Sanitation Business Initiative for low-income Urban Communities

A market-driven solution to increase access to appropriate sewerage in Jakarta, Indonesia

Omar Saracho, MSc.
Urban Development and Climate Advisor Mercy Corps Indonesia osaracho@id.mercycorps.org 16 November 2011

Urban Slums in Jakarta

Context
Urban Slum Conditions in Jakarta
9.7 million people living in ~ 740km2, density 13,108/Km2 (UN Habitat) 1.3 million slum dwellers without access to proper sanitation (JICA, 2011) Shallow groundwater used by 75% of the citys residents (WSP, 2008) 90% wells contaminated by e-coli and/or heavy metals (MC, 2008) 2% of Jakarta has access to a sewerage system (WSP, 2008) 19% of deaths of children under 5 due to diarrhea (national data)

Access to sludge removal services

2 Sludge Treatment Plants in West and East Jakarta 35 enterprises offer sludge removal services for households (USD 20-30) 50% households living in slums earns < USD 150 per month. Improper sludge disposal (eg. river, informal dumpsite, etc)

Sanitation Product and Service Strategy

Goal: to achieve sustainable change in sanitation services relying in the market operating more effectively and inclusively without aid actors in key market roles.

Providing Proper Sanitation Product Design & Empower Local Supply Actors

Product & Supply

Community

Develop Demand on Sanitation Product & Service through Behavior Change Campaign

Sanitation Market
Financial Institution
Related Stakeholders Involving Government Bodies and Private Sector

Access to Finance through Assisted Existing MFI

Product and Supply: Fecal Sludge Removal (FSR) mechanisms

MOLSTA (Motorcycle Sludge Tank) KEDOTENG (Mobile Sludge Cart)

Operational Scheme (MOLSTA & KEDOTENG)

Business Models
1.- 2009 2.- 2011

Local Micro Finance Institution

Installment payment options

POKJA (Community Task Force)

Women lead

Quality Control Service Marketing and awareness campaigns

Marketing and awareness campaign Managing Finances

Promotions (2 free sludge removals)

Commission-based incentive 10 septic tanks 1 month, +100, 2 years

Sludge Removal Services (POKJA)

Incentive based structure 80% local actors.

Creating Demand

Brand Activation Campaigns

Peer to Peer Hygiene Campaigns

Pride Labeling

Strategic Alliances for sustainability

PD Pal Public Waste Management Co. Indonesian Department of Public Works

ILPT Septic Tank Manufacturers

MFI / POKJA

Market-driven sustainable sanitation services in high-density urban communities in Jakarta

Thank you!

Omar Saracho, MSc.

Urban Development and Climate Advisor Mercy Corps Indonesia osaracho@id.mercycorps.org