River Basin Management Planning in Indonesia Policy and Practice This report summarizes the strengths, challenges, opportunities, and risks characterizing the prospects for integrated water resources management in Indonesia. Integrated water resources management planning is essential PLANNING IN INDONESIA: POLICY AND PRACTICE RIVER BASIN MANAGEMENT for sustainable growth. Indonesia’s rapid economic growth, increas ing populations, and trends in developing and urbanizing environments are leading to potential confl icts as more users claim the same water resources. Understanding these conditions may provide decision makers with more insight to optimize the country’s water resources potential using available and state-of-the-art methodologies and tools for river basin planning. The report discusses all aspects of basin planning based on experiences from one of Indonesia’s most complex and strategic river basins. About the Asian Development Bank ADB’s vision is an Asia and Pacifi c region free of poverty. Its mission is to help its developing member countries reduce poverty and improve the quality of life of their people. Despite the region’s many successes, it remains home to the majority of the world’s poor. ADB is committed to reducing poverty through inclusive economic growth, environmentally RIVER BASIN MANAGEMENT sustainable growth, and regional integration. Based in Manila, ADB is owned by 67 members, including 48 from the PLANNING IN INDONESIA region. Its main instruments for helping its developing member countries are policy dialogue, loans, equity investments, guarantees, grants, and technical assistance. POLICY AND PRACTICE ISBN 978-92-9257-387-4 ASIAN DEVELOPMENT BANK 6 ADB Avenue, Mandaluyong City 1550 Metro Manila, Philippines www.adb.org ASIAN DEVELOPMENT BANK BKK157181 SERD River Basin Management Planning-COVER_31May2016.indd 1 6/9/2016 6:17:45 PM ASIAN DEVELOPMENT BANK Creative Commons Attribution 3.0 IGO license (CC BY 3.0 IGO) © 2016 Asian Development Bank 6 ADB Avenue, Mandaluyong City, 1550 Metro Manila, Philippines Tel +63 2 632 4444; Fax +63 2 636 2444 www.adb.org Some rights reserved. Published in 2016. Printed in the Philippines. ISBN 978-92-9257-387-4 (Print), 978-92-9257-388-1 (e-ISBN) Publication Stock No. BKK157181 Cataloging-In-Publication Data Asian Development Bank. River basin management planning in Indonesia: Policy and practice. Mandaluyong City, Philippines: Asian Development Bank, 2016. 1. River basin management planning. 2. Indonesian policy and practice. I. Asian Development Bank. 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Corrigenda to ADB publications may be found at: http://www.adb.org/publications/corrigenda Cover photo was provided by Deni Sambas (www.citarum.org). Contents Tables, Figures, Boxes, and Maps viii Acknowledgments xiii Abbreviations xiv Executive Summary xviii Strengths xix Challenges xx Opportunities xxii Risks xxv Recommendations xxv 1 Introduction 1 2 Global and Indonesian Principles of Integrated Water Resources Management and Basin Water Resources Management Planning 7 2.1. Global Objectives 7 2.2. Global Key Principles and Concepts of Integrated Water Resources Management 8 2.3. Global Experience with Integrated Water Resources Management and Future Developments 12 2.4. Integrated Water Resources Management Application and Basin Planning in Indonesia 15 2.4.1. Integrated Water Resources Management Application in Indonesia 15 2.4.2. Basin Water Resources Management Planning in Indonesia 18 2.4.3. Principles for Integration of Basin and Spatial Planning 22 2.4.4. Progress in Basin Planning in Indonesia 26 2.4.5. Progress in Formation of Water Resources Councils 27 3 Legal and Institutional Framework in Indonesia 29 3.1. Introduction 29 3.2. Legal Framework 30 3.2.1. Introduction 30 3.2.2. Main Characteristics of the Law on Water Resources 32 iv Contents 3.2.3. Authority and Responsibility 35 3.2.4. Legal Instruments 37 3.3. Institutional Framework 43 3.3.1. Designated River Basin Management Organizations 43 3.3.2. Performance of River Basin Organizations 45 3.3.3. Organization of Stakeholder Involvement 46 3.3.4. Coordination through Plan Formulation 48 3.4. Assessment of Existing Capacity 53 3.4.1. Capacity for Water Resources Management 53 3.4.2. Capacity for Basin Water Resources Management Planning 54 3.5. Financial Arrangements 54 3.5.1. Financing Water Resources Management 54 3.5.2. Water Resources Management Budget Allocation 57 4 Basin Planning Required in Indonesia 61 4.1. Introduction 61 4.2. Pola 64 4.2.1. Introduction 64 4.2.2. Phase 1: Preparation 67 4.2.3. Phase 2: Formulation 72 4.2.4. Phase 3: Finalization and Legalization 93 4.3. Rencana 93 4.3.1. Overview 93 4.3.2. Phase 1: Inventory 96 4.3.3. Phase 2: Formulation of the Rencana 100 4.3.4. Phase 3: Finalization and Legalization 101 4.4. Experience with Basin Planning in Indonesia 101 4.4.1. Position of the Pola and Rencana in Relation to Other Governmental Activities 102 4.4.2. The Pola as a Strategic Document 102 4.4.3. Guidelines for Plan Preparation (Analysis Process) 103 4.4.4. Planning Methods, Models, and Data 103 4.4.5. Planning Capacity 104 Contents v 4.5. Citarum River Basin Road Map 104 4.5.1. Legal Basis 104 4.5.2. Methodology 105 4.5.3. Comparison of the Pola and Rencana with Road Map Approach 106 5 Methodology of Basin Planning in Indonesia 109 5.1. Introduction 109 5.2. Methodology 109 5.2.1. Conservation 109 5.2.2. Water Utilization 115 5.2.3. Disaster Management 117 5.2.4. Data and Information 118 5.2.5. Community Participation and Institutional Aspects 118 5.3. Integration 120 5.3.1. Island-Wide Approach 120 5.3.2. Water Resources Management and Spatial Planning for Food Security 125 5.3.3. Water Resources Management and Spatial Planning for Conservation, Water Utilization, and Flood Management 127 5.3.4. Integrated Flood Management and Spatial Planning 133 5.3.5. Utilization and Damage Control from Land Subsidence 135 5.4. Tools 136 5.4.1. Importance of Tools 136 5.4.2. Hydrological Databases 137 5.4.3. River Basin Planning Decision Support System 138 5.4.4. Flood Management Analysis Tools 139 5.4.5. Simulation of Spatial Development 142 5.4.6. Elaboration of Zoning 146 5.4.7. Spatial Management for Control of Internal Drainage 149 5.4.8. Spatial Management for Control of External Drainage 150 5.4.9. Spatial Management for Catchment Conservation 153 5.4.10. Evaluation of Priorities (Pola) and Cost and Benefits (Rencana) 157 5.4.11. State of the Basin Reporting 165 5.5. Water Quality: Management, Cost, and Benefits 169 vi Contents 5.5.1. Overall Approach 169 5.5.2. Determination of Water Quality in Upper Citarum River 169 5.5.3. Determination of Discharge of Pollution (Loads and Flows) 169 5.5.4. Determination of Intervention to Reduce Pollution 171 5.5.5.