Indonesia: Poor Sanitation Still Causes Heavy Health and Economic Losses

The economic costs of poor hygiene and sanitation in Indonesia reached an estimated US$6.3 billion, or 2.3 percent of GDP in 2006, according to a new report today released by the Water and Sanitation Program.

The study, Economics Impacts of Sanitation in Indonesia, finds that the lack of access to sanitation poses heavy financial and economic costs to the Indonesian economy, not only to individuals but also to the public and commercial sectors.


Poor sanitation, including poor hygiene, causes at least 120 million disease episodes and 50,000 premature deaths annually, the report says. The resulting economic impact is more than US$3.3 billion (IDR 29 trillion) per year. Poor sanitation also contributes significantly to water pollution-adding to the cost of safe water for households, and reducing the production of fish in rivers and lakes. The associated economic costs of polluted water attributed to poor sanitation exceed US$1.5 billion (IDR 13 trillion) per year.

Read more: WSP, 19 Aug 2008

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