350 North Dumai) Sidoarjo District: Senang, Sukarame,
puluh kota and district)
lps, PDAM Karawang 1.200 lps, PDAM Sukabumi, and
Pekanbaru City)
District : 350 lps) Gresik District: 1.000 Kedamaian)
lps, PDAB East Java
Province: 200 lps)

Preparation of Preparation of Preliminary Construction stage Fondasion

Construction stage
Status Request for Proposal Request for Proposal Requirements (59.08% on Agt Construction (2,4%
(83.05% on Agt 2019
(RfP) (RfP) Process 2019) on Agt 2019)

MINISTRY OF PUBLIC WORKS AND HOUSING

National Agency For Water Supply System Improvement
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LIST OF INDONESIA B To B WATER SUPPLY PROJECTS

1 USD = IDR 15.000

Preparation Stage
Transaction Stage and
Consruction Stage

Makassar City
600 Ltr/sec

Rp,
0.3
TRILLION

USD 20 Million

Tangerang City South Bekasi City Ciawi Gresik

1000 Ltr/sec Tangerang 200 Lt/sec (Bogor Regency) Regency
200 Ltr/sec 150 Lt/sec 1000 Lt/sec
Rp,
0.583
TRILLION
Rp, 0,3 Rp,
0.06 Rp,
0.15 Rp,
0.79
TRILLION
TRILLION TRILLION TRILLION
USD 39 Million USD 74 Million USD 20 Million USD 74 Million USD 138 Million

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LIST OF INDONESIA B To B WATER SUPPLY PROJECTS

Wilayah Timur Kota
Subject Ciawi Tangerang City South Tangerang Gresik Regency Bekasi City
Makasar

Raw Water Source Suka Birus River Cisadane river Sungai Tallo Kali Angke Gerak Sembayat Dam Cikeas river

Capacity 150 liter/second 1000 liter/second 600 liter/detik 200 liter/second 1000 liter/second 200 liter per second

Estimated Investment IDR 0.15 Trillion IDR 0,583 Trillion Rp. 400 milyar IDR 0.3 Trillion IDR 0.79 Trillion IDR 0,06 Trillion

60,000 people 400.000 people 400.000 people 100.000 people

4.800 house 165.000 people 33.000
Benefit Recipients 8000 house 80.000 house 80.000 house 20.000 house
connection house connections
connections connections connections connections

Cooperation Period 25 years 25 years - 25 years 25 years

Director of Bogor Director of PDAM Director of PDAM Director of PDAM Director of PDAM
Contracting Agency Director of PT. PITS
Regency PDAM Tangerang City Makasar City Gresik Regency Bekasi City
Northern Gresik
domestic area
3 sub-districts (Ciputat, 3 sub-districts (Jatiasih,
2 sub-districts (Ciawi East domestic area (Bungah, Manyar,
Service Area 3 zone in service area Ciputat Timur, and Jatisampurna, Pondok
and Mega Mendung) Makasar City Kebomas, Gresik) and
Pamulang) Melati)
non-domestic area (JPII
industrial area)
Signing of cooperation
Evaluation of Pre- Finalisation of Director Finalisation of Director
Preliminary agreement with PT.
Feasibility Study (from Decree and Pre- Decree and Pre- Announce Commercial
Status requirements from PT. Pembangunan
PT. Sauh Sejahtera as Feasibility Study by Feasibility Study by Date
Tirta Tangsel Mandiri Perumahan Kraratau
initiator candidate) PDAM PDAM
Tirta at April, 11 2019

MINISTRY OF PUBLIC WORKS AND HOUSING

National Agency For Water Supply System Improvement
THANK YOU
BPPSPAM
TERIMA KASIH
Jl. Wijaya I No. 68, Petogogan, Kebayoran Baru, Jaksel, 12170
Telp : (021) 72789126, Fax: (021) 7260520,
Website : http://sim.ciptakarya.pu.go.id/bppspam
BPPSPAM BPPSPAM Kementerian PUPR @BPPSPAM BPPSPAM Kementerian PUPR

SIGAP MEMBANGUN NEGERI

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