Drinking Water as a Source of Income

Abstract: This study discovers how the microentrepreneurs running water refill stations (WRSs) assess the income generation potential of drinking water sale in Jakarta including the motivations to start up and sustain the business as well as the challenges they face with in the water market. The study further provides insights on the broader externalities to which WRSs have contributed. The design of the research and the paper is inspired by the Theory of Evolutionary Economics and the Institutional Theory. Case study approach was employed utilizing qualitative research methods. The study has found that the main motivations of microenterprises rely not only on the monetary incentives but also on the appreciation shown in society; which implies a set of factors from both the market and non-market environments. The main challenges, however, occur mainly in the market environment due to the lack of legal regulations specific to WRSs and the competition among microentrepreneurs. With regards to the externalities, WRS have been found to spontaneously contribute to the increased awareness of water quality at the societal level. It can be concluded that the perceptions of market participants are positive and they are satisfied with the dynamics of water market in Jakarta.