Indonesia is the world’s fourth most populous country and Southeast Asia’s largest economy. However, the country still lags behind other developing countries in terms of people’s accesses to basic services, such as drinking water and sanitation. For many households, especially those living in rural communities and residents of informal settlements in urban areas, water sources can be distant, contaminated or expensive, and household sanitation is unaffordable. According to Water.org, 24 million Indonesians lack safe water and 38 million lack access to improved sanitation facilities.
Improved water and sanitation access in Indonesia is underpinned by readily available water resources. However, Indonesia’s changing precipitation patterns, population growth, and unsustainable use driven by agriculture, have resulted in parts of Indonesia, especially heavily populated Java, facing water scarcity. To tackle these challenges, the Indonesian government has been putting tremendous efforts to increase the access to clean water.
As the funding to build safe access to drinking water and sanitation is still the biggest challenge for the government, there has to be a collaboration between state and private sector investors. To respond to the opportunity for private sector investments in Indonesian water sector, the Adaro Group extended its business into this sector by establishing Adaro Water through PT Adaro Tirta Mandiri (ATM). Together with its subsidiaries, ATM aims to provide drinking water, distribution channels, waste water management services and water solution services under cooperation agreements with the regional governments.
Adaro Water continues to improve on its performance to achieve operational excellence for its operating Water Treatment Plants and slurry management facilities. Adaro Water’s project in Kotawaringin Timur, Central Kalimantan, under PT Adaro Tirta Mentaya, continues on its construction trajectory. As of end of December 2020, commissioning and testing have been completed for all main WTP facilities with some remaining landscape & supporting facilities works to be done. Meanwhile, PT Dumai Tirta Persada (DTP) has made its milestone by finishing the first phase of the project, totaling 50 lps (from total project of 450 lps), which has commenced its operation since the beginning of December 2020.
As at the end of 2020, ATM Group owned and operated more than 1,200 liters per second of drinking water facilities through its subsidiaries operating in Banjarbaru (South Kalimantan), Sampit (East Kotawaringin, Central Kalimantan), Gresik (East Java), and Dumai (Riau). Apart from drinking water business, ATM Group, through its subsidiary, PT Adaro Wamco Prima (AW P) also serves Adaro Mining for slurry and water management to support the mining activities.
ATM will continue to focus on undertaking business activities that will add value to the Adaro Group. To support its operations, ATM has set a target to reach a total capacity of 4,000 liters per second in the medium term, through acquisition, public private partnerships, and business to business cooperation, while continuing to participate in selected tenders. In addition, ATM plans to penetrate other water related businesses and implement new technology such as non-revenue water (NRW) management, waste water treatment, potable water treatment and water recycling.