Under its initial target, the Indonesia Water Fund (IWF) will manage around US$1 billion to improve clean water access for 40 million Indonesians, Minister of State-Owned Enterprises (SOEs) Erick Thohir has said.

The IWF is meant as a quick solution for distributing clean water access; expediting inclusive, sustainable, and efficient clean water provision for all Indonesians; and expanding the scope of the national clean water service, he said.

The IWF is also a form of funding for clean water that will operate alongside the state budget independently, thus it will not burden the state budget directly, he explained during the “SOE International Conference” here on Monday.

The fund has been set up as part of an effort to optimize Indonesia’s gross domestic product (GDP) because inadequate water supply could potentially reduce the national GDP by 2.5 percent in 2045, he added.

The IWF was initiated by the Ministry of SOEs through the Danareksa SOEs Holding (Danareksa, Nindya Karya, Perum Jasa Tirta 1, and Perum Jasa Tirta 2) synergy to provide water connections in various parts of Indonesia.

Earlier, during the “SOE International Conference” in Nusa Dua on Monday, the government unveiled the IWF as an instrument to improve clean water access for all Indonesians.

According to Vice President Ma’ruf Amin, the existence of the IWF, as a platform to support the acceleration of investment in clean water connection provision, is expected to serve as an alternative solution through non-state budget funding.

The Indonesian Constitution acknowledges and guarantees the right to water, as the embodiment of the fulfillment of Indonesians’ human rights, as well as social rights, to ensure which, the government’s role and involvement become a necessity.

Therefore, water should be managed as national wealth and to serve the people’s needs to realize prosperity and justice for all Indonesians, Amin said.

The IWF is expected to improve people’s prosperity in the future.

Source: Antara News