IndII is currently in its second program phase, which will finish end-January 2017. The first phase of IndII was completed in June 2011 with a full wrap-up of the program at the Phase I Concluding Event. Click here to view a summary table of IndII phase 1 activities, and here for a summary table of planned activites in phase II.
Water and Sanitation
The primary focus of the IndII Watsan Program is to ensure that local governments (LGs) play a more engaged and committed role in the improved delivery of water and sanitation services. Although the number of households served with piped water has increased over the past 25 years, service coverage has declined as a percentage of the population. Watsan services are locally defined functions, but LGs have failed to invest commensurate with the needs of the sector. Moreover, public resources have tended to be channelled through central budgets, undermining efforts to promote good infrastructure management and to build effective institutional capacity at the local level.
The Watsan program addresses these challenges through providing financial and technical assistance that is designed and executed in such a way as to create incentives for institutional accountability, reform, and capacity building. IndII’s grant programs, for example, have been designed as “output-based-aid” (OBA) schemes that require local governments to provide services before the grants are disbursed. This compels local institutions to create conditions - through policy, personnel, and implementation - for sustainable service provision. IndII’s OBA programming has demonstrated an ability to leverage funds, transfer risk, and expand services in the sector.
IndII’s current activities in the water and sanitation sector include:
The output-based Water and Sanitation Hibah grant programs
The Australia-Indonesia Infrastructure Grants for Sanitation program
The City Sewerage Program, supporting construction in Palembang
The Water and Sanitation Service Index to evaluate water and sanitation quality across localities - from the perspective of consumers
Capacity building with social contracts in Eastern Indonesia
Assisting local water utilities to develop business plans in order to access commercial lending