Analysis of the institutional development of drinking water supply systems in XYZ City, Indonesia coastal area

Based on the Regulation of the Minister of Public Works and Public Housing Number 4 of 2020, drinking water supply management can stand alone or work together with other institutions. The local government establishes a Regional Drinking Water Company which has responsibility for supplying drinking water at the regency/city level. The coastal city as the object of study manages clean water then transfers under a private company. Due to government restrictions regarding the authority to provide clean water, a technical implementation unit was formed for better solution in clean water services. The new form of institution will be able to make decisions and carry out execution at any time because it is directly under the authority of the government, it can also apply the concept of good governance to support more transparent management. In accordance with the policy, the new institutional form will be able to finance itself, develop the level of service and contribute to regional development as a source of local revenue. However, the institutional transition requires adaptation both from a functional and operational perspective. Through this study, an analysis of the readiness for the transition of institutional forms is carried out to minimize conflicts such the lack of improvement in the quality of drinking water services due to limited government authority, insufficient qualified human resources in water management, and the difficulty of developing drinking water service infrastructure because it still depends on the private sector. The analysis of the structure and human resources associated with clean water service targets also conducted. Institutional strengthening, both regulatory and institutional, is necessary to maximize the roles and functions of the relevant institutions. With a more comprehensive understanding in the preparation of contracts and division of authority, no parties will be aggrieved in the long term. © 2023 The Authors. River published by Wiley-VCH GmbH on behalf of China Institute of Water Resources and Hydropower Research (IWHR).