Residents of Jamus in Mangin village, Grogoban regency, Central Java, collect water from pipes to which water flows from the village’s main water source, on Wednesday (27/9). The pipes have been used in the last two months while the village waits for the construction of a water tank. Every dry season, residents previously had to find sources of water by themselves in the forest.
It used to be that, every time the dry season arrived, the villagers of Grobogan regency, Central Java, had no access to clean water. However, the villagers now have a new lease on life. The availability of microcredit loans for water infrastructure from rural banks has washed away the villagers’ sense of hopelessness.
It was in the afternoon on Wednesday (27/9/2017) when Sumardi, 34, filled a bucket with water flowing from the PVC pipe in Jamus hamlet of Mangin village, Karangrayung district, Grobogan. Beside him, other residents were filling their own buckets with water from the pipe, measuring 10 centimeters in diameter.
On the pipe was affixed a small triplex board with the words: “Water Flow Schedule in Jamus Hamlet. Days: Monday, Wednesday and Friday”. People joked around while they waited for their buckets to fill. Such joy was a new sight in the hamlet.
“Before, we had to walk rather far every dry season and queue for hours just to get water,” Sumardi said.
He reminisced how the people of several hamlets had to walk several kilometers into the forest to get clean water. In Cekel village, Karangrayung, for instance, people used to carry 10-liter buckets on their shoulders for 3 kilometers during the dry season.
In the past year, life in the hamlets of Mangin and Setren has been improving with the installation of a clean water network. The network spans 3 kilometers, from the nearest spring to the hamlets. In total, there are eight “water spots” in Mangin hamlet and another six in Setren hamlet, where residents can obtain free, clean water.
Mangin hamlet head Budiono said that several villages in Grobogan still had natural springs in the dry season. However, these springs are located far from people’s homes.
This was why Budiono decided to take out a loan from Purwodadi district’s rural credit bank (BPR BKK) to install a clean water pipe in his hamlet. “I had to move quickly. Before the dry season began this year, I plucked up the courage to ask the bank for a loan to fund its construction,” he explained.
Network expansion
The loan he took out from the Purwodadi BPR BKK was Rp 50 million (US$3,703.98) at a 0.85 percent monthly interest. The plan was to repay the loan with the state village funds. However, as the fund had not yet been disbursed, Budiono paid for the clean water installation from his own pocket.
In 2017, Rp 840 million in village funds was earmarked for Mangin village. Apart from paying back the loan, the village will use Rp 240 million of the fund to expand its clean water network.
Water towers are currently being constructed in Jamus and Setren hamlets. Once the towers are completed, water will no longer flow to the “water spots” and will instead be distributed directly to people’s homes. The network is being built upon a loan of around Rp 1 million per home from the district’s rural credit bank, at an interest rate of 0.85 percent per month.
The water’s distribution is managed by the village-owned Sanitation and Clean Water Provision Office (BP-SPAMS). Fees will be applied as agreed among villagers and in accordance with the BP-SAPMS regulation.
In Mojolegi hamlet of Bandungharjo village, Toroh district, which has around 100 people, a clean water supply was also established upon a loan from the Purwodadi BPR BKK. The village’s clean water distribution is managed by Toya Langgeng BP-SPAMS, which took outa loan of Rp 50 million to build the distribution network. The residents also obtained loans of Rp 1 million each to install pipes into their homes.
The water rate is Rp 2,500 per cubic meter for 1-10 cubic meters. For usage above 10 cubic meters, the rate is Rp 4,000 per cubic meter. A progressive tariff scheme is applied for the water rate, because the water supply is limited. The collected money is used for network maintenance.
Mojolegi resident Yenni Puspita, 33, said she no longer needed to carry jerry cans full of water from a spring about 600 meters from her house. Nowadays, she can just turn the knob of a faucet in her house.
“I’ve carried buckets of water with my mother since I was small. I have marks on my lower back from carrying the buckets for so long,” she said.
Yenni also said she now had more time to take care of her 12 goats since she had direct access to clean water. The cost of installing the pipe and the monthly BP-SPAMS water rate of around Rp 30,000 are affordable.
Local villagers used to each purchase 4,000 liters of clean water from a tank truck for Rp 120,000. This amount lasted them one to two weeks. Now, with pipes bringing clean water into their homes, they only need to pay Rp 100,000 per month.
Not profitable
The Karangrayung branch head of the Purwodadi BPR BKK, Joko Purnomo, said that the bank launched the microcredit loan scheme for constructing water pipes in 2015, as it was concerned over the annual drought in Grobogan every dry season. With minimal requirements and without collateral, the scheme was launched to help drought-affected residents.
Purwodadi BPR BKK president director Koesnanto said that not many banks were concerned with sanitation and drinking water projects. One reason was that such projects were deemed unprofitable.
This pushed the bank to launch its microcredit loan for clean water projects. The amount of loan varies, from Rp 3 million for individual houses toRp 10 million for installing toilets and up toRp 50 million for building a community’s drinking water system. The repayment term varies from four months to three years.
Koesnanto said that the loan process was affordable enough for the poor. For starters, there was no need for collateral. “People need only to bring their ID card, family card and marriage certificate to apply for the loan,” he said.
In order to ensure smooth loan repayment, Purwodadi BPR BKK officers help clients arrange loan proposals and also provide capacity-building. Since the program was launched in May 2015, the bank has disbursed 5,255 individual water and sanitation loans.
The water microcredit loan proves that financial institutions can take a concrete role in improving villagers’ quality of life. In addition, people will become more aware that clean water has financial value.
