Current Status of Water and Waste Water Management in Indonesia

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1 Current Status of Water and Waste Water Management in Indonesia By Arif Wibowo Assistant Deputy of Environmental Sound Technology Division, Ministry of Environment of Indonesia

2 Scope of Presentation 1. The current status of environmental pollution in Indonesia (especially, present condition of water pollution) and water supply development status in Indonesia. 2. Overview legal system for wastewater management and challenge for enforcement. 3. Environmental technology (including monitoring technology) that are mostly needed in major polluting industries in Indonesia. 4. Strategy and policy plan (or vision) of the Indonesian government for development/dissemination of environmentally sound technology 5. Expectation or request to Japanese company.

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4 1. The current status of environmental pollution in Indonesia (especially, present condition of water pollution) and the water supply development status in Indonesia.

5 1. Introduction Water is a very important element for life whether for human, flora, fauna, or other living beings. The river environment and the watershed area have always been under pressure because they are the centre of development of human civilization, i.e. socio-economic activities. Along with the increase of the number of residents, the need for water availability for various purposes continues to increase significantly. Population pressure, with ever-increasing activity, has exceeded environmental carrying capacity, causing damage to the biophysical and quality aspects of the water. There are 5,590 major rivers in Indonesia, as well as about 65,017 river tributaries and 500 lakes.

6 2. Pressure to Water Resources 2.1 Land Function Environmental damage symptoms are caused among others by forest reduction. The potential water resource is also reduced. Based on the interpretation of landsat image 2005 (MIH, 2006), the total percentages of forest area size by island in 2005 are: Java 19%; Sumatra 54%; Kalimantan 43%; Sulawesi 43%; and Papua 71%.

7 In Indonesia, the reduction of forest area occurs nearly exclusively in all watershed. The watershed of Batanghari, for example: Reduction of 826,269 Ha (37.45%) of dry forest area within 5 years ( ), or an annual reduction average of 172,454 Ha or 7.49% compared with forest area size in Meanwhile, swamp forest area is reduced 101,756 Ha or 40.51% compared to the forest area size in 1997 for five years, or at a rate of 29,223 Ha per annum. In general, all river watershed areas have the tendency of change of land usage in the form of: a. Land use change from forest land into non-forest land (farming and nonfarming purposes); b. Change of usage from dry farming land into non-farming land usage; c. Change of usage from wet farming land into dry farming land (plantations) and non-farming land (housing/settlement).

8 2.2 Water Consumption and Availability Drinking water consumption for households in Indonesia in 2007 is mostly (58%) covered by ground water. The rest is fulfilled by : waterworks company (Perusahaan Air Minum or National Drinking Water Company) (16%), river water (3%), rainwater (2.6%), packaged water (7.2%), springs (12.6%) and other sources (0.4%).

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12 3. Water Condition 3.1 Water Quantity Availability of water resources is marked among others from the rainfall rate. According to observation in 33 stations of the Meteorology, Climatology and Geophysics Agency (BMKG - Badan Meteorologi, Klimatologi, dan Geofisika), in 2007 and 2008 the maximum annual rainfall rate tends to increase compared to the rates in , but decreased again in 2009.

13 According to the hydrological cycle, some of the rainwater will fill lakes and ponds, whether directly or indirectly, such as through springs and rivers. Indonesia is estimated to possess more than 500 lakes distributed from the lowlands to the mountaintops. From this large number of lakes, Lake Toba, which has an area of about 110 thousand hectares, is the largest lake in Indonesia.

14 Monitoring of volume in some main dams in Indonesia, especially in the island of Java, shows that in 2008 the volume in the dams generally decreases in the April to October period. Cirata Dam in West Java underwent the largest amount of volume decrease, i.e. 89%, while Sermo Dam in Special Region of Yogyakarta underwent the smallest amount of volume decrease at 33%. The percentage of water volume decrease in dams during the dry season indicates damage to the catchment area in the upperstream area.

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21 3.2 Water Quality According to Government Regulation No. 82/2001 regarding the Management of Water Quality and Water Pollution Control, water quality is then classified into 4 (four) classes: 1. Class I, water that can be used as standard water of drinking water, or other usages requiring similar quality to the benefit; 2. Class II, water that can be used as tools/facility of water recreation, fresh fish preservation, livestock, water for irrigation, and other usages requiring the similar quality to the benefit; 3. Class III, water that can be used as tools/facilities of fresh fish preservation, livestock, water for irrigation, and/or other usages requiring the similar quality to the benefit; 4. Class IV, water that can be used for irrigation, and/or other usages requiring similar quality to the benefit;

22 Unit Water Quality Criteria Class

23 Due to the high level of pollution, most of the river water in Java Island is already in Class III or even Class IV status. Even downstream of Ciliwung River (Jakarta area) has far exceeded the standards of Class IV. The main polluting sources outside of the islands of Java and Sumatra are mainly the ever-increasing erosion of critical lands, among others due to illegal logging, plantations, etc. Results of an monitoring of 35 rivers that has been held since 2004 show that for the TSS, DO and COD parameters, water quality tended to improve in 2008, but degenerated again in 2009 when compared with the quality criteria for Class II water

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25 In 2007, there are listed about 13,000 large and medium industries that have the potential to pollute ground water and surface water in Indonesia. This number increased about 29% compared to the situation in For small industries, there are about 94,000 industries that have the potential to pollute ground water and surface water in This number decreased about 13% from the condition in Apart from industries, the usage of fertilizers and insecticides in farms and plantations also has potential of polluting the water, especially surface water. In 2007, the use of inorganic fertilizers in ponds decreased drastically compared to the usage in Pesticide usage has also decreased, even though only slightly

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27 The result of water quality monitoring in 30 rivers in Indonesia: most of river water quality do not meet water criteria class 1 (drinking water raw based on Regulation 82/2001). BOD: 21 percent of samples meet the water criteria class 1. In other word most of river BOD is above 10 ppm, in fact concentration of BOD could reach 100 ppm. This figure is not different for other parameter such as COD and DO.

28 Rivers Monitoring in 28 Provinces Monitoring : 3 times ayear, in 3 locations; Selected parameters : TSS, DO, and COD (concentration only); Debit : N.A.

29 Environmental Quality Index in Provincial Level Province Water Quality Air Quality Forest Coverage

30 Environmental Quality Index in island Level Islands Water Quality Air Quality Forest Coverage

31 2.4. Management of Water Quality The bases for Water Quality Management Policy includes: (a) Law Number 7 year 2004 regarding Water Resources; (b) Law Number 26 year 2007 regarding Spatial Planning; (c) Law Number 32 year 2009 regarding Environmental Control and Management; (d) Governmental Regulation Number 82 year 2001 regarding Water Quality Management and Water Pollution Control.

32 Water Pollution Management Program a. Clean River Program (Program Kali Bersih PROKASIH) The Clean River Program (PROKASIH) is an integrated water pollution control program that reduces the burden of water pollution at the source. It is executed in cooperation between the provincial regional governments and the regency/municipality regional governments. One of the actions that must be performed by the industry and/or activity that is included in the PROKASIH scope is the signing of a Statement Letter (Surat Pernyataan SUPER) of willingness to comply with applicable rules and regulations relating to environmental management within the deadline that is mutually agreed upon. During the period, 341 companies have agreed to sign the SUPER.

33 b. Corporate Performance Rating Assessment Program (Program Penilaian Peringkat Kinerja Perusahaan PROPER) This program is executed with the purpose to encourage the compliance of companies to applicable rules and regulations. The instrument used is the publication of information that reflects the reputation of a company in managing the environment. The PROPER performance level system is comprised of 5 colour levels, i.e. in descending order: gold, green, blue, red and black. In general, the compliance level of mining, energy and oil and gas sector is the highest, i.e. 83%. This is followed by the manufacturing sector (74%), area and services sector (69%), with the lowest compliance level being held by agricultural sector (59%).

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35 2. Overview legal system for wastewater management and challenge for enforcement.

36 Public Policy on Environmental Management 1. Decission Making Rational Approach & Incremental Approach 2. Environmental Policy Regulatory Based & Market/Economic Based 3. Environmrntal Management Input Control & Output Control

37 Overview of Pollution Control Program in Indonesia EIA Clean River PROKASIH (1990) Administration Fines Jail Air Pollution Control PROPER PROKASIH (1995) Hazardous Waste Management Cleaner Production, EMS, E-Label One-Roof Law Enforcement (2004) PROPER Multy Media (2002) Enforcement of The Law

38 PROPER as Compliance Instrument Regulatory Based Output Control (result oriented) PROPER Economic Based Good Environmental Governance

39 PROPER RATING GOLD Beyond Compliance and Reach zero emission Incentive Reputation GREEN Beyond Compliance BLUE Meet the requirements (compliance) RED Fail to Comply the requirements BLACK Effort to compliance - insignificant Disincentive

40 7.Community participation & relation Principles of Evaluation 7 (Seven) Area for Evaluation Ref. Regulation 1.Management of Water and Sea Pollution PP No. 19/1999 PP No. 82 / 2001 MoE Reg. No. 51/1995 MoE Reg. No. 52/1995 MoE Reg. No. 113/2003 Result oriented 2.Management of Air Pollution PP No. 41/1999 MoE Reg. No. 13/1995 Kepdal No. 205/1996 MoE Reg. No. 129/ Management of Hazardous Waste PP No. 18/1999 jo PP No. 85/1999 Kepdal No. 68/1994 Kepdal No. 01/1995 Kepdal No. 02/1995 Kepdal No. 03/1995 Kepdal No. 04/1995 Kepdal No. 05/ EIA PP No. 27/ Implementation of EMS 6. Management & Utulization of Resources (Including CP, 3R, etc)

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42 challenge for enforcement Monitoring Capacity: Human Resources: (quality and quantity) Inspectors Samplers : certification Equipments: Measurements: volume/debits, ph, Temperature, etc. Sampling, Testing and Callibration Environmental Laboratory : Accreditation Technical Capacity Methodologies.

43 Number of Particinats Potential Target Challenges Cetral Government Region Province District/City Number of Inspectors

44 3. Environmental technology (including monitoring technology) that are mostly needed in major polluting industries in Indonesia. Current performance of compliance : Medium and Large Industries: Ref. PROPER criteria and its results: Blue and below: reflection of pollution control technology status Beyond Blue: reflection of CP/eco-efficiency technology; Trends: the number of participating companies STILL below the critical mass; Major sectors: Manufacturing Agro industries Oil and Gas Mining

45 4. Strategy and policy plan (or vision) of the Indonesian government for development/dissemination of environmentally sound technology

46 CP and EST Related Policy and Program 1993: Introduce CP 1995: National Commitment on CP Implementation general guideline on CP 1996: National Action Plan on CP -General Guideline: Integration of CP into sectoral and local government policy; Capacity building and Technical Assistance Guidelines and Demonstration Project; 2001: ETV studies 2003: National Policy on CP Implementation 2008: CP Implementation for SME Clusters 2008: 3R National Strategy for Solid Waste Management 2009: Guideline for integration of CP and waste water treatment in SME Cluster 2010: Development of EST Criteria and ETV system (desk study, on going) 2010: Development of Green procurement policy 2010: Eco-label (type 1: established 11 standards product criteria) 2010: Establishment of competency standards and certification of personnel in environmental pollution control which include waste minimization and resources efficiency 2011: Establishment of Green Building Regulation 2011: Evaluation of EST Application (Final Draft) 2011: National Action Plan for Combating Climate Change (MoE Decree No. 6 Year 2011) 46

47 (Sustainable Consumption and Production): SCP Action Plan of MoE Indonesia ( ): Focus Area: Green Building Certification Green Procurement Eco-Office National SCP Action Plan (facilitated by MoE): Development of SCP Forum Network: Inter-Government Institution All Stakeholders; Development of SCP Implementation Profile in Indonesia; Discussion on Rio+20 related Documents Development of Working Documents for SCP Stakeholders at implementation level including: Program and infrastructure Fasilitation and Access Example of application, distribution of benefits

48 Cleaner Production and EST: Cleaner Production: Technical Assistance and Promotion of Eco-efficiency/Cleaner Production; Guidelines of CP Implementation in Industries textile, pulp & paper, palm oil, electroplating, Pilot projects in SMEs (Batik, Tofu, etc) Guidelines for the Application of CP in SME Clusters Environmental Sound Technology (EST): Development of Sytem for Evaluation of Environmental Technology Application (EETA-System): Development of Minister Decree for Verification/Evaluation of Environment Sound Technology Application System; Development of EST criteria for Pulp and Paper, Tannery industries, (cooperation with Research Institute), boiler. Application Test of the system; Establishment of ETV Body;

49 EMS and Ecolabel EMS (Environmental Management System) Development of practical materials for SMEs ECOLABEL Development of Guidelines for utilization of logo Type 1 and type 2 Development of criteria for Verifikator Body for Self-Decraration Development database eco-product Development eco-product list and criteria for government green procurement

50 Ecolabel Products Certification 16 product trade mark and 7 product variants of un-coating paper have been getting Indonesian ecolabel certificate, of 4 industries. Certificate valid for 3 years. The certification bodies have accreditated by National Accreditation Committee.

51 Evaluation of EST Application Current status: Final Draft of MoE Decree concerning Evaluation of EST Application System; Next: Establishment of EST Evaluation Body; Pilot Implementation (Pulp & paper and Leather tanning industries); Development of EST Criteria.

52 Incentives & environmental Funds Soft Loan: JBIC-PAE IEPC-KfW-I IEPC-KfW-II DNS (Debt for Nature Swap) -KfW Target All category SMEs SMEs Micro & Small businesses Credit Type Invesment; Unlimitted Invesment; Max. Rp. 3 Billion; Investment & Working Capital; Max. Rp.5 billion; Investment & Working Capital; Max. Rp.500 Million; Interest (%) SBI 9-14 % 2% - below the market Profit sharing (10-13%) Scope of activities Pollution prevention & pollution control, production efficiency improvement; Pollution prevention & pollution control, prod. Efficiency improvement, technical assistance; Pollution prevention & pollution control, efficiency, technical assistance; Pollution prevention & pollution control, efficiency, technical assistance, sertification; Tax exemption for importation: WWT equipments : aerator, belt press, chemical pump, ph control, etc; Air pollution Control equipments: EP, continuous electromagnetic;

53 Future Plan CP Implementation for Hotel, electronic, chemical, SMEs ( ceramic, craft, furniture, etc); Development of ETV system at national level; Capacity building for local government : Mainstreaming SCP concept and tools into local policy and program; Facilitate in implementing SCP tools (EMS, Ecolabelling, CP, EST, etc. in respective provinces/cities Development of local experts: TOT certified and registered; Development of incentive system: financial and non financial incentive or reward system; 53

54 5. Expectation or request to Japanese company Stronger cooperation among all stakeholders berween the two countries: Capacity Building: human resource, Investment in environmental and clean technology including climate change mitigation technology; Sharing information;

55 THANK YOU for further information: Assistant Deputy for Standardization and Technology Ministry of Environment of Indonesia Jl. D.I. Panjaitan Kav. 24, Building A, 6th Floor Kebon Nanas, Jakarta, Indonesia Phone/Fax: (021) / Website:

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