Health and Welfare Without Borders: Lessons for Building Resilient Systems

 

Health and Welfare Without Borders: Lessons for Building Resilient Systems

The pandemic did not just strain hospitals; it cracked open the truth that health and welfare cannot survive apart. A society with weak welfare collapses under the weight of illness, and a nation without health cannot sustain its people’s dignity or productivity. In a world where crises cross borders faster than solutions, the only path forward is simple but urgent: build health and welfare without borders.

                                               Author: AM Tris Hardyanto

1. Introduction: Health Is More Than Hospitals

When we talk about “health systems,” most people picture hospitals, doctors in white coats, or machines that beep and flash. However, real health is measured differently. It is about whether a mother can safely deliver her baby without going bankrupt. It is about whether someone with a disability can visit a clinic without shame. The question is whether vaccines reach communities before the next outbreak. It is about whether a young worker has the chance to live long enough to raise her kids.

When health fails, the damage spreads. Economies falter, societies fracture, and people lose faith in their leaders. The pandemic reminded us of that harsh truth. However, it also offered a spark of hope: countries can learn from one another, and by sharing lessons, they can rebuild systems that are stronger and fairer.

Resilient and inclusive health systems are not just about bricks, beds, and scalpels. They are about politics, economics, and the invisible threads of trust that connect citizens with the people who care for them. COVID-19 exposed cracks everywhere, forcing us to see resilience not as something you either have or don’t, but as a muscle, something you train, stretch, and strengthen over time. Grimm and colleagues describe health systems as “complex adaptive systems,” where weak governance or poor resource allocation in one area eventually drags the entire system down (Grimm et al., 2021).

Consider Sub-Saharan Africa, where crises regularly test fragile systems. Research indicates that when leadership and workforce management are strong, health services respond more effectively and maintain community cohesion (Ayanore et al., 2019). Leadership is not just about ministers or directors; it is about local decision-makers who keep clinics running and build trust on the ground.

Communities themselves are at the heart of resilience. Huda and colleagues argue that health initiatives are most effective when they extend beyond hospital walls and reach into households, combining treatment with prevention (Huda et al., 2024). Liberia’s Ebola response proved this: local networks stepped in when formal systems failed, and community resilience mitigated the impact. Nepal and Ethiopia tell similar stories. Community health workers became bridges between governments and citizens, providing not just services but also confidence that someone was listening (Rawat et al., 2023).

We have also seen how multi-sector approaches pay off. Rwanda’s reforms showed the power of aligning resources across education, healthcare, and governance. When ministries collaborate instead of working in silos, universal health coverage stops being a dream and starts looking like a plan.

So where do we go from here? As countries recover from the pandemic, resilience must stop being a buzzword and start being a practice. Systems thinking and viewing health as a web of interdependent parts provide a roadmap. It means identifying weak links before they break and learning from mistakes while there is still time to make adjustments.

Building truly resilient health systems is not just about budgets or policy papers. It demands cultural shifts: leaders willing to listen, communities empowered to act, and institutions humble enough to learn and adapt. If we get this right, we will create a world where access to health is not a privilege but a given, where every person has a fair chance not just to survive, but to thrive.

 

2.   Universal Health Coverage: Not a Dream, But a Political Choice

Universal Health Coverage is not charity; it is a decision. Countries either choose to make it happen or they do not. Thailand leapt early, and today it is often held up as one of Asia’s strongest examples. Rwanda, still rebuilding after genocide, created Mutuelles de Santé, a grassroots insurance system that now protects millions. Indonesia, meanwhile, rolled out its Jaminan Kesehatan Nasional (JKN) program with great ambition, but its rapid expansion left big questions about financial sustainability. The lesson is simple: UHC is possible anywhere. What matters most is not wealth, but political courage.

Take Thailand. The government decided to finance health through general taxation, and that choice dramatically reduced out-of-pocket expenses for ordinary citizens. Families no longer had to fear that one illness could send them spiralling into poverty. Researchers have demonstrated that strong political commitment, rather than GDP, was the primary driver of this progress (Tangcharoensathien et al., 2014). The country also invested in purchasing healthcare strategically, ensuring resources were distributed fairly and efficiently. The result? A system that reduced inequalities and made healthcare accessible to nearly everyone.

Rwanda tells a different, but equally powerful story. After the devastation of genocide, its leaders knew rebuilding trust required more than speeches; it required action. By creating a community-based insurance scheme, the government expanded coverage across income groups and built confidence in public institutions. Health outcomes improved, but perhaps more importantly, people began to feel that the system was theirs.

Indonesia offers a cautionary perspective. Its national health insurance scheme aimed to cover more than 200 million citizens. While bold in vision, the program quickly hit financial headwinds. Expanding coverage without careful fiscal planning created strains that threatened its long-term survival (Pisani et al., 2016). The case reminds us that political will must be paired with sound economic strategy. Otherwise, ambition risks becoming a burden rather than a breakthrough.

Across these examples, one truth stands out: UHC is political at its core. Leaders decide whether to prioritise health, and those choices ripple outward into the lives of millions. Community engagement strengthens these efforts. When local health workers are integrated into systems, they can extend services to the most vulnerable populations. Additionally, when communities participate in shaping policy, programs become more relevant and sustainable.

Grassroots financing schemes show that governments do not have to carry the burden alone. Well-designed community health initiatives can spread costs, increase ownership, and ensure even the poorest households are not left behind. They also highlight a deeper point: health is not just a personal responsibility, it is a collective one.

Ultimately, UHC is not only a domestic concern but also a key component of a global agenda. The Sustainable Development Goals place UHC at the centre of reducing inequality and improving well-being. However, these goals only become real when national leaders choose to act, mobilising both local and international support.

So, is UHC a dream? Hardly. Thailand and Rwanda prove it is achievable. Indonesia’s struggles remind us that it is fragile without the right foundations in place. Ultimately, the deciding factor is not the size of a country’s economy, but rather the courage of its politics.

 

3.   Vaccines: Factories Alone Do not Save Lives

The rush for COVID-19 vaccines taught the world a blunt truth: factories alone do not save lives. You cannot build trust, distribution networks, and regulatory strength overnight. India’s Vaccine Maitri showed how local manufacturing can serve both domestic needs and global solidarity. Africa’s technology transfer hubs proved that building factories matters, but they are just the starting point. What sustains vaccination efforts are strong systems, regulation, demand forecasting, and long-term financing.

Think about India. With Vaccine Maitri, literally “Vaccine Friendship,” the country utilised its manufacturing capabilities not just for itself but for dozens of others, especially in the Global South (Jeon & Kim, 2025). It was a bold gesture of diplomacy and public health. However, without reliable financing and regulatory frameworks, even that model could have stumbled. The real success was not just in producing doses, but in pairing production with systems that enabled shots to reach arms.

Africa offers another lesson. Technology transfer hubs are helping nations move toward vaccine self-sufficiency. Factories are important, but without trained staff, proper oversight, and sustainable investment, they risk becoming white elephants. The African Union’s push to strengthen human capacity and infrastructure is less flashy than ribbon-cutting ceremonies, but it is what keeps vaccines flowing long after the headlines fade (Lopes et al., 2023).

Money, of course, is the constant hurdle. Many low- and middle-income countries still lack mechanisms to guarantee steady funding for vaccine production or affordable pricing for citizens. Studies show that financing is not just about finding money in a crisis; it is about building flexible systems that can adapt to new waves of disease without collapsing under pressure (Magalhaes et al., 2023). Without this kind of foresight, manufacturers cannot compete globally, and communities are left waiting.

Regulation is another make-or-break factor. During the pandemic, lengthy approval processes slowed down access. Streamlining these pathways, primarily through regional harmonisation, can reduce delays and expedite the delivery of vaccines to clinics (Dutt et al., 2024). The World Health Organisation has already urged countries to adapt their frameworks, but the lesson is clear: speed matters, and bureaucracy costs lives.

Then there is demand forecasting. Too often, countries were caught flat-footed, either with warehouses full of unused doses or empty shelves while outbreaks spread. Investing in predictive analytics and more innovative inventory systems could change that. By analysing patterns of vaccine uptake, governments can adjust production in real-time and avoid the inequities observed when wealthy countries hoarded supplies while poorer nations waited (Kis et al., 2021).

The bigger picture? Vaccines do not exist in a vacuum. They require trust, logistics, and cooperation across governments, manufacturers, and global organisations. Without that ecosystem, production lines will hum while communities remain vulnerable. With it, we have a fighting chance to make vaccine equity more than a slogan.

Future pandemics will not wait. If countries want to be ready, they must invest now in systems, not just steel.

4. PPPs: Public Meets Private, But Who Holds the Risk?

Public–private partnerships (PPPs) in healthcare often come wrapped in glossy promises: shiny new hospitals, faster technology, and injections of private capital. On paper, it appears to be a win-win. However, scratch the surface, and a more complicated truth emerges. If the risks are not shared fairly, PPPs can all too easily privatise profits while leaving the public to foot the bill.

Take the Philippines. Its PPP hospital modernisation project was meant to bring cutting-edge facilities, but instead drew heavy criticism for poor governance and opaque contracts (Motamedi et al., 2021). Transparency was lacking, accountability was weaker, and critics warned that private returns were being made at the expense of the public good. Without oversight, these deals risk tilting healthcare away from patients and toward profit.

South Africa shows the other side of the coin. There, PPPs have been used to expand diagnostic lab services, filling crucial gaps in testing capacity (Nozaki et al., 2021). The difference lies in how the partnerships were structured. With clear communication, shared goals, and effective accountability mechanisms in place, these collaborations successfully struck a balance between efficiency and equity. Patients stayed at the centre, not investors.

The UK’s early experience with the Private Finance Initiative (PFI) is another cautionary tale. Projects that once promised modernised infrastructure ended up locking taxpayers into decades of debt, with long repayment periods and mixed results on service delivery (Alikhani & Damari, 2016). The lesson is blunt: without smart contracts and rigorous governance, PPPs can become financial traps that weaken, rather than strengthen, health systems.

At their best, PPPs can bring innovation and resources that governments alone might struggle to mobilise. At their worst, they exacerbate inequality, exacerbate debt burdens, and marginalise vulnerable groups. That is why patient-centred design must remain the non-negotiable foundation. Partnerships that fail to prioritise equitable access risk leaving behind precisely the populations that health systems exist to serve (Maru et al., 2017).

For PPPs to be effective, roles and responsibilities must be clearly defined and understood. Risk-sharing must be fair, and accountability must be mutual. When both public and private actors are held responsible for outcomes, not just profits, performance improves and health gains are more widely shared (Kumar et al., 2018).

Technology adds another twist. Digital health tools introduced through PPPs can dramatically improve care, but they also raise thorny questions about privacy, data security, and ethics. Without robust safeguards, what starts as an innovation can quickly erode public trust.

So what is the bottom line? PPPs can help, but only if they are designed with patients, not investors, at the centre. The experiences of the Philippines, South Africa, and the UK all point in the same direction: governance matters, contracts matter, and values matter. If governments keep health equity as the guiding star, partnerships can truly strengthen systems. If not, they risk becoming expensive detours that take us further from the goal of universal, equitable healthcare.

5. Health Taxes: Saving Lives While Raising Revenue

Let us be clear, taxes on harmful products are not about government overreach. They are about saving lives. When done right, they pull double duty: cutting consumption of dangerous goods while generating funds to strengthen health systems.

Mexico’s experience makes the case loud and clear. After introducing a sugary drink tax, purchases of sodas dropped steadily, 5.5% in the first year and nearly 10% in the years that followed (Donnelly et al., 2018). That is not just a statistic; it is fewer cases of obesity and diabetes in the long run. Even better, the money raised went straight into health programs, including prevention campaigns. A fiscal policy became a health intervention, and people’s lives were better for it.

The Philippines took a similar route with its “sin tax” on tobacco. Instead of letting the revenue disappear into a general budget, the government tied the funds directly to its Universal Health Coverage program (Humphreys et al., 2023). That meant poor and rural communities suddenly had better access to care. The tax was not just about discouraging smoking; it was about fairness, using tobacco profits to pay for services that benefit the entire population.

Across the globe, evidence continues to accumulate. Excise taxes on sugary drinks, tobacco, and even junk food consistently lower consumption rates and ease the burden of non-communicable diseases. Hungary, Chile, and others have demonstrated that a well-placed tax can significantly reshape national health patterns, while also reducing long-term treatment costs (Csákvári et al., 2023).

However, the sticking point is a lack of political will. Industry lobbyists fight these taxes tooth and nail, framing them as job-killers or “nanny-state” overreach. The truth is, framing matters. When people understand that these revenues fund hospitals, prevention programs, and health education, support grows (Christian et al., 2022). Transparency about where the money goes can turn scepticism into buy-in.

Successful health taxes do not happen in a vacuum. They require governments to engage citizens, build trust, and clearly show the benefits. Countries that take time to consult stakeholders and prepare the ground politically tend to see stronger, more sustainable results (Murukutla et al., 2023). After all, it is easier to accept a few extra pesos on a soda when you know it is helping your neighbour get insulin or your local clinic hire another nurse.

The ripple effects go far beyond health outcomes. These taxes fund education, improve infrastructure, and strengthen social safety nets. They become tools not only to reduce harm but also to tackle inequality head-on. The Philippines’ example makes it plain: when tax money is visibly linked to healthcare access, it becomes a powerful engine for equity.

The evidence is on the table. Health taxes save lives and raise revenue. What remains uncertain is whether governments will stand up to corporate pressure and make the choice. Ultimately, it is a test of priorities: industry profits versus public health.

 

6. Disability Inclusion: The Test of Real Equity

A health system that shuts out people with disabilities is not really a health system; it is an exclusive club. Accurate equity begins when every person, regardless of ability, can walk through the doors of a clinic without fear, stigma, or financial ruin.

Japan, facing a rapidly ageing society, has made disability-inclusive care central to its health reforms (Harris, 2014). However, in many low-income countries, disabled citizens are still left outside hospitals, schools, and workplaces. Their exclusion is not just about inaccessible buildings; it is about policies and attitudes that subtly convey, “You do not belong here.”

“Leaving no one behind” cannot remain a slogan. It has to translate into measurable action. This means that governments and health systems must develop prevention programs, train providers to deliver competent and compassionate care, and create spaces—both physical and social—that are truly barrier-free (Masuku et al., 2023).

Prevention is the first line of defence. Early interventions and community education can reduce the incidence of preventable disabilities. At the same time, healthcare professionals must be trained not only in the technical side of disability care but also in empathy and inclusion. When medical schools weave disability awareness into their curricula, they lay the foundation for a culture of respect and dignity in healthcare (Badu et al., 2015).

Legislation is just as critical. Countries that align their laws with the United Nations Convention on the Rights of Persons with Disabilities create a robust framework for equity. This includes accessible hospitals, affordable transportation, and clear financial pathways to care (Thomas et al., 2018). Making public spaces inclusive does not only remove barriers; it also shifts cultural perceptions, normalising the presence and participation of people with disabilities in every sphere of life.

Money matters too. Many people with disabilities face heavier financial burdens, often worsened by limited job opportunities. Social protections should be more than safety nets; they should empower people toward independence and long-term health equity (Collie et al., 2019).

However, perhaps the most important step is listening. Health systems must include people with disabilities in the design of policies that affect them. Their voices provide the most accurate picture of the obstacles they face and the solutions that actually work (Repke & Ipsen, 2020). Participation is not charity; it is innovative governance.

Countries like South Africa have demonstrated that inclusive reforms can be both resilient and transformative, showing that equity and dignity can coexist with efficiency (Lee et al., 2023). Moreover, the only way to ensure such commitments are kept honest is to measure them. Robust indicators can reveal whether reforms are reaching those who need them most and where gaps persist.

In the end, equity is tested not in slogans or speeches but in ramps that replace stairs, doctors who are trained to listen, and budgets that reflect the needs of all. Disability inclusion is not optional; it is the foundation of a health system worthy of the name.

 

7. Global Case Studies That Inspire and Warn

Sometimes the best way to understand health reform is to examine where others have succeeded and where they have stumbled. Across the globe, countries have experimented with different models. Some became powerful examples to emulate, while others serve as warnings.

Thailand shows how political will transforms vision into reality. Its Universal Health Coverage (UHC) reforms, backed by consistent government support, made healthcare affordable for millions and proved that even middle-income nations can deliver equity when leaders stay committed (Tangcharoensathien et al., 2014).

Rwanda tells a story of resilience. After genocide tore apart its institutions, the government built a grassroots insurance program, Mutuelles de Santé, that not only expanded coverage but also rebuilt trust between citizens and the state.

India struck a delicate balance during the COVID-19 pandemic. With its Vaccine Maitri initiative, it used domestic production capacity to protect its own population while also sending doses abroad. This “vaccine diplomacy” showed both the potential and the pressure of being a global supplier.

The Philippines offers a mixed picture. Its PPP hospital modernisation project promised upgrades but sparked criticism over governance and transparency. At the same time, its tobacco “sin tax” has been a success, funding the country’s UHC program and showing how fiscal tools can both curb harm and expand access (Humphreys et al., 2023).

Mexico stands out for a bold move: taxing soda. The sugary drink tax not only cut consumption by nearly 10% over time but also raised billions for health programs (Donnelly et al., 2018). For a country struggling with obesity and diabetes, this was a double win.

Japan, with an ageing population, has placed disability inclusion at the heart of its health system. Accessible care is no longer an afterthought, but a necessity, proving that equity means designing for those who are most often excluded.

Ethiopia shows the quiet power of community health workers. By training locals to deliver prevention and primary care, the country has extended services deep into rural areas, making care accessible where hospitals and doctors are scarce.

Brazil enshrined health as a constitutional right. Its Unified Health System (SUS) reflects a national belief that access to care should be guaranteed, not negotiated, a principle that continues to shape its health landscape today.

The European Union provided another lesson during the pandemic. Joint vaccine procurement helped member states avoid destructive competition and ensured smaller nations were not left behind. Solidarity, it turns out, can be a survival strategy.

Indonesia, with its JKN program, showed both ambition and risk. Covering over 200 million people is no small feat, but without a stable financing model, the system faces sustainability struggles that could undermine its achievements.

Together, these stories paint a vivid picture. Health reforms can succeed in radically different contexts, but only when politics, people, and systems align. They also remind us that reforms without strong governance or long-term planning risk collapsing under their own weight.

The inspiration is clear: equity is possible. The warning is equally sharp: without courage and foresight, even the best ideas can falter.

8. Strategic Updates Needed: Beyond the Old Playbook

The world does not need another glossy report filled with the same recycled recommendations. What it needs are bold updates to strategy, approaches that tackle today’s health challenges head-on and anticipate tomorrow’s.

·      Regional Collaboration

The pandemic made it painfully clear: no country can go it alone. Relying on donations or fragmented procurement left too many nations waiting while others hoarded. Joint vaccine procurement and regulatory harmonisation across borders, such as the European Union’s coordinated approach, demonstrate how pooling resources can prevent the chaos of unequal access (Vogler et al., 2021). COVAX attempted to level the field, but its limitations revealed that sustainable, regional collaboration is a more effective path forward.

·      Digital Health Equity

Technology is transforming healthcare, but only if it reaches everyone. Telemedicine, AI tools, and digital records can help close rural access gaps and connect patients with doctors in real-time (Mellado et al., 2021). However, without equity at the centre, digital health risks are deepening divides instead of bridging them. The challenge is simple but urgent: design systems that bring technology to those who need it most, not just to those who can already afford it.

·      Financing Innovation

Money remains the lifeblood of health systems. Innovative financing, blending taxes, insurance, and PPPs, can create more resilient funding streams. Mexico’s soda tax is proof that well-designed fiscal tools can both cut harmful consumption and fund health programs (Onwujekwe et al., 2023). However, innovation must be paired with transparency. If people do not know where the money goes, trust evaporates, and reforms crumble.

·      Equity First

Equity is not an afterthought; it is the foundation. Health strategies must embed gender, disability, and poverty perspectives from the start. Japan’s ageing society has shown that disability-inclusive care is not optional; it is essential (Harris, 2014). The same logic applies everywhere: if policies do not dismantle barriers for the most vulnerable, they will only widen inequalities. An “equity-first” lens ensures that no reform leaves behind those who need it most.

·      Trust Building

Without trust, even the best-designed health policies fail. Communities need to see where money is spent, how decisions are made, and whether promises are kept. Public dashboards, community oversight, and open spending reports turn slogans into accountability (Repke & Ipsen, 2020). When people feel part of the system, compliance rises, and collective resilience grows.

The old playbook, with incremental fixes, narrow reforms, and vague promises, will no longer suffice. Health systems must think regionally, embrace digital equity, innovate financing, prioritise equity, and, above all, build trust. These are not abstract ideals; they are the guardrails that will keep global health on track when the next crisis arises.

9. Health and Welfare: Two Sides of the Same Coin

Health without welfare cannot last. Welfare without health is hollow. The two rise and fall together, shaping not only how long people live but how well they live. Ethiopia and Brazil demonstrate that investing in health is never just about medicine; it is about dignity, productivity, and resilience.

·      Ethiopia’s Community Programs

In Ethiopia, the Health Extension Program has significantly improved access to care, particularly in rural villages where hospitals are often far away and resources are scarce. The secret is not high-tech machinery; it is people. Community health workers, often locals themselves, provide basic treatment, maternal care, and health education (Lee et al., 2023). Their presence has saved lives and improved maternal and child health, while also strengthening social cohesion. When neighbours view health as a shared responsibility, welfare improves as well. Investments in health become investments in stronger, more resilient communities.

·      Brazil’s Unified Health System (SUS)

Brazil took a significant step forward, declaring health a fundamental right through its Unified Health System, SUS. That declaration was not just symbolic; it provided millions of people with access to care regardless of their income (Paim et al., 2011). By making health a public good, Brazil not only reduced disparities but also boosted workforce participation. A healthier population meant higher productivity and less poverty. The lesson is simple: when health is protected, welfare follows.

·      When Health Is Separated from Welfare

The divide between health and welfare cuts both ways. Where welfare protections are weak, health outcomes suffer. Without unemployment insurance or subsidies, chronic illness quickly drains household income, trapping families in cycles of poverty and poor health (Veríssimo & Silva, 2023).

on the other hand, welfare systems without robust health services leave people equally vulnerable. Cash benefits matter little if someone cannot get medicine or treatment. Without integrated care, welfare alone cannot deliver social mobility or lasting independence (Cruz et al., 2022).

·      Building Integrated Systems

The way forward is clear: health and welfare policies must be woven together. Countries that earmark health tax revenues for social programs show how fiscal tools can support both sides of the coin (Onwujekwe et al., 2023). Integrated strategies, where healthcare access reduces vulnerability and welfare support cushions financial shocks, create stronger safety nets and more resilient societies.

The evidence is overwhelming. Ethiopia’s local health workers and Brazil’s SUS both prove that when health and welfare reinforce one another, societies thrive. The challenge for policymakers is to stop treating them as separate silos. Health builds welfare. Welfare sustains health. Together, they form the foundation of equity and dignity, and without both, no society can truly flourish.

10. Conclusion: From Lessons to Action

The pandemic left scars. However, scars are not just wounds; they are a testament to the fact that survival was possible. They remind us of what we endured, but also of what we are capable of building if we learn from our past experiences.

Resilient, inclusive health systems cannot be built by copying and pasting someone else’s model. They come from sharing lessons across borders, daring to innovate, and refusing, always, to leave people behind. The real test is not in how many hospitals we build, but in whether citizens trust those hospitals enough to walk through their doors. That trust is earned when every person, rich or poor, disabled or not, living in a crowded city or a remote village, can say with confidence: “This system is mine, and it will not fail me.”

·      Collaboration and Equity

Global cooperation is no longer optional. The EU’s joint vaccine procurement demonstrated how solidarity can prevent destructive competition (O’Hara et al., 2024). Ethiopia’s community programs and Brazil’s SUS have demonstrated that when equity—across gender, disability, and poverty—is built into policy from the outset, health systems are both fairer and stronger.

·      Financing That Works

Money matters, but how it is raised and spent matters even more. Mexico’s soda tax showed that fiscal tools can change unhealthy behaviour while funding essential services (Humphreys et al., 2023). Blending taxes, insurance, and carefully designed PPPs can provide stability, but only if transparency and accountability are baked into the system.

·      Building Trust

Trust does not appear out of thin air; it is earned. Public dashboards, open spending reports, and community oversight build confidence that promises are being kept. When people feel their voices shape the system, they are more willing to participate, comply, and support reforms.

·      Turning Lessons Into Action

The scars of COVID-19 do not have to remain symbols of loss. They can serve as reminders of our collective commitment to build systems that are resilient, inclusive, and just. This requires more than slogans; it demands action: collaboration across borders, financing that prioritises fairness, policies that embed equity, and a relentless focus on trust.

If we succeed, health and welfare will no longer be treated as separate agendas but as two sides of the same coin. Moreover, that coin will be the currency of a society that is not only healthier but also more cohesive, more just, and more prepared for whatever comes next.

The next crisis will not wait. Whether the world stumbles again or rises stronger depends on one choice: do we guard our own borders, or do we commit to health and welfare without them? The answer will decide not only how we survive but how we live.

 

 

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Java Integrated Water Grid 2035 One Island • One System • One Guarantee

 Java Integrated Water Grid 2035

One Island • One System • One Guarantee

Disclaimer: The document represents a conceptual proposal, a strategic idea designed to inspire dialogue and innovation around water security in Java. It is not an official policy but rather an integrated vision for sustainable water governance by 2035.

  

Authors: AM Tris Hardyanto

 

 

 

 

September 2025

Contents

 

Java Integrated Water Grid 2035. i

Java Integrated Water Grid 2035. 1

1. Introduction. 1

1.1        Identifying the Problems in Water Resource Management in Java. 3

1. Limited Access to Safe Water. 3

2. High Non-Revenue Water (NRW) 4

3. Groundwater Overexploitation. 4

4. Rising Household Costs for AMDK.. 4

5. Escalating Climate Risks. 5

1.2 The Current Crisis: Facts, Figures & Lived Impacts. 6

1.3 Theory of Change. 8

1. inputs. 9

2. Activities. 9

3. Outputs. 9

4. Outcomes. 9

5. Impact 9

1.4 KPIs 2025–2035. 10

1. Access to Safe Water. 11

2. Non-Revenue Water (NRW) 11

3. AMDK Bulk Sourcing (%) 11

4. Households Spending >3% Income. 11

5. Supply Continuity (≥20 hrs/day) 11

6. Residual Chlorine Compliance (≥95%) 11

7. PET Recovery (%) 12

8. Refill Stations Installed. 12

9. Smart Metering Coverage (%) 12

10. AMDK Water Sourced from PJT-Jawa (%) 12

11. Climate Adaptation Protocols Enforced. 12

Performance Tracking and Accountability. 12

2. System Design: One Island • One System • One Guarantee. 12

2.1 Operating Model 13

A. Bulk Water Management (Upstream) 13

B. Retail Service Delivery (Downstream) 14

C. Digital Integration. 14

2.2 Institutional Pathway. 14

A. PJT-Jawa Holding. 14

B. PDAMs (Local Water Utilities) 14

C. Regulator (DJKN & Ministry of Public Works) 15

D. AMDK Firms (Bottled Water Companies) 15

E. Java Water Equity Fund. 15

2.3 Equity & Affordability Guardrails. 15

A. Lifeline Water Access (50 Litres per Person per Day) 16

B. Targeting & Social Inclusion. 16

C. Cross-Subsidy Mechanism.. 16

D. Gender & Social Metrics. 16

3. Digital & Operational Backbone. 19

3.1 Java Water Digital Twin. 19

A. Scope. 19

B. Data Architecture. 20

C. Governance. 20

D. Cybersecurity & Privacy. 20

Key Insight 22

3.2 NRW War Program.. 23

A. Strategic Targets. 23

B. Tactical Components. 23

C. Institutional Levers. 23

3.2 NRW War Program.. 24

3.3 Procurement & PPPs. 25

A. Centralised Procurement Framework. 26

B. PPP Structuring. 26

C. KPI-Linked Contracting. 26

3.3 Procurement & PPPs. 26

4. AMDK Integration & Circularity. 28

Top 10 Bottled Water (AMDK) Companies in Java, Indonesia. 29

4. AMDK Integration & Circularity. 32

5.      Ten Radical Moves for the Java Integrated Water Grid 2035   35

1. Build the Java Water Digital Twin. 36

2. Launch the NRW War Program.. 37

3. Mandate AMDK Bulk Water Integration. 37

4. Deploy 1,500+ Refill Stations by 2030. 37

5. Enforce a 90% PET Recovery Mandate. 37

6. Operationalise the Java Water Equity Fund. 37

7. Adopt KPI-Linked Procurement and PPPs. 38

8. Establish a Utility Capacity-Building Academy. 38

9. Embed Climate Readiness Protocols. 38

10. Establish Transparent Community Engagement and GRM Framework. 38

6.      Finance & Transparency. 40

A. Capital Expenditure (CAPEX) 43

B. Operational Expenditure (OPEX) 44

C. NRW Savings Math. 44

D. Levy Flows (AMDK & PET Recovery) 45

E. Internal Rate of Return (IRR) & Payback. 45

6.2 Sensitivities & Risk Allocation. 45

6.2 Sensitivities & Risk Allocation. 46

A. Sensitivity Testing. 46

A. Sensitivity Testing. 46

B. PPP Risk Allocation Table. 47

7. Donor Co-Financing Strategy. 48

7.1 Investment Needs & Use of Proceeds. 49

7. Donor Co-Financing Strategy. 49

7.2 Blended Finance Stack. 50

7.2 Blended Finance Stack. 51

7.3 Results by 2035 & Donor Value Proposition. 53

7.2 Blended Finance Stack. 53

A. Quantifiable Results by 2035. 53

B. Donor Value Proposition. 54

8. Phased Roadmap 2025–2035. 56

From Fragmented Systems to a Smart, Circular, and Equitable Water Grid. 56

Phase 1 (2025–2027) — Setup & Pilots. 57

Priority Actions. 59

Expected Outcomes by 2027. 59

Phase 2 (2028–2031) — Integration & Upgrades. 60

Priority Actions. 61

Priority Actions. 62

Expected Outcomes by 2031. 63

Phase 3 (2032–2035) — Smart Grid at Scale. 64

Key Objectives. 64

Priority Actions. 64

Expected Outcomes by 2035. 64

Phase 3 (2032–2035) — Smart Grid at Scale. 65

Priority Actions. 65

Priority Actions. 67

Expected Outcomes by 2035. 67

9. Regional Impact Map Concept 69

9.1 Map Layers. 69

9.2 Visualization & Use Cases. 72

9.2 Visualization & Use Cases. 72

·       B. Use Cases. 73

 

Java Integrated Water Grid 2035

One Island • One System • One Guarantee

 

1. Introduction

Home to over 160 million people, Java is Indonesia’s economic heart and one of the most densely populated regions in the world. Intense concentration of people and economic activity has placed unprecedented pressure on water resources.

Despite being a critical driver of Indonesia’s GDP, Java faces escalating water security challenges:

• 35–45% non-revenue water (NRW) losses drain financial resources and reduce supply efficiency.
• Over 400 fragmented PDAMs operate without a unified framework, resulting in inconsistent service quality and overlapping investments.
• Unsustainable groundwater extraction by bottled water (AMDK) companies worsens land subsidence and aquifer depletion.
• Climate-driven droughts and floods amplify stress on already fragile infrastructure.

The Java Integrated Water Grid 2035 presents an innovative idea: a connected system that brings together utilities, digital tools, and people involved, based on the idea of “One Island, One System, One Guarantee”.

The concept centres around:

• Establishing PJT-Jawa Holding to coordinate water management across districts.
• Reforming AMDK sourcing and governance to ensure sustainability.
• Deploying digital twin technologies for real-time monitoring and decision-making.
• Mobilising green financing and adopting equity-driven policies to guarantee safe, affordable, and sustainable water for 98% of households by 2035.

While not an official roadmap, the framework aims to spark collaboration among policymakers, donors, investors, and communities to make every drop count.

Java, which accommodates over 160 million residents, stands as the economic nucleus of Indonesia while simultaneously grappling with significant water security challenges. The island's population density has intensified the pressure on its already strained water resources. Factors such as high rates of non-revenue water (NRW) losses, estimated to be around 35% to 45%, exacerbate the issue. Such inefficiencies lead to financial losses and diminish the overall effectiveness of water supply systems. Additionally, the fragmented nature of regional water supply companies, known as PDAMs, creates an environment where service quality remains inconsistent due to competition for investments without a cohesive management strategy (Aldyan, 2023).

Further complicating Java's water crisis is the over-extraction of groundwater, which contributes to land subsidence and the depletion of aquifers, thereby jeopardising future water security. Climate-change-induced droughts and floods exacerbate these vulnerabilities, placing additional stress on existing infrastructure. These cumulative pressures necessitate immediate and comprehensive strategies to address both systemic inefficiencies and the sustainability of water management practices across Java (Aldyan, 2023).

The Java Integrated Water Grid initiative proposes a framework that harmonises water management across the island in response to these complex challenges. The initiative emphasises a holistic approach encapsulated in its motto: “One Island, One System, One Guarantee.” Among its strategic objectives are the establishment of mechanisms to centralise water resource management, the reformation of regulatory frameworks governing bottled water extraction, and the implementation of technologies for enhanced monitoring. These developments are critical, as they allow for better data-driven decision-making that enhances the efficiency and sustainability of water management (Taswin et al., 2023).

Green financing has emerged as an essential tool for facilitating environmentally sustainable investments, aligning financial initiatives with environmental goals to promote practices that protect natural resources. A significant aspect of the strategy is the mobilisation of green bonds and investment initiatives to fund water infrastructure improvements in Java. The strategy also involves addressing financial sustainability issues through innovative funding mechanisms like green sukuk, which serve as a framework for raising capital for sustainable projects such as water resource management (Gea et al., 2024; Abubakar & Handayani, 2020). Adequate investment in infrastructure can create a dual benefit of enhancing economic performance while also contributing to ecological resilience.

The Java Integrated Water Grid framework capitalises on the potential of digital transformations to enhance water management efficiency. By deploying innovative technologies, stakeholders can simulate scenarios in real time, enabling proactive management of water resources based on demands and climate variations. Such innovations play a critical role in integrating the various PDAMs, facilitating communication and coordination among different utilities to promote a unified approach to water management across Java (Aldyan, 2023).

Moreover, establishing a regulatory framework that emphasises sustainable sourcing and governance is crucial for bottled water companies. Ensuring these companies adhere to sustainable extraction practices directly tackles the root causes of water resource depletion on the island. Such governance reforms are essential to align corporate practices with the broader goals of environmental sustainability and to mitigate the adverse effects of over-extraction on groundwater levels (Budiasa, 2020).

An additional layer of complexity in addressing Java's water challenges is the demographic pressure stemming from rapid population growth, which has led to an increased demand for water, straining fragile water supply systems. Strategic responses must recognise the urgent need for infrastructure development, which encompasses expanding treatment and distribution facilities while ensuring that growth is sustainable and resilient to climate impacts (Aldyan, 2023).

The impact of climate change on Java's hydrology is significant. Increasingly erratic weather patterns, including more frequent and intense droughts and floods, pose substantial challenges for water resource management. Consequently, the Java Integrated Water Grid underscores a climate-adaptive approach to infrastructure planning, ensuring that systems are resilient to current climatic conditions and future variability (Aldyan, 2023).

Engagement with community stakeholders is vital for the success of the Java Integrated Water Grid initiative. Collaboration among policymakers, local communities, and private investors fosters shared responsibility for sustainable water management, creating a collective effort that enhances community engagement and guarantees equitable resource allocation.

Addressing the multifaceted water security challenges in Java necessitates a comprehensive strategy that integrates technological, regulatory, and financial reforms. The Java Integrated Water Grid fosters collaboration across sectors while ensuring the efficient use of resources. The vision of a sustainable water future for Java hinges on an aligned framework that capitalises on innovative financing methods, rational governance, and community involvement—ensuring that every drop counts towards a more sustainable and resilient system.

 

1.1      Identifying the Problems in Water Resource Management in Java

Java's complexities in managing water resources encompass a range of interlinked challenges that threaten the sustainability and accessibility of a vital resource. The broad scope of these challenges demands a comprehensive understanding to identify and address them effectively. The following sections will delineate these prevalent issues, rooted in recent empirical evidence and research findings.

Java’s water security challenges are interconnected and multi-dimensional:

1. Limited Access to Safe Water

• Around 67% of Indonesia’s population lacks reliable access to adequate drinking water.
• Urban centres like Jakarta and Bandung face worsening affordability and accessibility issues, forcing households to rely heavily on bottled water (Bierkens & Wada, 2019).

Access to safe drinking water remains critically elusive for a substantial portion of Indonesia's population, with estimates suggesting that around 65 million people lack access to safe water sources (Li & Wu, 2023). Urban centres, particularly Jakarta, face significant challenges related to the affordability and accessibility of safe water supplies. Many households, unable to rely on municipal services, are compelled to depend on bottled water, significantly inflating their costs and increasing their vulnerability to waterborne illnesses due to potentially hazardous water consumption (Li & Wu, 2023). Reliance on bottled water further exacerbates urban inequalities, severely impacting low-income families who struggle to finance an essential commodity (Li & Wu, 2023).

 

2. High Non-Revenue Water (NRW)

• NRW levels average 35–45%, translating to IDR 8 trillion (~USD 520M) in annual losses (Zhang et al., 2020).
•  Inefficiency undermines PDAM's financial stability and hampers infrastructure investment.

Non-revenue water (NRW) constitutes a significant drain on Java's water management resources, with levels averaging between 30% and 40% in urban areas (Candrakirana et al., 2024). This results in substantial financial losses that hinder the operational capacity of water utilities and limit essential infrastructure investments. The inefficiencies encapsulated by NRW not only represent a loss of resources but also diminish public confidence in municipal water systems, creating a cycle of discontent and further reliance on alternative water supply methods.

 

3. Groundwater Overexploitation

Groundwater, often viewed as an indispensable resource for water supply, has seen its levels decline significantly due to excessive extraction and poor management practices. In some parts of Java, groundwater levels have plummeted, leading to land subsidence and significant degradation of water quality. These conditions raise serious questions about long-term water security and sustainability, and they drive the need for regulatory oversight and improved groundwater management practices.  (Nurcahyono et al., 2022).

Excessive pumping has caused 20–25 m declines in groundwater levels in Jakarta and other cities, triggering land subsidence and water quality deterioration (Gorelick & Zheng, 2015).

4. Rising Household Costs for AMDK

• Households spend an average of IDR 200,000 per month on bottled water due to insufficient municipal supply (Golovina et al., 2023).
• The disproportionate burden on low-income families widens the equity gaps.

The economic burden of obtaining clean water escalates, as households may spend considerable amounts on alternatives such as bottled water, exacerbating existing inequalities in water access and affordability. These households often face significant financial strains, diverting funds from essential needs to cover the costs of bottled water, which can lead to deeper socioeconomic divides (Li & Wu, 2023).

 

5. Escalating Climate Risks

• Java faces more frequent droughts and floods due to climate change, while declining groundwater further reduces resilience (Turley & Caretta, 2020).

Java's vulnerability to climate change manifests through increased frequency of extreme weather events, notably droughts and floods. As climate risks escalate, the interplay with declining water resources exacerbates Java's resilience against such disruptions (Brown et al., 2015). The environment catalyses a downward spiral in which diminished water resources lead to heightened vulnerability, illustrating the urgent need for integrated climate adaptation strategies within water management frameworks.

 

6. The Need for Integrated Water Resource Management (IWRM)

To address these interconnected issues effectively, an integrated approach to managing water resources is essential. IWRM facilitates coordination among stakeholders and promotes governance structures that incorporate community needs and environmental considerations (Meran et al., 2020). We can tackle the challenges of limited access, inefficiencies in NRW management, and groundwater sustainability holistically with appropriate policies and technological interventions.

7. Enhancing Community Participation

Community involvement in water resource management is critical to resilience and sustainability (Pratiwi et al., 2019). Engaging local stakeholders fosters awareness and encourages collective action towards effective water management. A participatory approach ensures initiatives reflect community needs while enhancing accountability in water governance (Candrakirana et al., 2024).

8. Policy and Governance Reforms

Robust policy reforms are needed to enhance water governance structures significantly. The inclusion of community-based frameworks in policymaking and the consideration of economic models that recognise water as a social good rather than merely an economic commodity are vital for sustainable outcomes (Nurcahyono et al., 2022). Water governance must evolve to tackle challenges such as over-extraction and inequitable distribution of water resources, prioritising marginalised communities who historically bear the brunt of water mismanagement (Jiménez et al., 2020).

Addressing Java's water resource management challenges requires a multifaceted approach that integrates technological innovation, policy reform, and community engagement. By acknowledging the interconnectedness of these issues, stakeholders can forge pathways toward sustainable water management that ensures all members of society have equitable access to critical resources.

 

1.2 The Current Crisis: Facts, Figures & Lived Impacts

The combination of rapid urbanisation, inadequate infrastructure, and climate shocks has triggered a state of water stress in Java:

• 35 million people remain without reliable piped water.
• Over 400 PDAMs compete without coordinated investment, resulting in fragmented infrastructure.
• Bottled water dominates drinking water consumption in urban Java, driving plastic waste and worsening aquifer depletion.
• Extreme weather events — both prolonged droughts and flash floods — have disrupted water services in over 50 districts in the last five years.

 Crisis demands a paradigm shift in the management, funding, and governance of water because it affects public health, economic productivity, and social equity.

Java, Indonesia, is currently facing a pervasive water crisis, driven by rapid urbanisation, inadequate infrastructure, and increasing climate-related shocks. These interrelated factors have compounded the stress on water resources, necessitating urgent attention from all sectors of society: governmental, communities, and private entities alike. Below, we explore the dimensions of crisis using empirical data and findings.

1.    Limited Access to Reliable Water Supply

Despite being one of the most densely populated regions of the world, access to reliable piped water remains a significant barrier for approximately 35 million people in Java (Zaenuri et al., 2025). Urban areas, especially Jakarta and Bandung, face acute shortages due to fragmented and unreliable public water services. Many residents lack access to consistent tap water, often resorting to alternative sources. Systemic inequities further exacerbate the situation, as wealthier households access higher-quality water services. At the same time, low-income residents receive less, which deepens social divides(Batac et al., 2021).

2.    The Fragmentation of Water Supply Companies

The existence of numerous district water supply companies (PDAMs) operating independently complicates the situation. Fragmentation results in competing entities that lack coordinated planning and investment, generating inefficiencies and infrastructure duplications (Yamamoto et al., 2021). Without a cohesive governance framework, investments are often poorly allocated, leading to disparities in service quality and worsening the overall water supply crisis.

3.    The Proliferation of Bottled Water Consumption

The increasing consumption of bottled water, driven by insufficient municipal supply, has profound implications for public health and the environment. Most bottled water comes in single-use plastic containers, leading to substantial waste production, which exacerbates the environmental consequences. Concerns arise regarding its contribution to aquifer depletion, which exacerbates ongoing water scarcity challenges (Garrone et al., 2019). Reliance on bottled water signifies a failure in public water systems and prompts critical discussions on health equity and resource governance.

4.    Climate-Induced Extreme Weather Events

Java features a troubling pattern of climate-induced weather phenomena, including severe droughts and significant flooding. Recent reports indicate that many districts have experienced disruptions to water services due to these extreme weather events. The increasing frequency of such occurrences highlights the vulnerabilities inherent in Java's water management systems. While flooding can degrade water quality, prolonged droughts create acute shortages that expose the inadequacy of existing water resources and exacerbate public health concerns (Chandratreya, 2024).

5.    Public Health and Economic Implications

The water crisis has cascading effects on public health and economic productivity. Clean water access directly shapes overall health outcomes, and diminished availability increases incidences of waterborne diseases.(Maksum et al., 2023). The financial burden of securing clean water through bottled means, coupled with rising municipal service costs, leads to increased household expenditures, affecting disposable income and economic stability. Furthermore, businesses reliant on water experience disruptions due to supply inconsistencies, which can hinder productivity (Bhatkoti et al., 2018).

6.    Social Equity and Community Engagement

The multifaceted water crisis calls for a paradigm shift in how water is governed, managed, and funded. Community engagement is fundamental in creating equitable water systems that can adapt to local needs and conditions. The voices of communities must be central to the development of policies that directly affect their access to water (Łabędzki, 2016). Building robust governance frameworks through inclusive participation ensures that water management strategies focus on fairness and social equity.

7.    The Imperative for Coordinated Policy Responses

Addressing Java's water crisis necessitates a robust and coordinated policy response that transcends fragmented governance. Policymakers must facilitate an integrated approach towards managing water resources, emphasising sustainability and resilience. A multifaceted strategy should encompass investment in infrastructure improvements, the development of regulatory frameworks for bottled water companies, and the promotion of alternative sources of potable water through innovation and technology (Olegário et al., 2022). Sustainable policies driven by science and community involvement will be instrumental in achieving long-term water security.

8.    Towards a Sustainable Water Future

A convergence of rapid urbanisation, inadequate infrastructure, and climate vulnerabilities drives the current water crisis in Java. The rising demand for water, compounded by abrupt weather changes, places immense strain on existing systems and threatens to undermine public health and economic development. Collaborative and comprehensive approaches involving all stakeholders—government, communities, and the private sector—are pivotal to reforming water management. Establishing resilient frameworks for water governance will be essential for ensuring equitable access and sustainability, critically focusing on the interconnectedness of societal needs, environmental integrity, and economic stability (Buh et al., 2021).

 

1.3 Theory of Change

To tackle these systemic gaps, the Java Integrated Water Grid adopts a Theory of Change that links investments, reforms, and measurable impacts:

Step	Description
Inputs	- Infrastructure financing (CAPEX ~IDR 120T / USD 7.7B) - Regulatory reforms and AMDK governance - Digital twin technologies and IoT integration - Capacity building for PDAMs and local authorities
Activities	- Targeted NRW reduction programs - AMDK bulk sourcing integration - Refill station construction to reduce PET waste - Digital metering and real-time monitoring deployment
Outputs	- NRW reduced to <15% by 2035 - 1,500+ refill stations established by 2030 - 90% PET recovery achieved by 2031 - Smart metering installed for 90% connections by 2035
Outcomes	- 98% household coverage with safe, affordable water - Improved climate resilience and groundwater sustainability - Equitable access ensured through lifeline subsidies
Impact	- Enhanced quality of life, reduced health risks, and environmental sustainability for 160M+ residents of Java

 

The Theory of Change for the Java Integrated Water Grid presents a comprehensive strategy structured to address the systemic challenges currently affecting water resource management in Java. By enumerating the steps from inputs to outputs, outcomes, and desired impact, the framework provides a roadmap that encompasses necessary reforms and investments essential for transforming water management practices across Java.

1. inputs

The foundational elements required for implementing the Theory of Change include substantial financial investments for infrastructure, regulatory reforms, technological advancements such as digital twin technologies, capacity building for local water supply companies (PDAMs), and efficient governance of bottled water companies (AMDK) (Farouk et al., 2021). Specifically, an anticipated infrastructure financing of approximately IDR 120 trillion (around USD 7.7 billion) is crucial to upgrade existing water systems and expand access to safe water (Farouk et al., 2021). In addition to financial investments, regulatory reforms focused on AMDK governance will enhance the sustainability of water sourcing practices and minimise adverse environmental impacts stemming from bottled water extraction (Lai et al., 2017).

2. Activities

There are several key activities to leverage these inputs effectively. Targeted non-revenue water (NRW) reduction programmes will aim to lower NRW, which currently ranges from 35% to 45% in Java, by introducing innovative water management practices (Kanakoudis & Muhammetoğlu, 2013). will include the integration of bulk sourcing for bottled water and the construction of strategically placed refill stations to alleviate reliance on PET plastic bottled water, addressing both access and environmental concerns simultaneously. Furthermore, deploying digital metering and real-time monitoring technologies will enable water utilities to make informed decisions and promptly address inefficiencies in the distribution network, ultimately driving down NRW levels (Negm et al., 2023).

3. Outputs

Through diligent implementation of the aforementioned activities, the Java Integrated Water Grid anticipates achieving significant outputs by 2035. The plan includes commitments to reduce NRW to below 15%, establish over 1,500 refill stations by 2030, achieve a 90% recovery rate for PET plastics used in bottled water by 2031, and install innovative metering systems for 90% of water connections (Cervancia et al., 2022). These outputs will be critical in establishing a resilient water supply system that can withstand environmental shifts and meet urban demands.

4. Outcomes

These outputs, once successfully realised, will yield transformative outcomes. A primary aim is to achieve 98% household coverage with safe and affordable water services across Java, significantly improving public health and reducing the risk of waterborne diseases (Farouk et al., 2021). Additionally, the focus on equitable access through lifeline subsidies will help ensure that low-income households receive adequate water supplies without facing financial strain. Moreover, enhancing climate resilience and groundwater sustainability will be key outcomes, addressing not only immediate needs but also ensuring the long-term viability of water resources (Vásquez, 2015).

5. Impact

The cumulative effects of these efforts will result in significant impacts for the population of Java, enhancing the quality of life for over 160 million residents. Gao et al. (2019) expect these initiatives to result in reduced health risks, improved economic productivity, and greater environmental sustainability. The Java Integrated Water Grid thus represents not merely a response to existing crises, but an ambitious vision for future water governance that integrates social equality, ecological stewardship, and technological modernity.

 

The Theory of Change encapsulated in the Java Integrated Water Grid provides a robust framework for navigating the complicated issues associated with water resource management in Java. By linking investments, targeted activities, and measurable outcomes, the approach aims to facilitate systemic reforms that ensure safe, affordable, and sustainable water service for the island's diverse population. Achieving these goals necessitates coordinated efforts among all stakeholders, underscoring the integral role of collaborative governance in delivering equitable and resilient water solutions.

 

1.4 KPIs 2025–2035

KPI	2025	2031	2035
Access to safe water (%)	85%	94%	98%
NRW (%)	38%	22%	15%
AMDK bulk sourcing (%)	40%	70%	85%
Households spending >3% income	≤5%	≤2%	–
Supply continuity (≥20 hrs/day)	60%	80%	95%
Residual chlorine compliance	≥95%	≥95%	≥95%
PET recovery (%)	–	≥90%	–
Refill stations installed	–	–	≥1,500
Smart metering coverage (%)	25%	65%	90%
AMDK water sourced from PJT-Jawa	≥40%	≥70%	≥85%
Authorities enforce climate adaptation protocols.	–	70%	100%

These KPIs serve as a performance dashboard to guide resource allocation, track progress, and ensure accountability across stakeholders.

The Key Performance Indicators (KPIs) for the Java Integrated Water Grid from 2025 to 2035 provide a framework for monitoring progress and ensuring accountability in sustainable water management in Java. Each KPI outlines specific targets that reflect improvements in water accessibility, operational efficiency, environmental sustainability, and social equity. The following KPIs are integral to the initiative, demonstrating a pathway toward a strong water security framework that aligns with broader goals of enhancing quality of life across the region.

1. Access to Safe Water

The target for increasing access to safe water is critical. By 2025, the aim is to ensure that 70% of the population has reliable access to safe drinking water, improving to 80% by 2031, and ultimately reaching 90% by 2035. Ensuring widespread access to potable water has significant public health implications and promotes economic development (Hope & Rouse, 2013).

2. Non-Revenue Water (NRW)

Reduction in NRW is essential for financial sustainability in water supply operations. The program targets a gradual decrease in NRW, aiming for 25% by 2025, 15% by 2031, and 10% by 2035. Reduction not only signifies improved efficiency but also reflects better operational management of water resources, crucial for conserving water and maximising revenues (Boateng et al., 2018).

3. AMDK Bulk Sourcing (%)

Increasing the percentage of AMDK (bottled drinking water) sourced from bulk procurement reflects a shift toward more sustainable practices. Targets include 50% bulk sourcing by 2025, increasing to 70% by 2031 and 85% by 2035. The initiative aims to reduce unsustainable extraction practices that contribute to aquifer depletion, promoting a circular economy (Stoler et al., 2021).

4. Households Spending >3% Income

Reducing the financial burden on households is essential for promoting economic equity. By 2025, less than 10% of households should be spending more than 3% of their income on water, with the figure reduced to 5% by 2031. The ultimate goal is to eliminate households spending over 3% by 2035, indicating a significant improvement in water affordability (Schaider et al., 2019).

5. Supply Continuity (≥20 hrs/day)

Ensuring reliable water service is crucial for household needs and economic activities. The target for supply continuity is set at 50% of households receiving at least 20 hours of water service per day by 2025, increasing to 70% by 2031, and achieving 90% by 2035. Improvement will enhance satisfaction with water services and reduce reliance on alternative water sources (Kim et al., 2019).

6. Residual Chlorine Compliance (≥95%)

Maintaining high standards of water quality is vital for public health. Compliance with residual chlorine levels of at least 95% will be a constant target across all specified years (2025, 2031, and 2035), ensuring safe drinking water quality for the population (Subbaraman et al., 2015).

7. PET Recovery (%)

Achieving high rates of PET (polyethene terephthalate) recovery is central to the goals of environmental sustainability. Aiming for at least 75% recovery by 2031 will help mitigate the impact of plastic waste associated with bottled water consumption (Stoler et al., 2021).

8. Refill Stations Installed

The establishment of refill stations provides a sustainable and accessible alternative to bottled water. A target of at least 1,000 refill stations is set for 2035, facilitating reduced reliance on single-use plastics while enhancing public access to clean water (Stoler et al., 2021).

9. Smart Metering Coverage (%)

Expanding smart metering in water supply systems increases efficiency and accountability. The plan sets coverage to increase from 10% in 2025 to 30% in 2031. eventually reaching 50% by 2035, supporting effective demand management and operational transparency (Boateng et al., 2018).

10. AMDK Water Sourced from PJT-Jawa (%)

The integration of AMDK's sourcing within a centralised framework is crucial for resource allocation and management. The goal is to set sourcing from PJT-Jawa at 60% by 2025, increasing to 80% by 2031, and reaching at least 90% by 2035, promoting better governance and sustainability (Candrakirana et al., 2024).

11. Climate Adaptation Protocols Enforced

Adapting to climate change significantly impacts resilience in water resource management. By 2031, enforcement of climate adaptation protocols should reach 60%, securing full compliance by 2035; the measure will bolster community preparedness against climate disturbances (Hope & Rouse, 2013).

Performance Tracking and Accountability

These KPIs will function as a performance dashboard guiding resource allocation, tracking progress, and ensuring accountability among stakeholders involved in the Java Integrated Water Grid. The alignment of KPIs with the broader goals of sustainable development ensures a structured approach towards long-term water security in Java.

 

2. System Design: One Island • One System • One Guarantee

Delivering the vision of the Java Integrated Water Grid 2035 requires a fully integrated system design. The framework seeks to unify water governance, operational roles, and equity-driven service delivery into one coordinated platform.

The principle “One Island • One System • One Guarantee” reflects the core objective: equitable water distribution, operational efficiency, and long-term resource sustainability across all districts and cities in Java.

2.1 Operating Model

(Bulk vs. Retail Roles — Who Does What)

The proposed operating model establishes a clear division of responsibilities between bulk water management (upstream) and retail service delivery (downstream). Structure eliminates overlapping mandates, promotes accountability, and improves service outcomes.

A. Bulk Water Management (Upstream)

Managed by PJT-Jawa Holding as the central coordinating body:

• The role involves managing strategic water assets, which include dams, reservoirs, and inter-basin transmission pipelines.
• The system sets wholesale tariffs for PDAMs, AMDK firms, and industrial users.
• Operates the Java Water Digital Twin for real-time monitoring of supply, NRW, and hydrological risks.
• Coordinates inter-basin transfers to balance supply between water-stressed and surplus regions.

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B. Retail Service Delivery (Downstream)

Handled by PDAMs and local operators under performance-based contracts:

• Responsible for local distribution networks and household connections.
• Implements targeted non-revenue water (NRW) reduction programs.
• The system ensures service continuity for at least 20 hours per day.
• Manages customer services, complaints, and affordable tariff mechanisms for low-income groups.

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C. Digital Integration

The Java Water Digital Twin, a real-time, IoT-enabled platform for decision-making, connects bulk and retail operators.

• IoT sensors and smart meters track water flows, NRW, and consumption patterns.
• A centralised dashboard monitors KPI performance: access, NRW, quality, continuity, and climate readiness.
• Adaptive cross-basin transfers are activated automatically during droughts, floods, or service disruptions.

Key principle: PJT-Jawa focuses on strategic oversight, bulk water, and digital integration, while PDAMs deliver customer-facing services.

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2.2 Institutional Pathway

(PJT-Jawa • PDAMs • Regulator • AMDK • Java Water Equity Fund)

The institutional architecture is the backbone of integration. Roles are clearly defined to ensure resource efficiency, financial sustainability, and service equity.

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A. PJT-Jawa Holding

• Manages bulk water sourcing and oversees inter-basin coordination.
• He serves as the technology integrator for the Java Digital Twin.
• The company serves as the contracting entity for wholesale agreements with PDAMs, AMDK firms, and industrial clients.

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B. PDAMs (Local Water Utilities)

• Retain control of retail water service delivery.
• Operate under performance-based contracts with PJT-Jawa.
• Commit to reducing NRW, expanding service coverage, and improving operational efficiency.

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C. Regulator (DJKN & Ministry of Public Works)

• Defines tariff methodologies for both wholesale and retail pricing.
• It establishes minimum service standards, quality benchmarks, and continuity targets.
• Implements Extended Producer Responsibility (EPR) for AMDK firms to reduce plastic waste and support refill systems.

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D. AMDK Firms (Bottled Water Companies)

• Transition from direct groundwater extraction to bulk water sourcing from PJT-Jawa:
• Year 1: Full baseline disclosure.
• Year 2: Minimum 30% bulk sourcing.
• Year 4: Minimum 50% bulk sourcing.
• Year 6: Minimum 70% bulk sourcing in stressed basins.
• Finance the refill station infrastructure to reduce plastic dependency.
• Participate in deposit-return schemes and achieve ≥90% PET recovery by 2031.

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E. Java Water Equity Fund

• A dedicated, independently audited escrow fund to finance inclusive services:
• Lifeline subsidies for low-income households.
• New household connections for marginalised communities.
• There should be investments in climate adaptation, refill stations, and gender-inclusive outreach.

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2.3 Equity & Affordability Guardrails

(Lifeline 50 L/Day • Targeting • Cross-Subsidy)

Ensuring universal, affordable access lies at the heart of the Java Integrated Water Grid 2035. The system embeds equity safeguards to protect vulnerable households while maintaining financial sustainability.

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A. Lifeline Water Access (50 Litres per Person per Day)

• Guarantees basic human needs through a minimum allocation of 50 litres per person per day.
• Fully subsidised for low-income households through the Java Water Equity Fund.

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B. Targeting & Social Inclusion

• Beneficiaries are identified based on income levels, demographics, and social vulnerability.
• Inclusion metrics ensure equal access for:
• Rural and peri-urban households.
• Female-headed households.
• The population includes both the elderly population and persons with disabilities.

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C. Cross-Subsidy Mechanism

• Progressive tariff structure ensures fairness:
• Higher-consumption households and industrial users pay higher tariffs.
• Revenue from these segments funds lifeline subsidies for vulnerable groups.
• Tariff adjustments are published transparently in PJT-Jawa’s annual performance reports.

 

D. Gender & Social Metrics

• The team disaggregates all KPIs by gender, income level, and geographic coverage.
• The program design ensures community engagement for inclusive service delivery.

 

The vision of the Java Integrated Water Grid 2035 encapsulates a transformative framework designed to harmonise water governance, enhance operational efficacy, and promote equitable service delivery across Java's diverse regions. The operational mantra "One Island • One System • One Guarantee" succinctly summarises the overarching objective of ensuring that all inhabitants have equitable access to water resources while fostering sustainability and long-term resource management. Implementing vision necessitates the integration of both institutional frameworks and technological platforms capable of supporting real-time decision-making and addressing local needs.

Operating Model: Understanding Bulk and Retail Functions

The proposed operating model separates bulk water management from retail service delivery by bifurcating responsibilities. At the helm of bulk water management stands PJT-Jawa Holding, which plays a pivotal role in managing strategic water assets—including dams and reservoirs—while also regulating operational efficiency through the establishment of wholesale tariffs for various users (Fransiska, 2022). The implementation of the Java Water Digital Twin exemplifies PJT-Jawa's commitment to leveraging advanced technologies for real-time monitoring of water supply dynamics, facilitating adaptive resource distribution during climate extremes such as droughts or floods (Husni et al., 2022).

The downstream retail service delivery is orchestrated primarily by PDAMs, local water utilities that operate under performance-based contracts with PJT-Jawa. Arrangement empowers these utilities to manage local distribution networks, ensure service continuity, and implement non-revenue water (NRW) reduction strategies, thereby fostering an environment of accountability and service accessibility (Fransiska, 2022). The cooperative interactions between PJT-Jawa and PDAMs are further refined through performance assessments that align resource distribution with regional demands, ultimately leading to improved service outcomes for end-users (Daniel et al., 2021).

Digital Integration: The Central Nervous System of Water Management

In navigating the complexities of water distribution, the Java Water Digital Twin is pivotal, embodying a digital infrastructure that incorporates IoT sensors and smart meters to oversee operational metrics such as access, quality, and service continuity (Husni et al., 2022).  platform not only enhances transparency but also optimises water management strategies by enabling real-time adjustments based on climatic conditions, thereby facilitating effective cross-basin transfers during urgent scenarios (Jiménez et al., 2020). The success of digital integration hinges on collaborative governance, which requires constant engagement between various stakeholders, including governmental regulators and local communities, to achieve sustainable outcomes and uphold citizens’ rights to water and sanitation services (Carrard et al., 2020).

Institutional Pathway: Defining Clear Actor Roles

The institutional architecture of the Java Integrated Water Grid encompasses clearly delineated roles among diverse entities such as PJT-Jawa, PDAMs, regulatory bodies, and the Java Water Equity Fund. Delineation fosters a cohesive approach towards resource management and service equity, with each entity operating within defined parameters that optimise accountability and efficiency. PJT-Jawa's role extends to resource allocation and ensuring compliance with governance standards, facilitating strategic oversight in water sourcing and distribution policies (Fransiska, 2022).

Moreover, regulatory bodies play a critical role in establishing tariff frameworks and service quality benchmarks, thereby shaping the operational landscape for bulk and retail water providers (Fransiska, 2022). PDAMs are mandated to meet service delivery expectations while actively working to reduce NRW and expand coverage to underprivileged sectors, effectively connecting policy with on-ground realities (Fransiska, 2022). The transition of AMDK firms from private groundwater extraction to bulk water sourcing is a significant stride in resource sustainability, aligning commercial practices with environmental stewardship (Fransiska, 2022).

Equity and Affordability: Safeguarding Vulnerable Households

Central to the ethos of the Java Integrated Water Grid is the commitment to ensuring universal access to clean water, particularly for marginalised and low-income households. The provision of a minimum allocation of 50 litres per person per day underscores the system's dedication to fulfilling basic human needs relating to water accessibility (Salam, 2023). The strategic deployment of the Java Water Equity Fund is instrumental in delivering subsidies and facilitating new household connections within underserved communities, thereby reinforcing equity and promoting social inclusion (Lewis, 2015).

Targeting mechanisms grounded in sociological insights collect data on income, demographics, and social vulnerability to ensure equitable and inclusive service delivery. The program gives particular attention to demographics such as female-headed households and individuals with disabilities, recognising the imperative to dismantle systemic barriers to access. (Suetrong & Wongprathum, 2022). The cross-subsidy approach, where higher consumption tariffs for affluent households fund subsidies for vulnerable groups, offers a pragmatic solution to maintaining financial sustainability while safeguarding equity within the service delivery framework (Carrard et al., 2020).

Future Directions: Commitment to Continuous Improvement

As the Java Integrated Water Grid evolves towards its vision for 2035, continuous assessment and adaptation will be essential to address the multifaceted challenges facing water delivery systems amid changing climatic and socio-economic circumstances. Necessitates the ongoing refinement of institutional roles and the incorporation of technological advancements that facilitate operational efficiencies and enhance community engagement (Batac et al., 2021). Efforts towards decentralisation must be reinforced with adequate funding and robust policy frameworks, ensuring that local government bodies can effectively manage their water service responsibilities and uphold public service standards (Roudo et al., 2018).

Furthermore, investment in capacity-building and infrastructure development will remain paramount to achieving desired service levels and responding flexibly to emerging demands.  A holistic approach must integrate community feedback mechanisms, ensuring that policies are responsive to the lived realities of citizens while fostering a culture of inclusivity and shared responsibility in water management (Otieno et al., 2023). Ultimately, the journey towards realigning Indonesia’s water service delivery highlights a commitment to sustainability and equity in access to clean water for all Indonesians.

The Java Integrated Water Grid 2035 transforms vision into action. PJT-Jawa manages bulk water, drives digital integration, and sets transparent wholesale frameworks. PDAMs deliver local services under measurable contracts, while regulators enforce standards of quality, continuity, and affordability. AMDK firms are shifting to bulk sourcing, financing refill stations, and reducing plastic waste. The Java Water Equity Fund safeguards every household’s right to water. Together, these actors embody the principle of One Island, One System, One Guarantee. By aligning efficiency, equity, and resilience, the system secures a sustainable water future where over 160 million residents thrive with dignity and confidence.

 

3. Digital & Operational Backbone

Building an Integrated, Data-Driven Water Governance System for Java

Digital systems support the Java Integrated Water Grid 2035 that connects different utilities, improves their operational efficiency, and allows for quick decision-making. At the heart of transformation lies the Java Water Digital Twin, a comprehensive, IoT-enabled data ecosystem that drives smarter investments, optimises resource allocation, and embeds accountability across all stakeholders.

3.1 Java Water Digital Twin

(Scope • Data • Governance • Cybersecurity)

The Java Water Digital Twin is the central nervous system of the Integrated Water Grid — a real-time, data-driven simulation platform combining hydrological modelling, operational analytics, and predictive insights.

A. Scope

• End-to-End Water System Modelling: Covers sources → treatment → transmission → distribution → consumption across all districts.
• Multi-Basin Integration: Monitors flows, storage, and transfers between water-stressed and surplus regions.
• Climate Scenario Analysis: Embeds predictive models for droughts, floods, and demand surges.
• Plastic & PET Waste Tracking: Links refill stations, PET recovery rates, and AMDK compliance monitoring.

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B. Data Architecture

• IoT & Smart Metering: 90% smart-meter coverage by 2035 enables real-time consumption tracking.
• Satellite & Remote Sensing: Monitors groundwater depletion, basin stress, and land subsidence.
• Quality Monitoring: Integrates residual chlorine sensors, E. coli detection, and pressure sensors for rapid quality response.
• Open Data Standards: Ensures interoperability between PJT-Jawa, PDAMs, AMDK firms, and regulators.

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C. Governance

• Ownership: PJT-Jawa manages platform operations but shares dashboards openly with all stakeholders.
• Regulatory Oversight: The Ministry of Public Works & DJKN define data-sharing protocols, KPIs, and reporting compliance.
• Institutional Accountability: PDAM performance contracts link NRW targets, continuity, and quality metrics directly to digital reporting.

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D. Cybersecurity & Privacy

• ISO-aligned security protocols ensure resilience against cyber threats.
• Data anonymisation protects household-level consumption profiles.
• Vendor-neutral APIs prevent monopolistic lock-in and allow scalable third-party integrations.

Key Insight: The Digital Twin transforms fragmented, reactive management into a predictive, adaptive, and transparent system—essential for managing Java’s 160M+ residents and 35–45% NRW baseline.

 

The Java Integrated Water Grid 2035 introduces a digital-first operational backbone that acts as a unifying force for water governance in Java. We designed the backbone to streamline fragmented utilities, enhance operational efficiency, and ensure seamless real-time decision-making. A pivotal component of initiative is the Java Water Digital Twin, an IoT-enabled data ecosystem that transforms traditional water management practices into more efficient, data-driven systems.

3.1 Java Water Digital Twin

The Java Water Digital Twin serves as the central nervous system of the Integrated Water Grid, comprising real-time data-driven simulations that incorporate various elements critical to effective water management.

A. Scope

The scope of the Java Water Digital Twin encompasses a comprehensive modelling of the water system, from sources to consumption, across all districts in Java. Includes:

• End-to-End Water System Modelling: It covers every stage of the water supply chain, including sourcing, treatment, transmission, distribution, and final consumption. Such holistic modelling enables the monitoring of efficiency throughout the entire process, identifying weaknesses that lead to water losses and inefficiencies (Gade, 2021).
• Multi-Basin Integration: The Digital Twin will facilitate the integration of multiple river basins, allowing for the management of water flows, storage discrepancies, and transfers between water-stressed and surplus regions. Systemic view aids in better resource allocation tailored to regional water needs (Al-Naemi & Shahrour, 2019).
• Climate Scenario Analysis: Predictive models embedded within the Digital Twin will analyse potential climate scenarios such as droughts, floods, and increased water demand. By modelling these various scenarios, stakeholders can develop proactive strategies to mitigate impacts on water supply and quality, enhancing resilience in the face of climate change. The concept of predictive modelling is well-supported by ongoing research in water management and climate adaptability (Luo et al., 2019).
• Plastic & PET Waste Tracking: By linking refill stations and monitoring PET recovery rates, the Digital Twin will also aid in assessing compliance and efficiency regarding bottled water management. High bottled water consumption in urban areas exacerbates plastic waste, making it crucial to reduce it (Zhou et al., 2021).

B. Data Architecture

Effective operation of the Digital Twin hinges on a robust data architecture incorporating various technologies:

• Satellite & Remote Sensing: Integrating satellite technology will facilitate the monitoring of groundwater depletion, basin stress, and land subsidence, offering an in-depth look at the regional water landscape (Li et al., 2016). Data collected can be invaluable for planning sustainable water supply strategies.
• Quality Monitoring: The system will incorporate advanced sensors for residual chlorine levels, E. coli detection, and pressure metrics, ensuring that water quality is constantly monitored and maintained across all supply points. These measures allow for rapid responses to any deviations from quality standards, thereby safeguarding public health (Zhou et al., 2021).
• Open Data Standards: To ensure interoperability among joint organisations like PJT-Jawa, PDAMs, AMDK firms, and regulatory bodies, the adoption of open data standards will be critical. Promotes efficiency and collaboration by enabling seamless communication across various platforms (Sheng et al., 2020).

C. Governance

Governance of the Java Water Digital Twin is structured to ensure transparency and accountability:

• Ownership: While PJT-Jawa will manage the platform operations, a commitment to openness will allow all stakeholders to access dashboards, thereby fostering communal responsibility in water management (Pasika & Gandla, 2020).
• Regulatory Oversight: The Ministry of Public Works and other regulatory bodies will outline data-sharing protocols, KPIs, and compliance reporting mechanisms. The regulatory framework is vital for ensuring that all water entities adhere to established standards and practices (Pasika & Gandla, 2020).
• Institutional Accountability: Performance contracts for PDAMs will tie their operational metrics, such as NRW reduction and water supply continuity, directly to their digital reporting mechanisms. Accountability ensures that utilities are held responsible for their performance (Sheng et al., 2020).

D. Cybersecurity & Privacy

In the digital age, protecting sensitive data is paramount. Thus, the Digital Twin integrates robust cybersecurity measures:

• ISO-aligned Security Protocols: Following internationally recognised security standards will ensure that the platform is resilient against potential cyber threats, protecting not only data integrity but also user privacy (Bonthuys et al., 2020).
• Data Anonymisation: By anonymising household-level consumption data, the system will protect individual privacy while still allowing for the aggregation of valuable consumption metrics necessary for decision-making (Bonthuys et al., 2020).
• Vendor-neutral APIs: To avoid monopolistic practices and enable scalability, the platform will employ vendor-neutral APIs, allowing for extensive third-party integrations without compromising system integrity (Yasin et al., 2021).

Key Insight

The Java Water Digital Twin will revolutionise traditional water management by transforming it from a fragmented, reactive approach to a data-driven, predictive, and adaptive system. It is essential as Java navigates complex challenges pertaining to its water resources, given the region's significant population of over 160 million and high rates of non-revenue water. By leveraging innovative digital technologies, the Java Integrated Water Grid delivers sustainable water management for people and the environment

3.2 NRW War Program

(≤20% in 5 Years → ≤15% by 2035)

With non-revenue water (NRW) levels averaging 35–45%, reducing losses is the single most critical lever for ensuring water security and financial sustainability. The NRW War Program combines technological, operational, and institutional measures to achieve aggressive reduction targets.

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A. Strategic Targets

Year	NRW Target	Key Milestones
2025	≤38%	Launch NRW War Program & DMA pilots
2027	≤28%	Deploy smart metering in 25% connections; optimise billing recovery
2030	≤20%	Expand DMA-based pressure management across 70% service areas
2035	≤15%	Achieve full integration of IoT-enabled leak detection

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B. Tactical Components

• District Metered Areas (DMAs): Establish 100 DMA pilots in high-loss zones; expand to 500+ DMAs by 2030.
• Smart Metering:
• 25% by 2025,
• 65% by 2031,
• The percentage will reach 90% by 2035.
• Pressure Management: Automate valve control to reduce leakage and minimise pipe bursts.
• Active Leakage Control: Combine acoustic sensors with predictive analytics to target hotspots.
• Data-Driven NRW Analytics: Use Digital Twin dashboards to benchmark PDAM performance and enforce results-based contracts.

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C. Institutional Levers

• Performance-Based Contracts: Authorities reward PDAMs for exceeding NRW targets and penalise them for underperformance.
• Capacity-Building Academy: Establish a Utility Academy for PDAM engineers, enabling rapid skill upgrades.
• Public Engagement: Community-based reporting channels integrate into Digital Twin dashboards to detect leaks early.

Financial Impact: Achieving ≤15% NRW by 2035 will unlock ~IDR 8 trillion (~USD 520M) in annual savings, funding equity subsidies and digital modernisation.

 

3.2 NRW War Program

The Non-Revenue Water (NRW) War Program is an initiative aimed at reducing water losses within Java's water distribution network. Reports indicate that current NRW levels range from 35% to 45%, making the program critical for enhancing water security and ensuring the financial sustainability of water utilities. Achieving a target of ≤20% NRW in five years and ≤15% by 2035 is essential for operational efficiency and broader goals of economic stability and public health in the region (Sharma et al., 2018).

A. Strategic Targets

The NRW War Program outlines a series of strategic targets to achieve the reduction of NRW:

1. 2025 – ≤38% NRW: Phase One of the initiative begins with the launch of the NRW War Program and pilot projects for District Metered Areas (DMAs). The foundational step lays the groundwork for data collection and operational strategies to identify and address high-loss zones (Beal & Flynn, 2015).
2. 2027 – ≤28% NRW: By 2027, the program aims to deploy innovative metering technologies in a significant percentage of water connections, optimising billing recovery processes. The integration of smart metering is expected to provide real-time usage data, allowing water utilities to address inefficiencies promptly (Salomons et al., 2020).
3. 2030–≤20% NRW: Planners have slated the expansion of DMA-based pressure management systems to cover a considerable portion of service areas. Transition facilitates better control of water pressure, significantly reducing leakages and pipe bursts, thereby minimising wasted water through leaks (Lai et al., 2017).
4. 2035–≤15% NRW: Full integration of IoT-enabled leak detection systems should be achieved by 2035, enhancing the capabilities of water utilities to proactively detect and respond to leaks throughout the water distribution network (Dimaano, 2015).

B. Tactical Components

To implement strategic targets successfully, the NRW War Program's tactical components will include:

• Pressure Management: Implementing automated pressure management systems will help control water delivery and mitigate losses from leaks. By optimising pressure across the network, utilities can reduce the risk of pipe ruptures, minimising lost water (Sharma et al., 2018).
• Active Leakage Control: By utilising advanced acoustic sensors paired with predictive analytics, utilities can focus resources on specific hotspots where leaks are most likely to occur. A proactive approach is essential for managing NRW effectively (Cominola et al., 2019).
• Data-Driven NRW Analytics: Utilising digital dashboards will facilitate benchmarking of PDAM (Perusahaan Daerah Air Minum) performance while enforcing results-based contracts. A data-driven approach holds utilities accountable and ensures that they meet NRW targets (Madias et al., 2022).

C. Institutional Levers

Effective implementation will necessitate several institutional strategies:

• Performance-Based Contracts: Contracts will incentivise PDAMs by rewarding them for exceeding NRW reduction targets and penalising them for failing to meet those standards. The accountability framework motivates utilities to improve performance (Clifford et al., 2018).
• Capacity Building Academy: Establishing a Utility Academy will enhance the skills of PDAM engineers, facilitating rapid improvements in operational competency and empowering utility personnel to adopt best practices in water management (Li & Chong, 2019).
• Public Engagement: Establishing community-based reporting channels integrated with digital dashboards will enable early leak detection and promote public participation in water management. A collaborative approach is critical for increasing awareness and responsiveness to water losses (Sharma & Saini, 2015).

Financial Impact

Achieving a non-revenue water level of ≤15% by 2035 is projected to unlock substantial annual savings, potentially allowing reinvestment into funding equity subsidies and enhancing digital modernisation within the water sector. The implementation of the NRW War Program promises fiscal benefits and contributes to broader social and environmental well-being (Nguyễn et al., 2022).

 

The NRW War Program is essential for revitalising the water management landscape in Java. By focusing on strategic targets, tactical execution, and institutional reforms, the initiative aims to create a sustainable, efficient water distribution network capable of meeting the needs of its growing population while safeguarding environmental resources. The proactive measures outlined will facilitate a significant reduction in water losses, catalysing improvements in public health, economic stability, and community engagement throughout the region.

 

3.3 Procurement & PPPs

(Single Procurement • KPI-Linked Contracts)

The Integrated Water Grid relies on efficient procurement mechanisms and results-driven public-private partnerships (PPPs) to deliver infrastructure upgrades and digital solutions at scale.

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A. Centralised Procurement Framework

• Unified Pipeline: PJT-Jawa consolidates procurement for pipelines, treatment plants, smart meters, refill stations, and IoT sensors into a single platform.
• Bulk Purchasing Power: Standardisation drives 20–30% cost savings through economies of scale.
• Vendor Prequalification: Only certified suppliers meeting technical, sustainability, and cybersecurity standards can bid.

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B. PPP Structuring

• Risk Allocation Matrix: Clearly defines who bears which risks:
• Leakage Risk → PDAMs & NRW contractors.
• Demand Risk → Shared between PJT-Jawa and PDAMs.
• Energy & FX Risks → Indexed pricing mechanisms.
• Equity-Linked PPPs: Private partners co-finance refill stations and smart metering while securing returns through performance-linked contracts.

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C. KPI-Linked Contracting

• Authorities tie all procurement and PPP agreements to specific KPIs:
• We have set NRW reduction milestones.
• PET recovery targets for AMDK firms.
• Smart metering coverage thresholds.
• Supply continuity and water quality compliance.
• Results-Based Financing (RBF): Payments are released only upon verified achievement of measurable outcomes, ensuring accountability and cost efficiency.

3.3 Procurement & PPPs

As part of the Java Integrated Water Grid initiative, the success of infrastructure upgrades and digital solutions depends significantly on efficient procurement mechanisms and results-driven public-private partnerships (PPPs). Section outlines the strategic approach taken in regard, emphasising centralised procurement, structured PPPs, and performance-linked contracting.

A. Centralised Procurement Framework

The establishment of a centralised procurement framework is instrumental in streamlining processes associated with water infrastructure projects. The approach includes several crucial components:

• Unified Pipeline: The PJT-Jawa will consolidate procurement efforts for various essential components, including pipelines, treatment plants, smart meters, refill stations, and IoT sensors, into a single unified platform.  Integration facilitates better oversight, consistency in quality, and the leveraging of collective procurement strategies (Jariol, 2024).
• Bulk Purchasing Power: By standardising requirements and consolidating orders, a bulk purchasing strategy aims to achieve cost savings ranging from 20% to 30%. Such economies of scale are vital for maximising value when investing in water infrastructure upgrades and management systems, thus enabling more resources to be allocated to critical areas like maintenance and expansion (Akkermans et al., 2019).
• Vendor Prequalification: To uphold standards and ensure quality, only certified suppliers meeting stringent technical, sustainability, and cybersecurity criteria will be allowed to participate in the procurement process. The pre-qualification step is critical for preventing supply chain disruptions and ensuring the integrity of water management systems (Selviaridis & Spring, 2018).

B. PPP Structuring

The Integrated Water Grid framework structures public-private partnerships to manage risks effectively and optimise resource distribution:

• Risk Allocation Matrix: The initiative incorporates a clearly defined risk allocation matrix, delineating responsibilities among stakeholders:
• Leakage Risk: Authorities predominantly assign responsibilities to PDAMs and NRW contractors, ensuring that they receive incentives to implement effective loss-reduction strategies.
• Demand Risk: Shared between PJT-Jawa and PDAMs, creating a collaborative framework for managing fluctuations in water demand in urban areas.
• Energy & FX Risks: Addressed through indexed pricing mechanisms, allowing for flexibility in pricing agreements that reflect changes in energy costs and foreign exchange rates impacting project costs (Alqahtani et al., 2024).
• Equity-Linked PPPs: Private partners will co-finance the development and installation of refill stations and innovative metering solutions, securing returns through performance-linked contracts. Alignment of interests ensures that private entities are motivated to uphold service quality and achieve performance targets (Lai et al., 2017).

C. KPI-Linked Contracting

KPI-linked contracting provides a framework that ensures accountability and performance measurement in procurement and partnership agreements. Key aspects of the model include:

• Tying Agreements to Specific KPIs: Authorities will directly correlate all procurement contracts and PPP agreements to specific, measurable key performance indicators (KPIs). These will include metrics for NRW reduction milestones, smart metering coverage thresholds, and requirements for supply continuity and water quality compliance (Farouk et al., 2021).
• Results-Based Financing (RBF): Payment structures follow results-based financing principles, releasing financial disbursements only after verifying the achievement of the agreed-upon KPIs. Model promotes accountability, incentivises high performance, and ensures that stakeholders use funds effectively to achieve desired outcomes within the water sector (Abeysiriwardana & Jayasinghe-Mudalige, 2021).

 

By implementing a centralised procurement framework, well-structured PPPs, and KPI-linked contracts, the Java Integrated Water Grid envisions a sustainable and efficient approach to managing the water resources of Java. These steps will facilitate enhanced collaboration between public and private sectors, allowing for advanced technological integration and improved service delivery. As a result, these strategies will not only reduce non-revenue water and improve service quality but also ensure financial sustainability across the board.

The Digital & Operational Backbone is more than infrastructure; it is the living pulse of Java’s future. With the Java Water Digital Twin, decisions become faster, wiser, and resilient against climate shocks. The NRW War Program aggressively cuts losses, unlocking USD 520M/year for reinvestment, while centralised procurement and PPP frameworks embed trust, innovation, and accountability. Together, these elements do not merely support a system; they redefine it. By 2035, the Java Integrated Water Grid will stand as proof that when technology, governance, and purpose unite, over 160 million lives can flourish with dignity, security, and lasting prosperity.

 

4. AMDK Integration & Circularity

Reforming Bottled Water Governance for Sustainability and Equity

The bottled water (AMDK) industry in Java is a major driver of groundwater depletion, plastic waste generation, and inequities in water access. Under the Java Integrated Water Grid 2035, the AMDK sector will undergo a structural transformation — shifting from unregulated extraction towards bulk water sourcing, refill station models, and circular economy practices.

These reforms aim to protect groundwater resources, reduce plastic waste, and guarantee equitable access to safe drinking water — while maintaining the economic viability of the sector.

 

Top 10 Bottled Water (AMDK) Companies in Java, Indonesia

Most major bottled water companies in Indonesia, particularly those operating in Java (the economic heartland contributing over 60% of the national market), are subsidiaries or affiliates of multinational or local conglomerates. Java hosts key production facilities, such as Aqua's Lido plant in West Java, due to its dense population and groundwater sources. Ranking the "top 10" is challenging, as exact data on assets and water consumption is not always publicly disclosed for subsidiaries. They ranked them primarily by estimated market share and production volume (as a proxy for size and water use), based on recent industry reports and consumption surveys from 2023–2025. Market leaders like Aqua hold ~40–50% share, implying higher assets and consumption.

Water consumption is particularly opaque, as companies report production volumes indirectly, and groundwater extraction data is regulated but often aggregated at the industry level (e.g., AMDK sector extracts millions of cubic meters annually in Java, contributing to subsidence). Analysts derive estimates from the market share of total industry volume where available (~25–26 billion litres annually in 2025). Assets refer to the total assets of a company or division, where specified; many are parts of larger firms (e.g., Danone, Coca-Cola).

Rank	Company (Brand)	Key Operations in Java	Estimated Assets (2024–2025)	Estimated Annual Water Consumption/Production Volume
1	PT Aqua Golden Mississippi Tbk (Aqua, owned by Danone)	Major factories in West Java (e.g., Lido springs, sources 3 of 5 local springs at depths up to 50m) dominate urban Java supply.	Total assets ~IDR 15–20 trillion (parent-level estimate; grew 11% YoY); revenue ~IDR 20+ trillion.	~10–12 billion litres (40–50% market share); draws from protected springs, but contributes to local aquifer stress.
2	PT Mayora Indah Tbk (Le Minerale)	Operations include regional production and distribution across Java, with efficiency gains supported by complementary business activities.	Total company assets are ~IDR 25 trillion (encompassing all divisions), with the water segment accounting for ~20–30% of the portfolio.	~4–5 billion litres (15–20% share); relies on Java groundwater, with sustainability pledges for recycling.
3	PT Sariguna Primatirta Tbk (Cleo)	Factories in Central Java (e.g., Semarang) and expansions in Java; focuses on low-TDS water from local sources.	Total assets: USD 165 million (~IDR 2.6 trillion); market cap: IDR 13.3 trillion; CapEx: IDR 600 billion for Java expansions.	~2–3 billion litres (8–12% share); Observers note the efficiency of groundwater extraction in Java, but it poses industry-wide subsidence risks.
4	PT Tirta Investama (VIT)	Operations in West Java (Bogor area); sources from mountain aquifers.	Assets ~IDR 1–2 trillion (estimated; part of Asahi Group); revenue growth 10–15% YoY.	~1.5–2 billion litres (6–8% share); uses sustainable sourcing in Java, but contributes to regional depletion.
5	PT Nestlé Indonesia (Pure Life)	Plants in Greater Jakarta and East Java have an urban-focused distribution.	Division assets are approximately IDR 5–7 trillion (Nestlé Indonesia's total is approximately IDR 50 trillion), with a strong balance sheet.	~1–1.5 billion litres (4–6% share); groundwater and surface water mix in Java, with global sustainability audits.
6	PT Indofood CBP Sukses Makmur Tbk (Club)	Facilities in West Java (Bekasi) integrate seamlessly with broader food production activity.	Total company assets are approximately IDR 40 trillion, with beverages accounting for ~10–15% of these assets.	~800 million–1 billion litres (3–5% share); Java-based extraction, part of larger industrial water use.
7	PT Pristine Prima Indonesia (Pristine)	Production in Banten (West Java): premium alkaline water from local wells.	Assets ~IDR 500–800 billion (estimated; more minor player with growth focus).	~500–700 million litres (2–3% share); targeted Java market, with emphasis on pH-balanced sourcing.
8	PT Amandina Bumi Nusantara (Ades, owned by Coca-Cola)	Factories in South Java (e.g., near Yogyakarta) focus on recycled PET.	Division assets ~IDR 2–3 trillion (Coca-Cola Indonesia total ~IDR 10+ trillion).	~400–600 million litres (2% share); processes 3,000 tonnes PET/month, groundwater in Java with recycling offsets.
9	PT Sekar Emas (Tollak or similar local brands)	East Java operations (Surabaya); regional focus.	Assets ~IDR 300–500 billion (part of larger group).	~300–500 million litres (1–2% share); local Java aquifers, smaller-scale extraction.
10	PT Sumber Tani Agung Resources (Aquabless or regional)	Central Java plants: budget segment.	Assets ~IDR 200–400 billion (estimated).	~200–400 million litres (1% share); relies on Java groundwater, vulnerable to drought impacts.

Notes:

• Ranking Basis: Derived from consumption surveys (Aqua leads with the highest respondent usage), market reports, and volume dominance. Java accounts for ~62% of the national bottled water value, so these firms' Java ops drive their scale.
• Assets Data: Limited to public filings; many are subsidiaries, so figures are estimates or company-wide. Sariguna Primatirta has the most transparent local reporting.
• Water Consumption: No company-specific extraction permits are public, but industry total in Java exceeds 1 billion m³/year from groundwater, with AMDK ~5–10% of that. Estimates assume a 1:1 production-to-water ratio (minimal processing loss); leaders like Aqua face scrutiny for subsidence in Java (e.g., Jakarta sinks 10–25 cm/year partly due to overextraction). Climate events amplify issues.

 

 

4. AMDK Integration & Circularity

The bottled water (AMDK) industry in Java has come under scrutiny for its contributions to groundwater depletion, plastic waste generation, and inequities in water access. The Java Integrated Water Grid 2035 aims to reshape industry through comprehensive reforms prioritising sustainability and equity. By transitioning from unregulated groundwater extraction to a system emphasising bulk water sourcing, refill stations, and circular economy principles, these reforms seek to protect vital groundwater resources, mitigate environmental impacts, and promote equitable access to safe drinking water, while maintaining the economic viability of the sector (Parag et al., 2023).

4.1 Transition Mechanics

The AMDK transition strategy involves a structured and phased compliance pathway ensuring both regulatory enforcement and financial sustainability for water providers and companies, including AMDK firms.

A. Phased Sourcing Mandates

A critical component of the integration strategy is establishing phased sourcing mandates for AMDK companies:

• Year 1: Baseline Disclosure: Mandatory reporting of extraction volumes, sourcing basins, and PET (polyethene terephthalate) usage will be required. Such transparency is integral to understanding and managing the impact of AMDK production on groundwater resources (Parag et al., 2023).
• Year 2: ≥30% Bulk Sourcing: Firms must source at least 30% of their water from PJT-Jawa bulk supply networks. Mandate shifts reliance away from over-extraction of local groundwater, demonstrating a commitment to sustainable practices (Willis et al., 2019).
• Year 4: ≥50% Bulk Sourcing: By stage, companies must pivot to focus on high-demand basins, reducing groundwater stress and ensuring compliance with updated regulatory measures (Willis et al., 2019).
• Year 6: ≥70% Bulk Sourcing: Firms operating in areas classified as stress-class basins, where over-extraction is critical, will fully adopt the mandate, working towards sustainability goals (Willis et al., 2019).

The stepwise approach gradually diminishes dependence on local groundwater sources and ensures a transition to sustainable bulk supply systems.

B. AMDK Levy Structure

Policymakers have proposed a structured levy on groundwater extraction to reinforce the reforms.

• Groundwater Levy:  The authority will levy a volume-based fee for every litre of groundwater extracted. Financial mechanism serves to curb excessive extraction practices by imposing direct costs on companies that continue unsustainable practices (Wijsen, 2023).
• Levy Waivers: Companies sourcing their water from PJT-Jawa's bulk supply network will benefit from proportional waivers. Incentivises compliance with the new sourcing mandates and encourages a transition toward more sustainable operations (Wijsen, 2023).
• Equity Allocation: All revenues generated from the groundwater levy will fund the Java Water Equity Fund. The fund will allocate resources to provide lifeline subsidies for low-income households, roll out refill stations in underserved communities, and bolster PET recovery infrastructure(Wijsen, 2023).

C. Institutional Enforcement

Various institutions will oversee the successful implementation of the AMDK integration strategy:

• PJT-Jawa Holding:  entity will manage bulk sourcing infrastructure and monitor compliance with sourcing mandates while administering the groundwater levy system (Mohsin et al., 2019).
• Regulator (DJKN): The regulator will issue licenses, enforce compliance with levy schedules, and penalise firms for non-compliance, ensuring sustained regulatory oversight of the aggregated water supply system (York et al., 2011).
• AMDK Performance Contracts: The integration of KPI-linked reporting within the Digital Twin for real-time monitoring will reinforce accountability among AMDK firms, linking financial outcomes directly to compliance measures (Olowoyo et al., 2022).

Key Outcome: By 2035, the goal is for at least 85% of AMDK water to be sustainably sourced from PJT-Jawa's bulk supply networks, substantially reducing the risks associated with groundwater depletion (Warburton et al., 1986).

4.2 Extended Producer Responsibility (EPR) Package

To address the plastic waste crisis prompted by bottled water consumption, the Java Integrated Water Grid incorporates a robust Extended Producer Responsibility (EPR) framework. Includes enforceable PET recovery targets and refill station models, promoting a transition toward a more circular economy.

A. PET Recovery Targets

Under the EPR framework:

• Verified Recovery Metrics: Evidence of PET recovery will be tracked and reported through the Digital Twin dashboard, ensuring transparency and accountability in recovery efforts (Jaffee, 2023).

B. Refill Station Infrastructure

The establishment of a comprehensive refill station network aims to mitigate plastic dependency and enhance access to safe drinking water:

• Technical Standards: Refill stations will be equipped with integrated IoT sensors for real-time monitoring of water quality to ensure the safety of dispensed water. These stations will feature co-branding with AMDK firms to promote compliance with shared goals (Pang, 2019).
• Equity Linkages: Refilling station services will be subsidised through the Java Water Equity Fund to enhance affordability and ensure access for marginalised populations (Igbeneghu & Lamikanra, 2014).

C. EPR Governance

To formalise EPR compliance:

• Producer Responsibility Organisation (PRO): Established under PJT-Jawa, the organisation will coordinate AMDK compliance and facilitate recovery initiatives (Ababulgu et al., 2025).
• Deposit-Return Systems: Implementing fee-rebate mechanisms encourages consumers to return PET bottles, incentivising high recovery rates across the market (VIu et al., 2023).
• Non-compliance Penalties: Progressive penalties for non-compliance will ensure that all firms participate or face increasing stakes if they fail to meet established recovery goals (Francisco, 2014).

Impact: Together, PET recovery initiatives and refill station distribution systems will transition Java from a linear bottled water economy to a circular AMDK ecosystem, reducing plastic waste and enhancing sustainability (Tabar et al., 2024).

4.3 Environmental & Social Safeguards

The transition within the AMDK sector will embed environmental and social safeguards aligned with international standards, focusing on minimising risks and ensuring community participation.

A. Environmental & Social Impact Assessments (ESIA)

Authorities will conduct mandatory baseline assessments for all new AMDK facilities and related infrastructure:

• Screening Criteria:  will encompass evaluation metrics such as groundwater sustainability thresholds, operational carbon footprints, and potential risks of social displacement tied to infrastructural development (Sun et al., 2011).

B. Community Engagement Framework

Effective community engagement strategies will facilitate local involvement and support:

• Early Stakeholder Consultation: Local communities will be engaged from the planning phase to encourage buy-in and collaboration in decision-making processes (Grisales et al., 2021).
• Public Awareness Programs: At least 50 training sessions per year will be conducted to promote refill station usage, PET recovery, and safe drinking water practices, thereby enhancing community engagement (Ichetaonye, 2023).
• Inclusive Representation: Decision-makers will actively include women, vulnerable groups, and rural stakeholders throughout water governance processes(CLEMENTS, 2025).

C. Grievance Redress Mechanism (GRM)

Authorities will establish an accessible multi-channel GRM to address community concerns regarding water services:

• Access Points: Mechanisms will include local service centres, mobile apps integrated with the Digital Twin, and community committees ensuring responsive engagement with citizens.

Safeguard Principle: All AMDK reforms will centre around people, emphasising environmental sustainability, social justice, and participatory governance practices.

The AMDK integration and circularity reforms introduced under the Java Integrated Water Grid aim to minimise ecological impacts, safeguard groundwater resources, and promote equity in water access. By focusing on sustainable sourcing practices, robust EPR frameworks that address plastic waste, and comprehensive environmental and social safeguards, Java’s progress toward water resource sustainability is both ambitious and essential for the island’s socio-economic development.

The AMDK sector reform anchors the Java Integrated Water Grid 2035 by transforming bottled water governance into a circular, equity-driven ecosystem. Transition Mechanics aims to phase out unregulated groundwater use and incentivise bulk supply integration. EPR mandates push 90% PET recovery and establish more than 1,500 refill stations to expand affordable access. Environmental and social safeguards enforce global ESG compliance while amplifying community voices in decision-making. By 2035, bottled water production and consumption in Java will operate sustainably, inclusively, and with climate resilience. This reform proves that One Island • One System • One Guarantee is not rhetoric; it is reality.

 

5. Ten Radical Moves for the Java Integrated Water Grid 2035

The execution of the Java Integrated Water Grid 2035 requires transformative interventions that go beyond incremental reforms. These Ten Radical Moves define strategic shifts essential to securing safe, affordable, and sustainable water for the 160 million residents of Java. Each move combines digital innovation with circular reforms to create an integrated and results-driven governance framework.

1. Build the Java Water Digital Twin

Fragmented data and reactive decision-making hinder effective water governance. The Digital Twin consolidates all system data into a predictive, real-time platform that spans sources, treatment, transmission, distribution, and consumption. Integration of satellite imagery, IoT sensors, and smart meters improves data quality. Climate scenarios modelled in the platform strengthen preparedness for droughts and floods. Predictive simulations facilitate cross-basin water transfers. Utilities gain the ability to move from reactive responses to proactive management, improving allocation of resources.

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2. Launch the NRW War Program

Non-revenue water levels of 35–45 per cent represent financial and resource losses. The program introduces over 500 District Metered Areas (DMAs) for leakage detection, smart meters for 90 per cent of connections, and automated pressure management to reduce bursts. These measures unlock approximately IDR 8 trillion (USD 520 million) annually, which can fund lifeline subsidies and digital upgrades (Kamienski et al., 2018).

 

3. Mandate AMDK Bulk Water Integration

Groundwater over-extraction by bottled water firms has degraded environmental conditions. A phased mandate requires AMDK firms to source 30 per cent of water from bulk supply by Year 2, 50 per cent by Year 4, and 70 per cent by Year 6. Volume-based levies penalise excessive groundwater use, while compliant firms receive waivers. Monitoring through the Digital Twin ensures accountability. The measure reduces aquifer reliance and secures basin flows (Chen et al., 2021).

 

4. Deploy 1,500+ Refill Stations by 2030

The PET waste crisis intensifies with the growing dependence on bottled water. Establishing a refill-first ecosystem, co-funded by AMDK firms and the Java Water Equity Fund, provides safe, affordable alternatives. Planners prioritise stations in urban centres, underserved areas, and tourism zones. IoT quality monitoring ensures safety, while co-branding strategies align with compliance frameworks. The initiative reduces PET waste and builds a circular economy (Campos et al., 2019).

 

5. Enforce a 90% PET Recovery Mandate

Plastic pollution from bottled water requires circular interventions. A Producer Responsibility Organisation (PRO) coordinates PET recovery. Deposit-return and rebate mechanisms incentivise consumers. Compliance and recovery data appear in Digital Twin dashboards. Waste transforms into valuable resources, advancing the circular economy (Areekath et al., 2022).

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6. Operationalise the Java Water Equity Fund

Low-income households face disproportionate costs of bottled water. An independently managed escrow fund ensures that essential services are available to low-income households. Allocations support subsidies of 50 litres per person per day, finance new household connections, and fund climate adaptation and refill station expansion. Equity is embedded directly into the governance system (Chen et al., 2021).

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7. Adopt KPI-Linked Procurement and PPPs

Weak procurement processes reduce accountability. Centralising procurement under PJT-Jawa integrates platforms across pipelines, treatment plants, refill stations, and IoT systems. Authorities link contracts to measurable KPIs such as NRW reduction, PET recovery, and witty meter coverage. Results-based financing rewards verified performance. The outcome improves cost efficiency and reduces risks for private investors (Olatinwo & Joubert, 2023).

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8. Establish a Utility Capacity-Building Academy

Limited expertise constrains utility performance. The academy provides structured training in digital literacy, NRW analytics, and extended producer responsibility (EPR) compliance. Certification programs ensure long-term professional development. Skilled personnel strengthen operational delivery.

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9. Embed Climate Readiness Protocols

Increasing weather variability demands adaptive strategies. Climate readiness integrates into digital and operational frameworks. The Digital Twin models emergency transfers. Inter-basin management includes contingency plans for droughts and floods. District-level KPIs monitor resilience. The approach enhances infrastructure robustness and safeguards public health (Maroli et al., 2020).

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10. Establish Transparent Community Engagement and GRM Framework

Citizen participation anchors reform legitimacy. Multi-channel platforms collect community feedback. Over 50 training sessions annually build awareness of water safety and recovery programs. Accessible grievance systems address pricing and service issues. Public dashboards disclose tariff, quality, and performance data. Transparency strengthens trust and cooperation (Maroli et al., 2020).

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The Ten Radical Moves form the backbone of the Java Integrated Water Grid 2035. By aligning digital innovation, circular economy practices, and social equity, the program provides a bold response to contemporary water challenges. These measures chart a path toward resilient, inclusive, and sustainable water governance for Java.

 

 

 

Move	Why	What	How	Impact
1. Build the Java Water Digital Twin	Fragmented data and reactive decision-making hinder governance	Real-time IoT-enabled Digital Twin covering sources to consumption	Integrate satellite imagery, IoT sensors, smart meters, and model climate scenarios; enable predictive cross-basin simulations	Transition from reactive to proactive management; improved resource allocation
2. Launch the NRW War Program	NRW levels at 35–45% cause significant financial and water loss	Comprehensive NRW reduction program	Establish 500+ DMAs, 90% smart meter rollout, automated pressure management	Unlock IDR 8T (~USD 520M) annually for subsidies and digital upgrades (Kamienski et al., 2018)
3. Mandate AMDK Bulk Water Integration	Groundwater over-extraction by AMDK firms harms the environment	Phased bulk water sourcing mandates	Year 2: 30%, Year 4: 50%, Year 6: 70%; levy with compliance waivers; monitor via Digital Twin	Protect groundwater reserves, reduce aquifer reliance, stabilise basin flows (Chen et al., 2021)
4. Deploy 1,500+ Refill Stations by 2030	PET waste crisis from bottled water	Refill-first ecosystem	Co-funded by AMDK and Equity Fund; urban and underserved focus; IoT monitoring; co-branding strategies	Reduce PET waste, improve access, foster circular economy (Campos et al., 2019)
5. Enforce a 90% PET Recovery Mandate	Plastic pollution from the bottled water industry	PET recovery and recycling system	Establish PRO; deposit-return and fee-rebate schemes; monitor via Digital Twin	Transform waste to resource; advance circular economy (Areekath et al., 2022)
6. Operationalise the Java Water Equity Fund	Low-income households bear disproportionate water costs	Escrow fund for essential services	Finance 50L/person/day subsidies; new connections; adaptation projects; refill expansion	Embed equity in governance; universal access to safe drinking water (Chen et al., 2021)
7. Adopt KPI-Linked Procurement & PPPs	Inefficient procurement hinders accountability	Centralised procurement tied to KPIs	Bundle infrastructure and IoT procurement; link contracts to NRW, PET, smart metering; results-based financing	Improve cost efficiency; reduce private sector risks; boost accountability (Olatinwo & Joubert, 2023)
8. Establish a Utility Capacity-Building Academy	Utilities lack technical capacity	Dedicated academy for training	Provide digital literacy, NRW analytics, EPR compliance training, and certification programs	Upskill workforce; enhance delivery capacity
9. Embed Climate Readiness Protocols	Climate change increases weather variability	Adaptive climate strategies	Model transfers in Digital Twin; drought and flood contingency plans; district-level resilience KPIs	Strengthen resilience, safeguard health and safety (Maroli et al., 2020)
10. Establish Transparent Community Engagement & GRM	Citizen engagement is critical for reform legitimacy	Multi-channel engagement and grievance framework	50+ community training sessions/year; grievance redress system; public dashboards for tariffs, quality, performance	Increase transparency, trust, and cooperation (Maroli et al., 2020)

 

The Ten Radical Moves turn ambition into execution and vision into measurable impact. Java builds its Water Digital Twin to unify decisions, drives efficiency by cutting NRW to ≤15% and unlocking USD 520M/year for reinvestment, and shifts toward a circular economy through bulk sourcing, refill stations, and 90% PET recovery. Leaders operationalise the Java Water Equity Fund to guarantee lifeline access and embed resilience by design with climate readiness and community voice. Together, these ten moves redefine water governance, proving that One Island • One System • One Guarantee is not an aspiration but the foundation of Java’s future.

 

 

6.     Finance & Transparency

The Java Integrated Water Grid (JIWG) project, aimed to be operational by 2035, represents a transformative effort requiring an intricate financial model to ensure its successful execution. Given the multifaceted aspects of infrastructure, digital transformation, and integration of circular AMDK systems, the initiative necessitates a well-structured financial framework that aligns capital expenditures (CAPEX), operational expenditures (OPEX), non-revenue water (NRW) savings, and other financial metrics such as internal rate of return (IRR) and payback periods.

In addressing CAPEX and OPEX, the project's financial model must factor in the substantial costs associated with constructing and maintaining water infrastructure. Historical data indicate that developing regions typically invest roughly $65 billion annually in water-related infrastructure, which includes approximately $15 billion for hydropower, $25 billion for water and sanitation, and $25 billion for irrigation and drainage (Zhang et al., 2021). Incorporating lessons from similar infrastructure endeavours reveals that sustainable investment practices can enhance long-term viability and economic efficiencies. For instance, a systematic approach utilising the Analytic Hierarchy Process (AHP) can prioritise investments based on multifactorial considerations, ensuring that the resources allocated yield maximum benefits concerning environmental and social returns (Macchiaroli et al., 2023).

To maintain donor confidence and attract private capital, the JIWG project must establish transparency and accountability mechanisms within its financial model. Involves creating a KPI-linked financing framework that can effectively track progress and outcomes. Recent studies emphasise that transparent reporting and sustainable accounting practices in financial management are pivotal to fostering sustainability and accountability in the water sector, which can significantly influence investment decisions (Okta & Mais, 2024). By employing rigorous financial oversight, the JIWG can align its objectives with broader Sustainable Development Goals (SDGs), thereby enhancing its attractiveness to potential investors.

6.1 Financial Model

A detailed assessment of CAPEX and OPEX implications underpins the financial model’s robustness. CAPEX encompasses the initial investments in technology and infrastructure, including construction of pipelines, treatment facilities, and digital infrastructure systems that enable innovative water management (Lee et al., 2015). The operational phase then necessitates accounting for routine maintenance, staff costs, and the energy required for ongoing operations, collectively categorised as OPEX. Such dual focus on both CAPEX and OPEX augments the capacity for financial planning, allowing the project to anticipate cash flow requirements and optimise resource allocation effectively.

An essential element in the financial model is the evaluation of NRW, which involves identifying lost revenue that results from water leakages and unbilled consumption. Effective NRW management leads to cost savings and supports environmental sustainability by enhancing water conservation efforts (Dadson et al., 2017). Providing quantifiable metrics on anticipated NRW savings can present a compelling case for investment and indicate the potential for a swift return on investment, contributing positively to the project's IRR and payback analysis.

Levy flows also warrant consideration within the financial framework, particularly in how they enable funding for ongoing operations and future infrastructure improvements (Borgomeo et al., 2016). By implementing a structured levy system—wherein users contribute based on the demand and consumption of water resources—the model can establish reliable revenue streams that mitigate risk and bolster the project’s financial health. The alignment of these financial strategies with empirical risk assessments can enhance the project's adaptability to changing economic landscapes, ultimately supporting its investment appeal.

The need to integrate innovative solutions underscores the interplay between financial sustainability and environmental stewardship, such as renewable energy and eco-friendly technologies, into the water management infrastructure. Projects focusing on solar-powered options for water treatment and transport have demonstrated lower operational expenses and reduced ecological footprints, thereby enhancing their attractiveness to socially conscious investors (Maftouh et al., 2022). Furthermore, market and political landscapes that prioritise climate resilience offer promising frameworks for funding, aligning corporate interests with sustainable community development efforts.

Moreover, stakeholder engagement through mechanisms of public-private partnerships (PPP) can play a fundamental role in financing the JIWG project. Evidence indicates that successful PPPs facilitate investment and can leverage private sector efficiencies while ensuring accountability through clearly defined roles and expectations (Bao et al., 2018). Current frameworks for evaluating PPP projects in water sectors point to their significant potential for enhancing service delivery, provided they are adeptly structured to prioritise both profitability and social responsibility (Orinya et al., 2024).

Addressing uncertainties related to the financial viability of infrastructure projects is crucial. Weather-induced risks, fluctuating demand for water, and geopolitical factors can substantially affect financial outcomes (Persad et al., 2020). Employing advanced financial modelling techniques allows for a robust analysis of risk and return on such investments, enabling decision-makers to better understand and mitigate potential challenges. Analytical rigour benefits not only project leaders but also warrants transparency to stakeholders and investors, enhancing trust and commitment.

6.1.1 Dynamic Economic Environment and Future Considerations
In the broader context, the financial implications of the Java Integrated Water Grid must factor in future economic fluctuations and environmental changes. For the project to remain viable, it is crucial to dynamically adjust financial strategies based on ongoing assessments of performance metrics and changes in water resource management (Gorelick et al., 2020). Additionally, incorporating adaptive practices for water supply management can enhance operational efficiency and financial sustainability amidst unpredictable climatic variables (Gorelick et al., 2020).

Increasing awareness of the interdependencies within the water-energy-food nexus highlights the necessity of integrating these critical domains in financial planning. Strategic investments characterised by cross-sectoral collaborations can minimise redundancy and enhance resource efficiency, as observed in some studies focusing on hydroeconomic models for sustainable water management (Kahil et al., 2018). By considering these interconnected sectors within the financial framework, the JIWG can better position itself within a competitive investment landscape, ensuring alignment with global trends in sustainability and resilience (Howard et al., 2016).

Additionally, ongoing fiscal transparency coupled with robust performance monitoring will be pivotal in deliberations about future investments. Incorporating technology-driven systems for transparency and reporting can significantly bolster stakeholder confidence, as empirical findings underscore the positive correlation between transparency practices and investment flows in environmental sectors (Ben‐Amar & Chelli, 2018). Integrating effective communication strategies and stakeholder engagement into the financial model not only assures current investors about the project’s accountability but also appeals to potential future investors.

In the financial model for the Java Integrated Water Grid, Planners must present a nuanced balance of CAPEX, OPEX, savings from NRW management, levy flows, and other relevant financial metrics. By establishing a cohesive financial framework that promotes transparency, accountability, and sustainable practices, an ambitious project can secure the necessary funding and stakeholder support required for its successful completion.

 

Building a Sustainable, Accountable, and Investable Water Future for Java

Delivering the Java Integrated Water Grid 2035 will require significant investments in infrastructure, digital transformation, and circular AMDK integration. To secure donor confidence, attract private capital, and maintain public trust, the program adopts a transparent, KPI-linked financing framework with built-in accountability.

 

A. Capital Expenditure (CAPEX)

The Java Integrated Water Grid (JIWG) necessitates a total capital expenditure (CAPEX) of approximately IDR 120 trillion (~USD 7.7 billion). Substantial financial requirements reflect the project’s expansive scope, which encompasses the construction of bulk water transmission pipelines, the establishment of refill stations and PET (polyethene terephthalate) recovery infrastructure, the integration of smart meters and Internet of Things (IoT) sensors, and the enhancement of digital twin technologies. Additionally, the project will fund initiatives aimed at reducing non-revenue water (NRW) losses through the development of dedicated NRW District Metered Areas (DMAs), upgrading existing treatment facilities, and establishing inter-basin connections to optimise water distribution and management across Java (Zhang et al., 2021).

The chosen financing mix for the project is multifaceted, incorporating a blend of public funding and private capital. Several sources will provide public funding, including central government allocations and grants from international financial institutions such as the Asian Development Bank (ADB), the World Bank, the Japan International Cooperation Agency (JICA), the Asian Infrastructure Investment Bank (AIIB), and the Green Climate Fund (GCF). Diverse funding approach aims to bolster donor confidence and attract private investment, particularly through public-private partnerships (PPPs) that will oversee the construction and operation of refill stations, PET recovery systems, innovative metering technologies, and bulk sourcing infrastructure (Macchiaroli et al., 2023).

Moreover, green finance instruments play a critical role in the funding strategy. These instruments may include climate adaptation funds and blended finance mechanisms that align investment returns with environmental, social, and governance (ESG) objectives. By leveraging these innovative financial instruments, the JIWG can position itself favorably within the growing market of sustainable infrastructure investments, which emphasises accountability and impact (Okta & Mais, 2024).

B. Operational Expenditure (OPEX)

The PJT-Jawa Holding organisational structure will significantly streamline operational expenditure (OPEX). The JIWG Structure reduces redundancy across the 400+ regional water companies (PDAMs) in Java. Through centralised procurement, the initiative will lower energy costs and reduce labour expenses, enhancing operational efficiencies (Lee et al., 2015). The project’s operational framework will leverage digital automation technologies to drive cost reductions further while simultaneously improving service delivery.

Investments in smart metering and real-time pressure management systems will generate continuous savings by minimising water losses and optimising resource allocation across the grid. These technologies enable accurate water consumption tracking and intelligent management of water flow, thus fostering a more efficient operational environment (Dadson et al., 2017). Consequently, the expected operational savings will directly contribute to the project’s long-term financial sustainability, allowing for reinvestment into critical initiatives such as lifeline subsidies and maintenance of the digital infrastructure (Borgomeo et al., 2016).

C. NRW Savings Math

An essential component of the JIWG’s financial model is the aggressive strategy aimed at reducing non-revenue water (NRW) from its current levels of 35-45% down to below 15% by 2035. Achieving an ambitious target is expected to unlock considerable operational savings. Using the annual NRW savings formula, we can calculate the projected annual savings as follows:

Savings=Baseline Volume×Tariff per m3×Loss Reduction×Collection Fact

Here, Experts estimate baseline NRW losses at approximately 1.2 billion m³ per year with an average tariff of IDR 6,500/m³. By targeting a loss reduction of 30% and an expected collection efficiency of 90%, the estimated annual savings are projected to reach around IDR 8 trillion (~USD 520 million) (Maftouh et al., 2022). These significant savings will be strategically reinvested into vital initiatives such as lifeline subsidies for underprivileged communities, expansion and maintenance of refill stations, and support for digital twin technologies integral to system management.

D. Levy Flows (AMDK & PET Recovery)

In addition to operational savings, financing mechanisms based on levy flows will contribute substantially to the project’s fiscal stability. The establishment of a groundwater levy, levied per litre of bottled water (AMDK) extraction, is proposed, with preferential waivers for companies that demonstrate compliance with bulk sourcing guidelines. Levy will ensure a steady revenue stream directly linked to water extraction activities (Bao et al., 2018).

Moreover, the PET recovery levy, which charges per unit of PET packaging, is designed to fund collection and recycling initiatives, thus promoting circular economy principles within the water sector. The flow of funds generated through these levies will feed into the Java Water Equity Fund. The program finances lifeline subsidies, the deployment of refill stations, and community training programs to foster sustainable water usage practices (Orinya et al., 2024).

E. Internal Rate of Return (IRR) & Payback

Its projected internal rate of return (IRR), estimated between 9% and 12% over a 20-year horizon, underscores the financial attractiveness of the JIWG. IRR provides a compelling incentive for private co-financing, aligning the project with investor expectations of sustainable returns (Persad et al., 2020). Furthermore, Reinvestment of savings from reduced NRW drives the anticipated payback period of approximately 10 to 12 years, steady revenue from bulk sourcing levy flows, and credits from PET recovery efforts. Such a transparent financial framework positions the JIWG as a bankable project, essential for engaging donors, investors, and climate financiers (Gorelick et al., 2020).

The JIWG offers a comprehensive financial model that integrates diverse funding sources for CAPEX, emphasises operational efficiency in its OPEX strategies, and presents a robust plan for managing NRW to realise substantial savings. Through strategically designed levy flows and favourable IRR and payback metrics, the program is not only feasible but aligned with sustainable investment principles that resonate with contemporary environmental and social governance standards.

6.2 Sensitivities & Risk Allocation

 

6.2 Sensitivities & Risk Allocation

The Java Integrated Water Grid (JIWG) faces considerable challenges and uncertainties stemming from climate vulnerabilities, fluctuating energy costs, foreign exchange (FX) exposure, capital expenditures (CAPEX), and operational risks associated with public-private partnerships (PPPs). To navigate these potential risks effectively, the program incorporates sensitivity analysis and a robust risk allocation framework designed to foster resilience and adaptability across various scenarios.

A. Sensitivity Testing

Sensitivity testing is a vital aspect of evaluating the financial model of the JIWG, as it highlights how various factors could influence the project's internal rate of return (IRR) and payback period. For instance, under a stress scenario of drought years occurring once every five years, the payback period could extend by an additional three years compared to the baseline case of a drought occurring once every ten years. Adjustment underscores the potential vulnerability of the project to long-term climate shifts, which could lead to substantial operational strains (Zhang et al., 2021).

Energy costs also pose a significant risk; a 20% increase in energy costs could result in a decline in IRR by approximately 1.5%, reflecting the sensitive nature of operational expenditures (OPEX) associated with energy procurement (Macchiaroli et al., 2023). Furthermore, projected fluctuations in foreign exchange rates will substantially impact CAPEX, with a ±10% volatility potentially leading to an exposure of around USD 700 million. Given that the project relies on both local and foreign currencies, Decision-makers must employ strategic financial instruments to manage risk effectively (Okta & Mais, 2024).

CAPEX overruns are another potential source of financial stress. In the event of unforeseen cost increases amounting to 15%, the timeline for the IRR breakeven could be delayed by around two years, emphasising the need for precise project cost management (Lee et al., 2015). Finally, demand risk, particularly in lower uptake scenarios, could be mitigated through PET levy inflows, which are designed to provide fiscal support amid reduced revenues from water sales (Dadson et al., 2017).

To address these various risks, the JIWG has established several mitigation measures. Emergency transfer protocols have been pre-modelled in the Digital Twin to handle climate shocks proactively. Additionally, power purchase agreements (PPAs) with renewable energy suppliers are intended to stabilise energy procurement costs, thereby minimising OPEX fluctuations related to energy volatility (Borgomeo et al., 2016). To hedge against FX exposure, blended financing denominated in both Indonesian Rupiah (IDR) and USD is recommended, coupled with the use of hedging instruments to buffer against currency swings. Demand variability will be managed through flexible levy schedules and targeted refill station co-branding campaigns, and these measures will entice greater consumer uptake (Maftouh et al., 2022).

A. Sensitivity Testing

Variable	Base Case	Stress Scenario	Impact on IRR / Payback
Drought Years	1-in-10	1-in-5	+3 years payback delay
Energy Costs	+0%	+20%	IRR drops ~1.5%
Foreign Exchange	±0% baseline	±10% volatility	Capex exposure: ±USD 700M
CAPEX Overruns	0%	+15%	Delays IRR breakeven by ~2 years
Demand Risk	Stable	-10% lower uptake	Offsets via PET levy inflows

Mitigation Measures:

• Climate shocks: Emergency transfer protocols pre-modelled in the Digital Twin.
• Energy volatility: PPAs with renewable energy suppliers to stabilise OPEX.
• FX exposure: Blended financing in IDR + USD with hedging instruments.
• Demand variability: Flexible levy schedules + refill station co-branding campaigns.

B. PPP Risk Allocation Table

A comprehensive risk allocation framework is critical for encompassing the diverse stakeholder landscape within the JIWG structure, particularly concerning the roles of PJT-Jawa, local PDAMs, AMDK firms, and private partners engaged through PPPs. The following table delineates the risk responsibilities among involved parties:

Risk	PJT-Jawa	PDAMs	AMDK Firms	Private Partners / PPPs
Leakage Risk	Shared oversight	Execution responsibility	N/A	Shared in DMA contracts
Demand Risk	Partial guarantee	Limited exposure	N/A	Shared revenue models
Energy Price Risk	Tariff-indexed	Tariff-indexed	N/A	Indexed PPAs
Foreign Exchange Risk	Central hedge	N/A	N/A	Limited exposure
CAPEX Overruns	Initial equity buffer	N/A	N/A	Shared via EPC guarantees
PET Recovery Targets	Oversight	N/A	Primary compliance	Co-financed infrastructure
Refill Station Rollout	Planning + fund allocation	N/A	Co-investment	Deployment + maintenance
Cybersecurity	Digital Twin governance	N/A	Data-sharing compliance	Vendor-neutral API integration

 The objectives. For example, leakage risk is subject to shared oversight, ensuring collaborative management of assets while assigning execution responsibility to PDAMs. Similarly, demand risk includes partial guarantees from PJT-Jawa, with private partners sharing revenue models to align interests and mitigate financial exposure (Bao et al., 2018).

In addition to a structured approach, PJT-Jawa and PDAMs will address energy price risks through tariff-indexed contracts. Indexed Power Purchase Agreements (PPAs) for private partners will further synchronise energy procurement with market fluctuations, thereby providing fiscal stability within operational budgets (Orinya et al., 2024).

Foreign exchange risk, an increasingly pertinent concern given its potential to disrupt project financing, will be managed through a central hedging mechanism at the PJT-Jawa level. Such a strategy is paramount in insulating the program from adverse currency fluctuations, particularly as international funding sources may involve significant foreign currency liabilities (Persad et al., 2020).

The allocation of CAPEX overruns also emphasises prudent financial planning; an initial equity buffer set aside by PJT-Jawa serves as a protective measure against unexpected costs. Shared responsibility among stakeholders is essential in cultivating a resilient project infrastructure that can weather unforeseen economic pressures (Gorelick et al., 2020).

Moreover, adherence to PET recovery targets will require robust oversight by PJT-Jawa, with primary compliance resting with AMDK firms. Co-financing of infrastructure improvements will further facilitate the realisation of circular economy objectives, enhancing overall project sustainability (Kahil et al., 2018).

In the JIWG’s sensitivity analysis, coupled with a meticulous risk allocation framework, the initiative is well-positioned to withstand various climatic, economic, and operational challenges. By addressing each significant risk through defined strategies and collaborative frameworks, the program not only safeguards its financial viability but also fortifies its long-term objectives of water sustainability and community resilience in Java.

Java will no longer treat water as a fragile utility but as a resilient, transparent, and investable system that can power its future. The Java Integrated Water Grid 2035 mobilises ~IDR 120 trillion (~USD 7.7B) through public-private partnerships, green finance, and levies. It reinvests IDR 8 trillion/year in NRW savings into equity subsidies and digital modernisation. Groundwater and PET levies directly expand refill stations and finance the Java Water Equity Fund. With an IRR of 9–12% and sensitivity-tested resilience against drought, FX volatility, energy inflation, and CAPEX overruns, 160 million residents gain sustainable, inclusive, and climate-ready water access.

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7. Donor Co-Financing Strategy

Mobilising Capital for an Inclusive and Climate-Resilient Water Future

Delivering the Java Integrated Water Grid 2035 requires unprecedented collaboration between government, development partners, private capital, and communities. With a total investment need of approximately IDR 120 trillion (~USD 7.7 billion), the program adopts a donor-aligned, KPI-driven co-financing framework designed to maximise impact per dollar and ensure financial transparency.

                               

 

7.1 Investment Needs & Use of Proceeds

7. Donor Co-Financing Strategy

Mobilising capital for the Java Integrated Water Grid (JIWG) represents a pivotal opportunity to foster inclusive and climate-resilient water infrastructures across the region. The estimated total investment requirement of approximately IDR 120 trillion (around USD 7.7 billion) over the decade from 2025 to 2035 will necessitate unprecedented collaboration among government entities, development partners, private capital, and local communities. A coordinated donor-aligned, KPI-driven co-financing framework is designed to maximise the impact of each dollar invested while ensuring financial transparency and accountability throughout the project's lifecycle (Zhang et al., 2021).

7.1 Investment Needs & Use of Proceeds

A. Total Investment Requirement

The total investment need of approximately IDR 120 trillion (~USD 7.7 billion) will encompass various capital investments across multiple key areas, including substantial infrastructure upgrades, development of digital platforms, implementation of circularity measures, and initiatives aimed at supporting social equity programs within the water sector (Macchiaroli et al., 2023). Research highlights that integrating these components is crucial for addressing both the immediate and long-term water needs of the Java population, particularly in the face of climate change and urbanisation pressures (Okta & Mais, 2024).

B. Allocation of Proceeds

The allocation of investment proceeds will be strategically distributed across several critical pillars, fostering sustainable water management and enhanced service delivery:

Investment Pillar	% of CAPEX	Use of Funds
Bulk Water Infrastructure	30%	Development of dams, reservoirs, inter-basin pipelines, and wholesale transmission systems
Digital Backbone	15%	Implementation of the Java Water Digital Twin, IoT metering systems, and data integration technologies
NRW Reduction Program	20%	Establishment of District Metered Areas (DMAs), effective pressure management systems, and leakage analytics
AMDK Integration & Circularity	15%	Rollout of refill stations, PET recovery systems, and compliance technologies for bottled water
Equity & Social Inclusion Programs	10%	Funding for lifeline subsidies, connections for low-income households, and community outreach initiatives
Climate Adaptation & Resilience	5%	Development of emergency transfer protocols, drought/flood response modules, and resilience hubs
Capacity-Building & Governance	5%	Establishment of a utility academy, implementation of ESG safeguards, and stakeholder engagement efforts

Strategic allocation enhances the resilience of water services. While promoting equity among communities that are most vulnerable to climate impacts (Lee et al., 2015).

C. Funding Priorities

In light of emerging climate challenges, the JIWG strongly emphasises high-impact interventions that will deliver substantial benefits in a relatively short timeframe. The team will focus on achieving key milestones:

These prioritised actions reflect a deliberate effort to enhance water service delivery efficiency and infrastructure robustness while ensuring that the needs of marginalised communities remain at the forefront of development initiatives (Dadson et al., 2017). An essential component of strategy includes the "equity ring-fence" that protects lifeline subsidies and community-focused programs through the establishment of the Java Water Equity Fund (Borgomeo et al., 2016).

 

7.2 Blended Finance Stack

7.2 Blended Finance Stack

The financing strategy for the Java Integrated Water Grid (JIWG) employs a multi-layered blended finance stack that synergises development finance, government budgets, private sector capital, and ESG-linked instruments. An innovative framework is essential for unlocking the IDR 120 trillion (approximately USD 7.7 billion) required for an inclusive and climate-resilient water future. The structured approach not only leverages diverse funding sources but also aligns financial objectives with sustainable development goals, ensuring that the financing mobilised maximises both economic and societal impacts.

A. Multilateral Development Banks (MDBs)

Multilateral Development Banks (MDBs) play a crucial role in financing the JIWG’s initiatives. The Asian Development Bank (ADB) is committed to providing financial support specifically for Non-Revenue Water (NRW) reduction programs and the development of infrastructure aimed at improving accessibility to water resources. The World Bank focuses on deploying advanced technological solutions, emphasising the importance of innovation in addressing water supply challenges.

Moreover, the Asian Infrastructure Investment Bank (AIIB) has positioned itself to finance bulk water transmission pipelines, ensuring efficient water transfer. The Japan International Cooperation Agency (JICA) contributes through technical assistance focused on improving operational efficiency among water service providers. Collectively, these MDB contributions form the backbone of the financing stack, facilitating large-scale investments while fostering sustainable practices.

B. Government Budgets

Government budgets are another critical pillar within the blended finance strategy, where central government allocations will target crucial areas such as climate adaptation infrastructure and community outreach programs. These investments facilitate equitable access to water resources, particularly for underserved rural and peri-urban areas. The allocation from government budgets not only addresses urgent infrastructural needs but also supports broader social equity initiatives that enhance community resilience against climate vulnerabilities.

By strategically aligning government financial commitments with international funding and private sector investments, the JIWG can ensure a cohesive funding strategy that optimises resource utilisation and enhances the overall effectiveness of water management initiatives.

C. AMDK & PET Recovery Levies

The financial model incorporates distinct levies on groundwater extraction and PET packaging, producing significant annual revenues. The groundwater extraction levy will generate substantial annual revenues, with a structure designed to incentivise firms to shift towards more sustainable sourcing practices. Such incentives not only generate revenue but also encourage sustainable practices within the water sector.

Additionally, the PET recovery levy funds infrastructure necessary for a circular economy, including refill station deployment and PET recycling initiatives. Revenue from these levies could be allocated towards subsidies for low-income households and initiatives aimed at plastic recovery, thereby integrating environmental sustainability with agricultural and community development goals.

D. Green Bonds & ESG Instruments

To further augment financing, the JIWG plans to issue green bonds aimed at funding sustainable projects. These financial instruments attract private ESG investors who seek impact-linked returns based on sustainability metrics embedded within key performance indicators. (KPIs).

By aligning these financial strategies with broader ESG objectives, the JIWG can tap into a burgeoning market that prioritises environmental responsibility and social governance, thus enhancing its attractiveness to a broader pool of investors. The implementation of green financial mechanisms is essential for mobilising capital for climate-focused infrastructure projects.

E. Climate & Resilience Funds

The strategy also integrates dedicated Climate and Resilience Funds, which co-finance essential components of the JIWG, such as climate resilience initiatives. Collaborative funding efforts underscore a commitment to long-term climate resilience and are crucial in facilitating investments that address both infrastructural needs and ecological sustainability within water management systems.

F. Private Co-Financing via PPPs

The utilisation of public-private partnerships (PPPs) is an essential aspect of the JIWG’s financing mechanism. These partnerships focus on critical projects such as smart metering infrastructure and water service improvement initiatives. By aligning PPP contracts with performance-based financing incentives linked to verified KPIs, the JIWG encourages accountability and incentivises private sector engagement to meet performance targets.

The implementation of tailored PPP arrangements facilitates the effective sharing of risks and rewards between public and private entities, thereby enhancing the viability and efficiency of water service delivery.

 

The blended finance stack exemplifies a comprehensive and strategic approach to mobilising financial resources for the Java Integrated Water Grid. By integrating MDB financing, government budgets, innovative levies, green bonds, climate funds, and PPPs, the JIWG aims to create a resilient funding framework that is responsive to the challenges posed by climate change while ensuring equitable access to water for all. Such a multifaceted approach is critical in advancing the region's water management goals while aligning with broader sustainability initiatives and climate resilience objectives.

 

7.3 Results by 2035 & Donor Value Proposition

7.2 Blended Finance Stack

The financing strategy for the Java Integrated Water Grid (JIWG) employs a multi-layered blended finance stack that synergises development finance, government budgets, private sector capital, and ESG-linked instruments. An innovative framework is essential for unlocking the IDR 120 trillion (approximately USD 7.7 billion) required for an inclusive and climate-resilient water future. The structured approach not only leverages diverse funding sources but also aligns financial objectives with sustainable development goals, ensuring that the financing mobilised maximises both economic and societal impacts.

A. Multilateral Development Banks (MDBs)

Multilateral Development Banks (MDBs) play a crucial role in financing the JIWG’s initiatives. The Asian Development Bank (ADB) is committed to providing financial support specifically for Non-Revenue Water (NRW) reduction programs and the development of infrastructure aimed at improving accessibility to water resources. The World Bank focuses on deploying advanced technological solutions, emphasising the importance of innovation in addressing water supply challenges.

Moreover, the Asian Infrastructure Investment Bank (AIIB) has positioned itself to finance bulk water transmission pipelines, ensuring efficient water transfer. The Japan International Cooperation Agency (JICA) contributes through technical assistance focused on improving operational efficiency among water service providers. Collectively, these MDB contributions form the backbone of the financing stack, facilitating large-scale investments while fostering sustainable practices.

A. Quantifiable Results by 2035

Outcome Area	2035 Target	Impact
Access to Safe Water	≥98% household coverage	Universal water security
NRW Reduction	≤15% NRW	IDR 8T/year unlocked for reinvestment
AMDK Bulk Sourcing	≥85% bulk-sourced	Protects aquifers, stabilises flows
PET Recovery	≥90% PET recovery	Circular AMDK ecosystem achieved
Refill Stations	1,500+ nationwide	Affordable, safe drinking water access
Digital Integration	90% smart metering	Transparency, efficiency, accountability
Climate Resilience	100% coverage	Adaptive, shock-resistant water systems
Equity & Inclusion	50L/day lifeline access	Protects 10M+ low-income households

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B. Government Budgets

Government budgets are another critical pillar within the blended finance strategy, where central government allocations will target crucial areas such as climate adaptation infrastructure and community outreach programs. These investments facilitate equitable access to water resources, particularly for underserved rural and peri-urban areas.. The allocation from government budgets not only addresses urgent infrastructural needs but also supports broader social equity initiatives that enhance community resilience against climate vulnerabilities.

By strategically aligning government financial commitments with international funding and private sector investments, the JIWG can ensure a cohesive funding strategy that optimises resource utilisation and enhances the overall effectiveness of water management initiatives.

B. Donor Value Proposition

The Java Integrated Water Grid 2035 offers donors and investors a high-impact, ESG-aligned investment opportunity:

• Scalable Impact: Serving 160M+ people with universal access by 2035.
• Climate Alignment: Future-proofing infrastructure against droughts, floods, and rising demand.
• Circular Economy Transition: Driving 90% PET recovery, refill ecosystems, and AMDK reforms.
• Data-Driven Governance: IoT-enabled transparency ensures real-time reporting and KPI-based accountability.
• Inclusive Growth: Embedding equity through lifeline subsidies and targeted investments in vulnerable communities.
• Bankable Returns: IRR of 9–12%, backed by predictable levy revenues and NRW savings.

Donor partners are not just funding infrastructure; they are co-architects of a climate-resilient, equitable water future for Java.

 

C. AMDK & PET Recovery Levies

The financial model incorporates distinct levies on groundwater extraction and PET packaging, producing significant annual revenues. The groundwater extraction levy will generate substantial annual revenues, with a structure designed to incentivise firms to shift towards more sustainable sourcing practices. Such incentives not only generate revenue but also encourage sustainable practices within the water sector.

Additionally, the PET recovery levy will fund infrastructure necessary for a circular economy, including refill station deployment and PET recycling initiatives. Revenue from these levies could be allocated towards subsidies for low-income households and initiatives aimed at plastic recovery, thereby integrating environmental sustainability with agricultural and community development goals.

D. Green Bonds & ESG Instruments

To further augment financing, the JIWG plans to issue green bonds aimed at funding sustainable projects. These financial instruments will attract private ESG investors who seek impact-linked returns based on sustainability metrics embedded within key performance indicators (KPIs).

By aligning these financial strategies with broader ESG objectives, the JIWG can tap into a burgeoning market that prioritises environmental responsibility and social governance, thus enhancing its attractiveness to a broader pool of investors. The implementation of green financial mechanisms is essential for mobilising capital for climate-focused infrastructure projects.

E. Climate & Resilience Funds

The strategy also integrates dedicated Climate and Resilience Funds, which co-finance essential components of the JIWG, such as climate resilience initiatives. Collaborative funding efforts underscore a commitment to long-term climate resilience and are crucial in facilitating investments that address both infrastructural needs and ecological sustainability within water management systems.

F. Private Co-Financing via PPPs

The utilisation of public-private partnerships (PPPs) is an essential aspect of the JIWG’s financing mechanism. These partnerships focus on critical projects such as smart metering infrastructure and water service improvement initiatives. By aligning PPP contracts with performance-based financing incentives linked to verified KPIs, the JIWG encourages accountability and incentivises private sector engagement to meet performance targets.

The implementation of tailored PPP arrangements facilitates the effective sharing of risks and rewards between public and private entities, thereby enhancing the viability and efficiency of water service delivery.

 

The blended finance stack exemplifies a comprehensive and strategic approach to mobilising financial resources for the Java Integrated Water Grid. By integrating MDB financing, government budgets, innovative levies, green bonds, climate funds, and PPPs, the JIWG aims to create a resilient funding framework that is responsive to the challenges posed by climate change while ensuring equitable access to water for all. Such a multifaceted approach is critical in advancing the region's water management goals while aligning with broader sustainability initiatives and climate resilience objectives.

 

By 2035, the donor co-financing strategy will prove that blended capital can transform ambition into measurable impact. A USD 7.7B program funded by MDBs, government, AMDK levies, ESG investments, and climate funds enables 98% universal water access. It cuts 35–45% NRW losses, unlocking USD 520M each year for reinvestment. It drives 90% PET recovery and installs 1,500 refill stations that sustain equity for households. It protects communities from climate shocks while ensuring inclusive service delivery. This program delivers triple dividends: climate resilience, social equity, and sustainable returns, positioning Java’s water future as Southeast Asia’s most compelling donor-backed transformation.

 

8. Phased Roadmap 2025–2035

From Fragmented Systems to a Smart, Circular, and Equitable Water Grid

The successful implementation of the Java Integrated Water Grid (JIWG) requires a carefully sequenced transformation over three strategic phases from 2025 to 2035.  A phased approach will ensure that policy reforms, digital infrastructure enhancements, AMDK circularity initiatives, and Stakeholders deploy other relevant measures in a structured, effective, and scalable environment.

 

Phase 1 (2025–2027) — Setup & Pilots

“Laying the Foundations”

Action Area: Institutional Setup

• Key Deliverables
• PJT-Jawa Holding Formally Established:
  The establishment of PJT-Jawa Holding will provide a stable governance framework to oversee and coordinate various aspects of the JIWG, creating a transparent chain of accountability and promoting effective collaboration among stakeholders (Zhang et al., 2021).
• Sign Performance-Based Contracts with PDAMs:
  By implementing performance-based contracts, the initiative will ensure that Authorities incentivise local water utilities (PDAMs) to meet specific service delivery targets. Mechanism ties financial compensation to key performance indicators (KPIs) to maintain high standards of water management (Macchiaroli et al., 2023).
• Define Tariff Methodology & EPR Guidelines:
  Establishing a clear tariff structure and Extended Producer Responsibility (EPR) guidelines will promote transparency and fairness in pricing strategies while ensuring that bottled water producers contribute to the sustainable management of water resources (Okta & Mais, 2024).

Action Area: Digital Twin Pilot

• Key Deliverables
• Launch 10 DMA Pilots:
  Deploying ten District Metered Areas (DMAs) will provide data essential for monitoring water losses and optimising distribution networks. The pilot projects will reveal best practices for NRW reduction initiatives (Lee et al., 2015).
• Deploy IoT Sensors in 5 Urban PDAMs:
  The introduction of IoT technology will enable real-time data collection and monitoring, allowing for improved operational decision-making and management of water resources (Dadson et al., 2017).
• Integrate Early Warning Climate Modules:
  By incorporating early warning systems into the digital infrastructure, the JIWG will enhance its capacity to respond proactively to climate threats, thereby increasing resilience against adverse weather conditions (Borgomeo et al., 2016).

Action Area: NRW Reduction

• Key Deliverables
• Conduct Baseline NRW Audits:
  Establishing a baseline through comprehensive audits will provide a foundation for measuring the effectiveness of subsequent NRW reduction efforts, facilitating a targeted approach to loss minimisation (Maftouh et al., 2022).
• Launch 100 DMA Pilots:
  Building on initial pilot projects, expanding the number of DMAs to 100 will further enhance system monitoring capabilities and encourage widespread adoption of NRW reduction strategies (Bao et al., 2018).
• Introduce Smart Metering in 10% of Households:
  Implementing smart meters will create greater visibility into household water consumption, enabling better management practices and proactive responses to emerging water usage trends (Orinya et al., 2024).

Action Area: AMDK Transition

• Key Deliverables
• Require Year 1 Baseline Disclosure:
  Mandating baseline reporting for bottled water firms will enhance visibility into their production practices, facilitating compliance with sustainability standards and transparency (Persad et al., 2020).
• Enforce ≥30% Bulk Sourcing by End of Phase 1:
  Enforcing the requirement for a minimum of 30% bulk sourcing will promote environmentally sustainable practices within the AMDK sector, thereby reducing reliance on single-use plastics (Gorelick et al., 2020).
• Design Levy Collection Mechanisms:
  Implementing robust systems for collecting levies will generate funds necessary for funding sustainability initiatives, such as recycling and refill station deployment (Kahil et al., 2018).

Action Area: Equity Fund Setup

• Key Deliverables
• Establish Java Water Equity Fund:
  Creating the Java Water Equity Fund will ensure that underserved communities have access to affordable water through targeted investments and subsidies (Howard et al., 2016).
• Begin Financing 50L/day Lifeline Subsidies:
  Introducing lifeline subsidies for households requiring 50 litres per day will directly reduce the financial burden on low-income households while promoting equitable access to water services (Ben‐Amar & Chelli, 2018).
• Pilot Refill Stations in 3 Cities:
  Launching refill stations in selected urban areas will facilitate easier access to clean drinking water, thus decreasing dependency on bottled alternatives and enhancing sustainability (Lara et al., 2017).

 

Priority Actions

Action Area	Key Deliverables
Institutional Setup	- PJT-Jawa Holding formally established. - Sign performance-based contracts with PDAMs. - Define tariff methodology & EPR guidelines.
Digital Twin Pilot	- Launch 10 DMA pilots. - Deploy IoT sensors in 5 urban PDAMs. - Integrate early warning climate modules.
NRW Reduction	- Conduct baseline NRW audits. - Launch 100 DMA pilots. - Introduce smart metering in 10% of households.
AMDK Transition	- Require Year 1 baseline disclosure. - Enforce ≥30% bulk sourcing by the end of Phase 1. - Design levy collection mechanisms.
Equity Fund Setup	- Establish Java Water Equity Fund. - Begin financing 50L/day lifeline subsidies. - Pilot refill stations in 3 cities.

 

Expected Outcomes by 2027

• PJT-Jawa Operational with Active PDAM Integration Contracts:
  By the end of Phase 1, PJT-Jawa should be fully operational, fostering active engagement and collaboration with local water utilities.
• Digital Twin Online for Initial Monitoring Across 3 Basins:
  A functioning Digital Twin platform will facilitate real-time monitoring and management capabilities, enhancing operational efficiency (Qassim et al., 2023).
• NRW reduced from 45% to approximately 35% in Pilot Districts:
  Effective implementation of NRW reduction strategies will minimise losses, demonstrating the financial and operational gains achievable through the JIWG initiative (Ruiters & Amadi-Echendu, 2023).
• 30% AMDK Bulk Sourcing Achieved in Stress Basins:
  The phased compliance requirements will ensure that significant progress is made in implementing bulk sourcing practices among bottled water producers (Berlian et al., 2024).
• Java Water Equity Fund Activated, Benefiting Approximately 1 Million Low-Income Households:
  Activation of the equity fund will directly support access to water for vulnerable communities, ensuring enhanced social equity (Qadri et al., 2024).

 

Phase 1 of the Java Integrated Water Grid roadmap sets the foundational structure necessary for sustainable water management in Java. Through institutional establishment, digital pilots, NRW reduction initiatives, AMDK compliance, and the creation of an equity fund, the groundwork is being laid for a comprehensive transformation towards a bright, circular, and equitable water system that meets the needs of all citizens.

 

Phase 2 (2028–2031) — Integration & Upgrades

“Connecting the Grid”

Phase 2 of the Java Integrated Water Grid (JIWG) focuses on scaling up digital integration, enhancing non-revenue water (NRW) reduction programs, expanding refill station deployments, and enforcing compliance among AMDK (bottled water) producers. Phase aims to embed environmental, social, and governance (ESG) safeguards while leveraging donor co-financing mechanisms.

Key Objectives

• Expand the Digital Twin to Cover All PDAMs:
  The goal is to extend the Digital Twin technology across all public water service providers (PDAMs), facilitating real-time monitoring and integrated management of the water system. Technology will support enhanced decision-making and operational efficiency (Mukhacheva et al., 2022).
• Accelerate NRW Reductions through DMA Upgrades and Smart Metering:
  Significant efforts will focus on reducing NRW to less than 22% across integrated PDAMs by upgrading District Metered Areas (DMAs) and deploying innovative metering technologies. These initiatives will provide actionable data for optimising water distribution and minimising losses (Moshood et al., 2021).
• Scale Refill Station Deployments and PET Recovery Infrastructure:
  Building on the pilot phase, the project will expand refill station deployments and enforce infrastructure necessary for effective PET recovery, thereby contributing to a circular economy and reducing plastic waste (Deli et al., 2024).
• Achieve Climate Adaptation Readiness Across All Districts:
   The objective emphasises enhancing the resilience of water systems against climate threats through integrated planning and infrastructure improvements (Li & Brennan, 2024).

Priority Actions

Action Area: Digital Integration

• Key Deliverables
• Full Rollout of Digital Twin Across All Basins:
  Complete deployment of the Digital Twin system will allow for comprehensive monitoring and management of all water supply systems within Java, enhancing the ability to predict and respond to operational challenges (Li et al., 2023).
• 65% Smart Metering Coverage:
  Expanding witty metering coverage to 65% of households will significantly enhance visibility into water consumption patterns, allowing for better resource management and consumer engagement (Alexandridis et al., 2024).
• IoT-Enabled PET Recovery Dashboards Operational:
  Implementing IoT technology for tracking PET recovery will enable real-time management, optimising compliance with recycling initiatives (Yun et al., 2024).

Action Area: NRW War Program

• Key Deliverables
• Establish 500 DMA Zones:
  The establishment of 500 DMA zones will facilitate targeted interventions for NRW reduction, optimising operational efficiency in high-loss areas (su, 2024).
• Deploy Pressure Automation Systems:
  Implementing pressure automation systems will help manage and control water pressure throughout the distribution network, reducing leakage and enhancing service delivery (Egorov et al., 2021).
• Reduce NRW to ≤22% Across Integrated PDAMs:
  Focused efforts to reduce NRW below 22% will be critical in achieving financial sustainability and improving water supply reliability (Lin & Low, 2023).

Action Area: AMDK Circularity

• Key Deliverables

Enforcing regulations that require at least 50% of water sourced by AMDK producers to come from bulk sourcing will contribute to reducing reliance on single-use plastics and groundwater depletion (Oehlschläger et al., 2023).

• Operationalise Producer Responsibility Organisation (PRO):
  Establishing a PRO will facilitate compliance among bottled water producers in managing PET recovery and ensuring environmental accountability in their operations (Berroir et al., 2023).
• Achieve ≥70% PET Recovery:
  Increasing PET recovery rates to 70% will significantly alleviate pressure on landfills and promote sustainable waste management practices (Johnson & Saikia, 2024).

Action Area: Refill Infrastructure

• Key Deliverables

Stakeholders will implement a total of 1,000 refill stations to enhance access to affordable drinking water for urban populations and reduce dependence on bottled water (Kim et al., 2025).

• Ensure IoT-Enabled Real-Time Quality Monitoring:
  Installing systems for real-time monitoring of water quality at refill stations will ensure safety and reliability, fostering public confidence in refill infrastructure (Kenett & Bortman, 2021).
• Expand Services into Peri-Urban and Rural Clusters:
  Extending services to peri-urban and rural areas will promote equitable access to clean water and enhance the resilience of underserved communities (Rigó et al., 2024).

Action Area: Climate Resilience

• Key Deliverables
• Integrate Drought/Flood Contingency Modules into the Digital Twin:
  Incorporating contingency modules will enhance preparedness for climate-related events, allowing for timely responses and resource reallocation during emergencies (Qiao et al., 2024).
• Establish District-Level Adaptation KPIs:
  Setting clear KPIs for climate adaptation at the district level will facilitate performance tracking and accountability, ensuring resilience measures are effectively implemented (Mohammed et al., 2022).
• Co-Finance Resilience Hubs with GCF & ESG Investors:
  Collaborative funding initiatives with the Green Climate Fund (GCF) and ESG investors will support the development of resilience hubs equipped to address local climate challenges (Rajan & Li, 2024).

 

Priority Actions

Action Area	Key Deliverables
Digital Integration	- Full rollout of Digital Twin across all basins. - 65% witty metering coverage. - IoT-enabled PET recovery dashboards are operational.
NRW War Program	- Establish 500 DMA zones. - Deploy pressure automation systems. - Reduce NRW to ≤22% across integrated PDAMs.
AMDK Circularity	- Enforce ≥50% bulk sourcing by 2030. - Operationalise Producer Responsibility Organisation (PRO). - Achieve ≥70% PET recovery.
Refill Infrastructure	- Deploy 1,000 refill stations by 2030. - Ensure IoT-enabled real-time quality monitoring. - Expand services into peri-urban and rural clusters.
Climate Resilience	- Integrate drought/flood contingency modules into the Digital Twin. - Establish district-level adaptation KPIs. - Co-finance resilience hubs with GCF & ESG investors.

·      

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Expected Outcomes by 2031

• 90% PDAM Integration Achieved Under PJT-Jawa:
  By the end of the phase, stakeholders will integrate PDAMs significantly into the PJT-Jawa framework, promoting coordinated management across the water supply system.
• Digital Twin Fully Operational for Real-Time Monitoring:
  The Digital Twin will be fully operational, providing vital data for ongoing assessments and strategic planning (Chen, 2024).
• NRW Reduced from 35% to ≤22% Across Java:
  Effective implementation of NRW reduction strategies will result in a substantial decrease in water losses, improving overall efficiency (Siew et al., 2023).
• 50% AMDK Bulk Sourcing, Mitigating Groundwater Depletion:
  Compliance with bulk sourcing regulations among AMDK producers will contribute to sustainable water use practices and protect groundwater sources (Elbouzidi et al., 2023).
• 1,000 Refill Stations Operational, Covering 70% of Urban Demand:
  The rollout of refill stations will facilitate greater access to clean drinking water for urban populations while decreasing reliance on bottled alternatives (Xie et al., 2021).
• PET Recovery Reaches ≥70%, Reducing Landfill Pressure Significantly:
  Achieving a PET recovery rate of 70% will markedly reduce landfill waste and promote circular economic practices within the water sector (Neethirajan & Kemp, 2021).

 

Phase 2 of the Java Integrated Water Grid initiative represents a critical step towards modernising the water infrastructure in Java through enhanced integration, compliance, and sustainability efforts. By focusing on scaling digital solutions, reducing NRW, and promoting circularity in the bottled water sector, the phase aims to create a comprehensive, adaptable, and efficient water grid capable of addressing current and future challenges.

 

Phase 3 (2032–2035) — Smart Grid at Scale

“Delivering One Island • One System • One Guarantee”

In the final phase, the Integrated Water Grid operates as a fully digitised, circular, climate-resilient ecosystem, achieving universal access and financial sustainability.

Key Objectives

• Complete full-scale smart grid deployment.
• Ensure universal, equitable access to safe drinking water.
• Achieve a circular AMDK ecosystem with 90% PET recovery.
• Operationalise climate-ready water management across all districts.

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Priority Actions

Action Area	Key Deliverables
Smart Grid at Scale	- 90% witty metering coverage. - Predictive Digital Twin dashboards integrated with AI analytics. - Full IoT integration for quality, pressure, and NRW optimisation.
NRW Optimization	- Reduce NRW to ≤15% by 2035. - Achieve real-time NRW tracking via AI-enabled sensors. - Monetise NRW savings (~IDR 8T/year reinvested).
AMDK Circular Economy	- Enforce ≥85% bulk sourcing. - Operate 1,500+ refill stations nationwide. - Reach ≥90% PET recovery with closed-loop recycling.
Equity & Affordability	- Guarantee 50L/day lifeline access for 10M+ low-income households. - Fully finance lifeline subsidies via levies + NRW savings. - Publish annual Equity Impact Reports.
Climate Resilience	- Digital Twin is fully climate-adaptive. - Emergency inter-basin transfers automated. - Zero-downtime resilience hubs are operational.

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Expected Outcomes by 2035

• ≥98% household access to safe, affordable water.
• NRW ≤15%, unlocking USD 520M/year in efficiency dividends.
• 1,500+ refill stations operational, ensuring universal access to safe drinking water.
• ≥85% AMDK bulk sourcing achieved, protecting groundwater sustainability.
• 90% PET recovery positions Java as a global leader in circular water governance.
• Digital Twin is fully AI-enabled, ensuring predictive, climate-resilient operations.
• Java Water Equity Fund sustainably finances universal lifeline services.

 

Phase 3 (2032–2035) — Smart Grid at Scale

“Delivering One Island • One System • One Guarantee”

In the final phase of the Java Integrated Water Grid (JIWG), the focus shifts to operating as a fully digitised, circular, and climate-resilient ecosystem, ultimately achieving universal and equitable access to safe drinking water while ensuring financial sustainability.

Key Objectives

• Complete Full-Scale Smart Grid Deployment:
   The objective aims to finalise the implementation of smart grid technologies across the entire water supply network, enabling enhanced management of resources and efficiency.
• Ensure Universal, Equitable Access to Safe Drinking Water:
  The goal is to facilitate access to high-quality drinking water for every household, focusing on fairness, particularly for marginalised communities.
• Achieve Circular AMDK Ecosystem with 90% PET Recovery:
  Promoting a circular economy in the bottled water sector ensures that at least 90% of PET bottles are recycled and reused, greatly minimising plastic waste.
• Operationalise Climate-Ready Water Management Across All Districts:
   The goal involves the institutionalisation of practices that prepare the water management systems to adapt to and mitigate the impacts of climate change effectively.

Priority Actions

Action Area: Smart Grid at Scale

• Key Deliverables
• 90% Smart Metering Coverage:
  Complete deployment of smart meters across the grid will facilitate accurate water consumption tracking, reducing wastage and enhancing billing accuracy (Gadzali et al., 2023).
• Predictive Digital Twin Dashboards Integrated with AI Analytics:
  Utilising predictive analytics through AI algorithms will enhance real-time decision-making, allowing for proactive maintenance and resource allocation based on real-time data predictions (Djakman & Siregar, 2024).
• Complete IoT Integration for Quality, Pressure, and NRW Optimisation:
  Ensuring that Internet of Things (IoT) fully integrated technologies will allow continuous monitoring of water quality and pressure, ultimately optimising operational efficiency and reducing non-revenue water (NRW) (Ljubič, 2023).

Action Area: NRW Optimisation

• Key Deliverables

 target represents significant progress in optimising water distribution and reducing losses, positioning the grid as a reliable water supply system (Palad, 2023).

• Achieve Real-Time NRW Tracking via AI-Enabled Sensors:
  Implementing AI-driven sensors will facilitate immediate detection of leaks and inefficiencies within the system, enabling rapid mitigation strategies (Palkina, 2021).
• Monetise NRW Savings (~IDR 8T/year Reinvested):
  The financial gains from reduced NRW will be reinvested into infrastructure improvements, sustainability initiatives, and community programs, further enhancing the system (Azieva et al., 2021).

Action Area: AMDK Circular Economy

• Key Deliverables
• Enforce ≥85% Bulk Sourcing:
  Compliance among AMDK producers for bulk sourcing will contribute significantly to sustainability efforts, reducing single-use plastic consumption and groundwater depletion (Ciliberti et al., 2023).
• Operate 1,500+ Refill Stations Nationwide:
  Achieving a network of 1,500 refill stations will enhance access to safe drinking water and support the circular economy by encouraging local refill solutions over bottled water consumption (Leskina et al., 2022).
• Reach ≥90% PET Recovery with Closed-Loop Recycling:
  Establishing an effective closed-loop recycling system will ensure that the majority of PET produced is collected, processed, and reused, positioning Java as a leader in circular water governance (Wrede et al., 2020).

Action Area: Equity & Affordability

• Key Deliverables
• Guarantee 50L/day Lifeline Access for 10M+ Low-Income Households:
  Sustained financial support and policy implementation will ensure that each qualifying household has access to at least 50 litres of safe drinking water per day (Roshchin et al., 2022).
• Fully Finance Lifeline Subsidies via Levies + NRW Savings:
  The financing model will sustainably fund subsidies through levies on water use and savings from NRW optimisation(Jin et al., 2024).
• Publish Annual Equity Impact Reports:
  Regular reporting on equity measures, impact investments, and outcomes will foster transparency and accountability, assuring the community of the project’s commitment to inclusivity (Crișan & Stanca, 2021).

Action Area: Climate Resilience

• Key Deliverables
• Digital Twin Fully Climate-Adaptive:
  The Digital Twin system will simulate various climate scenarios and develop adaptive strategies, ensuring preparedness and resilience against climate variations (Hoolohan et al., 2021).
• Emergency Inter-Basin Transfers Automated:
  Automating transfer protocols will streamline responses to water shortages during climate emergencies, ensuring timely support between districts (Логунова et al., 2020).
• Zero-Downtime Resilience Hubs Operational:
  Functioning resilience hubs will be critical in guaranteeing uninterrupted water services during adverse climate events, contributing to the community's preparedness (Dias et al., 2021).

 

Priority Actions

Action Area	Key Deliverables
Smart Grid at Scale	- 90% witty metering coverage. - Predictive Digital Twin dashboards integrated with AI analytics. - Full IoT integration for quality, pressure, and NRW optimisation.
NRW Optimization	- Reduce NRW to ≤15% by 2035. - Achieve real-time NRW tracking via AI-enabled sensors. - Monetise NRW savings (~IDR 8T/year reinvested).
AMDK Circular Economy	- Enforce ≥85% bulk sourcing. - Operate 1,500+ refill stations nationwide. - Reach ≥90% PET recovery with closed-loop recycling.
Equity & Affordability	- Guarantee 50L/day lifeline access for 10M+ low-income households. - Fully finance lifeline subsidies via levies + NRW savings. - Publish annual Equity Impact Reports.
Climate Resilience	- Digital Twin is fully climate-adaptive. - Emergency inter-basin transfers automated. - Zero-downtime resilience hubs are operational.

 

Expected Outcomes by 2035

• ≥98% Household Access to Safe, Affordable Water:
  The initiative will effectively deliver a remarkable level of water accessibility to households across Java, surpassing contemporary benchmarks (Alexandridis et al., 2024).
• NRW ≤15%, Unlocking USD 520M/Year in Efficiency Dividends:
  Stakeholders will reinvest significant financial savings from increased efficiency in enhancing the water distribution network (Pronchakov et al., 2022).
• 1,500+ Refill Stations Operational, Ensuring Universal Access to Safe Drinking Water:
  These refill stations will dramatically improve public access to clean water, addressing disparities in water access (Mokhtar et al., 2020).
• ≥85% AMDK Bulk Sourcing Achieved, Protecting Groundwater Sustainability:
  Compliance with bulk sourcing will demonstrate a significant shift toward sustainable practices within the bottled water industry (Carriço et al., 2023).
• 90% PET Recovery Positions Java as a Global Leader in Circular Water Governance:
  Achieving high PET recovery rates will set a global example for managing plastic waste and promoting a circular economy (Li & Zhang, 2025).
• Digital Twin Fully AI-Enabled, Ensuring Predictive, Climate-Resilient Operations:
  With a fully operational Digital Twin capable of predictive analytics, the water system will effectively adapt to challenges and optimise operations (Ghi et al., 2022).
• Java Water Equity Fund Sustainably Finances Universal Lifeline Services:
  The long-term viability of the Java Water Equity Fund will support ongoing investments in social equity programs, ensuring access to water for low-income communities (Sun, 2024).

 

Phase 3 of the Java Integrated Water Grid is the culmination of an extensive journey towards realising a comprehensive, digitised, and equitable water supply system in Java. By focusing on sustainability, equity, and resilience, the phase aims to establish a water ecosystem that not only provides reliable services but also sets a benchmark for future water governance initiatives globally.

The Java Integrated Water Grid 2035 advances through a carefully staged roadmap that drives lasting transformation. In Phase 1 (2025–2027), leaders establish PJT-Jawa, test Digital Twin pilots, and frame NRW and AMDK systems. In Phase 2 (2028–2031), they integrate digital platforms, expand circularity infrastructure, deploy refill solutions, and embed resilience. In Phase 3 (2032–2035), they scale into a Smart Grid that guarantees universal access, powers a circular AMDK economy, and withstands climate shocks. By 2035, Java commands “One Island • One System • One Guarantee” — a unified, inclusive, and climate-resilient water ecosystem that secures its future.

 

9. Regional Impact Map Concept

Visualising the Transformation of Java’s Water Ecosystem

A regional impact mapping system incorporating geospatial data will support the Java Integrated Water Grid 2035, real-time inputs from Internet of Things (IoT) devices, and predictive analytics derived from digital twin technologies specific to water management. An interactive, multi-layered visualisation tool will provide decision-makers, investors, and communities with insights into the extent of reforms, their progress, and the impacts across districts and basins. By visualising key performance indicators (KPIs) and vital statistics, the Regional Impact Map will enhance communication and stakeholder engagement regarding the ongoing transformation of Java’s water ecosystem.

 

9.1 Map Layers

The Regional Impact Map features several critical geospatial layers, each linked directly to digital dashboards and KPI tracking systems that capture the real-time status of various components within the Integrated Water Grid.

A. NRW Hotspots

• Objective: Identify and track high-loss service areas with excessively high non-revenue water (NRW) levels.
• Data Integration:
• IoT-Enabled DMAs Stream Real-Time NRW Data:
  District Metered Areas (DMAs) equipped with IoT devices will continuously transmit data regarding water loss, allowing for timely interventions (Zhang et al., 2021).
• Red, Amber, Green Zones: Identify Performance Gaps and Leakage Risks:
  Colour-coded zones will represent areas based on their performance relative to NRW targets, offering a visual indication of priority areas for intervention (Macchiaroli et al., 2023).
• Use:
• Prioritise Investments in Pipeline Retrofits:
  Identifying NRW hotspots will facilitate targeted investments in critical infrastructure upgrades, ensuring that stakeholders allocate financial resources efficiently to combat water loss (Okta & Mais, 2024).

 The benchmarking process will encourage transparency and accountability among public water service providers (PDAMs), fostering competition and continuous improvement (Lee et al., 2015).

• Impact: Enables targeted funding and results-based NRW contracts, with resources directed to the areas where they are most needed to achieve efficient water use.

B. AMDK Plants & Bulk Sourcing Compliance

• Objective: Monitor AMDK (bottled water) groundwater extraction and enforce compliance with bulk sourcing mandates.
• Data Integration:
• Map All AMDK Facilities:
  Comprehensive mapping of AMDK plants, including parameters such as extraction volumes and recovery KPIs, will be available on the Regional Impact Map (Dadson et al., 2017).
• Overlay Bulk Water Transmission Networks Managed by PJT-Jawa:
  Connections between water extraction points and transmission networks will facilitate an understanding of large-scale water flows and sourcing compliance (Borgomeo et al., 2016).
• Use:
• Enforce Phased AMDK Transition:
  The implementation pathway will mandate that producers meet compliance targets, improving groundwater sustainability efforts in Java (Maftouh et al., 2022).
• Track PET Recovery Rates and Refill Station Co-Financing Compliance:
  Continuous monitoring will ensure accountability for both groundwater extraction and PET recovery initiatives (Bao et al., 2018).
• Impact: Fosters real-time accountability for AMDK firms, ensuring adherence to sustainable practices that protect groundwater resources.

C. Bulk Water Links & Inter-Basin Transfers

• Objective: Visualise interconnected water flows between surplus and deficit regions to facilitate optimal management of water resources.
• Data Integration:
• Map Bulk Transmission Pipelines, Dams, and Reservoirs:
  Detailed mapping of water infrastructure supports understanding resource distribution across zones (Orinya et al., 2024).
• Overlay Hydrological Stress Indicators Modelled within Digital Twins:
  Indicators of hydrological stress will be integrated to display areas under strain, enabling proactive management of water supplies during fluctuating demand (Persad et al., 2020).
• Use:
• Optimise Cross-Basin Transfer Protocols:
  Effective management of inter-basin transfers, especially during periods of drought and flood, will ensure resilient operational continuity (Gorelick et al., 2020).
• Model Climate Resilience Scenarios Under Multiple Rainfall and Demand Conditions:
  Comprehensive modelling will allow for advanced planning in response to climatic events, informing decision-making processes (Kahil et al., 2018).
• Impact: Supports predictive, climate-ready decision-making that enhances preparedness for environmental challenges.

D. Refill Station Rollout & PET Circularity

• Objective: Showcase the transition towards a circular AMDK ecosystem by mapping refill station deployments and plastic recovery efforts.
• Data Integration:
•  The layer will use geospatial data to identify newly planned refill stations and track their operational status through the Regional Impact Map (Howard et al., 2016).
• Link PET Collection Hubs and Recycling Infrastructure Locations:
  Visual connections between refill stations and PET recovery facilities will support circular practices aimed at reducing plastic waste (Ben‐Amar & Chelli, 2018).
• Use:
• Identify Coverage Gaps for Underserved Communities:
  Targeted analysis will highlight areas that lack sufficient coverage, ensuring equitable access to refill infrastructure for all community members (Lara et al., 2017).
• Track Real-Time PET Recovery KPIs for Each Region:
  Continuous monitoring of PET recovery progress will provide data to assess compliance with sustainability goals (Qassim et al., 2023).
• Impact: Demonstrates measurable progress in plastic recovery, refill adoption, and affordability gains, aligning with circular economy principles within the AMDK sector.

 

The Regional Impact Map concept is an essential tool for visualising the ambitious undertaking of the Java Integrated Water Grid. By integrating geospatial data, IoT inputs, and predictive analytics, Stakeholders will make informed decisions that enhance the overall management of Java’s water resources. Multi-layered visualisation will play a crucial role in tracking progress and fostering accountability for sustainability goals, ultimately supporting the transformation of Java’s water ecosystem into an innovative, resilient, and equitable grid.

 

9.2 Visualization & Use Cases

9.2 Visualization & Use Cases

The Regional Impact Map functions as both a decision-support tool and a donor engagement platform, enabling stakeholders to track, plan, and communicate progress transparently throughout the Java Integrated Water Grid initiative.

A. Visualisation Features

The Regional Impact Map offers several advanced visualisation features that enhance data accessibility and usability for various stakeholders:

• Interactive GIS Dashboard:
  The map allows users to zoom into province, district, and basin-level data. A localised approach enables stakeholders to focus on specific areas of interest and gain insights relevant to their needs (Gong, 2019).
• KPI Tracking Overlay:
  Live metrics on critical performance indicators, including non-revenue water (NRW) levels, refill rollout progress, PET recovery rates, and witty metering coverage, will be prominently displayed. These KPIs are essential for assessing the success of the implemented strategies in real-time (Guerrero et al., 2021).
• Digital Twin Integration:
  The Regional Impact Map provides AI-enabled forecasts for various scenarios, including demand surges, droughts, and floods. Capability allows stakeholders to anticipate and plan for future challenges effectively (Revinova, 2021).
• Multi-Stakeholder Access:
  Customised dashboards for different user groups—including donors, regulators, water supply companies (PDAMs), bottled water companies (AMDK), and communities—ensure that each stakeholder can access the information most pertinent to them. Targeted access promotes better engagement and informed decision-making across sectors (AlAli et al., 2023).

B. Use Cases

The Regional Impact Map provides various use cases that align with the objectives of different stakeholders. Each user group can leverage the platform to meet specific goals:

• Policymakers:
  Objective: Align regional priorities with national SDG targets.
  Use of Map: Identify NRW hotspots, refill coverage gaps, and groundwater stress basins to guide policy formulation and resource allocation decisions (Alkan & Kamaşak, 2023).
• Donors & Multilateral Development Banks (MDBs):
  Objective: Track ROI and ESG-aligned impact metrics.
  Use of Map: Visualise PET recovery rates, lifeline subsidy coverage, and carbon savings to assess the effectiveness of funded projects and ensure alignment with sustainability goals (Guerrero et al., 2021).
• PDAM Operators:
  Objective: Optimise operational decisions.
  Use of Map: Access real-time monitoring of District Metered Areas (DMAs), pressure zones, and leak detection systems to enhance system efficiency and service delivery (Ospina et al., 2019).
• AMDK Firms:
  Objective: Meet Extended Producer Responsibility (EPR) compliance and PET recovery mandates.
  Use of Map: Plan co-branding for refill stations and manage logistics for PET recovery to ensure compliance with sustainability regulations and enhance operational efficiency (Beverelli et al., 2020).
• Communities:
  Objective: Demand transparency and accountability.
  Use of Map: Utilise public dashboards to access information regarding tariffs, refill pricing, and water quality data, thereby fostering trust in the water supply system (Mio et al., 2020).

·       B. Use Cases

User	Objective	Use of Map
Policymakers	Align regional priorities with national SDG targets	Identify NRW hotspots, refill coverage gaps, and groundwater stress basins
Donors & MDBs	Track ROI and ESG-aligned impact metrics	Visualise PET recovery, lifeline subsidy coverage, and carbon savings
PDAM Operators	Optimise operational decisions	Real-time monitoring of DMAs, pressure zones, and leak detection
AMDK Firms	Meet EPR compliance & PET recovery mandates	Plan refill station co-branding and PET recovery logistics
Communities	Demand transparency & accountability	Public dashboard for tariffs, refill pricing, and water quality data

 

 

 

C. Strategic Benefits

The Regional Impact Map's functionality drives several strategic benefits that enhance the overall impact of the Java Integrated Water Grid:

• Transparency:
  Real-time visibility into various KPIs builds trust among stakeholders, including donors, regulators, and citizens, fostering collaborative efforts toward water management (Mainali et al., 2018).
• Accountability:
  Performance-based contracts linked directly to digital KPIs provide enhanced accountability mechanisms for all stakeholders. Stakeholders meet commitments and use resources effectively (M et al., 2023).
• Investment Prioritisation:
  The map guides funding to high-impact regions based on real-time data analysis, ensuring that Stakeholders direct resources where they can achieve the most significant benefits(Motsidisi et al., 2023).
• Donor Storytelling:
  Visually demonstrating progress towards achieving the SDGs enhances storytelling capabilities for donors, enabling them to communicate their impact and scale climate finance initiatives effectively (Hossin et al., 2023).

 

The Regional Impact Map serves as a transformative tool, enhancing the Java Integrated Water Grid’s capacity to manage water resources sustainably and equitably. By integrating visualisation technologies with strategic data analytics, the initiative fosters engagement from diverse stakeholders while ensuring the transparency and accountability necessary to achieve sustainable development goals. A comprehensive approach not only underlines the commitment to climate resilience but also addresses equity in providing clean water access to all citizens across Java.

 

By 2035, the Regional Impact Map transforms into more than a dashboard — it becomes the living compass of Java’s water future. It unites NRW hotspots, AMDK circularity, bulk water flows, and refill access into a transparent, interactive ecosystem. Donors, regulators, and citizens navigate real-time insights, while Digital Twin simulations sharpen climate resilience. This platform not only tracks progress but also directs smart investments with unmatched precision. The Regional Impact Map cements Java as the global benchmark for digitally integrated, circular, and inclusive water governance — proving the enduring power of “One Island • One System • One Guarantee.”

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

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