Financial analysis of scheduled desludging (Indonesia)

The onsite system still dominates in Tangerang Regency is the background for the government in collaboration with USAID Indonesia Urban Water, Sanitation and Hygiene (IUWASH) to launch the scheduled desludging program called LLTT program. Several aspects must be met to run the LLTT program, including customer databases, infrastructure, and finances. This research is structured to provide several alternative financial models for the LLTT program tailored to the potential of the Tangerang Regency area. There are five alternative scenarios of financial models that are commonly used in sewage management with variations in the role of the private sector in the transportation, processing and reuse sub- systems. The distribution of questionnaires, interviews with stakeholders, and field observations were carried out to determine the 7 criteria for regional potential owned by Tangerang Regency. Schemes 3 and 4 were obtained, namely financial models in collaboration with the private sector in the transportation sub-system and cooperation with Perumdam TKR on local management sub- systems or customers. Both schemes meet all financial eligibility criteria, namely NPV > 0, IRR > MARR, and the payback period is 3 years, namely in 2025.