2015年-世界发展银行全球_Rural_Sanitation_Market_Expansion_of_Domestic_Private_Sector_in_Indonesia_91页_4mb

Summary of Rural Sanitation Market Expansion of Domestic Private Sector in Indonesia (Report No: ACS13192)

Core Content

This report summarizes the findings and recommendations from the World Bank's Water and Sanitation Program (WSP) Technical Assistance (TA) project P143167, which aimed to expand the rural sanitation market in Indonesia by engaging the domestic private sector. The project, implemented between October 2012 and March 2015, was part of the National Strategy for Community-Based Total Sanitation (STBM), which combines Community-Led Total Sanitation (CLTS) with market-based approaches to improve sanitation access and sustainability.

Main Objectives and Results

• Objective: Strengthen the capacity of the domestic private sector to provide sanitation services in five project provinces.
• Key Achievements:
  • 25 training events were conducted for 1,026 participants.
  • 194 APPSANI-supported entrepreneurs built 47,715 toilets, with an investment of USD 4 million by households.
  • A one-stop shop business model was refined to offer affordable, turnkey sanitation solutions.
  • The project introduced innovations such as fiberglass molds for septic tanks, new loan products for sanitation financing, and integrated product promotion with CLTS events.

Key Innovations

3.1 Tapping the Market Opportunity

• The one-stop shop model simplified the process of purchasing and installing sanitation facilities.
• It included home delivery of materials, on-site construction, and flexible payment options.

3.2 Improving the Sanitation Business Model

• Product Research: Identified sanitation product preferences and perceptions among rural populations.
• Optimizing Construction Process: Introduced cost-effective and quality-improving techniques for building sanitation facilities.
• Simplifying Purchase Process: Launched the "One-Stop Shop" concept to streamline the customer experience.

3.3 Sanitation Entrepreneurship Development Assistance

• Training programs were developed to equip entrepreneurs with the necessary skills and knowledge.
• These programs focused on both technical and business aspects of sanitation service provision.

3.4 Fostering Transition to an Industry Association

• APPSANI (Indonesian Association for Sanitation Management and Empowerment) was established to support the growth and coordination of sanitation enterprises.
• Membership grew organically as enterprises identified the association's services as beneficial for access to finance, business support, and government linkages.

3.5 Working with Banks and MFIs

• Loan products were developed to help households afford sanitation facilities.
• Partnerships with microfinance institutions (MFIs) enabled the expansion of sanitation financing options.

3.6 Systematizing Public-Private Collaboration

• The project emphasized the importance of integrating private sector efforts with public initiatives.
• Collaboration with local governments and health authorities was crucial for program success and sustainability.

3.7 Evolving Roles of Stakeholders

• Clear mapping of roles and capacities of different actors was identified as essential for market development.
• The role of local health officers in promoting CLTS and supporting entrepreneurs was highlighted as critical.

3.8 Delivering at Scale through PAMSIMAS

• The PAMSIMAS project (Third Water Supply and Sanitation for Low Income Communities) was used as a platform for scaling up sanitation initiatives.
• It provided a framework for community-led planning, financing, and management of sanitation systems.

Analysis of Effects

• Impact Evaluation: Quasi-experimental analysis showed that villages with both CLTS triggering and active sanitation firms had higher improved sanitation coverage (60% vs. 55%).
• Behavior Change: CLTS was effective in generating community demand, but converting this demand into actual purchases required the presence of sanitation entrepreneurs.
• Market Research: Pre-triggering research identified product preferences, influencing the design and marketing of sanitation solutions.

Lessons Learned

• No Short Cuts: Building a sustainable sanitation market requires time and effort, especially in developing entrepreneurs and business models.
• Entrepreneur Engagement: Finding entrepreneurs willing to sell sanitation is challenging, and initial training attracted more health workers than business-oriented individuals.
• Franchising and Territories: Franchising and sales territories can help scale sanitation services, but require careful management of resources and logistics.
• Industry Associations: APPSANI evolved organically, driven by member needs and supported by WSP.
• Public-Private Relationships: Close collaboration between entrepreneurs and local health officers enhances program effectiveness.
• Timing of Supply-Side Activities: Starting supply-side strengthening before CLTS can build momentum and ensure enterprise readiness.
• Stakeholder Mapping: Clear understanding of stakeholder roles is essential for successful market development.

Recommendations

• Increase Entrepreneurship Conversion: Enhance training quality and post-training support to increase the number of trainees who become entrepreneurs.
• Continue Testing Franchise Model: Explore the potential of a social franchise model to improve scalability and efficiency.
• Build Local Government Support: Strengthen local government capacity and political will to support STBM initiatives through budgeting and planning.
• Promote Collaboration with Financial Institutions: Facilitate partnerships between sanitation entrepreneurs and MFIs to expand financing options.

Conclusion

The project demonstrated that combining CLTS with market-based approaches can significantly improve access to improved sanitation in rural Indonesia. It emphasized the importance of a structured, integrated model that supports both demand generation and supply-side development, ensuring long-term sustainability and scalability. The experience gained from this project can serve as a model for other countries seeking to expand their rural sanitation markets through private sector engagement.