CRBO2012: Corporatization of River Basin Organization (RBO) Case Study Jasa Tirta I Public Corporation

7/31/2019 CRBO2012: Corporatization of River Basin Organization (RBO) Case Study Jasa Tirta I Public Corporation

http://slidepdf.com/reader/full/crbo2012-corporatization-of-river-basin-organization-rbo-case-study-jasa 1/66

JASA TIRTA I PUBLIC CORPORATION

Brantas and Bengawan Solo River Basin Organization

Jalan Surabaya 2A Malang 65115 Indonesia

Telephone. +62‐341‐551971, Facsimile +62‐341‐51976

http://www.jasatirta1.co.id Certificate No. ID03 / 0127

Ir. Tjoek Walujo Subijanto, CES

President Director

Seminar on Corporatization of RBOs

ADB Headquarters, Manila8 February 2012

Corporatization of River Basin Organization (RBO)Corporatization of River Basin Organization (RBO)

Case Study: Jasa Tirta I Public CorporationCase Study: Jasa Tirta I Public CorporationIndonesiaIndonesia



Presentation Outline

Introduction to Indonesian RBOs

Introduction

to

the

Brantas

River

Basin Jasa Tirta I Public Corporation (PJT‐I)

Corporate Strategic Plans and Programs

Achievements of PJT‐I (2001‐2010)

Conclusion



Introduction

to

Indonesian

RBOs




River Basin Territories

• More than 5,600 river basins in Indonesia

• 133 River Territories which comprise 69 national, 51 provincial, and 13

district river

territories

(Minister

of

PW

Reg.

No.

12/2006)



IWRM in Indonesia

(Law No.

7 of

2004

on

Water

Resources)

Three

aspects of

IWRM

Water resources

conservation

Water resources

utilization

Controlling destructive

forces of water

WRM information system

Planning

Construction

Operation and

maintenance

Monitoring and evaluation

Community empowerment

Related costs for each aspect :

IWRM ‐ defined as efforts to plan, implement, monitor and

evaluate the implementation of water resources conservation,

water resources

utilization

and

controlling

destructive

forces

of water

Overhead/management

Depreciation (for non WR infrastructure)

Reserve for development



IWRM is conducted based on river basin boundary as the

smallest physical scale of management (Law No. 7 of 2004 and

GR No.

42

of

2008)

Two types of RBOs

Public Utility Type RBOs ‐ as technical implementing unit of Government (as

of

2011:

31

RBOs

under

the

jurisdiction

of

Central

Government,

59

RBOs

under jurisdiction of Provincial Government in 14 provinces)

Corporate Type RBOs – state‐owned companies responsible to the state for

its activities, but otherwise operating as an independent and financially

autonomous legal entity (e.g. Jasa Tirta I and Jasa Tirta II Public Corporation)

RBOs are central to the implementation of IWRM in river

basins, although in most cases, RBOs are not single‐handedly in

charge of that process.

River Basin

Organizations

in

Indonesia



Introduction to the Brantas River

Basin




Brantas River

Basin

BendunganSutami

Bendungan Selorejo

BendunganBening

BendunganWonorejo Bendungan

Sengguruh

BendunganWlingi

BendunganLodoyo

Surabaya

Malang

KediriBRANTAS RIVER BASIN, EAST JAVA, INDONESIA

• Catchment Area : 11,800 km2 (25% of East Java)

• Population (2010) : 15.6 million (43% of East Java)

• Annual Rainfall : 2,000 mm

• Annual Runoff : 11.8 billion m3

• Mainstream Length : 320 km



9

WATER

RESOURCES

PROBLEMS

SECOND

MASTER PLAN

(1973)

FIRST MASTER

PLAN(1961)

THIRD

MASTER PLAN

(1985)

IMPLEMENTATION

(1962 - 1972)

IMPLEMENTATION

(1973 - 1984)

IMPLEMENTATION

(1984 - 2000)

FLOOD CONTROL

IRRIGATION FOR

AGRICULTURE

BULKWATER

SUPPLY

SUSTAINABLE

WATER

RESOURCES

FOURTH

MASTER PLAN

(1998)

IMPLEMENTATION

(1999 - 2020)

CONSERVATION &

MANAGEMENT

Master Plan of the Brantas Water Resources

Development



Master Plan I(1961 - 1973)

Master Plan II(1974 - 1985)

Master Plan III(1986 - 2000)

Sengguruh Dam (88)T.Agung Tunnel (91)

Selorejo Dam (72)

Waru-Turi B. (92)

Bening Dam (84) Gunungsari B. (81)

Wlingi Dam (78)Lodoyo Dam (83) Lahor Dam (77)

Wonorejo Dam (00) Jatimlerek R.D (93)

Menturus R.D (93)

Sutami Dam (72)

New Lengkong B (74)

Infrastructure Facilities in the Basin



Benefit Unit Before Development

(1960)After

Development

(1990)

Flood control Inundation area Flooding annually

(60,000 ha)

Controlled

Irrigation Harvest intensity 0.8 x / year 1.8 times / year

(225%)Electricity Million kWh 170 910

(535%)

Domestic water supply Million m3 73 125

(171%)

Industrial water supply Million m3 50 115

(230%)

Water quality Average BOD/year ‐ 12 – 16 mg/lt

Infrastructure facilities Condition ‐ Less maintained

Benefits

from

Water

Resources

Development

Brantas River Basin (comparing 1960 to after 1990)



Institutional Development in the Brantas

River

Basin

BRDP

1961

BRDP

1980

BRDP

1990

PJT I

1990

PJT I

To now

BBWS

To now

BAP

1980BAP

To now

IKA

1980IKA

To now

BBWS

2007

• Build physical infrastructures

• Build competence and professional

staff and skilled workers

• Brantas Spirit:

motivation,

innovation,

dedication and working team ‐ Spirit

Learning Organization

Transfer of Knowledge

•Plan & design

•Construction:

watch,

learn

and

do (on force account basis)

BRDP : Brantas River Dev. ProjectBAP : Brantas Abi Praya, Contractor (SOC)IKA : Indra Karya, Consultant (SOC)PJT I : Jasa Tirta I, Corporate RBO (SOC)BBWS : Balai Besar Wilayah Sungai,

Public Utility RBO



Jasa Tirta I Public Corporation

(Overview)




Development Cycle

in

the

Brantas

River

Basin

• Permanent Institution• Professional Staff

• Adequate Budget



Jasa Tirta

I Public

Corporation

PJT‐I was formed based on GR No. 5/1990 and its mandate

was amended several times and the latest was by GR No.

46/2010 to suit the Law No. 7 of 2004 on Water Resources

and to support PJT‐I business development (drinking water

supply system and electric power generation).

The working

area

firstly

is

Brantas

River

Basin.

After

10

years operation, the Company was trusted to manage Bg.

Solo River Basin (Presidential Decree No. 129 of 2000).

PJT‐I implements corporatization in WRM by rendering

professional services

based

on

stakeholders’ participation.

Main mandates are: water services, preventive O&M of

water infrastructure facilities, under a shared system of

water governance.



A public service with corporate management approach

Corporate RBO:

A neutral and professional institution which conducts in balance

reliable and trustworthy public services on water resources

and healthy

and

accountable

corporate

management

trusted

by

stakeholders.

Basic Philosophy

of

Corporatization

in

WRM



Responsiveness, customer focus; and quick response to water

related disaster, new challenges and opportunities

Flexibility, flexible mobilization,

utilization

and

optimization

of

resources in line with board‐approved general policy and rules

Accountability, fair and transparent fund use

Independence, independent from the government system in

capacity and HR development, own salary and benefit systems, and

tailor‐made management systems

Earmarked Fund, revenue from water services (user fees ‐

Beneficiaries Pay

Principle)

to

finance

the

O&M

of

water

resources

infrastructure facilities

Stakeholders’ support from the owners, regulators, users and

public, key success for sustainability of the corporation

Characteristics of

Corporate

RBOs



Clear Cut Tasks and Functions

PJT‐I (Corporate

RBO)

vs.

BBWS

(Public

Utility

RBO)

Commercial servicesPublic services

GS

Emergency maintenance

Corrective maintenance

Preventive maintenance

Operation

Construction

PJT IPJT I

BBWS

PJT I - based onfinancial ability

PJT I - withreimbursement

Legend :

GovernmentSupport



Water

Services

in

the

Basin

Flood control, saving approximately

60.000 ha from inundations (50‐years

return period)

Irrigation 340.000 ha (whereas 121.000 ha

secured from dams and reservoirs)

Generated electricity

with

an

installed

capacity of 239 MW production rate of

close to 1.100 GW‐hours/annually.

Annual domestic bulk water supply (343

million m3) and industry (190 million m3)

‐‐ (for 2011)



Non‐

Water

Services

in

the

Basin

Optimization of benefits from managed and

owned assets

Tourism (almost WR infrastructure facilities

had been developed as water tourism area)

Equipment rental and construction services

(steel sheet

pile,

dredging,

etc.)

Consulting services (planning and designing

WRD&M)

Laboratory services

Clean water supply

Others (optimization of resources utilization)



Six Aspects of Water Resources Sustainability



SPRING CONSERVATION

CHECK DAMSTERRACING

REFORESTATION

Catchment Area

Management Water

Quantity

Management

COOPERATION

Activities to

improve

the

land use and restore the

hydrology properties in

the catchment area by

means of multi‐

stakeholder cooperation.

Render water services to

all users

in

a fair

and

transparent manner as

regulated by the Water

Resources Coordination

Body.

HYDRO‐ELECTRIC POWER

RESERVOIR OPERATION IRRIGATION

DOMESTIC SUPPLY

INDUSTRY SUPPLY

Six Aspects of WRM



Water Quality

Management

Flood

Control

WATER EXAMINATION

Water quality

management activities

to improve the river

and water bodies in

accordance to its

designation.

MONITORING RESULT

MOBILE LABORATORY

FIELD GUIDANCE

INSPECTIONS

Activities designated

to

control flood by

preventive measures as

well as emergency

response to disasters.

FLOOD MONITORING

WATER LEVEL MONITORING

RAINFALL MONITORING

EMERGENCY ACTIVITIES

PUBLIC BASED MONITORING

Six Aspects of WRM



River Environment

Management O&M

of

Infrastructure

Facilities

Activities to promote

environmental

awareness and public

participation.

RIVER TOURISM RESERVOIR TOURISM

WATER SPORTS CLEAN RIVER CAMPAIGN

OUTBOUND

RIVER IMPROVEMENT

PREVENTIVE MAINTENANCERESERVOIR DREDGING

URGENT MEASURES

SMALL REHABILITATION

Operation and

maintenance of related


within the assigned

rivers in the working

area.

Six Aspects of WRM



REGULATOR

OPERATOR

«WATER COUNCIL»

(Coordination Body)

RBO

Investor

Farmer

IndustryElectricity

Community

etc

RBO:‐BBWS

‐ PJT

Minister

GovernorRegent/

Major

DEVELOPER

USER

Coordination Mechanism



WRM Financing

system

Cost

Recovery

O&M Cost Recovery

Investment Cost Recovery

Budget sources Beneficiaries Pay Principle

Polluter Pay

Principle

(under

preparation)

Government obligation

principle (APBN ‐ BBWS)

Acceptability on tariff

determination Fair

Transparent

Participatory

Transparent and

accountable fund use

Ear – marked fund

(from water back to water)

Flexibility of

fund

use

(based on determined policies

and rules)

Basic Principles of WRM Financing System



Law No. 7 of 2004 on Water Resources

Section 77

(1) The water resources management financing is set based on the real needs

of water resource management.

(2) The structure of water resources management financing includes:

a. Water

resources

management

information

system

cost;

b. Planning cost;

c. Cost of construction;

d. Operation and maintenance cost;

e. Cost of monitoring and evaluation; and

f.

Cost of

community

empowerment

(3) Source of funds can be from: a. government budget, b. private budget, and/or c. revenue from Water Resources Management Service Fee.

Legal Basis of WRM Financing



Law No. 7 of 2004 on Water ResourcesArticle 80 (Water Resources Management Service Fee)

(1)The users of water resources for daily basic needs and the smallholder

agriculture are not burdened with the WRM Service Fee.

(2) The users of water resources other than those referred to in paragraph

1

are

burdened

for

the

WRM

Service

Fee.(3) Determination of the WRM Service Fee referred to in paragraph 2 is

based on economic rational calculation.

(4) Determination of the unit costs of WRM Service Fee for every group of

water user

is

based

on

the

economic

ability

of

the

user

groups

and

volume

of water resources that had been used.

(5) The River Basin Organization who manages the water resources in the

basin is entitled to receive and use the funds collected from the WRM

Service Fee

referred

to

in

paragraph

2.




GR No. 46 of 2010 on Jasa Tirta I Public Corporation

Article 9

(1) The Company is authorized to collect, receive, and use the WRM Service

Fee to finance all of the duties and responsibilities as mentioned in Article 3

Paragraph 1.

(2) Tariff of WRM Service Fees for drinking water business, industrial

business, and hydroelectric power business, are determined by Minister of

PW based on

the

proposal

from

the

Board

of

Director

of

the

Company.




GR No. 46 of 2010 on Jasa Tirta I Public CorporationArticle 5

(1). In addition to the tasks and responsibilities referred to in Article 4, the

Company perform public services of water resources for social services,

welfare and public safety in the working area of the Company.

(2). Social

services,

public

welfare,

and

safety

as

referred

to

in

paragraph

1

include: a) provision of water for daily basic needs; b) provision of irrigation

water for smallholder agriculture in the existing irrigation system; c) flood

control; d) conservation of water resources; and e) provision of drinking

water and sanitation for household purposes

(5). For social services, public welfare and safety as referred to in paragraph

2, the government, in certain limits, provide fund assistance to the

Company from the Government Budget.

Note: Government

budget

support

for

social,

public

welfare

and

safety

is

called

as

Public

Service

Obligation (PSO).




GR No.4 6 of 2010 on Jasa Tirta I Public CorporationArticle 6

(1) The Government continued assignment to the Company to operate

and maintain the Government assets that have been managed by the

Company to perform Government duty on public services of water

resources in

Brantas

and

Bengawan

Solo

River

Basin.

(2) The Company is authorized to optimize the benefit of the Government

assets as referred to in paragraph 1 and the revenues are used by the

Company to

finance

the

operation

and

maintenance,

as

well

as

to

safeguard the assets.




Stage I : O&M Cost Recovery stage

Stage II : Full Cost Recovery stage

Note: proportion of O&M funding sources excluding development from Government & Water Service Fee

O&M

Cost

Recovery

O&M Cost Recovery

C o s

t

Fee

B

A

Full Cost Recovery

Commercial Portion (commercial benefit)

Government Portion

(social

benefit)

O&M cost contribution

O&M for public and social

service

Full Cost Recovery

O&M for commercial

service

Investment cost for public

& social

service

Investment cost for

commercial service

Investment cost contribution

Time

The

Stages

of

WRM

Financing



Corporate vs Public Type RBOs (1/2)

Corporate Type

RBO Public

Type

RBO

Ownership The state The state

Governing board Representatives of several ministries Single ministry

Legal basis Government regulation; formal registration

Ministerial decree

Operation Based on specific assignment bylaws;

independent from the government

system, flexible mobilization of

resources

Based on specific assignments of

the ministry, dependent on the

government system

Management CEO‐style director with high autonomy,

responsible to the governing board or

shareholders, tailor‐made management

systems,

customer

focus,

quick

response

to new challenges and opportunities

Government bureaucratic

approach, mostly hierarchical in

decision making, non flexible

system

of

management,

physical

project focus

Staff Employed directly, independent on

capacity and HRD; own salary and

benefit systems (talent based HRM and

performance based

salary

system)

Government employees,

centralized salaries and in line to

the government terms and

conditions



Corporate vs Public Type of RBO’s (2/2)

Corporate Type RBO Public Type RBO

Budget Prepared autonomously, approved

by the Ministry, flexibility in

utilization

in

line

with

general

policy

and rules, approved by the board,

audited by Public Accountant Office

Government funding, approved

by parliament, consistent with

Government

budgeting

rules,

limited flexibility

Financing Revenues from operation (user

fees); government transfers;

performance contracts; loans;

bonds; grants

Revenues solely from

government funding

Responsibilities Water services, operation and

preventive maintenance,

emergency maintenance,

specific

services related to utilization of

resources

Planning and construction of

new water resource

infrastructure facilities,

corrective maintenance

responsibilities, regulatory

functions



Support performance for better services

Flexible mobilization of resources

Quick response

to

emergency

conditions,

new

challenges

and

opportunities;

Free to implement own tailor‐made management systems

Free to implement required capacity and human resources development

Shorter way from decision to implementation

Promotion and implementation by in‐house capacity, rather than by some

line agency

Direct financing

‐‐separate

from

a lengthy

public

investment

planning

procedure

Advantages of

Corporate

RBO

(1/2)



Advantages of

Corporate

RBO

(2/2)

Better basis for basin‐level IWRM:

Development initiatives

can

be

promoted

during

investment planning, rather than being split into different

sector components for promotion by line agencies

Less

need

of

inter‐

agency

synchronization

Investment priorities being made in an integrated

perspective, rather than as a combination of segregated

sector priorities



Corporate Strategic Plans &

Programs




PJT I’s Vision & Missions

• Vision

– It captures our shared dreams, aspirations and hopes about

future state

of

our

organization

– It provides direction to the future action and guides of

strategic planning

TO BE

ONE

OF

THE

BEST

RBOs

*) IN ASIA

PACIFIC

BY

2025

*) Best RBO = Benchmarked RBO = RBO to be referred to by other RBOs

• Mission:

Prime services in water resources and clean‐water supply as

assigned by

the

government,

trusted by stakeholders

by

providing a reliable & trustworthy public services, and healthy

& accountable corporate management

Mid T G lSh t T G l



1st Master Plan

(Flood Prevention)

(1961)

2nd Master Plan

(Irrigation)(1973)

3

rd

Master

Plan

(Urban Water)

(1985)

4th Master Plan

(Conservation and

Effective WRM)(1998)

PJT IEstablishment

(1990)

1rd StrategicPlan

(1994‐1998)

Long Term Goal 2025Benchmarked RBO

Asia Pacific

4th StrategicPlan

(2009‐2013) 3rd StrategicPlan

(2004‐2008)

2nd StrategicPlan

(1999‐2003)

Mid Term Goal2020

Benchmarked RBOSouth East Asia

Short Term Goal 2015

Benchmarked RBOIndonesia

1

3

2

5

4

9

8

6

7

12 1110

1990

Spiral ModelStrategic Plans



Quality Management

System

(QMS)

ISO 9001:2008 for design,

O&M of water resource


(Brantas RB since 1997,

extended to Solo RB since

2010)

ISO 17025 for the laboratory

management (since 2005) Results:

Satisfied stakeholders;

Improved corporate performance;

Increased efficiency, effectiveness and consistency;

Improved integrity, capacity and responsibility;

Allocated resources in an optimum manner;

Increased communication.



Customers’ Involvement

and

FeedbackMechanisms to ensure two‐way communication:

• Direct surveys (annually), survey on customer satisfaction by

sending relevant

questionnaires,

customer

feedback,

and

suggestions or complaints, continued by customer satisfaction

measurement.

• Customer visit (periodically), conducted by relevant PJT I’s

officers to

get

direct

input

from

customers

and

other

strategic

stakeholders

• Other channels of communication, official mail addresses and

phone

numbers

to

serve

customer

complaints• Customer complaint handling, customers’ suggestions and

complaints are analyzed, determined the CAP, implemented,

monitored and controlled to secure the effective results

Balanced Scorecard (BSC) as Performance



Balanced Scorecard (BSC) as Performance

Assessment

Tool

The balanced scorecard is used extensively in organizations

worldwide:

To align

business

activities

to

the

vision

and

strategy

of

the

organization,

To improve internal and external communications, and

To monitor organization performance against strategic goals.

PJT I using

the

BSC

to

improve:

WRM Performance, using NARBO ‐ RBO Performance Benchmarking, and

Corporate and Management Performance which is translated into Key

Performance Indicator (KPI) as integral part of Annual Corporate Program and

Budget. The

performance

will

be

used

as

one

of

incentive

scheme

to

BoD

and

Employees.



NARBO Performance

Benchmarking

for

RBOs

NARBO performance Benchmarking was initiated in 2009

for 6 selected RBOs in Indonesia, as a cascading process

for the

South

‐east

Asian

level.

Benchmarking uses 14

indicators in 5 critical performance areas (CPA)

Stakeholders3: Public Participation

4: Feedback

5: Environmental Audit

6: Basin

Livelihoods

Internal Business

Process10: Planning Maturity

11: Water Allocation

12: Water

Resources

Information System

MISSION1: Institutional Status of the

RBO

2: Water

Management

Stage

Learning & Growth7: Human Resources

8: Technical Development

9:

Organization

Development

Financial13: Cost Recovery

14: Financial Efficiency

Critical Performance Area Stakeholders

Obj i C S i f i



Objective Customer Satisfaction

Objective description Customers will be full satisfied by the services provided by the RBO

Indicator Customer involvement

A measure of the level of customer involvement in the decision making of RBO and, therefore, their

acceptance of the organizational goals and operation

Indicator s How to evaluate RBO performance

(1) No planned customer

communication

− No awareness of customer communication (Indicator value = 0.0)

−An

awareness

of

the

importance

of

customer

communication

but

no

plans

to

deliver. (Indicator value = 1.0)

(2) Customer information − Some information available to customers on request (Indicator value = 1.5)

− Information relevant to customers is readily available and prominently

displayed in a place of public access (indicator value = 2.0)

(3) Open meetings − There is an awareness of the importance of open and two‐way communication

with customers but so far no routine open meetings take place (Indicator value

= 2.5)

− There is a schedule of open meetings and evidence of invitations for customers

with

opportunities

for

customers

to

voice

their

concerns

and

air their

views

(Indicator value = 3.0)

(4) Customer

contributions to

decisions

− Customers are encouraged to provide feedback in many forms appropriate to

themselves (Indicator value = 3.5)

− There is evidence that the customer feedback is carried forward to strategic

planning

and

that

organizational

decisions

incorporating

customer's

views

are

made (Indicator value = 4.0)



KPA of Management Performance:

The determination of

indicators

through

joint discussions

between the

Supervisory Board,

Board of

Directors

and

the Ministry of State

Owned Companies

(SOC)



Good Corporate Governance (GCG)



Corporate

Culture

Development

TheWinning Team

Competent &

accountable

RBO

KnowledgeDriven

Organization

ConduciveWorking

Environment

VisionBenchmarked

RBO

Triple Bottom Line

Key Success Area

TRANSFORMATIONAL LEADER (L)

CORPORATE CULTURE (V)

(S)(S)

Corporate Culture Development

(V,S,L)



Organizations:• Having knowledge‐based corporate culture

• Supported

by

knowledge

workers• Producing knowledge‐based product and services

• Optimize the intellectual modalities of the organization

• Having conducive working environment for development of knowledge

• Learning organization

• Adopting knowledge developed in the business processes and

services delivery

Knowledge‐Driven Organization



The Winning Team

• Keys for Success to achieve organization’s goals are:

– How far the leader and the team can be mobilized and synergized to

contribute positively

their

thinking,

feelings

and

eagerness

to move

forward together as an assemble of symphony from planning,

implementation, monitoring and corrective actions (P‐D‐C‐A cycle)

– How high their loyalties, ownership, and pride to their organization

– How high

the

positive

attitudes

of

each

individual

team

member

(honesty, responsibility, innovation, discipline, cooperation, fairness,

tolerance and concern)

PJT I Motto

– The

Wining

Team:

“Berpadu Daya, Bersatu Karsa, Gapai Cita2 Bersama”

(unity of forces and unity of eagerness to achieve our goals)



Conducive

Working

Environment

Conditions

Fair and transparent management Minimize conflict and unsupported policies

Clear and

documented

policies

and

systems

Minimize the occurrence of DM out of the documented policies and

systems

Open Management

Staffs have

the

same

opportunities

to

share

their

views

and

ideas

Code of Conduct As a rule of the games in the implementation of their job and task

Innovation Spirit

Incentive

for

innovation

HRD policies Standard of competencies, Performance based Salary (Merit System)



Transformational Leaders It is all about a CHANGE . It requires transformational leaders who

can help RBOs to:

develop a new charismatic and great vision describe vision in specific terms and focus areas of the goals and strategies

gather support from staffs/the teams,

inspire the staffs by empathetic communication

guide the organization through a transformative phase, improve relationships between the leader and the team, to create warmer

and closer teams that feel the presence of the leader in all ways, and

promote staff motivation and confidence that “we can do it, we can solveit, we can achieve it”

A change is the law of life,

And those who look only to the past and present,

are certain to miss the future(The Late President of the USA: John F. Kennedy)



Corporate Culture

In Indonesian: PINTU AIR (Water Gate)

P: Professional I : Innovative

N : Neutral

T: Tanggap (responsive)

U : Uswah (role model) A : Adil (fair and equitable services)

I : Integrity (sincere: honest)

R : Rasa Memiliki (ownership)



Achievement of PJT‐I (2001‐2010)




Benefit UnitBefore

managed 1990

After managed

2008

After managed

2010 (Prognosa)

Flood control Inundation

area

Controlled More Controlled More Controlled

Irrigation Harvest

intensity

1.8 times / year 2.2 times / year 2.2 times / year

(122 %)

Electricity Million kWh 910 1,182 1,315

(145 %)

Domestic water

supply

Million m3 125 243 315

(252 %)

Industrial water

supply

Million m3 115 145 181

(157 %)

Water quality Average

BOD/year

12 – 16 mg/lt 3 ‐ 14 mg/lt 3 ‐ 14 mg/lt

Infrastructure facilities Condition Less

maintained Maintained Maintained

Brantas River Basin = 25% area of East Java Province

GRDP Brantas River Basin = 59% GRDP in the East Java Province (as of 2005)

Support

on

Economic

Development



Tariff

of

WRM

Service

Fee

Hydro Electric

PowerBrantas River Basin Bengawan Solo River Basin

Year 1991 1995 2000 2005 2010 2002 2005 2010

Tariff (IDR/kWh) 6.00 10.20 13.61 31.17 104.03 16.67 39.22 104.66

% 100% 170% 227% 520% 1734% 100% 235% 628%

Domestic drinking

water supply East

Java

Province Central

Java

ProvinceYear 1991 1995 2000 2005 2010 2002 2005 2010

Tariff (IDR/m3) 16.00 18.00 35.00 55.00 84.50 35.00 55.00 66.00

% 100% 113% 219% 344% 528% 100% 157% 189%

Industry East Java Province Central Java Province

Year 1991 1995 2000 2005 2010 2002 2005 2010

Tariff (IDR/m3) 16.00 30.00 52.00 110.00 188.10 52.00 110.00 132.00

% 100% 188% 325% 688% 1176% 100% 212% 254%



WR Business (2001‐2010)



Degree of O&M Cost Recovery (2001‐2012)

Score on GCG (2008‐2010)



NO GOVERNANCE ASPECT

QUALITY ACHIEVEMENT

LEVELS

PERCENTAGE OF

ACHIEVEMENT RATING

CATEGORIES

2008 2009 2010* 2008 2009 2010* 2008 2009 2010*

1 Rights and

Responsibilities of

Stareholders

9 7,24 7,42 7,24 80,44 82,44 80,44 Good Good Good

2 Policy on

GCG 8 4,81 7,06 7,06 60,13 88,25 88,25 Fair Good

Good

3 GCG implementation

A. Supervisory Board 27 21,31 23,81 23,72 78,93 88,19 87,84 Good Good Good

B. Supervisory Board

Committees

6 3,70 4,72 4,75 61,67 78,67 79,08 Fair Good Good

C. Directors 27 24,19 25,30 24,92 89,59 93,70 92,28 Good Very

Good

Very

Good

D. Internal Control

Unit

3 2,07 2,12 2,35 69,00 70,67 78,33 Fair Fair Good

E. Corporate

Secretary

3 2,87 3,00 2,87 95.67 100 95,50 Very

Good

Very

Good

Very

Good

Sub Total 66 54,14 58,95 58,59 82,03 89,32 88,77 Good Good Good

4 Disclosure 7 4,14 3,75 4,50 59,14 53,57 64,31 Weak Weak Fair

5 Commitment 10 7,17 7,54 8,75 71,70 75,40 87,50 Fair Good Good

SUM TOTAL 100 77,50 84,72 86,14 77,50 84,72 86,14 Good Good Good * : Self Assessment (not published yet)



Results of NARBO Benchmarking for RBOs

Rating Summary of Peer Review Team for PJT 1



Critical Performance

Areas

(CPA)

Objectives Indicators As of 2008Target

2013

A. Mission1. Integrated Water Resources

Management

RBO status 2.5 3.5

RBO governance 3.0 3.5

B. Stakeholders

1. Customer satisfactionCustomer involvement 3.0 4.0

Customer feedback 3.5 4.0

2. Environmental conditions Environmental audits 2.0 3.0

3. Livelihoods Basin livelihoods 2.5 3.0

C. Learning &

Growth

1. Human resourcesHuman resources development

3.5 4.0

2. Infrastructure Technical development 3.5 4.0

3. System developmentOrganizational development

3.5 4.0

D. Internal Business Process

1. Planning Planning maturity 3.0 3.5

2. Resource management Water allocation 3.0 3.5

3. Information management Data

sharring 3.0

4.0

E. Finance1. Financial independence Cost recovery 3.0 3.5

2. Financial performance Financial efficiency 3.0 4.0

Summary42.0 51.5

Percentage75.00

%

91.96

%

The Company Performance Score and



p y

KPI

Management

Performance

Score

of

PJT

I The company health performance score of PJT I (2001 – 2010)

Note: Sehat = Healthy The

assessment

of

management

performance,

Key

Performance

Indicator

(KPI) of PJT I start by the letter of State Owned Company Minister No.

676/MBU/2004 on 22 December 2004, the performance of the year 2005 –

2010 as follow:

Note: Baik = Good

2001 2002 2003 2004 2005 2006 2007 2008 2009 2010

Score 93,9 91,5 90,0 91,0 93,0 92,3 94,6 95,0 95,6 97,3

Health

Level

Sehat

AA

Sehat

AA

Sehat

AA

Sehat

AA

Sehat

AA

Sehat

AA

Sehat

AA

Sehat

AA

Sehat

AA

Sehat

AA

2005 2006 2007 2008 2009 2010

Score 120,0 134,4 111,4 118,4 122,5 122,6

Performance Baik ~ A2 Baik ~ A3 Baik ~ A2 Baik ~ A2 Baik ~ A2 Baik ~ A2

New Strategic Assignments



New Strategic Assignments

Business activities:

Clean Water Supply (MDG)

Hydro power

plant

(Renewable

energy)

Agroforestry (Conserve hydrological catchment area)

Manage WR infrastructure facilities outside of the Brantas

and Bengawan Solo basins to optimize development

benefits to promote cost recovery of O&M of water infrastructure facilities

Potentially Manage WR in Toba – Asahan River Basin



Conclusion




Conclusion (1/2)

Corporatization of WRM is a public service:

WR managed by a neutral and professional institution which

balances reliable and

trustworthy

public

service

norms

AND

healthy and accountable corporate management principles

trusted by stakeholders

PJT‐I implements

corporatization

principles

in

WRM

by

rendering professional and trustworthy services based on

stakeholders’ participation (financing as well by users).

Excellent service

to

customers

and

Government

support

lead to the significant increase of WSF tariff with minimum

complaints



Conclusion (2/2)

Continuous improvement is the “heart” for a dynamic and

sustainable institution.

Business Transformation

is

not

enough,

but

should

be

in

parallel with Corporate Culture Transformation.

PJT‐I as Corporate Type RBO shows good performance, and

will be

assigned

by

the

Government

to

manage

water

resources and related infrastructure facilities in other river

basins.

He

JASA TI RTA I PUBLI C CORPORATI ONJASA TI RTA I PUBLI C CORPORATI ON



He

THANK YOU FOR YOUR ATTENTIONTHANK YOU FOR YOUR ATTENTION

Selorejo Reservoir Tourism Facili ties, the Brantas River Basin Selorejo Reservoir Tourism Facili ties, the Brantas River Basin , Indonesia , Indonesia

JASA TI RTA I PUBLI C CORPORATI ONJASA TI RTA I PUBLI C CORPORATI ON

Jl. Surabaya 2A, Malang 65115 Indonesia

Phone. 62-341-551971, Fax. 62-341-551976

E-mail: [email protected]

http://www.jasatirta1.co.id Certificate No. ID03/0127

Documents

CRBO2012: Corporatization of River Basin Organization (RBO) Case Study Jasa Tirta I Public Corporation