Salim Group Participates in Developing Rp 1.047 Trillion Kertasari Water Supply System in Bandung
BANDUNG, investortrust.id – The Indonesian government, in collaboration with Salim Group’s PT Moya Indonesia, is developing the Bandung Timur/Kertasari Drinking Water Supply System (SPAM) in Bandung Regency, West Java. The project involves an investment of Rp 1.047 trillion ($67 million).
Deputy Minister of Public Works Diana Kusumastuti highlighted that Indonesia’s National Medium-Term Development Plan (RPJMN) for 2025–2029 targets safe drinking water access for 34.15% of households and piped water coverage of 38.07%. However, current piped water coverage stands at only 19.76%, leaving a significant gap of 18.31%.
"Achieving these targets requires substantial funding. Therefore, regional water utilities (PDAMs) must explore alternative financing schemes beyond state and regional budgets (APBN/APBD), such as Business-to-Business (B2B) partnerships," Diana stated in a press release received in Jakarta on Monday, Feb. 17.
B2B Partnership in Bandung's Water Supply System
Diana commended Perumda Tirta Raharja, the regional water utility, and the Bandung Regency government for adopting a B2B model in partnership with PT Moya Indonesia for the Bandung Timur/Kertasari SPAM project.
"This synergy between local governments, the private sector, and the central government is expected to yield the best results for communities to access safe drinking water. I emphasize that water from this system must meet drinking water quality standards, not just clean water standards," she added.
The project, led by Perumda Tirta Raharja, is being funded by PT Moya Indonesia, part of Indonesia's diversified conglomerate, with an investment of Rp 1.047 trillion. The agreement follows a Build, Rehabilitate, Uprate, Operate, and Transfer (BRUOT) model, with a concession period of 49 years.
Financing and Infrastructure Development
According to official documents reviewed by investortrust.id, the SPAM Kertasari project financing is structured into two components: upstream and downstream.
Downstream financing involves an installment-based contract worth Rp 631 billion and a land acquisition fund of approximately Rp 54 billion.
Upstream financing amounts to Rp 631 billion, covering the development of booster pumps, a booster reservoir, a 381-kilometer primary distribution pipeline, secondary distribution networks, and a reticulation system.
The commercial operation date (COD) is planned in two phases: the uprating of the Cikoneng water treatment plant (IPA) in January 2026 and the commissioning of the Cipeujeuh IPA in February 2028.
"The project includes rehabilitation and the construction of new production capacity, with a total output of 1,100 liters per second. The distribution network will be developed under the Installment-Based Contract (KBA) scheme," Diana explained.
Expanding Water Access Across Bandung Regency and City
The project aims to install distribution pipelines covering 5.7 kilometers and connecting 44,503 households across Bandung Regency, including Dayeuhkolot, Bojongsoang, Baleendah, Ciparay, Majalaya, Solokan Jeruk, Rancaekek, and Cikancung districts.
In Bandung City, the piped water network will serve Buah Batu, Rancasari, Gedebage, and Cibiru districts.
The wholesale water tariff for the 12 districts in Bandung City and Regency is set at approximately Rp 1,685 per cubic meter. The water source for the project will be drawn from the Kertasari intake, providing 500 liters per second, along with an upgraded 600 liters per second capacity at the Cikoneng water treatment plant.
This large-scale infrastructure investment aligns with Indonesia’s efforts to expand access to clean drinking water, particularly in urban and peri-urban areas.