FINANCIAL MODELING FOR ACHIEVING SAFELY MANAGED ON-SITE SANITATION WITH FINANCIAL FLOW SIMULATOR (ESOSVIEWTM) (CASE STUDY: TABANAN REGENCY, BALI)
About 46% of the world's population, around 3.6 million people, are without safe sanitation services, and globally, 494 million people still practice open defecation. In Bali Province, although access to basic sanitation service is 95.01%, only 14.55% of the population have access to safely...
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| Format: | Theses |
| Language: | Indonesia |
| Online Access: | https://digilib.itb.ac.id/gdl/view/71012 |
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| Institution: | Institut Teknologi Bandung |
| Language: | Indonesia |
| Summary: | About 46% of the world's population, around 3.6 million people, are without safe sanitation
services, and globally, 494 million people still practice open defecation. In Bali Province,
although access to basic sanitation service is 95.01%, only 14.55% of the population have
access to safely managed sanitation and 4.42% still practice open defecation. This percentage
includes septic tanks that are emptied at least once in the last five years. Open defecation and
the high rate of unsafely-managed sanitation in Bali can potentially result in wastewater
infiltration into drinking water sources, discharging enteric microorganisms and fecal-borne
pathogens, such as E.coli. As centralized, city-scale domestic waste treatments are expensive
and complex, on-site sanitation is the key strategy to achieve safely-managed sanitation that
includes fecal sludge management in many Low- to Middle Income Countries (LMICs) such as
Indonesia. WASH services are considered sustainable if the five dimensions of sustainability
factors (financial, institutional, environmental, technological, and social) are adequately
addressed in the WASH program. This research focuses on financial flow modeling to achieve
universal access to safely-managed sanitation using a financial simulator, eSOSViewTM, in
Tabanan Regency, Bali. The aims of this paper are: (1) to analyze existing Faecal Sludge
Management (FSM) and financial model applied in the study area; (2) to develop alternative
financial models and analyze them using eSOSViewTM; and (3) to choose a financial model using
Multi Criteria Analysis (MCA) and its application in the study area. The results are useful to
build recommendations for achieving 100% safely managed on-site sanitation in Tabanan
Regency. A Real Demand Survey (RDS) to households and semi-structured interviews to the
private and government sectors were conducted to collect data imputed into the model. One
hundred households selected by cluster random sampling method participated in the RDS.
Stakeholders from the Tabanan Regency PALD Technical Implementation Unit (UPT), and
private party that provide Emptying & Transport (E&T) services were interviewed. This
research resulted in five financial models. To choose the most suitable financial model for
Tabanan Regency, Multi-Criteria Analysis (MCA) was employed. The MCA considered five
aspects: financial feasibility (50%), public acceptance (15%), stakeholder capability (15%),
regulations and public policies (10%), and ease of implementing business models (10%). Out
of five financial models, Model 3 was chosen as the most suitable business model to achieve
universal access to safely-managed sanitation in Tabanan Regency, Bali. In Model 3,
households need to pay a certain amount for the emptying fee and sanitation tax. UPTD as the
city’s fecal sludge management operator, receives discharge fees from the clients who dispose
of their sludge to be treated at the fecal sludge treatment plant and budget support from the
government authority. End-use products (fertilizers) from the fecal sludge treatment plant can
be sold at pre-agreed prices to industries that need them. In the existing model, the fertilizers
produced from the fecal sludge treatment plant (approximately 10 tons/month) are not for sale;
they are used for the city parks, Tabanan Regency government offices, and Sembung Gede
landfill, for free. In Model 3, we took an example of Semarang City. The base price per kg of
fertilizers produced in 2014 was IDR 307/kg (including 5% profit). Considering an average
annual inflation rate of 3,45%, the base price per kg of the fertilizers can increase to IDR
489/kg in 2022. The potential annual revenue from fertilizer sales of 10 tons per month is IDR
58,680,000. Additionally, UPTD can set the minimum purchase amount and enter into business
cooperation agreements with agro-companies to sustain the business model. eSOSViewTM is an
effective tool to assist local governments in performing financial model analysis with simple
and easy to understand user-interface. It helps them to design strategies and decision making
related to financial aspects in the FSM by providing comprehensive financial considerations.
However, a deep understanding of the formulas and terminology used; and complete data is
needed to be able to fill in the eSOSViewTM to get results with a minimal error rate. Moreover,
not only in the Tabanan Regency area, but also this analysis can be applied to other areas with
a note that the criteria chosen for the MCA are subjective depending on the characteristics of
the area and the considerations taken by the researcher, so that for other researchers the
results will be different. Based on the results of this study, the Government of Tabanan can
achieve 100% safely managed on-site sanitation by applying emptying fees and sanitation taxes
for households, discharge fees for private parties who dispose the faecal sludge in IPLT,
purchase prices for agro-companies who buy the fertilizer, and budget support from the DLHK.
These aspects will be the sources of revenues in Model 3 in eSOSViewTM.
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