The OBA pilot was not without its challenges. Due to regulations in Jakarta, the project could not be piloted across multiple informal settlements, meaning that the majority of the city's slum-dwellers continue to pay greater amounts for water from trucks and other irregular services (Menzies & Setiono, 2010). Furthermore, the government initiated a policy of evicting eligible households in potential project areas, thereby rendering the residents of such households vulnerable (Menzies & Setiono, 2010). Finally, there was significant pushback from local hydrant owners and informal water suppliers in informal settlements. These individuals caused disruptions that threatened project timelines, as they felt that their revenue would diminish by the implementation of a formal water supply network. Due to these issues, the pilot project could not gain significant political support in informal settlements, and the water distributor (PALYJA) had to act as the negotiator within the settlements (Menzies & Setiono, 2010). Although some of the local hydrant owners agreed to PALYJA's offer to become managers of sanitation facilities and other hydrants, many did not, and these tensions continued to pose a challenge in informal settlements (Menzies & Setiono, 2010). As such, the project was only partially successful.

Outcomes

The World Bank subsidized GPOBA's pilot project, providing over USD 2 million in funding (World Bank, 2006; World Bank, 2009). The target for uptake of the project (i.e., households in which new connections would be introduced) was set at 46.5% of households located in the pilot areas. If this target was met, all costs would be reimbursed to PALJYA; if not, PALJYA would only receive partial reimbursement on a prorated scale (Menzies & Setiono, 2010). To ensure satisfactory outputs, 75% of the funding was given to PALJYA upon verification of connection, and the remaining 25% was granted only after 3 consecutive months of satisfactory service (Menzies & Setiono, 2010; Mumssen, Johannes & Kumar, n.d.; World Bank, 2006). Recognizing the need for effective stakeholder engagement, especially within informal settlements, PALYJA established a stakeholder steering committee, composed of local community leaders, community-based organizations (CBOs), and NGOs, to facilitate project implementation and gain stakeholders' acceptance (Menzies & Setiono, 2010).

Two types of water service were implemented through the OBA, namely "Type I" standard household connections for IDR 120,000 (USD 13) and "Type II" high density, informal slum connections (on a "master meter" basis) for IDR 12,000 (USD 1.30) (Menzies & Setiono, 2010). The pilot project ended in 2013 after 8 years of service and had numerous positive outcomes (Menzies & Setiono, 2010). For example, 5,042 low-income households were connected to the formal water network (4,629 households gained standard "Type I" connections and another 413 gained "Type II" connections), resulting in a total of 50,000 individual beneficiaries (World Bank, 2011). Furthermore, the pilot project showcased the viability of a creative financing method for water and sanitation project implementation, based on incentivization and achieving specific targets. Finally, the project also allowed an option for individuals who owned or maintained local hydrants in informal settlements to become managers of newly developed sanitation facilities or hydrants, so as to avoid potential conflicts between these individuals and water distributors (Menzies & Setiono, 2010).

After the project's completion in 2013, CBOs became the primary billing and collection agencies for these projects (Menzies & Setiono, 2010). Ultimately, the OBA pilot project and partnership between the World Bank and Jakarta's water providers (TPJ and PALYJA) was able to improve access to clean water for over 5,000 families. Although the project had its shortcomings, it serves as a potential model for the use of output-based aid and results-based financing in many developing areas globally, particularly those municipalities facing challenges regarding water and sanitation provision in informal settlements and low-income communities.