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Development assistance in Indonesia

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Text version of PCSP infographic

Text version of PCSP infographic

Palembang City Sanitation Project

The wastewater collection system is a network of pipes and pumps which collects toilet, bathroom and kitchen wastewater from households and businesses for treatment. It's made up of the Local Government funded sanitation network and the Central Government funded sanitation network. There are future works planned nearby.

The project will build a wastewater treatment plant and a network of pipes to collect wastewater from households and businesses, and is expected to benefit up to 100,000 people.
The treatment plant (Australian funded works) will treat the wastewater so that it can be disposed safely into the Musi river.

Benefits? Reduces pollution of the urban environment, which will lead to health improvements for the community and potentially contribute to reduced rates of stunting.

Healthy people increase productivity

  • Urbanisation generates economic growth
  • Poor sanitation and hygiene can reduce productivity and economic growth
  • Only 2% of those living in cities have access to city sanitation systems
  • Losses to the Indonesian economy from poor sanitation are estimated at USD 6.3 billion, or 2.3% of GDP, each year:
    • USD 3.3 billion lost from direct health impacts (diarrhoeal disease is the 5th leading cause of death; 120 million disease episodes and 50,000 premature deaths; productivity losses are felt mainly by the urban poor)
    • USD 1.5 billion lost from polluted water.


Australia and Indonesia are sharing the costs of construction on this project. The Australian Government and the Indonesian Government (Central, Province, City) will contribute funding as follows:

  • Australia: 41%
  • Central Government: 30%
  • Palembang City and South Sumatra Province: 29%

The Palembang City Government and Ministry of Public Work and Housing will construct the Wastewater Treatment System, which will be owned and managed by the Palembang City Government.

This project is an example of how our two governments can work together to deliver better infrastructure in Indonesia.

Last Updated: 1 November 2017
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