Page 21 - JaKita 09th Edition 2021

TOP REPORT 21

hmad Thoriqi, a resident of Pramuka Island, was drinking water.
pleased as there is clean water subsidy provided
A by the Jakarta provincial government. For this In his study, entitled Impact of Drinking Water
45-year-old man, it has been very burdensome to him Investment on Economic Growth and Income
for the costs he had to pay for clean water. The food Distribution in Jakarta, he also explained that reducing
stall owner admitted that every week he had to spend drinking water expenditure will encourage productivity
up to Rp500,000 just to buy clean water. and savings for poor households. “The increasing
income per capita and improving income equality
Therefore, according to Ahmad, the clean water will eventually improve overall economic conditions,”
tariff subsidy provided by Jakarta government will wrote Oswar Muadzin.
be very helpful for him and his business. At least, he
could save the money for clean water to improve his He also emphasized that drinking water investment,
business. “Alhamdulillah, this clean water subsidy can both theoretically and empirically, has been proven to
be realized, it can help small traders like me,” he told encourage economic growth because it improves the
JaKita. welfare of the residents, which then improves income
distribution. Moreover, drinking water investment and
This is in line with what the governor of Jakarta Anies meeting the drinking water needs for the urban poor
Baswedan has expected. In a webinar, Anies showed will result in pro-poor growth, an economic growth
several positive impacts from the provision of clean that can reduce income inequality and poverty.
water subsidies in Jakarta, one of which is to reduce
household costs. While carrying out the research, Oswar also explained
that the increase in drinking water investment in
He said not everyone in Jakarta is able to fulfill their Jakarta has an impact on economic growth but has
basic right to clean water, which is due to the unequal not had an effect on reducing inequality. It means that
economic capacity of the residents. Through the the development of drinking water service in Jakarta
clean water subsidy, the household’s cost of living is is not yet pro-poor.
reduced. “People will no longer spend extra money for
clean water, which is their basic need,” said Anies. In order to support the pro-poor growth, investment in
piped drinking water in Jakarta should be accompanied
He later explained that previously, residents in Thousand by the provision of subsidies. The greater the value of
Islands had to pay Rp32,000 for clean water per the investment, the greater the subsidy that needs to
cubic meter. After the subsidy was implemented, the be given. “Providing subsidies for poor households is
expenditure for water was only Rp3,500 per cubic meter. still needed if the total of poor households that do not
have access to piped drinking water is still relatively
Reduce Economic Burden large,” wrote Oswar Muadzin.

It is undeniable that clean water subsidies have He then recommended to the local government and to
significant economic impact on the residents. Jakarta government, to make access to drinking water
Research conducted by former Deputy Governor of for the poor as one of the targets and indicators of the
Jakarta for Spatial Planning and Environment Oswar success of Jakarta’s development. He also suggested
Muadzin Mungkasa, shows that to meet the needs of the need to develop a community-based drinking
drinking water through piped water, especially for the water development program and to fix limited access
urban poor, can reduce the spending on drinking water for poor households with affordable installation costs
and medical expenses due to the use of unworthy for the community. bam

9th EDITION 2021
Sarana Informasi Pemerintah Provinsi DKI Jakarta