REPUBLIKA.CO.ID, PALEMBANG -- There were many local financially unhealthy water companies. To cure their capabilities, five state owned and regional owned banks plans to fund PDAM to support the accelerated development of water supply in Indonesia.
"The five banks want to help development of taps in Indonesia to accelerate supply of clean and drinking water by providing loan worth 4.22 trillion IDR," Chairman of Board of Water Supply System Development Support (BPPSPAM) in Ministry of Public Works, M Zakaria Amin said recently.
The five banks were PT Bank Rakyat Indonesia worth 1.8 trillion IDR, PT Bank Negara Indonesia (1.8 trillion IDR), Bank Jabar Banten (500 billion IDR), Bank Kalsel (512 billion IDR) and Bank RPO (0.4 trillion IDR). Three companies have signed credit agreements with total loan of 50.18 billion IDR, namely PDAM Bogor regency with BRI, PDAM Ciamis regency with Bank Jabar Banten and PDAM East Lombok with BNI.
Amin said that government's ability to fund it from state budget was only 37.62 trillion IDR compared to the needs of 65.27 trillion IDR. It means that the country needs other fund's sources outside state budget. He was optimistic that the program can improve Indoensia's performance to achieve millennium development goals (MDG's) 2015.
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