Blog >> Wastewater Management in Indonesia
In the 2015 Top Markets Study (TMS), conducted by the U.S. International Trade Administration, Indonesia ranks 7th for overall environmental technologies and it also ranks 8th in the global wastewater treatment market. Indonesia's environmental regime is improving in both regulatory development and efforts to enforce environmental rules due to the government's effort to strengthen both environmental rules and enforcement.
Municipal drinking water treatment is expanding to meet the country's National Medium-Term Development Plan, the Rencana Pembangunan Jangka Menengah Nasional (RPJMN), which sets the goal of 100 percent access to drinking water and sanitation services by 2019. Drinking water and sanitation access were 68.5 percent and 60.5 percent, respectively, in 2014. Indonesia has an estimated USD 225.5 billion of water supply investments planned and is electing to use Public Private Partnership (PPP) models to finance approximately 35 percent of the projects.
Wastewater Treatment Plant in Indonesia
The Ministry of National Development Planning's (BAPPENAS) PPP Book lists 15 water infrastructure projects planned with a total value of USD 1.59 billion. The majority of projects are focused on drinking water storage, treatment and transmission, leaving wastewater treatment as the next hurdle in satisfying Indonesia?s need for basic water and sanitation services. A few wastewater treatment projects in urban areas are the DKI Jakarta Sewage Treatment Plant, the Jakarta wastewater treatment project valued at USD 173.5 million, the Jatiluhur-Jakarta water supply valued at USD 134.4 million, the Pekanbaru Seletan Water Supply valued at USD 132 million and the Jatigede water supply system valued at USD 117 million.
The Indonesian Government's Master Plan identifies 22 key industries for priority expansion and investment. Among those 22 sectors, several are key client industries for the water sector, especially mining, coal, oil and gas, food and beverages, textiles, steel, and aluminium smelting. The burgeoning oil and gas sector should provide growing opportunities for process-based wastewater treatment. Furthermore, the government recently initiated four shale gas study projects and expects commercial shale gas production to begin by 2018. Shale gas development will yield opportunities for both process and produced water treatment projects.
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