Water Financing and Disaster Risk Reduction in Indonesia
Highlights of a National Dialogue on Water
This report presents the policy recommendations resulting from the National Dialogue
on Water in Indonesia, which took place between June 2022 and March 2023. Getting
water resources management right, underpinned with appropriate financing mechanisms,
is a prerequisite for realising Indonesia’s ambitious national economic growth agenda
to become one of the top five global economies by 2045. The Dialogue, therefore, centred
around two priority areas: 1) financing water infrastructure and 2) non-structural
measures for flood disaster risk reduction.
The report explores several instruments to enhance the financing of water services
in Indonesia, such as the advantages and disadvantages of uniform water tariffs, independent
economic regulation, pollution charges and demand management instruments. The report
recommends the utilisation of land value capture as an additional source of financing.
It also explores how water information systems for disaster response, flood forecasting
and early warning can reduce flood disaster risk.
The National Dialogue on Water in Indonesia is part of a regional initiative with
the Ministry of Environment of the Republic of Korea, the Asia Water Council and the
Available from June 20, 2023
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