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Impulses for Water Resource Planning and Institutional Reform in Indonesia Towards an Effective Institutional Framework

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Impulses for Water Resource Planning and Institutional Reform in Indonesia Towards an Effective Institutional Framework Resources for policy making APPLIED WORK EASYPol Module 085 EASYPol Module 084 Impulses for Water Resource Planning and Institutional Reform in Indonesia Towards an Effective Institutional Framework About the FAO Policy Learning Programme This programme aims at equipping high level officials from developing countries with cutting-edge knowledge and strengthening their capacity to base their decisions on sound consideration and analysis of policies and strategies both at home and in the context of strategic international developments. Related resources • See all material prepared for the FAO POLICY LEARNING PROGRAMME • See the FAO Policy Learning Website: HTTP://WWW.FAO.ORG/TC/POLICY-LEARNING/EN/ Resources for policy making Impulses for Water Resource Planning and Institutional Reform in Indonesia Towards an Effective Institutional Framework by Jacob James Burke, Senior Water Policy Officer, NRLW, Land and Water Division, FAO, Rome, Italy for the Food and Agriculture Organization of the United Nations, FAO About EASYPol The EASYPol home page is available at: WWW.FAO.ORG/EASYPOL EASYPol is a multilingual repository of freely downloadable resources for policy making in agriculture, rural development and food security. The resources are the results of research and field work by policy experts at FAO. The site is maintained by FAO’s POLICY ASSISTANCE SUPPORT SERVICE, Policy and Programme Development Support Division, FAO. This presentation belongs to a set of modules which are part of the EASYPol Resource package: FAO POLICY LEARNING PROGRAMME – SPECIFIC POLICY ISSUES – NATURAL RESOURCE MANAGEMENT - WATER The designations employed and the presentation of the material in this information product do not imply the expression of any opinion whatsoever on the part of the Food and Agriculture Organization of the United Nations concerning the legal status of any country, territory, city or area or of its authorities, or concerning the delimitation of its frontiers or boundaries. © FAO JANUARY 2008: All rights reserved. Reproduction and dissemination of material contained on FAO's Web site for educational or other non-commercial purposes are authorized without any prior written permission from the copyright holders provided the source is fully acknowledged. Reproduction of material for resale or other commercial purposes is prohibited without the written permission of the copyright holders. Applications for such permission should be addressed to: [email protected]. Impulses for Water Resource Planning and Institutional Reform in Indonesia Towards an Effective Institutional Framework Table of contents 1. Summary .................................................................................... 1 2. Introduction ................................................................................. 1 3. Decentralisation and the water sector in indonesia ............................ 1 3.1. Water sector reform ........................................................................ 2 3.2. The Status of the Draft Water Law .................................................... 5 4. Emerging issues ........................................................................... 8 4.1. Natural Resource Limits and Extreme Events: Calls for Improved Risk Management and ‘Integration’ .................................................................. 8 4.2. Economic returns and economic / environmental performance ............. 9 4.3. The food security issue – the scope for agricultural growth and demand for improved irrigation services................................................................ 10 4.4. Urbanisation and industrial growth ................................................... 13 4.5. The spatial planning dilemma .......................................................... 14 5. Opportunities .............................................................................. 15 5.1. Economic ...................................................................................... 15 5.2. Technical ...................................................................................... 16 5.3. Institutional .................................................................................. 16 6. Strategies ................................................................................... 18 6.1. Raise public awareness ................................................................... 18 6.2. Look at resource alternatives - promote the use of small scale hydrological ‘buffers’ .............................................................................. 18 6.3. Focus on non-structural/environmental measures for flood prevention and control ........................................................................................... 19 6.4. Implement Programmes of Water Demand Management and match supply .................................................................................................. 19 7. Recommendations: ...................................................................... 20 7.1. An Enhanced Institutional Framework .............................................. 20 7.2. District Level ................................................................................. 23 7.3. Provincial Regional Government ...................................................... 24 7.4. Basin Level: The role of the Balai PSDAs ........................................... 25 7.5. The Role of the National Water Council ............................................. 27 7.5. Toward a rationalised framework ..................................................... 28 7.6. Toward a streamlined arrangement .................................................. 30 8. Conclusions ................................................................................. 33 9. Readers’ notes ............................................................................ 34 9.1. Time requirements......................................................................... 34 10. References and further reading ..................................................... 34 Annex 1: Coordination Team for Water Resources Management Working Group Products. ................................................................................. 37 Annex 2: Extract from Draft Water Law ................................................ 42 Impulses for Water Resource Planning and Institutional Reform in Indonesia 1 Towards an Effective Institutional Framework 1. SUMMARY This module is a condensed diagnostic of the Indonesian water sector reform process up to September 2004 provided under FAO support to the Indonesian planning ministry, BAPPENAS. The diagnostic was relevant at the time and may no longer apply, but it serves to illustrate the institutional pressures that can build up under a process of decentralization. This is significant for agriculture policy in Indonesia. While there is intense competition for raw water from municipal, industrial and hydropower users, the irrigated sub-sector in Indonesia remains significant in economic and political terms. 2. INTRODUCTION Objectives To illustrate the impact of external ‘shocks’ on water policy, water regulation and the provision of water services. Target audience Indonesia water sector professionals. Required background An appreciation of water sector reform and decentralisation of rural service provision. Readers can follow links included in the text to other EASYPol modules or references1. See also the list of EASYPol links included at the end of this module2. 3. DECENTRALISATION AND THE WATER SECTOR IN INDONESIA The result of Indonesia’s financial shock in 1997 and the advent of decentralisation in 1999 and the thrust it has given to sector reform and associated financing (internal and external) has been well established3. The implications of Law No. 22/1999 Law on Regional Administration and Law No. 25/1999 Law on the Fiscal Balance Between Central and Regional Governments, are far reaching and require intensive adjustment of sectoral legislation. 1 EASYPol hyperlinks are shown in blue, as follows: a) training paths are shown in Underlined bold font b) other EASYPol modules or complementary EASYPol materials are in Bold underlined italics; c) links to the glossary are in bold; and d) external links are in italics. 2 This module is part of the EASYPol Resource package: FAO POLICY LEARNING PROGRAMME – SPECIFIC POLICY ISSUES – NATURAL RESOURCE MANAGEMENT - WATER 3 World Bank, 2003. 2 EASYPol Module 085 Applied Work The outcomes for specific sectors and the trends in economic structure and growth under these reform processes (e.g. WATSAL) will take time to discern. In the past few years a more erratic climate with prolonged drought and intense rainfall has resulted in emergency food distribution and calls for improved natural resource management to ensure that Indonesia’s river basins and subsequent water uses are more effectively buffered from extreme events (floods and droughts).With the National Water Policy in place4 and enabling legislation in the process of being enacted, the policy frame is well established. The key test will be the introduction of a new Water Law (and the consequent revoking of UU/74). However, with the exception of PP77/2001 (Government Regulation on Irrigation) and PP82/2001 (Government Regulation on Water Quality and Pollution Control) the anticipated suite of supporting Government Regulations in relation to water use rights, national hydrology management, river basin institutions, IMT and WUAs have yet to be processed5 . The genesis
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