Indonesian coal miner Adaro Energy is not only keen on diversifying its business by including the power generation sector to its portfolio (hence having become an integrated energy company) but it is also eager to add the water treatment sector to its portfolio. This is in line with the central government's program to enhance the nation's clean water supply across the Archipelago.

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Lately, concerns have arisen that Jakarta, the capital city of Indonesia, and its immediate surroundings are threatened to experience a clean water crisis by 2025. Clean water, which is produced by two private operators - PAM Lyonnaise Jaya (Palyja) and Aetra Air Jakarta - currently totals 18.7 m3 per second. However, by 2025, demand for clean water will reach 41.3 m3/second as the population of Jakarta is estimated to grow to 14.6 million people from 9.6 million currently (the unofficial figure is possibly much higher).

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Indonesia's Supreme Court (Mahkamah Agung) released a verdict on Tuesday (10/10) in which it orders the government to protect and manage the supply of water to citizens, hence stop the privatization of the water supply in Indonesia. This is a slap for the government which had been actively inviting private investment in the nation's infrastructure sector, including the water supply.

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One of the solid growing markets in Indonesia that remains untapped is the water purifier market. Although Indonesia holds six percent of the world’s fresh water resources, the quality of Indonesia’s public piped water is inadequate (contaminated with E. coli, fecal coliforms and other pathogens). Moreover, roughly 80 percent of the Indonesian population lacks access to piped water hence relying on river water for drinking, washing and bathing. However, the water of most Indonesian rivers do not meet drinking water requirements.

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