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World Bank Document Report No. 2027a-IND Indonesia Irrigation Program Review Public Disclosure Authorized October 16, 1978 Projects Department East Asia & Pacific Regional Office FOR OFFICIAL USE ONLY Public Disclosure Authorized Public Disclosure Authorized Public Disclosure Authorized Document of the World Bank This document has a restricted distribution and may be used by recipients only in the performance of their official duties. Its contents may not otherwise be disclosed without World Bank authorization. CURRENCY EQUIVALENT US$1.00 - Rupiahs (Rp) 415 Rp 100 - US$0.241 Rp I million - US$2,409.64 ($ refers to US$ throughout report) WEIGHTS AND MEASURES - METRIC SYSTEM 1 millimeter (mm) - 0.039 inches 1 meter (m) - 39.37 inches 1 kilometer (km) - 0.62 miles 1 square kilometer (sq km) 0.386 square miles 1 hectare (ha) 2.47 acres 1 cubic meter (cu m) - 35.31 cubic feet 1 million cubic meters (MCM) - 811 acre feet 1 liter (1) 0.264 gallons (USA) 1 liter/second (1/sec) 0.035 cubic feet per second 1 kilogram (kg) - 2.2 pounds 1 metric ton (ton) 2,205 pounds CONVERSION FACTORS FOR RICE 1 ton "dry stalk paddy" - 765 kg rough paddy ("paddy gabah" or "dry rice paddy") 1 ton "paddy gabah" - 680 kg milled rice 1 ton "dry stalk paddy" - 520 kg milled rice INDONESIA FISCAL YEAR April 1-March 31 Table H 7.1: SAVINGS, INVESTMENT AND FINANCIAL TRANSACTIONS, 1977 (Billion won in current prices) Total Financial Government Corporate Individual Rest of the World Uqes Sources Uses Sources Uses Sources Uses Sources Uses Sources Uses Sources Nonfinancial Account 3,725.3 3,725.3 102.2 102.2 829.7 829.7 973.5 973.5 1,502.9 1,502.9 317.0 317.0 Saving - 3,725.3 - 102.2 - 829.7 - 973.5 - 1,502.9 - 317.0 Investment 3,725.3 - 74.5 - 940.1 - 1,951.7 - 759.0 - - - Financial surplus or deficit - - 27.7 - -110.4 - -978.2 - 743.9 - 317.0 - Financial Account 6.257.4 6,257.4 2,454.3 2,454.3 514.2 514.2 1,168.2 1,168.2 1,448.2 1,448.2 672.5 672.5 Financial surplus or deficit - - - 27.7 - -110.4 - -978.2 - 743.9 - 317.0 Money 384.1 384.1 5.2 384.1 12.7 - 161.4 - 204.8 - - - Time and savings deposits 763.1 763.1 4.1 763.1 12.7 - 254.0 - 492.3 - - Insurance and trust 137.7 137.7 5.1 137.7 5.4 - 13.6 - 113.6 - - - Other deposits 216.0 216.0 - 216.0 - - 61.6 - 154.4 - - - Securities 945.1 945.1 169.6 186.3 88.7 255.9 217.5 502.9 469.3 - - - (NIF) (200.0) (200.0) (125.0) - (29.8) (200.0) (31.2) - (14.0) - - - bOK loans 150.0 150.0 150.0 - - 150.0 - - - - - Bank loans 886.9 886.9 886.9 8.9 _ 8.8 - 585.4 - 283.8 - - Loans of insurance and trust 102.6 102.6 102.6 - - - - 59.4 - 43.2 - Other loans 603.2 603.2 603.2 - - - - 461.1 - 142.1 - (NIF) (170.0) (170.0) (170.0) - - - - (170.0) - - - - Government loans 268.5 268.5 - 268.5 268.5 (NIF) (200.0) (200.0) - (200.0) (200.0) -- - Equities other than stocks 143.7 143.7 38.9 94.7 97.8 - 4.5 49.0 2.5 - Trade credit 287.0 287.0 - - 15.8 14.3 271.2 143.5 - 129.2 - Gold and foreign exchange holdings 355.5 355.5 355.5 - - - - - - - 355.5 Foreign debt 672.5 672.5 - 48.1 - 232.7 - 391.7 - - 672.5 - 1{iscellaneous and ad3ustment 341.5 341.5 133.2 319.2 12.6 -37.1 184.4 -46.6 11.3 106.0 - Source: EPB, Fourth Five-Year Plan documents. C)to Page No. 4. ORGANIZATION AND MANAGEMENT OF DGWRD . 33 Structure of the DGWRD . 33 Suggested Reorganization of DGWRD .. ... 36 - Revised Structure ... ..... 36 - Planning, Programming and Design . 37 - Project Implementation . 37 - Technical Services .... 38 Training .... ....... 38 Project Monitoring . 40 5. SUMMARY OF RECOMMENDATIONS.. .. 41 Future Irrigation Development . .. 41 Training and Staff Development. 41 Organization of the DGWRD. 43 LIST OF TABLES IN MAIN REPORT 2.1 Harvested Area, Production and Average Yield of Paddy Rice in Java and the Other Islands, 1968-76 ... ... 4 2.2 Summary of Estimated Paddy Areas . 5 2.3 Summary of Service Areas of Existing Irrigation Systems . 6 2.4 Summary of Physical Progress and Funding of Irrigation Develop- ment Under Repelita I and II ... ... 10 2.5 Estimates of Future Paddy Production with and without Bank Group-Assisted Projects . 15 3.1 Summary of Areas Identified for Possible Future Irrigation Development . 18 3.2 Imputed Costs of Development for Three Models of Irrigation Development .... ...... 22 3.3 Estimated Incremental Paddy Rice Production from Potential Irrigation Development . 26 3.4 Estimated Costs of Potential Future Irrigation Development . 29 3.5 Estimated Implication of Suggested Future Irrigation Development Program .. 30 ANNEXES 1 Terms of Reference . .. 44 2. The Extent and Quality of Irrigation Development in Indonesia . 46 3. Summary of External Aid for Irrigation and Water Resource Development in Indonesia ... ..... 62 4. Bank Group Lending for Irrigation Development . 72 5. Operation and Maintenance of Irrigation Systems . 85 6. Farm Level Water Distribution and Water Users Associations . 92 7. Organization and Management of Directorate General of Water Resources Development ... .... 96 8. Training Needs of the Directorate General of Water Resources Development . .... ........ .... 105 Page No. 9. Potential for Further Irrigation Development or Rehabilitation of Existing Systems . 117 10. Economics of Potential Future Irrigation Development . 134 11. Estimated Repelita III Development Expenditure by Central Government . 157 12. Preliminary List of Irrigation and Tidal Reclamation Projects for World Bank Assistance ... .. 158 LIST OF FIGURES 2.1 Organization of Services for Irrigated Agriculture (8723(2R)) 2.2 Cumulative Disbursements for First Eleven Bank Group Irrigation Loans (19450) 4.1 Ministry of Public Works (18517) 4.2 Directorate General of Water Resources Development (18518) 4.3 Secretariat of the Directorate-General of Water Resources Development (18519) 4.4 Directorate of Planning and Programming (18520) 4.5 Directorate of Rivers (18521) 4.6 Directorate of Swamps (18522) 4.7 Directorate of Irrigation (18523) 4.8 Directorate of Logistics (18524) 4.9 Directorate of Hydraulic Engineering (18525) 4.10 PROSIDA (18724) 4.11 P4S (18662) 4.12 Suggested Structure for Directorate General of Water Resources Development (18663) 4.13 Suggested Structure for a Directorate of Planning, Programming and Design (18664) 4.14 Suggested Structure for a Directorate of Works (18665) 4.15 Typical Organization of a traditional "Dharma Tirta" (18755) MAPS Administration and Population (12696 R) National Irrigation Systems, Identifying Location of all Major Systems including Bank- Assisted Projects (13128) INDONESIA IRRIGATION PROGRAM REVIEW SUMMARY AND CONCLUSIONS Introduction 1. This report represents one component of a program of rural sector studies in Indonesia. It reviews the current program of irrigation development in Indonesia, examines the prospects for and implications of future irrigation development opportunities and finally studies the organization and management of the Directorate General of Water Resources Development (DGWRD) with a view to assessing the planning, implementation and operational capacity of that organization in relation to its current and future activities. It is con- cerned primarily with the relation between rice production and irrigation development. It does not cover issues such as the relationship between irrigation development and employment and income distribution. 2. Starting from the proposition that increasing rice production should remain a central policy objective for Indonesia this report concludes that by the end of Repelita III (1984) the irrigation development program will need to have been expanded by about 20% if the growth rate of domestic rice production is to keep pace with the expected growth rate in demand (about 4% p.a.). To achieve an expanded and more diversified irrigation development program will require not only an increased budget, but also a larger and more comprehensive training and staff development program, an improvement in supporting services to irrigated agriculture, infrastructure development in islands outside Java as well as a substantial reorganization of the structure of the DGWRD. 3. An earlier Bank survey of Indonesia's irrigation and related agricultural programs in 1975 highlighted the concern of the GOI regarding the continued deficit between the supply of and demand for rice and examined the potential for using irrigation development to reduce that deficit. The situation has not changed, a persistent deficit is further exacerbated by the damage caused by pests and diseases in recent years. Latest estimates indicate that total rice production in 1977 was about 15.9 million tons, virtually the same as the production reported in 1976. This level of output is far less than domestic requirements. During 1977/78 Indonesia imported some 2.3 million tons of rice and the latest estimates suggest that rice imports during 1978/79 will be about the same; these levels of imports exceed those in any of the previous five years. This situation raises crucial questions for the Indonesian Government: (a) What are the reasons for the apparent deterioration in the domestic rice production/demand situation? (b) To what extent has irrigation development been able to contribute to increasing rice supplies? - ii - (c) What are the prospects for an expanded program of irrigation development to bolster the growth rate of rice production? 4. This report will address the second and third questions. The first is outside the terms of reference; however, it will be considered in another study, "Supply Prospects for Major Food Crops", which is currently being prepared.
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