Political economy influences on enterprise engagement in Indonesia, Vietnam and Timor-Leste

Many factors influence the potential for enterprises to play effective roles in supporting water and sanitation services. This paper focuses on the importance of the national and local political economy in shaping what roles are possible and viable, and explores the range of forms of enterprise visible in the water and sanitation sector in Indonesia, Vietnam and Timor-Leste. Through interviews with government agencies at national and subnational levels, private and social enterprises, local and international civil society organisations and donors, this research provides a rich description of the ways in which history and the macro economy have shaped the role and perceptions of the private sector in each country, and the particular niche that small-scale enterprises in this sector currently occupy. It provides insights into the incentives that drive the behaviour of different actors, and points to the need for highly contextualised support for such enterprises in each country.