Flow of funds, flow of water

INDONESIA RISING. Policy Priorities for 2010 and Beyond 53483 Flow of Funds, Flow of Water For Sanitation: Key Messages Clarify investment cost-sharing arrangements between the national government and LGs for Significant investments are needed in the water municipal sewerage and water treatment projects. and sanitation sector. Inadequate water supply and Initiate a major investment program for municipal sanitation undermines Indonesia's status as a middle sewerage and treatment to be implemented by income country, weakens the competitiveness of its LGs that incorporates decentralized or connected cities, and seriously affects the lives of ordinary people. community systems and improved on-site facilities. Improving sanitation services alone can prevent economic losses of more than US$6.3 billion per year. 2. Focus LG's attention on instituting good governance measures and strengthening the The key challenge is for local governments (LGs) implementation capacity of local institutions to undertake the necessary reforms