Analysis of the institutional development of drinking water supply systems in XYZ City, Indonesia coastal area

Based on the Regulation of the Minister of Public Works and Public Housing Number 4 of 2020, drinking water supply management can stand alone or work together with other institutions. The local government establishes a Regional Drinking Water Company which has responsibility for supplying drinking water at the regency/city level. The coastal city as the object of study manages clean water then transfers under a private company. Due to government restrictions regarding the authority to provide clean water, a technical implementation unit was formed for better solution in clean water services. The new form of institution will be able to make decisions and carry out execution at any time because it is directly under the authority of the government, it can also apply the concept of good governance to support more transparent management. In accordance with the policy, the new institutional form will be able to finance itself, develop the level of service and contribute to regional development as a source of local revenue. However, the institutional transition requires adaptation both from a functional and operational perspective. Through this study, an analysis of the readiness for the transition of institutional forms is carried out to minimize conflicts such the lack of improvement in the quality of drinking water services due to limited government authority, insufficient qualified human resources in water management, and the difficulty of developing drinking water service infrastructure because it still depends on the private sector. The analysis of the structure and human resources associated with clean water service targets also conducted. Institutional strengthening, both regulatory and institutional, is necessary to maximize the roles and functions of the relevant institutions. With a more comprehensive understanding in the preparation of contracts and division of authority, no parties will be aggrieved in the long term.


| INTRODUCTION
Clean water is the main necessity of life to improve environmental and community health. In relation to its role in every aspect of sanitation activities, clean water is indirectly related to efforts to improve the standard or quality of life of the community. The provision of clean water for the community is still faced with challenges that are quite complex, namely the low level of clean water services. The complexity of clean water services has been linked to environmental pollution, overexploitation of aquifers and inadequate raw water supply and unsatisfactory water quality. To deal with all these contents requires understanding all variables including social, cultural, political, economic, technological, and environmental on various scales. The governance of clean water supply has problems on a jurisdictional, spatial, and temporal scale in which solving the problem requires an analysis of institutional management.
The management of clean water facilities and infrastructure is handed over to the local government, while the management is carried out by the regional drinking water company/Perusahaan Daerah Air Minum (PDAM) which is under the control of the local government. In improving clean water services, PDAM is still experiencing quite serious issues related to the internal management of the water supply company itself as well as external problems that are beyond the authority of PDAM management. Some of the problems faced related to institutions by PDAM include differences in perceptions regarding the management, the quality of human resources (HRs) is still inadequate, and professionalism is still low. The drinking water supply system/Sistem Penyediaan Air Minum (SPAM) agency can stand alone or cooperate with other institutions. Clean water service areas are determined based on local government policies. As for the employment system for regional drinking water companies, it also varies depending on the origin of the clean water management work agreement in the area. With a variety of work systems in a drinking water company, it can have an impact on the performance level of employees in carrying out their duties and obligations, so that it indirectly also has an impact on the performance of clean water services in the area.
In this study, one of the coastal cities in Indonesia initially carried out clean water management under SPAM, where the main task was to organize drinking water service management to improve community welfare which included social, health, and public service aspects. Coastal cities are a type of urban area located along a coastline, whose government authority is regulated in the form of a city in the form of a formal administrative unit. Above the city level is the provincial level, which is a larger administrative unit that may encompass multiple regions, regencies, and districts/cities. Provinces are typically governed by a provincial government, and they may also have their coordination with the central government. With the rapid development of economic activity, its administrative status changed to that of a municipal/city autonomous region. This regional expansion policy has an impact on the city's drinking water management, where the condition of SPAM management is in the status quo between the district and the city, as a result of the unclear status of the administering body and asset ownership, so that asset management is not managed properly resulting in pump damage to the water treatment plants (WTPs) which supply 70% of customers. The problems mentioned above have led to a decrease in the PDAM's performance in terms of technical, financial, and institutional aspects. In several cases, there has been a delay in the payment of employees' salaries for 6 months, because the PDAM was unable to pay.
The development of the municipal/city SPAM organizing body cannot be separated from the involvement of private water companies in capacity building to achieve sustainable development targets and poverty alleviation in developing countries. However, the rapid development carried out by the private sector has had an impact on the company transforming into an independent business entity so that the regional government must buy back the company's shares so that there is no takeover of all kind of decisions related to water supply, especially implementing the principle of cost recovery through increasing the tariff. In the end, the city SPAM organizing body is carried out by a private company which is a joint venture between the city government and a foreign limited liability company. The private company was then known as a private business entity/Badan Usaha Swasta (BUS) where almost all its employees were former PDAM employees who had been handed over.
In relation to the district and city regional SPAM implementation plan involving the provincial government, it is necessary to make an inventory of indications of problems that will become obstacles to its implementation. The problem that is often encountered is the problem of local government policies regarding the implementation of SPAM in their respective regions which may conflict with the institutional concept of regional SPAM. Technically, there are several weaknesses in the institutional sector, especially in the competence of HRs and office facilities and infrastructure support. In this study, an analysis of institutional system governance is carried out which allows for structural and functional evaluation as well as HR capacity. Hence, three questions were formulated including (1) How is the management of the water supply system for household use in the coastal city which is the object of study? (2) How will institutional changes affect the governance structure of the water supply system? and (3) How to improve the performance of HRs in drinking water management companies? This research aims to ensure that the institutional analysis carried out can provide effective recommendations for the development of clean water services so that the community's clean water supply (both for piped water customers and nonpiped water customers) can be more evenly distributed throughout the service area.

| LITERATURE REVIEW
The concept of water governance has a very broad meaning, in outline the concept of water governance is related to how an institution operates in managing existing water resources so that it can meet the needs of the community and in accordance with applicable policy instruments (Tortajada, 2010). In practice, water governance will involve political, economic, social, and institutional processes which not only consist of the government but also the private sector and the community in making decisions (UNDP, 2004). Partnerships between the public and private sectors, participation of stakeholders, and economic or regulatory instruments will not run effectively without good administration and management mechanisms as a form of commitment. In almost all developing countries, institutions engaged in water management usually experience slow and unpredictable developments. Existing institutions are not functioning properly and the resulting decisions related to water management are also overlapping or conflicting. Therefore, a facility or container is needed that is more likely to have effective coordination from all parties and a real contribution to water management.
Defining appropriate water governance with a background of different interests and the absence of clear targets to be achieved is a formidable challenge that requires coordination and compromises not only from the government level but also from the private sector and social stakeholders. Therefore, the implementation of the concept of water governance needs to be based on the planning and implementation of frameworks in social, economic, environmental, and cultural conditions, including processes and mechanisms for interacting responsibilities of each element. Good water governance is expected to provide water management services with more structured tariffs that balance the affordability of equity and the sustainability of water distribution.
In a study conducted by Gumeta-Gómez et al. (2021), an analysis related to water governance was carried out using the Water Governance Complexity Framework based on the Kooiman Interactive Governance Framework, where the results were obtained by analyzing through the parameters of diversity, nestedness, and dynamics can provide new insights to classify water governance complex (Gumeta-Gómez et al., 2021). In water governance, an institution is needed which is a configuration between laws, policies, and organizations as well as practices that are structurally connected and implemented in the work environment. To achieve the optimization of the performance of an institution can be done institutional decomposition (Saleth, 2004). The environment of water institutions can be characterized not only by factors that determine the environment of the entire institution but also on matters related to the condition of water resources and all matters related to the water sector, such as agriculture, forestry, and urban development. The structure of water institutions is interactively divided into three components, which are water law, water policy, and water administration. Factors affecting water institutions are very diverse, for analysis purposes, they can be grouped into two, namely endogenous factors (internal institutional factors) and exogenous factors (external factors of water institutions and other water sectors). Endogenous factors include water scarcity, water conflicts, financial and infrastructure damage, operational inefficiencies of water institutions, and the relationship between components of water institutions. Exogenous factors represent general aspects such as economic development, demographic growth, technological progress, economic and political reforms, stakeholder commitment, social values, and ethos as well as natural phenomena. Thus, exogenous factors represent the overall institutional environment facing water institutions while endogenous factors reflect the internal features of water institutions and the water sector in a particular context and point in time.
The government, external supporting agencies, and local communities must recognize the importance of integrating operational and maintenance components in all phases of water supply and sanitation project development, including the planning, management, and monitoring implementation phases (Mishra, 2019). Based on research conducted by Mishra (2019), it is known that the lack of attention to the operational and maintenance aspects of the water supply scheme has an impact on dysfunction or reduced benefits of the system which requires early replacement of many components, which causes huge losses. Thus, investment in assets is wasted and fails to provide effective services to water needs. Through the water management capacity development program, an independent assessment of the success of ongoing water management can be carried out. The assessment indicators used can be quantitative or qualitative, depending on the desired capacity change. The selection of indicators must consider existing data sources and/or the feasibility of collecting relevant data. If there are indicators that are not appropriate, additional data collection or analysis can be carried out. The World Bank through the International Benchmarking Network for Water and Sanitation Utilities (IBNET) has been involved in monitoring the water sector by collecting utility performance data and has set global standards for assessing water utility performance based on various indicators. IBNET indicators include median and unweighted average values of performance indicators based on data and information from more than 4400 utilities from 135 countries. The median value is considered a better representation of performance than the average because of its slope. Defined indicator values are widely used to assess and compare the performance of water supply utilities around the world (Danilenko et al., 2014).
From a regulatory aspect, clean water infrastructure development through a public-private partnership scheme has not run optimally. Existing regulations have not been able to provide certainty and reduce the risks faced by the private sector. This is because there are differences in the legal rules used by the project manager, the technical rules for the implementation of cooperation do not have the support of the law above them, with respect to violations of the process of settling contractual relations which tend to be ineffective, and finally the lack of understanding from stakeholders regarding public-private partnership makes the rules that have been made not implemented properly (Adam & Hidayatina, 2015). From an institutional perspective, the weaknesses that make the organizational structure of clean water supply through public-private cooperation schemes unable to work properly are due to not being equipped with a clear and firm institutional framework, the organizational structure of clean water supply tends to overlap, and the positioning of institutions does not consider the capacity of each institution.
Government Regulation Number 2 of 2018 concerning Minimum Service Standards Article 7 states that the fulfillment of drinking water for the community is one of the development priorities for Regency/City Governments.
The position of the Provincial Government is as a coordinator, or the central government can only provide stimulus and technical guidance in the context of implementing access to drinking water. Institutional aspects and sustainability of SPAM management are crucial in determining whether the implementation of SPAM in an area has been running well or not. Therefore, institutional, financial, and HR performance need to get the attention of SPAM organizers and Regency/City Governments (Sentanu & Sriyiono, 2021). With the transition of the institutional system, it is necessary to adapt to the new organizational structure, adjust HR needs, and determine future organizational development plans to improve city's clean water supply services. Institutional strengthening can be done by increasing the resources of the Central Government apparatus and Regional Governments with capacity building through understanding legal, financial, and other technical aspects in the preparation of contracts with private parties. With a more comprehensive understanding in the preparation of contracts, the Regional Government will not be disadvantaged in the long term.
In most cities in developing countries, clean water is becoming scarce and expensive. Access to drinking water is a constraint for large populations. This situation is exacerbated by high no-revenue water, reaching up to 40%-60%, so that the water supply becomes underpriced and the investment requirement becomes very large (Tortajada, 2010). These things happen because of the lack of proper management of water resources and the lack of adequate institutions and policies. However, water is often not the main priority in development so that the resolution of water management problems is very slow. As a material for evaluating good water governance, it is necessary to study again the application of water governance cases in other countries, both those that already have good water governance and those that have not, so that it can provide new insights in creating even better water governance principles in the future. In the context of urban water management in Asia, water utilities in Tokyo, Singapore (Khoo, 2009;Tortajada, 2006) and Phnom Penh (Biswas & Tortajada, 2010;Chan, 2009) can be used as examples of good governance where, progress in water management achieved within 10-20 years. The thing that needs to be studied is what engineering was done so that these cities succeeded in changing their water management within the timeframe they set so that they became world-class utilities. It is the same as what needs to be learned from failed countries, where the availability of funds is not the main issue in the failure of planned water governance, but other factors such as commitment from all aspects involved.
In a study conducted by the Asian Development Bank and the Institute of Water Policy of the Lee Kuan Yew School of Public Policy, the application of reverse engineering of Singapore and Phnom Penh utilities provides an opportunity for good water governance because it allows rephrasing and restructured from existing water management. An important basis that needs to exist in water governance is transparency and accountability, which can help form an efficient and sustainable system. Instruments such as the dissemination of knowledge and information are expected to support operational transparency and accountability of water management both to the public and private parties. In terms of service provision, it is necessary to consider operational factors that are relevant to the existing conditions including aspects of management, decisionmaking, development of policy instruments, and skilled HRs where the acceleration of socioeconomic development is influenced by the quality of available HRs. For example, Singapore, a country that has successfully implemented a closed water cycle efficiently, can meet the water needs of its people but will not be easily imitated to be implemented in other countries. Singapore has managed to manage the balance between (Tortajada, 2006): 1. Water quantity and water quality considerations; 2. Water supply and water demand management; 3. Public sector and private sector participation; 4. Efficiency and equity considerations; 5. Strategic national interest and economic efficiency; and 6. Strengthening internal capacities and reliance on external sources.
By carrying out efficiency on the limited water resources it has through economical instruments, Singapore adopts the latest technological developments to produce "new" water sources so that it can meet the needs of water storage capacity through catchment management, implementing water conservation with more measurable targets, and considering social, economic, and environmental aspects for sustainable water management.
Not focusing on water governance theory or defining the context of good governance, the study conducted by the Institute of Water Policy of the Lee Kuan Yew School of Public Policy, focuses on the essential qualities that contribute to the water governance of the 3 countries mentioned. Phnom Penh Water Supply Authority experienced poor leadership and governance of the urban water sector, but after improvements were made, especially in terms of management and competence of employees, the water management authority completely changed (Biswas & Tortajada, 2010). Annual water production increased by 437%, distribution network by 557%, system pressure by 1260%, and customer base by 662%. Unaccounted water was reduced from 72% to 6.19%. The profits consistently increase as does the amount of taxes paid to the Cambodian Government. Phnom Penh has very clearly shown how it can be achieved under the most difficult circumstances, and in less than 10 years.

| METHODS
The scope of this research is to analyze clean water management institutions to meet the water needs of XYZ City, which is one of Indonesia's coastal cities. The institutional analysis carried out includes an assessment of the formal and informal policies governing individual and organizational behavior in the institutional context of water management. This also includes the interaction of various factors, incentives, and the output of the policies implemented. The research study area is a city of XYZ, which is part of the eastern province of Indonesia. The city has 6 districts and 31 wards. The area of the city area of XYZ is 310.99 km 2 with topographic conditions consisting of mountains and hills as well as lowlands with an altitude between 0 and 1200 m below sea level. These topographical conditions affect the flow pattern and flow velocity of river water and other surface water resources. Most of the rivers that flow in the city of XYZ are small rivers and only a few have large catchment areas.
The organizing body for the drinking water supply system in XYZ City is carried out by the private sector which is managed through the PDAM. The average production capacity of clean water in 2011-2015 from WTPs was 146 l/d. The amount of water production showed a declining trend throughout 2011-2016. Water production only increased in 2012 by 6% and continued to decline in the following year (Performance Report of PDAM Kota XYZ, 2016). The distribution of clean water uses gravity flow especially to serve lowland areas and flow by pumping to serve customers in upland areas. The volume of water distributed ranges from 96% to 99. The method used in this study is descriptive analysis. The use of the descriptive analysis method enables the researcher to describe systematically the facts and institutional characteristics in the drinking water supply sector. The use of descriptive analysis methods also opens opportunities for researchers to identify variations of problems, make relationships between institutional and income variables, and generalize from findings that have universal validity. To support the descriptive method, this study relies on secondary data, which were obtained through: literature/document studies regarding basic regulations for drinking water supply organizations, duties, and functions of each stakeholder in the clean water supply. Hence, the data collection for this study was done by a desk study. The collection of initial data and information related to the substance of the study is carried out to enrich the conceptual framework, as well as add references in preparing the paper.
As explained in the introduction, the indication of problems related to the SPAM implementation plan is needed, the indications of these problems are as follows: 1. The policy of the city government that has given concessions to BUS to organize a drinking water supply system in all city service areas, as well as similar policies carried out by the district government with the private sector; 2. There is no SPAM organizing body at the provincial level; 3. Limited HRs who have the capacity and competence in the field of implementing SPAM development; and 4. Lack of office facilities and infrastructure to support operational activities in the service sector.
The ratio of the number of employees to customers is one indicator of the ideal HRs management. The ratio of employees per 1000 customers is an indicator in terms of the operational aspect for PDAM success rates based on the Decree of Minister of Home Affairs No. 47 of 1999 concerning PDAM Performance Evaluation Guidelines, which are 8-10 employees for 1000 customers.
The ratio of the number of employees per 1000 customers gives the ratio of the number of employees who are active and efficient in providing services to customers, measured by the following equation:

= ×
Ratio of employees per 1000 customers (number of employees) (number of customers) 1000.
With the assessment criteria based on the Decree of the Minister of Home Affairs No. 47 of 1999 concerning PDAM Performance Evaluation Guidelines are as follows: 1. If the ratio is ≤8, then the value obtained is 5, very good or very effective; 2. If the ratio is >8-11, then the value obtained is 4, good or effective; 3. If the ratio is >11-15, then the value obtained is 3 or effective enough; 4. If the ratio is >15-18, then the value obtained is 2 or less effective; 5. If the ratio is >18, then the value obtained is 1, not good or not operationally effective.
Through these criteria, it can be analyzed the suitability of employee performance with the needs of developing drinking water services in the future.
The improvement of clean water services needs to be supported by the addition of potential water resources located in XYZ City. For selecting a water supply method, it is essential to consider the choice of an economic calculation approach and user perceptions (Huwaina & Koestoer, 2022). The selection of water supply methods in XYZ is carried out by referring to related documents and research conducted by Indonesia Water Institute (2016).

| RESULTS AND DISCUSSION
The Cooperation Agreement that has been signed between the city government and the private sector has an impact on the government's limited authority in issuing technical and budgetary policies to the city government or in other words, the government cannot aid private parties. Regarding the regional SPAM implementation plan, one of the things that needs to be prepared is to determine the Regional SPAM service area in the city which will later be managed by the city government and will be regulated in a cooperation agreement. Due to the existence of BUS, it is impossible for the city government to do this because the entire service area has been delegated to BUS. Therefore, one of the alternative solutions related to the planned implementation of urban Regional SPAMs is to revise the clause in the article granting full concessions to BUS to a partial one with the aim that the city government can manage the service area within the city regional SPAM formed by the city government. Therefore, it is better for the city government to realize the establishment of a SPAM organizing body in the form of a technical implementation unit/Unit Pelaksana Teknis (UPT) as soon as possible.
Regional SPAM preparation and planning is an important stage that must be passed. One aspect that must be pursued is the preparation and strengthening of institutions aimed at accelerating the process of finalizing the action plan, so that it can support the follow-up process at the implementation stage of physical development and the operational and commercial stages. The process of forming the Regional SPAM Coordination Team formed by the Governor to prepare regional cooperation has the following tasks: 1. Carrying out an inventory and mapping of areas/ potential areas to be collaborated with; 2. Arrange priority objects to be cooperated with; 3. Provide advice on regional and third-party election processes; 4. Preparing terms of reference/proposals for regional cooperation objects; 5. Prepare and assess proposals and feasibility studies; 6. Prepare materials for collective agreements and draft cooperation agreements; 7. Provide recommendations to governors for signing collective agreements and cooperation agreements; and 8. Carry out guidance and supervision of the implementation of Regional SPAM cooperation.
As explained in the method, the transition of PDAM to UPT is the right step to address technical problems because it can make decisions and carry out execution (action plans) at any time. In addition, UPT's organizational form can also apply the concept of good governance to support more transparent management. In accordance with policies related to regional companies in Indonesia, UPT has the main task of providing public services to the community and can finance itself, develop the level of its services and contribute to regional development as a source of local revenue. The formation of UPT as an option in the institutional development based on the provisions of the applicable laws and regulations, among others regulated in Articles 331-343 of Law 23 of 2014 concerning Regional Government. With the establishment of UPT, it is hoped that in the future the administration of the city's drinking water system can be carried out independently and can develop its services throughout the city. By looking at opportunities where the coastal city has a population growth that is fast enough so that it has a high potential of potential customers. Support from both the central and regional governments is of course the capital for developing PDAM to become UPT. Based on a study conducted by González-Gómez et al. (2010), the change in management from PDAM to UPT is a form of privatization carried out by the government to overcome problems arising from the operational environment and financial constraints. From the results of this study, it was stated that private companies are more likely to build their business when profitability is clear. In this case, PDAM XYZ, difficult to develop piped water services, the profitability obtained is unclear due to the tendency of the number of customers not to increase significantly.
The UPT head oversees fields of affairs and one subsection of administration (Figure 1). The fields of affairs are technical planning affairs, production affairs, distribution and service affairs, and customer relations affairs. Furthermore, the head of the administrative subsection oversees two sections, namely the administrative and general sections and the financial section. The Technical Planning Affairs has the main task of assisting the Head of the UPT Administrative Sub-Division in carrying out production, transmission, and distribution technical planning tasks. Production Affairs has the main task of assisting the Head of the UPT Administrative Sub-Division in carrying out the task of preparing plans and implementing the development of drinking water production that meets Drinking Water standards and carrying out the management of water sources in accordance with applicable regulations. Distribution and Service Affairs has F I G U R E 1 UPT institutional structure. Source: Author analysis, 2023. SPAM, Sistem Penyediaan Air Minum; UPT, Unit Pelaksana Teknis.
the main task of assisting the Head of the UPT Administrative Sub-Division in carrying out the task of regulating the distribution of water evenly and continuously to all customers. Financial Affairs has the main task of assisting the Head of the UPT Administrative Sub-Division in carrying out the task of recording customer transactions and cash management. Customer Relations Affairs has the main task of assisting the Head of the UPT Administrative Subdivision in carrying out the task of carrying out administrative activities and customer service. General and Personnel Affairs (Administration and General Affairs) has the main task of assisting the Head of the UPT SPAM Administrative Sub-Division of the Public Works Service in carrying out the task of carrying out household, administrative, and staffing affairs. Financial affairs have the main task of assisting the Head of the UPT Administrative Sub-Division in carrying out the task of carrying out financial management activities, accountancy, and preparation of financial reports.
The PDAM which is running after the management transfer process with regional BUS and SPAM, will have limited authority in the development of city SPAM. Thus, the PDAM should be able to develop into a UPT that has broader authority when compared to the PDAM so that it is more effective in developing the water sector's business strategy. The professional implementation of urban SPAM is a motivating factor for PDAM to switch to UPT to improve services in the PDAM's commercial and operations which require an operational budget that is needed at any time, especially to anticipate technical problems that arise at any time without being foreseen.
One of the determining factors for the success of a PDAM, non-PDAM, and regional UPT is the quality of HR. HR development is carried out to build a management system that is strategic, integrated, interrelated, and unified. In line with changes and demands for progress, it is always necessary to have HR competencies that are always updated. HRs, which are a source of knowledge, skills, and abilities, must always be honed by the company from time to time in the form of skills development to have a competitive advantage. Demands for improving company performance must be supported by increasing employee educational competence so that there is no gap between what is expected and the existing reality. Therefore, to support the City SPAM development plan, reliable HRs are needed to carry out their duties in accordance with the established vision and mission priorities.
Work competency standards were developed referring to the Regulation of the Minister of Manpower and Transmigration Number 8 of 2012 concerning Procedures for Determining Competency of Indonesian National Work Competency Standards/Standar Kompetensi Kerja Nasional Indonesia (SKKNI). Based on this determination, the competency standards developed must refer to the Regional Model of Competency Standard (RMCS). Regulation of the Minister of Manpower and Transmigration Number 8 of 2012 Article 10 states that: 1. The preparation of the SKKNI in each sector or business field refers to the competency map compiled in the SKKNI Master Plan for the relevant business sector; 2. Preparation of SKKNI and competence mapping as referred to in paragraph (1) refers to RMCS; RMCS is a competency standard model whose development uses a functional approach from work processes to produce goods and/or services. Work competency standards are prepared based on the structure and format for writing work competency standards in accordance with Attachment I to Regulation of the Minister of Manpower and Transmigration Number 8 of 2012. To develop work competency standards for SPAM management, the SKKNI structure sequence is used. In SKKNI there is a list of competency units consisting of competency units. Each competency unit is an integral part of the composition of the list of competency units and has a competency unit code with reference to the 2009 Indonesian Business Field Standard Classification issued by the Central Bureau of Statistics. The scope of substance for implementing SPAM development includes SPAM with a pipeline network that includes: 1. SPAM development planning; 2. Implementation of SPAM construction; 3. SPAM management, including SPAM maintenance as well as SPAM monitoring and evaluation.
Based on the performance analysis described in the method, the number of BUS employees until 2016 was 122 people (Table 1) and with a total number of customer connections reaching 15,379 household connections (HCs). The number of active customers is 8224 HCs. Based on this number, the employee ratio is 14.83 and this ratio is included in a value of 3. A value of 3 means that the ratio of the number of employees of the private drinking water company is quite effective from one of the operational aspect indicators. The following is an organizational structure scenario that can be applied to urban PDAMs by adjusting to the target of improving raw water supply services: With this number, the ratio of the number of employees to the number of the customer is included in the value <8 with the good category. In accordance with the institutional scheme depicted in Figure 2, the development of the water business sector has its own structure under the main director. This shows that achieving the 100% service target requires HRs who focus on evaluating relationships with customers, the factor of water loss in the distribution system, and the development of water management cooperation; 2. Scenario 2: The service level until the end of the planning year (2036) is 78.7% with a total of 88,776 HCs. With this number of customers, the number of effective and efficient employees is 500-700 people and the maximum number of directors is three people. In this scenario, the institutional structure focuses on maintaining existing assets so that they can run effectively and planning targets can be achieved (shown in the institutional structure in Figure 3, which has a simpler form than scenario 1).
Government policy to support employee performance improvement is also demonstrated by the Regulation of the Ministry of Public Works and Housing No. 10/PRT/M/ 2016 concerning the SKKNI in the Management of Drinking Water Supply Systems (SPAM). The issuance of this regulation will become mandatory for the management of drinking water in Indonesia, from previously only being voluntary. With the issuance of this regulation, it is hoped that all parties related to the management of SPAM, starting from the Directors or heads of SPAM operators, workers who handle raw water units, production units, distribution units and water loss reduction, and workers who handle customer service, governance organizations, and general administration, is required to have a Work Competency Certificate issued by a professional certification agency in the field of drinking water that has obtained F I G U R E 2 Scenario 1 of a City PDAM organizational structure. Source: Author analysis, 2023. PDAM, Perusahaan Daerah Air Minum. ALI ET AL.
| 165 a license from the agency that has the task of carrying out Work Competency Certification in accordance with statutory regulations. Efforts that need to be made to improve HRs are as follows: 1. Conduct training to increase the capacity of HRs at the central and regional levels related to the implementation of SPAM, both HRs from the government, organizers, construction implementers and consultant service providers; clean water supply system training from production systems, transmission, and distribution systems (basics of planning, operation and maintenance, pipeline network hydraulics software, etc.); 2. Encouraging the filling of structural/functional positions by HRs who have appropriate competency certificates; 3. Organizing SPAM development that guarantees the quality, quantity, continuity, affordability; 4. Procurement and training of global positioning system survey tools to streamline SPAM development planning; 5. Flow control training to reduce the percentage of nonrevenue water; 6. Training on the maintenance and repair of SPAM buildings and the instrumentation inside them; 7. Adding staff with strong basic skills in mastering the clean water system such as a bachelor of environmental engineering; 8. Institutional management training; 9. Training program for making drawings of clean water systems; 10. Records management training; 11. Financial software training.
In connection with changes in the institutional structure and development of existing HRs, operational and maintenance in the development of water services also need attention. One of them is in the selection of sustainable water resources to meet community needs. In selecting a river as a source of raw water, several aspects must be taken into consideration are aspects of the F I G U R E 3 Scenario 2 of a City PDAM organizational structure. Source: Author analysis, 2023. PDAM, Perusahaan Daerah Air Minum. quantity, quality, and continuity of the river (Azmanajaya & Paulus, 2018). Regulation of the Minister of Public Works and Housing Number 01 of 2016 Article 17a is the basis for determining river water withdrawal discharge based on the results of hydrological calculations and observations that have been made. In terms of quality, the policy that forms the basis is Government Regulation No. 82 of 2001, by looking at the results of laboratory tests. Hydrological calculations along with observations and information received by informants are important data that will be used in considering continuity aspects. From the results of the analysis conducted by Indonesia Water Institute (2016), The river that flows in the city of XYZ relies on rainfall, so during the dry season, it cannot fulfill the quantity and continuity aspects in the supply of drinking water. as well as other types of surface water resources which are also strongly influenced by the season. Thus, other alternative sources of water such as springs, swamps, beaches, and rainwater need to be studied more deeply to anticipate dry conditions in XYZ City.

| CONCLUSION
To answer the question that formulated in the introduction, we can conclude that the management of the water supply system for household needs institutional strengthening, both regulatory and institutional, to maximize the roles and functions of the relevant institutions. When viewed from the existing policies and opportunities faced by PDAM in developing drinking water services, it is very important to change PDAM to UPT to improve current clean water services. The institutional changes will be giving huge impact to the governance structure of the water supply system.
With the change in institutional form, clean water management can run more freely because the government can directly implement development programs that have been prepared, without the need for approval from the private sector. Water management in the form of UPT also facilitates decision-making because management is more transparent with direct supervision from the government. Regional revenues will also increase with income from water tariffs that go directly to the government treasury, in contrast to those managed by the private sector using a profit-sharing system. Therefore, the administration of the city's drinking water system can be carried out independently and can develop its services throughout the city.
Institutional strengthening can be done by increasing the resources of the Central Government apparatus and Regional Governments with capacity building through understanding the legal, financial, and other technical aspects in the preparation of work contracts. With a more comprehensive understanding in the preparation of contracts and the distribution of authority, no party will be harmed in the long term. From a regulatory standpoint, the legal instruments under UPT are very comprehensive and have undergone improvements to accommodate the existing dynamics. The Central Government and Regional Governments should have the same understanding in the implementation of regulations to provide security and certainty for the private sector investing in the drinking water sector. To provide better service performance, HRs in drinking water management companies could be improve by implementing training related to water supply management.

ACKNOWLEDGMENTS
The authors would like to express their gratitude to the Regional Development Planning Agency of the city for its support regarding the data collection and interview that have been carried out in this study. This study did not receive any specific grant from funding agencies in the public, commercial, or not-for-profit sectors.

DATA AVAILABILITY STATEMENT
Data are available on request from the authors.

ETHICS STATEMENT
None declared.