Aceh Besar's Water Utility Urged to Seek Private Sector Capital for Service Enhancement

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Aceh Besar's Water Utility Urged to Seek Private Sector Capital for Service Enhancement

Author: Admin Date published: 28 Juli 2025

Move signals opportunities for investment and public-private partnerships in the region's clean water sector.

JANTHO – The leadership of Aceh Besar has formally directed the regional water utility, PDAM Tirta Mountala, to actively seek capital from the private sector and the central government to fund a significant overhaul of its services and corporate structure.

The directive came from the Aceh Besar Regional Secretary, Bahrul Jamil, S.Sos, M.Si, who also serves as the Chairman of PDAM Tirta Mountala's Supervisory Board. During a coordination meeting with the company's directors on Friday, July 25, 2025, Jamil emphasized the urgent need for a new approach to meet the public's demand for clean water.

"PDAM Mountala must become the locomotive for public service in the clean water sector in Aceh Besar," Jamil stated, outlining a clear strategy for the utility's future.

Key strategic priorities announced include:

Strengthening Corporate Governance: Implementing professional, accountable, and public-service-oriented management.

Improving Operational Efficiency: Focusing on enhancing the quality of water distribution and reducing leakage, or Non-Revenue Water (NRW).

Corporate Restructuring: Transforming the utility into a Regional Public Company (Perumda) to strengthen its legal standing and improve corporate performance.

Strategic Optimization: In the short term, the utility is advised to optimize existing resources and improve current service quality rather than pursuing network expansion with limited capital.

An Invitation for Private Sector Partnership

Recognizing current local budget constraints, Regional Secretary Bahrul Jamil explicitly instructed the President Director of PDAM Tirta Mountala to engage with external partners.

"The Director must build communication with the River Basin Authority (BWS) and seek capital assistance from the private sector as well as the central government," Jamil urged. He stressed that the utility should be proactive in pursuing national programs and partnerships.

This represents a clear invitation for private investors and companies to participate in the development of Aceh Besar's water infrastructure. The government's stance indicates a favorable environment for public-private partnerships aimed at achieving greater efficiency and service coverage.

"We must actively work to identify external parties who can collaborate with us to improve PDAM services," Jamil concluded. "This will enable us to distribute clean water to all communities in Aceh Besar."

The utility was also reminded of the critical need to improve communication with the public, especially in the digital age, to manage customer relations and feedback effectively as it undergoes this transformation.

source: https://aceh.tribunnews.com/2025/07/27/pdam-tirta-mountala-aceh-besar-diminta-cari-modal-swasta



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