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 OECD.

Available from June 20, 2023

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Abbreviations and Acronyms
Executive summary
The National Dialogue on Water in Indonesia
Water resources management in Indonesia
Robust water tariffs and charges
Land value capture as an innovative funding source for water infrastructure
Disaster risk reduction through non-structural measures
Tentative action plan resulting from the National Dialogue on Water
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