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  • 8/3/2019 Sanitation business initiative for low-income urban communities: A market-driven solution to increase access to appropriate sewerage in Jakarta, Indonesia

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    Sanitation Business Initiative forlow-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

    [email protected]

    16 November 2011

  • 8/3/2019 Sanitation business initiative for low-income urban communities: A market-driven solution to increase access to appropriate sewerage in Jakarta, Indonesia

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    Urban Slums in Jakarta

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    Context

    Urban Slum Conditions in Jakarta9.7 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

    35enterprises 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)

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    Product &

    SupplyCommunity

    Financial

    Institution

    Related

    Stakeholders

    Providing Proper

    Sanitation Product

    Design & Empower

    Local SupplyActors

    Access to Finance

    through Assisted

    Existing MFI

    Develop Demand

    on Sanitation

    Product & Service

    through Behavior

    Change Campaign

    InvolvingGovernment

    Bodies and

    Private Sector

    Sanitation

    Market

    Sanitation Product and Service StrategyGoal:to achieve sustainable change in sanitation services relying in the market

    operating more effectively and inclusively without aid actors in key market roles.

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    Product and Supply:

    Fecal Sludge Removal (FSR) mechanisms

    MOLSTA(Motorcycle Sludge Tank)

    KEDOTENG

    (Mobile Sludge Cart)

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    Operational Scheme (MOLSTA & KEDOTENG)

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    Business Models

    Local

    Micro Finance

    Institution

    POKJA (Community

    Task Force)

    1.- 2009 2.- 2011

    Installment payment options

    Quality Control Service

    Marketing and awareness campaigns

    Promotions (2 free sludge removals)

    Commission-based incentive

    10 septic tanks 1 month, +100, 2 years

    Women lead

    Marketing and awareness campaign

    Managing Finances

    Sludge Removal Services (POKJA)

    Incentive based structure

    80% local actors.

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    Creating Demand

    Peer to Peer Hygiene Campaigns

    Brand Activation Campaigns

    Pride

    Labeling

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    Strategic Alliances for sustainability

    IndonesianDepartment of

    Public WorksPD Pal

    Public Waste

    Management Co.

    ILPT Septic Tank

    Manufacturers

    MFI / POKJA

    Market-driven sustainable sanitation

    services in high-density urban

    communities in Jakarta

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    Thank you!

    Omar Saracho, MSc.

    Urban Development and Climate Advisor

    Mercy Corps Indonesia

    [email protected]