JAKARTA – The U.S. Agency for International Development Indonesia Urban Water, Sanitation and Hygiene (USAID IUWASH) project and Bank Syariah Mandiri (BSM) announced an expanded partnership to provide up to 40,000 low-income households throughout Indonesia with loans for water connection fees.

On average, new water utility customers pay approximately IDR 1.5 million to IDR 3 million, an upfront cost that many low-income families cannot afford. Customers receiving loans will pay 12 to 36 installments, usually of IDR 50,000 to 100,000.

“Water is a basic human need, but for many, accessing safe, clean water is not a reality,” said USAID/Indonesia Mission Director Andrew Sisson. “The United States, through USAID, is very pleased to support microfinance partnerships that offer a path for low-income households to afford clean water connections in their homes.”

The expanded partnership builds on the work of USAID IUWASH and Bank Syariah Mandiri in Kudus District of Central Java and Mojokerto District of East Java that has already provided water connections to 3,750 households.

USAID IUWASH, a five-year $37 million project, works in 54 cities and districts nationwide to increase access to clean water for two million people and improve access to sanitation for 200,000 people. USAID IUWASH is an important part of the US -Indonesia Comprehensive Partnership, a commitment made by Presidents Obama and Yudhoyono to broaden, deepen and elevate bilateral relations between the United States and Indonesia.