Ayu Kusumastuti Management of Infrastructure and Community Development Postgraduate School Gadjahmada University Lecture: Dr.

John Suprihanto, M.I.M Economic Aspect of Sustainability Water infrastructure

Economic Aspect of Sustainability Water Infrastructure (Indonesia Case)

The main of infrastructure that have to establish people lives is water infrastructure. Water infrastructure can implement by irrigation, water for drinking, management of disposal water, water for sanitation, etc. Water management is needed to make sure that water as hardware infrastructure can development with equity, affordability, appropriate technology and has high quality level of service. Water management related to sustainable criteria of infrastructure. Sustainability criteria of infrastructure can be defined and follow naturally from the framework.The proposed set of criteria and generic sub criteria are categorized as follows:(i) environmental, including resource use and residuals production;(ii) economic, including expenditures (capital, operation and maintenance) and investment in innovation;(iii) engineering, including performance; and (iv) social, include accessibility ,acceptability, and health and safety (Sahely, 2005, developing sustainable criteria of urban infrastructure). Water infrastructure have to run with sustainable criteria such as environment, economic, engineering and social. But focusing from this paper is about economic criteria. Water as public good have to manage with carefully and need high quality of decision maker to sure that this item can establish as good infrastructure. Besides pay attention in environment dealing with management of disposal water, in social sides about accessibility to people, and in engineering related to aproprate technology, water infrastructure need pay attention with economic aspect too. Economic aspect is important needed to account how and why this infrastructure can operating well with capital analysis. Especially to make decision maker in operating and maintenance of water infrastructure need to economic analysis. For example for water sanitation in rural area with PVC is needed analyzed by economic aspect to account how much expenditure that needed to operating and maintenance. Beside that the infrastructure has life cycle. And it can account when the PVH have to change and how much cost needed to recovery.

Ayu Kusumastuti Management of Infrastructure and Community Development Postgraduate School Gadjahmada University Lecture: Dr. John Suprihanto, M.I.M Economic Aspect of Sustainability Water infrastructure Economic indicators such as capital costs and operation and maintenance costs continue to play an important Role in decision making as part of a larger set of indicators. Economic indicators

need to be expanded however to include a measure of investment in research and development. Also,not unlike technical indicators that define the minimal technical requirements of a system, there is a need for a set of indicators to define and assess the minimal level of reserve funds required for effective asset management and timely infrastructure renewal. (Sahely, 2005, developing sustainable criteria of urban infrastructure). In water sanitation for the example is needed to define and asses the minimal level of reserve fund. The infrastructure can operating and result some economic advantages or profit. The profit can use for investment in research and development. From research and development in can improve the quality of water sanitation from the technology or from the service. Water sanitation can establish as good infrastructure and has long term capacity lives. Water sanitation plan can implement with focusing in economic aspect by look at expenditure include capital, operation and maintenance and investment including research and innovation. The step of manage infrastructure in economic aspect have to think with effective and efficient. The infrastructure have to develop and making innovation to exist in society. To make some innovation needed to doing some research. Research needs cost. The cost can taken from profit that earn from the operating of infrastructure. The cost that earn in research has follow effective and efficient principles. In Indonesia cases, there is some problem in management of water in PDAM (Perusahaan Daerah Air Minum). PDAM as government property can operating well to supply waters people. PDAM always lose and have no profit. It can service whole area but partly. Some people solve the problem with looking for water from other sources. Peoples change water supply with water from under land and they making self and it called sumur. They not use PDAM services because they know that water supply from PDAM has problem. The water can supply continuously, sometimes the water can distributed well. The water stopped and can watering peoples housing. The condition of management water in Indonesia is poor, special water management by government. Because they taken low cost for water, they reduce their service. And many more

Ayu Kusumastuti Management of Infrastructure and Community Development Postgraduate School Gadjahmada University Lecture: Dr. John Suprihanto, M.I.M Economic Aspect of Sustainability Water infrastructure problem like the damage of metering and the poor quality of water. Now days, government trying to find the solution for this problem. Government trying to doing some comprehensive planning. They evaluate the management of water from concept until technical. While government trying to solve their problem, peoples can wait until this problem solved. The water problem still continued. Peoples always need water in daily lives. They trying to find other way to adequate water. Peoples find some way to get other water source beside from PDAM. The can find from Under ground water with pump, sometimes they took water from mountain with diesel machine, etc. Peoples realized that water problem not only government business. But also peoples business. Government has limited access to manage it. So the participation of people is absolute to need. Management of water with peoples/society participation makes better. Peoples knows from the early until the finishing process of water infrastructure. Peoples have sense of belonging when they include or participation in this matter. The planning that including peoples makes the result has long term and sustainability. Built water infrastructure with people participation make they have responsibility and has sense of belonging. For the examples peoples in Kabupaten Kulun Progo Desa Tanjungharjo. Thus area well known as dry area and difficult to get water. PDAM network can supply water well. Then they have idea to used diesel to get water from under ground water. The diesel machine was available from people participation. They tried to expand their occupation with conducting fishery. The make in some group to conducting fishery more expand. The could satisfy result, success fishery bring them to improved income per capita. The bough some diesel machine from the income of conducting fishery. Now they can easily get water beside they can improve their economic from new income from fishery. The most important thing here indicated that the empowerment of peoples successes bring them to better life. From this case we know that peoples has bargaining power to increase their capacity. With social network and the capacity they tried to solve their local problem. They can increased economic regional development. Regional economic development is a process in which local governments or community based organizations are engaged to stimulate or maintain business activity and/or employment. The principal goal of local economic development is to stimulate employment opportunities in sectors that improve the community, using existing human, natural and institutional resources ( Blakely 1994).

Ayu Kusumastuti Management of Infrastructure and Community Development Postgraduate School Gadjahmada University Lecture: Dr. John Suprihanto, M.I.M Economic Aspect of Sustainability Water infrastructure Peoples in desa Tanjungharjo can maintain in fishery business. People improved their community to find other occupation and can increased income. From the income it can earn some money to built water infrastructure based on community development.

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