33129 VOL.2 Public Disclosure Authorized THE WORLD BANK
INDONE WATER USE RIiS S*UDY Public Disclosure Authorized
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INDONESIA: WATER USE RIGHTS STUDY STAGE 2
FINAL REPORT Volume II (ANNEXES)
February 2005
*Z SANYU CONSULTANTS INC. LP3ES 2
c) Legal and Institutional Context - The Capability of the Present System to Support WUR d) Outline of Licensing Surface Water Use e) Review of National Legislation on Groundwater Annex 1 Terms of Reference for Stage 2 I
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10/22/2003 INDONESIA Water Resources and Irrigation Sector Dialogue
Water Use Rights in Indonesia ANALYSIS OF TRADITIONAL ALLOCATION AND CONFLICT RESOLUTION MECHANISMS AND STUDY OF OPPORTUNITIES UNDER THE NEW SECTOR REGULATORY STRUCTURE Stage 2
Terms of Reference Purpose and Context
1. The World Bank has supported a series of initiatives in the water sector in Indonesia over the past five years, both at the policy and regulatory level, and in investment programs. These activities form a broad-based Water Policy Dialogue. The efforts are geared to modernize the large and strategically important sector, which has a strong impact on sustainability and poverty alleviation efforts, and should be strengthened to spur economic development. These initiatives are comprehensive and internally coherent. They also create the framework that is accommodating and streamlining the investment and advisory activities by all other donors active in this sector.
2. A serious and as yet unresolved issue is the institution of a regulatory system that is able to allocate water to the users in an environment that is already over-used and highly competitive. Water use rights (WURs) are potentially a critical component of an effective water allocation system. However, the nation, nor the Bank, have prior experience with the nature and application potential of WURs in Indonesia. Because WURs are highly sensitive to local cultural conditions, the Bank, in its dialogue with the government, should not rely solely on international experience as this cannot be transplanted to Indonesia, which is a large sprawling country with a high cultural diversity. Future Bank supported programs, such as the new APL Water Resources and Irrigation Sector Management Program, as well as water supply programs, will have to gradually address the issue of competition for water in a more comprehensive fashion. In the longer run, allocation systems must be introduced that are more flexible and efficient than the top-down prescriptive ones the government typically applies. The proposed study will allow to acquire an operational understanding of the traditional water allocation and conflict resolution mechanisms, and of the opportunities created by the new sector structure. Background
3. The Indonesian water sector is going through major reforms since 1998, after the demise of the strongly centralistic Soeharto government that has governed the country for the past three decades. In 1999 and 2000, Parliament adopted a series of laws that outline the administrative and fiscal decentralization. The new administrative framework establishes empowered local governments at the levels of districts (kabupaten) and provinces, besides central government. Notwithstanding numerous exceptions, the new decentralized administration generally attributes authority and managerial responsibility over irrigation schemes to the districts, and that over river basins to provinces. Districts and provinces receive substantial block grants from the center to execute their new tasks.
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I List of Persons Contacted (1/8) No. I Namne Position / Office/Address 0T Phone / Fax (Office E-mail Address The World Bank I Guy Alaerts Sr. Water Resources Specialist, Ph: 021-5299-3000 [email protected] World Bank Office, Jakarta Fax: 021-5299-3111 Jakarta Stock Exchange Buildign Tower 2 12th floor, Ji. Jenderal Sudiman Kav. 52-53 ______Jakarta 2 Rahul Raturi Sector Manager, Ph: 021-5299-3000 rraturinworldbank.org Rural Development and Natural Resources Sector Unit, Fax: 021-5299-3111 East Asia and Pacific Region, World Bank Office, Jakarta Jakarta Stock Exchange Buildign Tower 2 12th floor, Jl. Jenderal Sudiman Kav. 52-53 Jakarta 3 Shobha Shetty Senior Economist, Rural Development, Ph: 021-5299-3000 sshetty I worldbank.org World Bank Office, Jakarta Fax: 021-5299-3111 Jakarta Stock Exchange Buildign Tower 2 12th floor, Jl. Jenderal Sudiman Kav. 52-53 Jakarta 4 lIham Abla Operations Officer, Ph: 021-5299-3000 [email protected] World Bank Office, Jakarta Fax: 021-5299-3111 Jakarta Stock Exchange Buildign Tower 2 12th floor, Jl. Jenderal Sudiman Kav. 52-53 Jakarta 5 Kikkeri V Ramu Consultants, Ph & Fax: +1-301-990-9564 [email protected] The Worlbank, [email protected] 1811 H Street, N.W. Washington, DC 20433 U.S.A. 6 Paul Van Hofwegen World Bank Consultant p.vanhofwegen@ World Water Council, delft. The Netherlands worldwatercouncil.org 7 Theodore Herman World Bank Consultant [email protected]
8 Datin Yudha Visiting Mission Service, Ph: 021-5299-3000 [email protected] World Bank Office, Jakarta Fax: 021-5299-3111 Jakarta Stock Exchange Buildign Tower 2 12h floor, Jl. Jenderal Sudiman Kav. 52-53 _Jakarta I List of Persons Contacted (2/8) (Office E-mail Address No. I Name Position / Office/Address l Phone /Fax Kimnraswil (Ministry of Settlement and Regional Infrastructure) 9 H. Basuki Director General
10 Soekrasno Kasubdit Wil. Barat m, Ph: 021-7203951 Ministry of settlement and Regional Infrastructure Fax: 021-7201292 Directorate General of Water Resourdces, Mobile: 081-1109784 Derectorate of Water Resouces Management, Jln. Pattimura No.20/7. Kebavoran Baru. Jakarta _ [email protected] I1 Suharto Sarwan Chief of Sub Directorate for WR Institutional, Ph & Fax: 021- Ministry of Human Settlement and Regional Infrastructure, 7221907/7396616(ext. 633) Directorate General of Water Resourdces, Derectorate of Water Resouces Management, ______T1 Psdtim nrsi on Thksrnt .9e1s~trni [email protected] 12 Imam Anshori Ministry of Human Settlement and Regional Infrastructure, Ph & Fax: 021- Directorate General of Water Resourdces, 7221907/7396616(ext. 633) Derectorate of Water Resouces Management, Building G-8. Jn. Pattimura 20, Jakarta [email protected] 13 Mohd Ali Chief of Sub-Directorate for Water Resources Conservation, Ph: 021-7221907 Ministry of SetPhement and Regional Infrastructure, Fax: 021-5299-3111 [email protected] Director Genreral of Water Resources, Mobile: 081-867775 Directorate of Water Resources Planning and Management, Jalan Pattimura No. 20 Jakarta [email protected] 14 Tsutomu Asada JICA Expert on Irrigation Planning, Ph & Fax: 021-7260218 Ministry of SetPhement and Regional Infrastructure, Director Genreral of Water Resources, Main Building, 3rd Floor, Jl Pattimura No.20 Kebayoran Baru shunshun@cb)n.net.id 15 Shuichi Maeda Jica Expert on Water Resouces Policy, Ph & Fax: 021-7229588 Ministry of SetPhement and Regional Infrastructure, Mobile: 081-28000845 Directorate General of Water Resources, Directorate of Technical Guidance Building. I st Floor, P1Pattimura No. 20, Kebayoran Baru, Jakarta List of Persons Contacted (3/8) No. Name Position / Office/Address Phone / Fax (Office) E-mail Address KiiMD aswil (Ministry of Settlement and Resional Infrastructure)(Continued) 16 Dr. Sutardi, M. Hidrologi directorate, Ph:021-7247807 s [email protected] Kimpraswil, Fax: 021-7221907 HP: 0816 973 963 JI. Patimura No. 20 Gedung VlII Lt. 2, Kebayoran Baru-Jakarta 17 Daniel A. Crickx Central Co-ordinator, Ph & Fax: 021-72794767 ggwrmncbn.net.id The European Union/Ministry of Settlement & Regional Mobile: 081-28698162 Infrastrucure, Good Governance in Water Resource Management Project, Ministry of Settlement and Regional Infrastructure, Directrate General of Water Resources Banaenas 18 Donny Azdan Dir SDA, BAPPENAS Ph: 021-391-5254 [email protected] Jl. Taman SuroDati 2. Jakarta Director, Water Resources Ph: 021-392-6820 19 Basuki Yusuf iskandar BAPPENAS Fax: 021-390-5649 basukibappenas.go.id Jl. Taman Suronati 2 Jakarta J~ava East ______20 Syamul Bachri Kepala Divisi Jasa ASA IV, Ph: 0341-551971 [email protected] Perusahaan Umum (Perum), Jasa Tirta I (PJT-1), Fax: 0341-551976 Jl. Surabaya 2 A Malang 21 Tjoek Walujo Subijanto Director of Operation for Brantas River, Ph: 0341-551971(Ext. 300) [email protected] Government of Indonesia, Jasa Tirta I Public Cooperation, Fax: 0341-565531/551976 [email protected] Jl. Surabaya 2A PO. Box. 39 Malang 22 Sudjali (Home) Ds. Tampungrejo Kec. Puri, Ph: 0321-511987 Mojokerto 23 Aris Harnanto Kepala Biro Penelitian & Pengembangan, Ph: 0341-551971 [email protected] Jl. Surabava 2A PO Box. 39. Malang Fax: 0341-551976 24 Suliyas Chief of the division, Ph:8294809 East Java Provincial Office Fax: 8280630 25 Pudjo Buntro Chief of operation section, Ph:8294809 [email protected] I East Java Provincial Office (Operation & maintenance division) Fax: 8280630 26 Zainal Arifm Operation section, Ph:8294809 East Java Provincial Office (Operation & maintenance division) Fax: 8280630 List of Persons Contacted (4/8) E-mail Address No. Name Position / Office/Address Phone / Fax (Office) 27 Yoshi Widio Sujoso General Affair & Personal Department, Ph: 0321-361710 [email protected] PT. Ajinomoto Indonesia / International (Surabaya) Fax: 0321-361708 28 Fahmi Hidayat Water resources engineer, Ph:0341-551971 fahmi [email protected] PPJT-i (Ji. Surabaya 2A PO.Box 39 Malang (65115) Fax:565531 29 Imnam Paski Secretary, Sumber Lancan Jaya WUAF, Mojokerto District 30 Sudjali Technical Staff, Ph:0321-511987 Sumbara Arun WUAF, Mojokerto District
31 RF Barsono WK StafAhli Direksi, Ph: 341-551971 Jasa Tirta I Public Cooperation (PJT-I), Fax: 341-551976 JI. Surabaya 2A PO. Box. 39 Malang 32 Sunu Suprapto PJT-I, Ph: 031-828-0138 [email protected] I IJI Surabaya 2A PO Box.39 Malang 65115 Fax: 031-828-6291
West Ematra 33 Ismet Head, Ph: 0751-57801 Water Resource Development Service, Fax: 0751-50424 West Sumatera Province, TiKhatih Sulaiman Nn 1O6 Pl2nodn 34 Oyong Andawarneri Government of West Sumatra Province, Ph: 0751-57801 Provincial of Water Resource Management, Fax: 0751-50424 Water Resource Development Service, West Sumatera Province, JI. Khatib Sulaiman No. 106 West Java 35 H. Danaryanto Hydrogeologist, Ph: 022- [email protected] Ministry of Mineral Resources and Energy, 7274676/7274677(Ext. 459) Directorate General of Mineral Resources and Geology, Fax: 022-7206167 Directorate of Geology Environment Management and Mining Area Subdit. Konservasi Airtanah DTLGKP, JI. Diponegoro No. 57, Bandung dpe.go.id 36 Satriyo Hadipurwo Hydrogeologist, Ph: 022- satriyo@dgti Ministry of Mineral Resources and Energy, 7274768/7274676/7274677 Directorate General of Mineral Resources and Geology, Fax: 022-7206167 Directorate of Geology Environment Management and Mining Area J1.Dinonezoro 57. Bandun_ I_ I List of Persons Contacted (5/8) ______No. Namne Position / Office/Address Phone / Fax (Office) E-mail Address 37 Maksum Hidayat Sadeli Dinas Pengelolaan Sumber Daya Air, Ph: 022-4215242/4233401 Propinsi Jawa Barat, JI Braea No. 137 BandunR- 38 Lex Laksamana Regional Environment Control Body of West Java Province, Ph: 022-4204871 [email protected] JI. Naripan No.25 Bandung Fax: 022-4231570 39 H. Yulianto Secretary, Ph: 022-2507133 [email protected] Council of Teritory Management Association of Water Corporation, Fax: 022-2508063 West Java,JI. Badaksinga No. 10, Bandung
40 Syaiful Ruchijat Section Head of Ground Water Conservation Guidance, Ph: 022-7274676/4677(Ext. [email protected] Ministry of Mineral Resources and Energy, 457) Directorate General of Mineral Resources and Geology, Fax: 022-7206167 Directorate of Geology Environment Management and Mining Area, Sub-Directorate of Ground Water Conservation, lAlest.hva_Continued~ Jl. Diponegoro No. 57, Bandung West Java (Continued) 41 Sri Hemowo Technical Director, Ph: 0264-201971 dirteksri,jasatirta2.co.id Perusahaan Umum (PERUM), Fax: 0264-201979 Jasa Tirta II (PJT-2), Jl. Lurah Kawi - Jatiluhur. Purwakarta. Jawa Barat 42 Edi Mulyadi Chief of operation section, Ph: 022-4210756 Dinas PSDA Jawa West Province 43 Dadan Hermajanda Institutional Specialist, Ph/Fax: 022-4235409 [email protected] JIWMP IDTO West Java Provincail Team (Gd. Kerta Mukti Lantai II Jl. Braga 137-Bandung 40117 . - 44 Abubakar Chief of Program sub-division, Dinas Agriculture Dept. West Java 45 Reny Researcher, Center for Development Dynamics, Gandjar Kumia University, Bandung 46 Sungai Indah P.T. Sepec, Water and Water Treatment Section (textile industry), Majalaya, Kab. Bandung 47 Suganda Chairman of Industry Association in Bandung capital
| | . . List of Persons Contacted (6/8) Phone / Fax (Office) E-mail Address No. Name Position / Office/Address Ph:0264-201979 48 Ms Ermi Murniati Assistant for Technical Director, PJT-2 (Ji. Lurah Kwi Jatiluhur Purwakarta West java 49 Endu Suhari Head of Water Resource Section, Bandung District _ 50 Jumhana Head of Paddy & Polowija section, Bandung District Ph: 022 2509030 51 Agus Setiyawan Research and Development, Perusahaan Daerah Air Minum Kota Bandung, Fax: 022 2508063 JI Badaksinga No. 10 Bandung 40132 Ph: 022 2509030 52 Syani Widia Fausani Director of Clean Water, City Government of Bandung Water Supply Enterprise, Fax: 022 2508063 Ji Badaksinga No. 10 Bandung 40132 Jalan Braga No 137, 53 Dasuta Kerala, Water Permit Division, West Java Provincial Dinas Bandunu Ph (O22' 42v9347 54 Ruchimat Head or Balai PSDA Citarum, ______West Java Citafnm Ralai pnd0ing West Java 55 Ahmad Chairman, Water Users Federation, lWanpiseQara Irrivation Scheme 56 Sunanda Chairman. Industries Association, Kabupaten Bandunp, 57 Azhari Dwikora Section Head. Citarum Balai. Bandung _ 58 Bunbur Sabur Operations Head. Kab. Bandung Dinas (Irripation) West ava (Continued) Ph: 0264-201972 [email protected] 59 Herman Idrus PJT-2, ______Jl Tnrah Kawi Jatiiiihiir Purwakarta West-Java Ph: 0264-215382 60 Tatang Hidayat PJT-2, West-Java ______iJi Bink R/l 6 Sadana - Pnrwakarta Consu Itants Ph: 021-722-1907 reymond [email protected] 61 Anthony R. Kemur Kasubdid, KIMPRASWIL fax )01-722-1907 Ph: +1-850-231-1787 [email protected] 62 Bryan Bruns Sociologist, 84 West Grove Avenue, Seagrove Beach, Mobile: +1-850-217-0677 P.O. Box 4614 Santa Rosa Beach FL 32459 USA [email protected] 63 Heru Emanda Universitas Jumber, Ph: 0331-338014 Gunung Baru Permai 6 - 18, Jl.Kolimantan I No.37, Jember Fax: 0331-338014 ext 4329 [email protected] 64 Hiroshi Kuronuma Team Leader, Nippon Koei Ph:021-726-0556 Fax: 021-7279-6082 List of Persons Contacted (7/8) Nito. PersonsContacName Position / Office/Address Phone / Fax (Office E-mail Address LP3ES 65 Imam Ahmad Director, LP3ES Ph: 021-567-4211 [email protected] Fax- ()21-i6H 179S 66 Sudar D. Atmanto Vice Chair, LP3ES Ph: 021-567-4211 [email protected] Fax: 021-568-3785 NGO & Others 67 A. Hafield A. Gany President, Indonesian Chapter of INPIM, INPIM-INA, Ph: 021-7230317 [email protected] Vice President, INACID for International Affairs, INPIM, Fax: 021-7200930 JI. Pattimura No. 20-perc. 7, Kebayoran Baru, Jalkarta Selatan 68 Cecep Aminudin Assistant Researcher, Ph: 021-7262740/7233390 [email protected] Indonesian Center for Envirownental Law (ICEL), Fax: 021-7269331 [email protected] Lembaga Pengembangan Hukum Lingkungan Indonesia, Mobile: 0812-185-9676 Ji. Dempo II No. 21, Kebayoran Baru, Jakarta 69 Budi Santosa Wignyosukarto Program Coodinator, Ph: 0274-901170/901172 [email protected] Integrated Regional Development Program, Fax: 0274-515391 Institute for Cummunity Services Gadjah Mada University (ICS 4_ GMU), 70 Gil P. Porras Chemical & Pulp Prod. Manager, Ph:0321-591377-9 Fax:591376 PT. Pabrik Kertas Indonesia (paper factory Moiokerto District) 71 Sutarjo Technical Chief, PT. Krembung (Sugar factory, Sidoario District) 72 Tri Nugroho OHS Coordinator, Ph: 021-5724410 [email protected] I______PT. PAM LYONNAISE JAYA NGO & Others (Continued) No. Name Position / Office/Address Phone / Fax (Office) E-mail Address 73 Taco de Vries JIWMP Bangda, Jl. Taman Makam Pahlawan 20, Jakarta ph/fax: 021-791-82471 [email protected]
74 Herbin Marulak Siahaan Prog Off, The Asia foundation Jl. Darmwangsa raya 50, Kb Baru, Ph: 021-726-1860 [email protected] Jakarta Fax: 021-726-2834 75 Agus Loekman Prog Off, The Asia foundation Ji. Darmwangsa raya 50, Kb Baru, Ph: 021-726-1860 [email protected] Jakarta Fax: 021-726-2834 Donol 76 Yuki Lida Assistant Programme Officer (CNSF), UNICEF Ph: 021-570-5816 [email protected] Wisma Metropolitan n1, 10-1 1 floor, Kav 31. Jl. Jend Sudirman Fax: 021-570-5516 7 7Yoshiharu Kobayashi Senior Specialist, ADB Gedung BRI II, 7th floor, Ji. Jend Sudirman Ph; 021-5798-0600 [email protected] L ______1|Kav 4446, Jakarta Fax: 021-251-2749 List of Persons Contacted (8/8) No. Name Position / Office/Address Phone / Fax (Office) E-mail Address 78 Junichi Akiyama JICA Plaza BR, Tower II 27th Floor. J3.M.H. Thamrin 51 Ph: 021-390-7533 [email protected] ______.~~ _ 021Fax-390-75367 79 Tomoyuki Naito JICA Plaza BI1, Tower nI 27th Floor. J3.M.H. Thamrin 51 Ph: 021-390-7533 [email protected] Fax_t)a 1-190-75367 8 Inaba Makoto JICA Plaza BR Tower II 27th Floor, 3 M.H. Thamrin 51, Jakarta Ph: 021-390-7533 [email protected] Faxn 021-390-75367 81 Motoo Taki JICA Plaza BRl, Tower n 27th Floor. J1. M.H. Thamrin 51 Ph: 021-390-7533 [email protected] Faxr 021-390-75367 8. liroshi ERami Expert. JICA Ph: 021-726-0218 epamirnipu.go.id 83 Jaco Mebius First Secretary, Ph: 021-5241060/5251515 [email protected] Water Resouces Management, Fax: 021-5275976 Royal Netherlands Embassy, Jl. H.R. Rasuna Said Kav.s3 Kuningan, Jakarta 84 Shin IMAI Regional SPFS Coodinator (Special Programe for Food Security), Ph: 021- [email protected] Food and Agriculture Organization of the United Nations, 3141308/3905448(Direct) 14, Jl. M. H. Thamrin, 3rd floor, Jakarta Fax: 021-3922747
85 Machiko Kainiya Assistant Resident Representative, Ph: 021-3907533 [email protected] oo Japan International Cooperation Agency Indonesia Office, Fax: 021-3907536 Plaza B 11 Tower 27th Floor J1. MH.Thamrin 51, Jakarta Pusat 86 Michino Yamaguchi Country Officer, Division 2, Development Assistance Department I Ph: +81-3-5218-3628 [email protected] 4-1 Ohtemachi 1- Chome, Chiyoda-Ku, Tokyo Fax: +81-3-5218-3970 87 Shiro Nakasone Assistant Resident Representative, Master of Town Planning, Ph: 021-3907533 [email protected] Regional Planner, Fax: 021-3907536 Japan International Cooperation Agency Indonesia Office, Plaza B II Tower 27th Floor J3.MH.Thamrin 51. Jakarta Pusat 88 Shigeru Yamamura Representative, Representative Office in Jakarta, Ph: 021-5220693 [email protected] Japan Bank for International Cooperation, Fax: 021-5200975 Summitmas 1, 7th Floor, J3.Jenderal Sudirman Kav. 61-62 Jakarta 89 Keon Overkamnp Associate Proffesional Officer, Water Management, Ph: 021-3141308(ext. 711) [email protected] Food and Agriculture Organization of the United Nations, Fax: 021-3922747 114. Jl. M. H. Thamrin. 3rd floor. Jakarta I Consul tants 90 AartR. van Nes Team Leader, Ph: 021-7211235 dhv [email protected] Food Management in Selected Basin, Fax: 021-7206449 Project Preparation Technical Assistance, KIMPRASWIL, Gedung 11, Lantai 2, ______T1 ~PstiimursuWn on IRkart_ Annex 3 List of Materials Collected Ii
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I Annex 3 List of Materials Collected (1/5) No. Title Publisher Author Surabaya Urban Development Project (TA from *Ministry of Public Works IBRD Loan No. 3726-IND), Surabaya River Directorate General of Human Pollution Control Action Plan Study, March 1999 Settlements East java Water Supply Project 1*Ministry of Public Works Directorate General of Water Resource Management Perusahaan Umum Jasa Tirta The Study on Comprehensive Management Plan for *Ministry of Public Works The Water Resources of the Brantas River Basin in Directorate General of Water 2 the Republic of Indonesia, Oct 1998 Resources Development *JICA Socio Ecponomic Analysis of Farm Households in Sumaryanto, Masdjidin 3 Irnigated Area of Brantas River Basin Siregar and Wahida M. Usulan Komprehensif Pembiayaan Pengelolaan PJT-I Tim Evaluasi Tarip Dasar Sumberdaya Air Di Wilayah Sungai (WS) Kali (Tariff evaluation team of 4 Brantas (Comprehensive Proposal Water Resource Kimpraswil) Management Finance, jan 2002) Pola Operasi Waduk & Alokasi Air Di Dps Kali PJT-1 Brantas Musim Hujan 2003/04 (Operation of dam and Water Allocation River Brantas area Rainy Season 03/04, Dec 2003) Monthly Statistical Bulletin Economic Indicators, Badan Pusat Statistik (BPS) 6 October 2003 Indonesia
Farm Wage Statistics in Rural Area, 1996-2002 Badan Pusat Statistik (BPS) 7 Indonesia
8 Company Profile of Perum Jasa Tirta II, 2002 PJT-2 Java Irrigation Project and Water Resources *Ministry of Public Works management Project, Basin Water Resources Directorate General of Water 9 Planning, Integrated Water Management Plan for Resource Development the Citarum River Basin, June 1997 -The World Bank
Indentification of National Policy for Intersectoral JICA 10 Water Allocation Study, March 2001
Jatiluhur Water Resources Management Project Ministry of Public Works - 11 Preparation Study, 1998 Annex K Raw Water and NEDECO Hyfro-power Tariffs and Related Operational Issues
Jatiluhur Water Resources Management Project Ministry of Public Works - 12 Preparation Study, 1998 Annex G O&M Jatiluhur NEDECO Irrigation System Jatiluhur Water Resources Management Project Ministry of Public Works - 13 Preparation Study, 1998 Annex H Turnover of NEDECO Irrigation Management
14 Jawa Barat In Figures 2002 BPS hIrigation Investment, Fiscal Policy and Water ADB/IFPRI Charles Rodgers, Claudia 15 Resources Allocation in Indonesia and Vietnam. Ringler and Mark Country Report Indonesia, 2003 Rodegrant Konservasi Airtanah Daerah Bandung Dan Direktorat Geologi Tata Lingkungan Agus Taufiq Nz. & Nanar 16 Selitamya Iskandar
A3-1 List of Materials Collected (2/5) . No. Title Publisher Author Pola Operasi Citarum - 2004 Secretariat Pelaksana Koordinasi 17 Tata Pengaturan Air Sungai Citarum 18 Surat Keputusan Direksi Perum JASA Tirta II Perum JASA Tirta II Nomor: 1/609/KPTS/2003 Keputusan Gubemur JAWA BARAT Gubemur JAWA BRAT 19 Nomor: 521/Kep. 1088 - Binprod/2003 Surat Keputusan Direksi Perum JASA Tirta II Perum JASA Tirta II 20 Nomor: 1/423.1/KPTS/2002 Jatiluhur Water Resources Management Project Ministry of Public Works - 21 Preparation Study Annex J -Optimal Integrated NEDECO Citaraum Reservoir Cascade Operation Integrated Water Resources Management in the JASA TIRTA I PUBLIC Socheh, Soekistijonoand 22 Brantus River Basin: Water Quality Management CORPORATION Aris Hamanto WELCOME TO JATILUHUR JASA TIRTA II PUBLIC 23 CORPORATION Nutrient budget for Saguling Reservoir, West Java, Water Reserch (36) Barry T. Hart, Wendy van 24 Indonesia Dok, Nani Djuangsih Identification of National Policy for Intersectioanl JICA 25 Water Allocation Study (Final Report) Basin Water Resources Planning Ministry of Public Works 26 Integrated Water Management Plan for the Citram River Basin (Draft) Perusahaan Umum (Perum) JASA TIRTA II JASA TIRTA II PUBLIC 27 CORPORATION,
28 Peta Sekma Eksploitasi Cabang Dinas Pengairan Proyek Irrigasi Jawa Timur Sekma Kontruksi Bangunan Dinas Pekeijaan Umum Pengarian 29 Daerah Propinsi Daerah Tingkat I Jawa Timur 30 Laporan Akhir Tahun Anggaran 2003 Balai PSDA WS Citarum Jatiluhur Water Resources Management Project Nedecon Netherlands Engineering 31 Preparation Study Annex L - Institutional and Legal Consultants BV ssues FeasibilityReport Draft 32 Company Profile Jasa Tirta I Public Corporation One River, One Plan, One Integrated Management Jasa Tirta I Public Corporation 33 (Brochure) Draft Persiapan Penataan Kelembagaan tentang Dinas PU Pengairan Propinsi Jawa Perangkat Daerah Berdasarkan PP 8 Th. 2003 Timur 34 Dilingkungan Dinas PU Pengairan Propinsi Jawa Timur Memori Balai Pengelolaan Sumerdaya Air 35 Wilayah Sungai Buntung Peketingan Surabaya Ringkasan Bahasan Outline of Brantas Basin Case Dinas PU Pengairan Propinsi Jawa 36 Study Background Paper Dr Karin Kemper (World Timur Bank) Tugas Pokok & Fungsi dan Jabatan non Strucktural Sub Dinas Penatagunaan Sumberdaya Air (East Java) 38 Pengelolaan Sumberdaya Air Propinsi Jawa Timur Dinas PU Pengairan Propinsi Jawa (copy of powerpoint) Timur
A3-2 List of Materials Collected (3/5) No. Title Publisher Author Data Inventarisasi Daerah Irigasi Pemerintah, Dimas Pekerjaan Umum Pengairan Pedesaan & Tada Hujan, Tahun 2001 Pemerintah Kabupaten Daerah 39 Tingkat II Bandung, Seksi Operasi dan Pemeliharaan Annual State of the Environment Report 2002 West Java Environmental Protection 40 Agency
Perum Jasa Tirta II Dalam Pengelolaan Kualitans Perusahaan Umum (Perum) Jasa 41 Air dan Lingkungan Sungai - Sungai Citarum Tirta II Bagian Hulu 2 Pengelolaan Lingkungan Daerah Aliran Sungai Pemerintah Propinsi Jawa Barat 42 Citarum (copy of powerpoint) Data Inventarisasi Perkumpulan Petani Pemakai Kabupaten Bandung Periode Tahun Air (P3A) 2001 44 Peta Sungai Sumber Air Baku PDAM 'Delta Tirta' PDAM 'Delta Tirta' Sidoarjo Sidoarjo Peta Distribusi Air PDAM Delta Tirta Sidoaijo PDAM 'Delta Tirta' Sidoarjo 45 Bulan Desember 2003 Peta Stasiun Hujan Dan AWLR Wilayah Balai Balai Pengelolaan Sumerdaya Air 46 PSAWS, Buntung Peketingan Surabaya Wilayah Sungai Buntung Peketingan Surabaya Peta Perusahaan Pengambil Air Permukaan Di Balai Pengelolaan Sumerdaya Air 47 Wilayah Balai PSAWS, Buntung Peketingan Wilayah Sungai Buntung Surabaya Peketingan Surabaya Peta Lokasi Bendung Wilayah Balai PSAWS, Balai Pengelolaan Sumerdaya Air 48 Buntung Peketingan Surabaya Wilayah Sungai Buntung Peketingan Surabaya 49 Peta Saluran/Afour DPU Pengairan Daerah Dinas PU Pengairan Kabupaten Sidoarjo Peta Distribusi Air PDAM Delta Tirta Sidoarjo PDAM 'Delta Tirta' Sidoarjo 50 Tahun 2003
Laporan Penangana, Ijin Pengambilan dan Dinas Pengelolaan Sumber Daya 51 Pemanfaata Air Permukaan, Bulan Desember 2003 Air, Pemerintah Propinsi Jawa Barat
52 Negotiating Water Rights IFPRI, ITDG Publishing, 2000 Bryan Randolph Bruns and Ruth S. Meinzen- 53 Water Law and Land Management Lecture Papers, IDI, Japan, Prof. Kenji Sanbongi November 1999 Intemational Comparison Of Irrigation Sector JBIC, December 2002 SAPS Team 54 (Final Report) (Sanyu Consultants Inc.)
55 Legal Reform in Indonesia TAF, 2000 The Asia Foundation
River Basin Management Corporations An Paper, World Bank, 1999 Kikkeri V. Ramu, T 56 Indonesia Approach Hemnan, G. Alaerts Proposed Legal Empowerment Component For The Papers, The Asia Foundation The Asia Foundation 57 Participatory Irrigation Sector Project (PISP)
58 River Basin Management Corporations An Paper, World Bank, 1999 Kikkeri V. Ramu Indonesia Approach
59 Water Allocation and Pricing Srategies in the Paper Charles Rodges, Rizaldi Brantas River Basin, East Java, Indonesia Zaafrano Formal Water Use Rights System For Indonesia Paper, DGWRD-JICA-INACID, Kikkeri V. Ramu, Soediro 60 1996
A3-3 List of Materials Collected (4/5) No. Title Publisher Author Some Thoughts on Establishing and Administering Paper for Workshop of Water Brian Haisman 61 Water Rights Reform Task Fsorce, Jakarta, 2001
62 Initiating The improvement Of River Sub-Basin, Papers, Ch 6 Helmni West Sumatra, Indonesia 63 Water Resources Sector Strategy: Strategic World Bank, 2003 World Bank 3 Directions for World Bank Engagement Water Rights and Multiple Water Uses Kluwer Academic Publisher, Ruth Meinzen-Dick, 64 Netherlands, 2001 Margaretha Bakker
Recognizing Multiple Water Uses in Intersectoral Paper, Asian Institute Technology, Ruth Meinzen-Dick, 65 Water Transfers Bangkok, 2002 Rajendra Pradhan
The River Law Infrastructure Development institute, River Bureau, Ministry of 66 Japan construction Japan
67 Water Rights in Vietnam Paper, IFPRI-INWENT-ADB- Pham Xuan Su, Vu Tien BNWPP Lue TOR for The Study On Empowerment Plan For JICA JICA 68 Regional Water Resources Development and Management System Inter-states Water Dispute in India : An Analysis of Water Policy, World Bank, 2002 Salman M.A. Salman 69 The Settlement Process
Country Background of Laos Paper for Workshop of Water Phalasack Pheddara 70 Reform Task Fsorce, Jakarta, 2001
Water Rights Reform m South Africa Draft Ashwin R. Steetal, Gavin 71 Quibell
72 Kajian Hak Guna Air hrigasi Laporan akhir, 2001 KP4-UGM Surat-surat PERMEN PU, Keputusan Gubernur PU Pengairan Jabar, 2000 Dinas PU Pengairan Jawa 73 tentang: Pembentukan PTPA & PPTPA Prop Jabar Barat
74 Buku Data cabang dinas Banjaran PU Kab Bandung, 2002 Dinas PU Kab Bandung 75 Data Jaringan Irigasi Ciherang dan Baros EH, 2001 EH JABOTABEK Flood Control and Water draft, EASRD Consultant, 2002 K. Ramu, T. Herman 76 Management Project Java Irrigation Improvement and Water Resources Main Report, Water Use Rights DHV Consultants 7 Management Project System Vol I, 1994 Sistem Hak Guna Air Untuk Solusi Konflik Air DI PDP Unpad, 1997 Ganjar Kurnia, Teten W. 78 Irigasi Ciwalengke Avianto 79 Jaminan Air Bagi Petani "Water Use Right" PDP Unpad, 1997 PDP Unpad Peraturan Pemerintah RI No: 77 Tahun 2001 BAPPENAS, Jakarta, 2002 Sekre Tim Koordinasi 80 Tentang Irigasi Pengelolaan SDA, BAPPENNAS
Water Allocation and Management in The Western Paper Douglas S. Kenney 81 U S: An Overview Frameworks For Water Rights An Overview of Conference draft, 2003 Bryan Randolph Bruns 82 Institutional Options and Ruth S. Meinzen- Administrative and Implementation Concems of Paper, Hanoi, 2003 Charles L. Abemethy 83 Water Rights
A3-4 List of Materials Collected (5/5) No. Title Publisher Author Water Rights and User-Oriented Policies paper Rutgerd Boelens, Axel 84 Inmproving Water Allocation for Water User Dourojeanni, Paul Communities and Platform In The Andean Hoogendam Countries 85 Inter-state Basin Management in federal Countries Water & Development, 2003 John Briscoe, Salman Saan, Walter Garvey 86 Multi-Sectoral Approaches in River Basin Water & Development, 2003 Nagaraja Harshadeep Management 87 Integrated Water Management: Yemen Sana'a Handout, 2003 Basin Water Management Project 88 Water Rights Implementation In Mexico Handout, Hanoi, 2003 Hector Garduno 89 Impact of Water Rights Reform In Australia Handout, Hanoi, 2003 Brian Haisman 90 The Political of Water Reform Handout, Hanoi, 2003 Edella Schlager 91 Challenge Program on Water and Food Handout CGIAR 92 Skematik Pengambilan air oleh Perusahaan tekstil 92 DI Wangisagara 93 Skematik Pengambilan air oleh Perusahaan tekstil DI Kali/Sungai 94 Daftar Inventarisasi Areal irigasi Teknis DI Cab Dinas PU Pengairan, Majalaya Wangisagara Surat: Data Kondisi air waduk Sutani, Selorejo, JASA TIRTA I 95 Bening, Wonorejo dan Pemberian Air Irigasi Bulan Maret 2003 96 Pola vs Aktual Operasi Waduk Sutami-Lahor Tahun 2002-2003 97 Data: Debit Sungai Cisangkuy Peta Wilayah Kerja Cab Dinas Pengairan Wilayah 98 IV Banjaran
Peta Balai Pengelolaan Sumberdaya Air Wilayah 99 Sungai Sampean Baru Bondowoso Realisasi dan Rencana Pendapatan/Biaya Tahun 100 1991 s/d 2002
Special Assistance for Project Sustainability Final Document, JBIC Sanyu Consultants Inc. 101 (SAPS) for Comprehensive Study on Irrigation Sector
Role of Stakeholders in Rurak Poverty Reduction - Paper presented at ADBI Workshop Hatsuya Azumi 102 Basin Principales on IFAD, "Rural Growth as a key to Urban Peace?", Jaipur, India, Oct. 2001
A3-5 II I
Annex 4 Record of the First National Workshop (March 2004) zI i Ii Annex 4
INDONESIA: WATER USE RIGHTS STUDY, STAGE 2 MINUTES OF FIRST NATIONAL WORKSHOP
Date: 25 March 2004
Place: World Bank Jakarta Office Agenda: See Attachment 1
Participants: See Attachment 2
Opening remarks by Rahul Raturi, Sector Manager, Rural Development and Natural Resources Unit, East Asia and Pacific Region, World Bank.
After emphasizing the importance and complexity of the issues surrounding water use rights, Mr. Raturi said that one of the purposes of this meeting was to realize the Bank's genuine desire to understand the issues together with a wide range of stakeholders. Water is a social good and we have to protect the rights of the poor from whom too often water is taken without compensation. We also have to protect the environment: the heavy extraction of spring water for bottle water, for example, can affect groundwater levels.
He reminded the meeting that we are looking for mechanisms that will support the best possible use without damaging the historical rights of water users. Rights must be protected but a country must also move forward, and historical patterns cannot be cast in stone. The findings from this workshop will be helpful for the Government. The Bank wants to work closely with all stakeholders. It is a demanding challenge. It will take time, input, and active engagement; however, it is also very important.
Briefing on the workshop by Hatsuya Azumi, Team Leader
Mr. Azumi explained the objectives, agenda and schedule of the workshop and mentioned that the most important beneficiary of this workshop would be the Study Team itself, which consisted of nine international and nine Indonesian members who had worked together for one month.
The objectives of the workshop are to (i) share the Study Team's findings to date, and (ii) gather the views of stakeholders on those findings. The team will not present any recommendations at this stage. The team's findings are still developing and their eventual recommendations will be presented at the next workshop in June, to which all the participants of this workshop will be again invited.
Mr Azumi then introduced the team to the participants. Presentation of the Preliminary Findings
The Study Team made their presentations in the following order:
A4-1 1. PCM (Project Cycle Management) findings
2. Social and demographic context
3. Hydrological context
4. Economic context
5. Institutional context
The PowerPoint presentation of the Study Team is shown in Attachment 3.
This was followed by a session presented by Brian Haisman entitled "Putting It All Together" in which he focused on the key issues for water allocation in Indonesia. The PowerPoint of this presentation is also shown in Attachment 3.
During the presentation he made the following points.
1. Institutional coordination is a major challenge.
2. There is shrinking availability of water.
3. The only choice is re-allocation of water but this is not occurring in a planned way and farmers are 'taking the damage' in the changes that are occurring.
4. Assessments made for water use permits are currently done on a broad scale, which does not address the local impact at the point of extraction or how the level of availability for everyone as the flow goes down. The largest set of rights (customary rights) is not well specified and, by default, such right-holders are suffering.
5. There are water scarcity pressures and social/economic pressures on farmers.
6. Irrigation farming is changing. There is no longer the same extent of purely subsistence irrigation farming. Almost all irrigation schemes have commercial elements in them.
7. Other sectors have problems too. A lack of access to water could provide difficulties for industrial growth that needs water.
8. The combination of pressures means that better allocation and re-allocation of water is the number one goal for water resources management. New uses are being created from existing uses - what is the right way of doing this? The new Water Resources Act is restrictive about the possibility of transferring rights. The universal first step is better quantification and specification of rights to abstract water. There is no single recipe, only principles. We need to consider what is most appropriate for the Indonesian context.
Plenary Discussion on the Study Team's Presentation
Pk Helmi (Andaras University, West Sumatra) had an impression that there was a mixing up of issues. The level of the river basin and the level of irrigation systems should be separated. Why not have WUR at each level? Transfers can be discussed at each of these levels. Industry can take
A4-2 water from both the river and irrigation channel and this has different implications. We can have a matrix as follows:
IRRIGATION WUR ASPECTS RIVER BASIN Primary Secondary Tertiary Legal
Social
Hydrological
Economic
We also need to consider where industry gets its water from:
o 75% from natural sources (rivers)
o 25 % from irrigation canals
Both Pk Azumi and Pk Haisman stated that Stage 1 Report recommended a two-tier system: one set of rules and administration systems at bulk water allocation from natural sources, and the other within schemes.
Pk Tjoek Walujo Subijanto (Technical Director PJT-1, East Java) agreed with the two-tier idea.
Pk Sri H Hernowon Sasjhudi (Technical Director, PJT-2, West Java) said that there are two different types of irrigation schemes in the Citarum Basin (upper and lower basins). In the lower basin, 90 per cent of the water in the basin goes to agriculture and only 10 per cent goes to industry and PDAM, mostly from irrigation canals. In the upper basin, 90 percent is being used by agriculture and only 10 percent by the rest, but only one quarter of industry uses water from irrigation systems, the rest use water from natural sources, that is, the river.
A4-3 Pk Haisman added that in the Citarum, there are 246 permits for industry and PDAMs. Less than 60 come from irrigation systems, the rest come from the river.
Pk Bambang Adinugroho pointed out that, in the Citarum Basin, the biggest irrigation area is in the downstream - 240,000 hectares, and asked what would be the priority use of water in this area.
Pk Sri H Hernowon Sasjhudi answered that the main aim of water allocation was to enhance rice production. But if we look at the current plan, it is multipurpose. First, it regulates floods. Second, it provides water for irrigation systems. Third, it provides water for power. Fourth, it provides water for Jakarta. The Bekasi - Jakarta channel used to be aimed for irrigation but now it is simply for urban water supply to Jakarta.
Pk Tjoek Walujo Subijanto opined that if farmers' rights were clearly written down, farmers would be able to get compensation. There are three requirements before a rights system can work:
a. quantification of water balance (with good water quality management)
b. necessary infrastructure
c. monitoring
It should be done in stages. One area should be selected, where there are regulated flows. The policy of government should not be full-cost recovery but only for operation and maintenance sufficient to give a reliable service.
Three roles need to be distinguished:
* Regulator (the level of government)
* Operator
* User (individual/group)
The details of who is to carry out each of these roles will differ between the regions but the roles should be kept distinct.
In establishing rights, both rights and obligations need to be considered. It is very important to understand that whoever provides the service guarantees water supply.
Pk Satriyo Hadipurwo of Ministry of Mining and Energy, Bandung asked how groundwater can be brought into this arrangement. Definitely the conduct is different. Also the tax is different in amount. He informed the meeting that his Ministry is preparing a PP on groundwater.
A4-4 -~~~~ ~- l______
Pk Azumi confirmed that the Stage 2 Study would have to refer to groundwater and that was why the Team went to visit the Ministry of Mining and Energy in Bandung. The study has to deal with surface water, groundwater, water quality and water quantity, at the national, provincial and district/municipal levels. There is lack of coordination among those concerned agencies. For example, the team learned from KimPrasWil that they are drafting 9 Government Regulations but the team does not know how they relate to groundwater. Pk Satriyo mentioned that Pk Basuki from KimPrasWil will discuss this with the Ministry of Mining and Energy on March 26. Till then, he said that his ministry is not clear if they will have an input into the 9 regulations under preparation by KimPrasWil.
Pk Sudar of Ministry of Agriculture referred to the presentation of Pk Akihiko Hata (the Economic Sub-Team of the Study Team) and pointed out that the cropping pattern is recommended by the Dinas: this is done by way of presenting options to the WUAs to choose. Referring to Ibu Sarah Wsaddell's presentation (legal and institutional aspects), he mentioned that in his opinion the highest priority in water use must be drinking water even though the New Law seems to support two highest uses, namely, water for basic daily needs and water for farming communities.
Pk , Chairman of a WUAF at Mojokerto, East Java, shared his WUAF's situation with the meeting. Their system takes water from the Menturus Weir. The system is 3,000 ha. They only get 60 percent of the water they need in the wet season and in the dry season the situation is worse. They have three problems:
1. They are dependant on PJT-I for water supply. The gate master simply tells them that water allocation is all decided, but does not tell them how much they will receive.
2. Since 1977, when the government introduced agricultural intensification, their cropping pattern has been unclear.
3. Their channels at upstream and downstream are well constructed thanks to a centralised rehabilitation project in 1989-1993. However, there is a bottleneck in the channels in between. This is partly due to changes in the area of coverage. The workshop then broke up for lunch.
Briefing on Small Group Discussions
Pk Azumi provided an explanation of the topics allocated for each group and the questions that accompanied each topic. The three topics posed for discussion are attached as Attachment 4. The workshop then divided into three groups.
A4-5 Plenary Discussion on the Results of the Small Group Discussions
Group One - How to Protect Customary/Non4ormalised Rights?
1. Should such rights be "formalised" scheme by scheme in a documented way so that impacts can be better known and negotiated? If so, how? If not, why not?
The group began by discussing the concept of customary usage and whether that was the same or included the rights of 'indigenous people' as adat already has a special place in the legal system. Three situations were identified where people take water from:
(i) natural source
(ii) infrastructure built by themselves
(iii) infrastructure built by government.
It was decided that the best way to think about it was in terms of what is not formalised, that is, the majority of irrigators, "basic needs" use and adat.
The group then considered the question of the degree of formality. It was suggested that the planting schedule is a form of record of how much the group gets and is set out in a Decree of the Mayor (Surat Keputusan Bupati). It allocates a certain amount of water to a system but does not provide a guarantee. Usually the same amount is set out every year. If the water does not arrive, farmers can complain but there is no standard procedure. The Chairman of the WUA can go to the Dinas and have more water released or simply make a call to the Bupati. Farmers are often told that the water is enough but it may not be in reality due to illegal water taking or not following the cropping pattern.
The question was raised whether this was formal enough? It was pointed out that it only covers the surface area not volume in litres/second. The test (as suggested by Pk Hatsuya Azumi) is its reliability when water gets short - is the water still assured and delivered?
It was agreed that the Decree is not the same as an industrial licence and that it should be 'the same but different'. Some commented that if it is 'different' it might not be as strong. Some other commented that farmers do not have strong bargaining power.
A question was posed - 'what is a licence'? It was said to
* Guarantee the availability of water
* Protect the environment
* Provide equity in access to water
* Provide a basis for compensation for non available water and re-location of water.
The meeting appeared to be of the opinion that if this is the definition of a licence then non- formalised users should be able to get one. Then it was suggested that compensation could be
A4-6 obtained through other means and that the most important thing is that farmers are to be protected.
Taking this into account it was agreed that a licence would not be necessary and what is more important is the public recognition of the water use right - including irrigation, basic needs and the environment. Pk Helmi presented a sequential development as follows:
Stage I Open resources
Stage II Recognition of rights - irrigation, basic needs, the environment
Stage mI Water use licence - with economic consequences
It seemed to be agreed that the level of formality should only extend to Stage II with the consequence that the protection of such rights would still be heavily dependant on government.
2. How should such rights be quantified - historical use, likely future needs, the river basin plan? Other? What equity issues arise with each option?
It was agreed that rights should be quantified based on water balance and future protections of need. It requires a system of water accounting (in both the river and irrigation system), which will include historical use and forecasting and consider the level of the river, the level of irrigation and water availability.
3. How should right holders be able to assert their rights againstparties that disturb their right to use water? In particular, what should be the process to ensure protection of farmers's rights in the case where a new industry seeks to access waterfrom the canal system?
It was clearly agreed that government must get the agreement of farmers before farmers's water is taken for other uses. The emphasis in addressing these issues was on the need for public consultation with farmers and putting the 'formalisation' on the public record. It was suggested that the PPTPA should be developed further. It was also stressed that the rights and obligations between farmers and other users of irrigation systems should be written down. Discussion by the plenary meeting:
Pk Bambang Adinugroho questioned if the findings of Group 1 were realistic: should not the Group have taken a more strategic approach?
Pk Helmi replied that it would be difficult for farmers to go through the process of licensing. It is better that the government protect the farmers's rights through a Decree and then the government can battle for the farmers. We need recognition of collective rights through a Decree issued by local government stating the size of the area and the water balance. Pk Bryon Bruns, currently ADB Consultantfor Flood Control Study, added that in Japan there is a rule to the effect that a farmers' group will be treated as having a licence even if they don't have one (formerly). This protects farmers who do not have a licence.
A4-7 Pk Tjoek Walujo Subijanto expressed a view that a water use right should be in a formalised licence so it is enforceable and specified in case the rights stated in the Decree are not specified. The utilisation often involves change. If it is not formal, how can the community know the quantification of their rights? It should be transparent for the public.
Pk Helmi counter-argued that a right should be stated in a legal document, not changed from year to year. It should be publicly announced. The main difference between a licence and Group l's proposal is that the government will defend the farmers.
Group Two - How to Manage Water Use Rights for ParticipatorvyDelegated Irrigation Management?
1. Some competent body needs to be at least the custodian or, preferably, the holder of the bulk water right created by such a document. Who or what should that be?
Before answering the question directly, the group discussed the importance of classifying the management pattern of irrigation systems in Indonesia. There are at least four types of irrigation systems (the first three are basically run-of-the-river types and the fourth one involves a reservoir):
Type I: Large irrigation systems, where there could be three stages of farmers' organization, from P3A (WUA for tertiary blocks), GP3A (WUAF for secondary canals) and IP3A (WUA for Primary canals)
Type II: Medium scale irrigation systems, where there could be two stages for farmers organization, from P3A (WUA for tertiary blocks) and GP3A (WUAF for the whole system).
Type DI: Small scale irrigation systems, where there could be only one single farmers' organization, P3A Mandiri.
Type IV: Irrigation systems that are supplied by a reservoir (like Jatiluhur or Downstream Citarum system)
The holder of water rights for those types of irrigation systems depends on the capability of the organization. Based on their capabilities IP3A (for Type I), GP3A (for Type II) and P3A Mandiri (for Type III) may hold the water use rights on behalf of collective irrigators.
There should be some conditions if an industry wants to get a license to use water from an irrigation system:
* The industry should have a "specific recommendation" from the IP3A/GP3A/P3A. This recommendation should be binding legally.
* There is a need to construct a "democratic procedure" that involves farmers in providing a "recommendation" or "agreement" for new water users within their system.
* IP3A/GP3A/P3A do not have a "right" to subdivide their water use rights to other users within the system.
A4-8 * The license is given only by the authorized government at the basin level, either provincial basin or district basin.
2. What are the pros and cons of creating an irrigators/governmentpartnership model to carry out both tasks in an integratedmanner?
This question was not discussed in detail. However, given the acceptance of licensing a farmers' association at one single irrigation system, group members supported the partnership irrigation model that empowers farmers in irrigation management.
3. What are the group's views of the pros and cons of such rights subdivision, and what are the group's views about who or what might be the holder of such component water use right?
There was no objection to subdividing rights for water user association/federation in large- irrigation systems. But, it was thought that there is a need for further investigation (or study) on how to subdivide rights within one large system. One option for subdividing is: the right given to one system is a big bulk right that clearly lists all subdividing rights within the system (eg. each WUAF in the system is listed in one document including the specific volume of rights). Discussion by the plenary meeting:
It was acknowledged that there is uncertainty in addressing these issues, if PP77/2001 is no longer operative.
Pk Tjoek Walujo Subijanto commented that the licence should be given, not by the District Government, but by the authority in charge of managing the basin. In large-scale irrigation, it does not matter if there is a WUAF or not, they should still have a right. Licences could be sub- divided within the intake. It is important that a new licence should not change existing allocations. The WUA should be able to make recommendations, but about what? It should only be about the irrigation infrastructure. Other issues can be dealt with by an agreement between farmers and industry within the system.
Group Three - Municipalities and industries need more water: how do we allocate/re- allocate water?
Topics include interpretation of rights under transfers accompanying structural changes in water demand, emergency (scarcity-induced) transfers and issues of compensation. Pk Hata introduced the topic to the group including: (i) interpretation of the new Water Resource Law regarding transfer of WURs under various situations (e.g., structural changes in water demand and emergency or scarcity-induced transfer of water, and (ii) the issues related to compensation.
Pk Tjoek told that (reading from copy of law and elucidation in Bahasa Indonesia) water rights cannot be transferred or rented either in whole or in part; elucidation states that rights cannot be transferred to any other party. He also said that when rights are not utilized, they may be reclaimed by the Government.
Pk. Tjoek further explained the positions appear to be taken by the new Law that:
* With respect to land transfers out of irrigated agriculture, if a farmer (irrigator) presumed to hold a water use right chooses to sell land to a non-irrigation purpose (e.g., PDAM), then
A4-9 the Government reclaims the right (or the water associated with the right). However, if the land is sold to another farmer, then the new owner acquires the right. Thus, the water use right adheres not (necessarily) to the land, and clearly not to the owner of the land, but is rather contingent on the use to which the land is put.
* Another point is that transfers are indeed permitted under the new law, but only through the agency of the Government (appropriate level), which re-acquires the right when sawah is converted to other uses and is then free to re-allocate it via the appropriate statutory process.
A question was raised: what about the issue of food self-sufficiency? This is (apparently) national policy, and the (unrestricted) transfer of land out of irrigated agriculture and into other uses would appear to work at cross-purposes with this goal.
Also, another question was raised concerning compensation, when water is transferred out of agriculture. The scenario is that farmers (locally, with their own resources) increased irrigation system efficiency, which resulted in reduced effective demand for water below their historical use right level. Pk Tjoek said that under those circumstances there is a case for compensation (presumably from Government to farmers). Pk Rodgers commented that it is not clear to him whether or not this is explicit in the law.
Pk Hata summarized three central points in Pk Tjoek's comments:
(1) Irrigation water rights disappear (revert to Government) when sawah is transferred out of irrigated agriculture
(2) The new law prohibits direct (private) transfers of water use rights, or water itself
(3) Water released from irrigated agriculture through improved irrigation efficiency is (potentially) eligible for compensation
Pk Sapiful raised the distinction between farmer-owned irrigation systems ("village" or "simple" systems constructed without government assistance, or systems transferred under IMT programs) and publicly-owned systems: could not water controlled/managed by private systems be subject to private transactions? Pk Tjoek explained that this was discussed, but rejected under the new law.
Pk Hata told that the study team observed no concrete practice of water trading in the Brantas, but in the Citarum (near Bandung) there are in fact documented cases of private water trades, which have taken place for some time, e.g., industries utilize water from secondaries, and give compensation to irrigators not necessarily in cash but in some other forms such as contribution to canal maintenance or rehabilitation. He asked the Group if this kind of arrangement is allowed under the new Law.
Pk Tjoek commented that if such arrangements pre-dated the new law, they would probably be allowed to continue, but new such arrangements would probably not be allowed under the new law. An important question is, who is responsible for guaranteeing the water delivery? Does the WUA or WUAF guarantee water to the industry under these circumstances? Then he said basin operator is responsible for delivering water, so compensation between farmers and industry should be for the service but not for water. This is in fact a two-tier arrangement, in which the
A4-10 Basin Authority provides water to the WUA inclusive of the industry's share, and the WUA then provides it to the industry.
Question was raised if actual contracts would be required in such arrangements? That is, would there need to be a formal contract between the industry and the WUA, and the industry's abstractions (quantitative) be reflected in the WUA's "contract" (use right, more properly)? Pk Saiful also indicated that in Wanisagara transfers of water have taken place based on informal agreements with WUAF. Pk Tjoek answered probably yes and PJT would license WUA and WUA would effectively "license" industries. Pk Tri from municipal water supply company provided an example of multi-tier contracting that the company contracts with PAN Jaya (cooperation which supplies water from Citarum basin to Jakarta), but not with PJT-2. Therefore, if there is a system default in PJT-2 and consequently trouble in delivering water, the operation of the company is affected but they cannot take any contractual action against PJT-2. PAM Jaya delivers water to many PDAMs (and other parties) in Jakarta, but it is all handled through a single license between PAM Jaya and PJT-2. Pk Tjoek noted that from PJT-1 experience it is extremely difficult to provide adequate quantity or quality of water if the basin infrastructure is in poor condition or poorly maintained. In this context, the inability of PJT (or similar Basin management organizations) to recover O&M costs from farmers (irrigators) presents a problem, since irrigation is by far the largest user of water. Thus the rationale for cross subsidy is accounted (note: this is practiced in the Brantas, where elevated industrial tariffs in part compensate for the lack of irrigation tariffs). However, commercial users complain about cross-subsidy, and argue that the Government (and not themselves) should pay for the O&M share associated with irrigation, since it is by Government regulation that PJT is not allowed to charge irrigation tariffs (PP81). Pk Tjoek however recommends that under expanded water use rights for irrigators, the possibility of cost recovery should be considered.
Pk Tjoek also noted that in the context of the question: who is responsible for water deliveries in situations such as that described previously (industries abstracting from irrigation secondaries) it is encouraging that (in West Java) the head of Provincial Dinas has issued instructions that affected farmers should be consulted whenever new licenses are applied for. Under the new law, however, there is no explicit role for this kind of farmers' consultation. After these discussions, it was proposed that when basin operator contracts with industry or municipality who will abstract water from irrigation canal, there should be a subsidiary contract between three parties, namely basin operator, industry (municipality) and the farmer group. With respect to the observed trading near Bandung, under the new law, this practice would not be permitted, since only the appropriate Government agencies can issue licenses. However, Pk Tjoek actually approves of such three-party configurations, e.g. PJT to WUAF, WUAF to Industry.
Pk Maeda, JICA expert attached to KimPrasWil raised a question concerning the requirement that all unused rights be returned to the Government: what about the case where private investors built a reservoir - what should their rights be? That is, should they not be free to reallocate the water they store/control in whatever way they consider appropriate? Pk Tjoek doubted how such arrangements would comply with the law. He said that there exist cases where industries construct storage, then go bankrupt - do the new owners automatically get
A4-1 1 the license? What this hinges on is the fact that licenses refer to specific purposes, so that a switch in owners of facilities is less significant than a switch in the uses to which the water is put. Then Pk Tjoek reasserted that a water use right is not about ownership, but about usage; and only one type of use is stipulated on the license.
With reference to Pk Tjoek's comments, Pk Maeda expressed a view that this provision of the law will certainly discourage private and foreign investment in Indonesia's water resources sector.
Pk Rodgers questioned: prior to the new law, the priority under scarcity was established primarily on the basis of licenses - those who held them (industries, PDAM) were favoured over those who did not (irrigators). How will these issues be decided once water use rights for irrigators are established, and they are on an equal (or superior) footing with commercial license-holders?
Pk Tjoek replied that the "default" allocation under these circumstances would likely be proportional sharing of shortage. However, there is a body envisioned under the new law that would significantly expand the representation of the PTPA (PPTPA) as a water resources governance body - the Dewan Sumber Daya Air, or Water Resources Council. This would contain academics and other shareholders in addition to the current members of PTPA/PPTPA. In the event that proportional sharing is not satisfactory, or can be improved upon, this body would be well positioned to make such decisions.
Wrap Up Session: Hatsuya Azumi, Team Leader
Pk Azumi wrapped up the workshop by thanking all the participants for providing most useful views on WURs in Indonesia at this delicate point in time. He was convinced that, despite all the prevailing uncertainties of the election time, the Study's timing was good in the sense that it could provide clarity on existing issues and present options for long-term solutions as well as practical immediate steps.
Among many issues discussed at the workshop, Pk Azumi specifically referred to the question of licensing customary rights. While he personally thought the lack of clearly quantified rights is the single important reason for customary right holders to lose out, the study team would have to think more about options between licensing customary rights and let farmers depend on the legal strength that such license gives them, or (local) government issuing a Decree through which the government battle for the farmers.
Pk Azumi promised that the record of this workshop would be prepared within days, which will be sent to the participants electronically or by other means.
Finally he regretted that the participation of one of the most important ministries, KimPrasWil, in this workshop was almost nil as there was a seminar about dam safety hosted by them at the same time. He said he would try to brief them about the outcome of this wonderful workshop. He thanked again the participants for their high quality contribution and also mentioned that those attended this first national workshop would be invited again to the second one planned for June, where the study team's recommendations will be presented.
A4-12 Attachment 1 INDONESIA
WATER USE RIGHTS STUDY, STAGE 2 FIRST NATIONAL WORKSHOP March 25,2004 Jakarta
AGENDA
08:30 Registration
09:00 Opening Remarks
a) World Bank: Rahul Raturi, Sector Manager
b) Ministry of Settlement and Regional Infrastructure: Basuki, Director General
09:20 Briefing on the Workshop: Study Team 09:30 Presentation of the Preliminary Findings: Study Team 10:45 Coffee Break
11:00 Plenary Discussion on the Study Team's Presentation 12:30 Lunch
13:30 Briefing on the Small Group Discussions: Study Team 13:40 Small Group Discussions:
Group 1: "How to protect customary/non-formalized rights?"
Group 2: "How to manage WURs for participatory/delegated irrigation management?"
Group 3: "Municipalities and industries need more water: how do we allocate/re-allocate water?"
15:00 Coffee Break
15:15 Plenary Discussion on the Results of the Small Group Discussions
16:15 Wrap Up Session: Hatsuya Azumi, Team Leader 16:30 End of Workshop
A4-13 Attachment 2
List of Participants No 3 Name J Institution/Position Tel./Fax Government of Indonesia
1 Bekty S Kimpraswil 7221907
2 Sadar Purwanto Ministry of Algiculture 7805268
3 Iwan Kurniawan Menisty of Home Affair 08129546605
4 Bakti Nusarwan Menisty of Home Affair 7942645
5 Yossy Suzanna Ministry of Environmennt (KLH) 85904934
6 Tjeok Waluyo Operation Director, PJT 1 0341551971
7 Sri Hernowo Technical Director, PJT-2 0264201979
8 Syaiful Ruchyat ESDM/Ground Water (022) 7274677
9 Satrio Danaryanto ESDM/Ground Water (022) 7274677
10 Yustisia Dinas Pengairan Jatim (031) 8292047
11 S.Priambodo Dinas Pengairan Jatim 0811340812
12 Tinuk Ekawati PMD
13 Ruchimat BPSDA Citarum (022) 4215241
14 Linda Al Amin Bappeda Jabar (022) 2516061
Other Agencies
15 Bryan Bruns Consulting DHV 08128943003
16 Soleh Hadisutisna LPSL Bandung 08122199422
17 Tri Nugroho PT Palija PDAM 5724410
18 Jaco Mebius NL Embassy 5241060
A4-14 19 Koen Overkamp FAO 3141308
20 Indro Tjahjono SKEPHI 7981766
21 Tashudi SKEPHI 7981766
22 Maeda Syunichi JICA 7229988
23 Reniyasih PDP UNPAD (022) 2507966
24 Sadi HIPPA
25 D. Crickx European Comution 081311212320
26 Cecep Aminudin ICEL 7262740
27 Rahul Raturi Sector Manager, World Bank 52993000 Jakarta
28 11ham Abla World Bank Jakarta 52993024
WURs Study Team
29 Hatsuya Azumi Team Leader / Institution Specialist, Sanyu Consultants
30 Bambang Adinugroho Deputy Team Leader / Water Resource Management, LP3ES
31 Tomoko Nishigaki Logistic Support Coordinator / Institution Specialist, Sanyu
32 Brian Haisman WURs Specialist, Sanyu Consultants
33 Rudi Febriamansyah WURs Specialist, LP3ES 08163254055
34 Sarah Waddele Legal Advisor, Sanyu Consultants 0274882050
35 Sigit Rianto Legal Advisor, LP3ES
36 Hideyo Shimazu PCM Facilitator, Sanyu Consultants
37 Saiful Rochdiyanto PCM Facilitator, LP3ES 08122940848
38 Toshinobu Nakano Hydrologist, Sanyu Consultants
A4-15 39 Munawir Anthropologist, LP3ES 5674211
40 Akihiko Hata Economist, Sanyu Consultants
41 Agnes Mawarni Economist, LP3ES 08121586512
42 Charles Rodgers Hydrology / Economics Advisor, 08148170609 Sanyu Consultants
43 Helmi Water Resources Management 08126604703 Advisor, LP3ES
44 Sudar DA LP3ES 5674211
A4-16 Attachment 3 Three Discussion Topics.
GROUP ONE - HOW TO PROTECT CUSTOMARY/NON-FORMALISED RIGHTS? Customary or non-formalised rights are rights to water use that do not rely on a licence and are not quatified. The right to use water without a licence for basic daily needs for life and the needs of animals has been long recognised in Indonesian water law. Although not stated in law, this right has been applied broadly to include water used by family-based irrigation farmers (for non- commercial uses) and this interpretation has now been given official support in the new National Water Resources Act (art 8(1)).
However, in practice such rights are weak in comparison to rights to use water obtained under a licence, which are quanitified and officially recognised user by user. It is generally agreed that customary/non-formalised rights need protection against stronger, formalised rights. Formalised rights are increasing in number and volume and, little by little, they are slowly altering reliability of non-formalised rights. This is happening over broad areas and also in local situations such as limited capacity canals.
Questions that arise in seeking to protect customary/non-formalised rights include: 1. Should such rights be "formalised" scheme by scheme in a documented way so that impacts can be better known and negotiated? If so, how? If not, why not? 2. How should such rights be quanitified - historical use, likely future needs, the river basin plan? Other? What equity issues arise with each option? 3. How should right holders be able to assert their rights against parties that disturb their right to use water? In particular, what should be the process to ensure protection of farmers' rights in the case where a new industry seeks to access water from the canal system?
GROUP TWO - HOW TO MANAGE WATER USE RIGHTS FOR PARTICIPATORY /DELEGATED IRRIGATION MANAGEMENT? To answer this broad question, the group needs to assume that a decision has been made that protection of irrigation water use rights will be made by the formulation and issue of some document that lists a specific quantified volume and/or flow rate for each recognised irrigation scheme. That is, a single, bulk allocation of water computed and applied at the offtake from the river to the scheme.
The following questions are designed to gain information on implementation issues should this option be eventually followed.
A4-17 1. Some competent body needs to be at least the custodian or, preferably, the holder of the bulk water right created by such a document.
Who or what should that be? - Maybe water user federations, perhaps along the model of those currently in existence? - Or some other (public?) body acting as trustee of the right on behalf of the collective irrigators?
2. The operation of distributing such a right throughout an irrigation scheme is closely associated with the management, nature and condition of the water distribution infrastructure.
What are the pros and cons of creating an irrigator/government partnership model (ie some form of participatory/delegated irrigation management) to carry out both tasks in an integrated manner?
3. On at least the larger irrigation schemes, there may be merit in subdividing the bulk allocation into smaller parcels - for example into internal bulk allocations at the offtake of each secondary canal.
What are the group's views on the pros and cons of such rights subdivision; and what are the group's views about who or what might be the holder of such component water use rights.
GROUP THREE - MUNICIPALITIES AND INDUSTRIES NEED MORE WATER: HOW DO WE ALLOCATE / RE-ALLOCATE WATER?
In both Brantas and Citarum basins it is projected that water demand will increase especially for municipal and industrial uses. Also there is competition over water during dry season among sectors (irrigation, municipality, industry). With limited potential of water resource development or even degradation of basin capacity by deforestation, re-allocation of water use from one user to other either permanently or temporarily could come up as an idea for optimum water use.
1. In the long run projection, demand for permanent reallocation of water use (rights) would inevitably gain force. If land is taken out of irrigation, what happens to the associated water use right? Does it revert to the Government, or does the structure of use rights stipulate ongoing compensation from the new beneficiaries of the water by virtue of land ownership? If so, does this require a contractual arrangement? What role does the Government (or Basin management entity) play in these transactions?
2. What are the rules that are used to reallocate water during shortage? What are the respective roles of the parties involved (PDAM, irrigation system, Provincial Government, Basin management unit)?
3. Shall compensation be awarded to rights-holders who suffer economic damages in the event of re-allocation? What is the appropriate level for such compensation, if awarded?
A4-1 8 Attachment 4
WATER USE RIGHTS STUDY STAGE-2 FIRST NATIONAL WORKSHOP MARCH 25, 2004 tCompetitionftLWater W orkshop Agenda
Obiectives of the Workshop Water Use Rights Study * Share the Study Team's findings Stage-t2 to-dateStg 2 * Discuss identified issues * Gather views of stakeholders Preliminary Findings BUT * Our findings are still developing and our eventual recommendations will be presented in the next workshop
Team Composition Management: Component Findings H. Azumi, B. Adinugroho Legal and Administration: B. Haisman, W. Martin, R. Febriamansyah, 1. PCM findings S. Waddell, S. Rianto PCM: 2. Social & Demographic Context H. Shimazu, S. Rochdiyanto, T. Nishigaki Social issue: 3. Hydrological Context D. Guillet, Munawir 4 Economic Hydrology: Context T. Nakano, Heru 5. Institutional Economy: Context A. Hata, A. Mawarni 6. Putting Advisor: It All Together C. Rodgers, Helmi
A4-19 1. PCM Findings 1
______tigr77SPCM Workshops Held
r.7L -1. Six PCM workshops at province, district and village / WUAF level were held. Province District VillageI Province Basin level level WUAF level
____ ; . . East Java Brantas Surabaya Sidoarjo Tempel t - ' * Bandung Wanir 7- v; Westail Java M Citarum Bandung
-= Ft[ ff; si s .Ir > ¢ 2. Participants were 11 to 50. (Over 30 except village / WUAF level workshops) 3. It took about six hours for each workshop and way forward in this study. except Tempel Village (two and half hours).
, ---.
Fundamental Questions Comparison of Two Basins
Common problems Solutions (implomentod or future) 1.1s water use really a life-or- death problem for farmers? (East) Law enforcement and public awareness 1. Cropping pattem by govemment. (including third crop ise i~~~~Irn1 ~doeso*ntms not meet farmers' needs. (West) Farmers decided the cropping pattern 2.What is farmers' perception of and reported to district. Farmers adjusted it water where water is abundant? to meet water shortage. (East) Govemment to make rule and duty of 3.1s water use by industry & 2. Water masters water masters. PDAM the problem or lack of do not follow the coordination the problem? rules. (West) Govemment water mastenr were replaced by WUAF's water rnastcrs.
A4-20 Comparison of Two Basins Issues
Common problems Solutlons (rmphrionted or future) 1. Are there more conflicts and are things (East) Government to givc enough funding for more complicated in West than East? 3. Maintenance of fulil ftunctioning of ca,,, primary and - Difference in IMT policies, O&M of canals, secondary canals. (W-0ti WUAF mointained several secondary (history of) farmers' organiization, kind of c.nals. WUAF had a formal meeting with problems, NGOs and others. qg-ern-enit -ff'cc, Lu1VCrS1tiCS nnd NGOs. 2. Relationships among different farmers' (East) Law enforcement by government. organizations. 4. Illegal logging. - WUAsIWUAFs, cooperatives, occupational fWesti WUAF. coordinating with offices. associations, village representatives etc. implement public awareness and law enforcement. WUAF buy seeds for forestation.
Social & Demographic context El Perception: "Javanese" values are different from "Western logic" of 2. Social & rights/demand management Demographic Context .gotong royong, self-help .reciprocal rights and obligations; a wakaf "gifts" of water * "land can be private but water belongs to Almighty Allah" . "right" and "wrong" collusion and water theft * musyawarah, conflict resolution through discussion and consensus.
Social & Demographic context Social & Demographic context
LO Given "Javanese" concepts l Farmers in traditional or village of rights/demand, how canOFamrintdtoalrvlag we convts/dertncustom right irrigation schemes we convert customary rights clear WURs. also want into recognized and certified water use rights? LI During water short period, . Refer to hydrology and farmers consider both license institution discussions holders and rights holders should accept proportionate reduction.
A4-21 Social & Demographic context
El If (a) traditional customary rights are converted into recognized 3. Hydrological Context and registered WURs, and, (b) responsibility and authority for management of physical infrastructure at the corresponding levels (secondary, tertiary) is also transferred, reallocation of water with compensation will likely increase without external intervention.
Registration of Customary Rights Sample Areas & Methods
* How to determine historical * East Java (Pehngaron): irrigation water use? - Actual flow measurement - Actual flow data (2003) - Calculated demand based on cropping - LPR-FPR method patterns * Where no actual flow data are * West Java (Wangisagara): available, one can use calculated -Actual flow data (1999) demand based on cropping patterns (for which data are usually -Factor K method available)
Water Use Rights Pattern for Pehngaron Water Use Rights Pattern for Wangisagara District Irrigation (A=978ha) District Irri ation (A=1.718 ha)
Or.qflll
1 < r ~~~~~~~~- I-. h
I MII-DTINj13.05,CM,YM
Month
A4-22 Water Allocationl Reallocation
* Municipalities and industries 4. Economic Context need more water: How do we allocate / re-allocate water? * Legal, institutional, hydrological, social and economic considerations
Economic Factors for Water Allocation TDa- I Reallocation Water_ E Causes Drivinga Factors Issyes Allocation I IIrt Long-term -Rural-Urban Migration -Rights with Land or Reallocation ionsmsc Structural -Growth in Income Farmers? = Trends - -Conversion of Savali (or revert to Gov't?) | -Environmental Concerns Land price S nO Temporary -Dry Season, Drought -Compensation for Structural Trend J Scarcity -Basic Needs take priority affected rights- In Two Basins 2S0 _ T. l -Permits, Licenses, holders? honored -Water Banking? |-riftT6io - Economic *Declining profitability of -Opportunistic Opportunity farming exploitation of rights Rushing (Rent-Seeking) by wLrn >tc Farmers? u == _ Against Food Self- se us Sufficiency?2 BW2 ------______j____I______-______n W_ow Dorrand Pro.)Cttin (PJT-220
Sensitivity Analysis: Economic Opportunitv Sensitivity Analysis: Economic Opportunitv %of sample (total 610 In Brantas) who would beneflt from %of sample who would benefit from transferring water more transferring water more than growing paddy (s.t. Water than growing paddy (s.t. Water charge and Rice producer charge and Off-farm wage) price)
a' - _ = I s-'----f ; i; S C-1
O oo~*~0520 ~~.25 X0 15 4Ch, 45 ro1. RPOW *5 50 oS 00 75 50 r r3 oo SIas Chug. In ApiS' 0 5 10 is 20 25 x 55 40 25 53 55 60 65 70 75 so 55 30 s5 0o -- 0-FKO,f -1o00%O0-E.n r W.. Ch"lu Rp/ MI -750%on-!r.nhO 200%On-F5077 4-- 23 " -'A
A4-23 Issues for Water Allocation I Reallocation * Water reallocation with compensation is indeed being practiced between industry 5. Institutional & Legal and farmers in Bandung: Is such aLea practice fair? Context * If farmers reduce paddy cultivation to obtain compensation for water transfers, is it not contradictory with national food policy? * If farmers conserved water by improving efficiency and as a result returned WURs (to Government), should they be compensated, if so how?
Legal Context: Uncertainty in 2004 Act Institutional issues
1. Administration of highest priority use is not clear: human needs vs. farming 1. There is poor coordination between community vs. PDAM institutions. 2. Where permanent transfer of WURs is 2. Overlap in functions results from a lack not possible (tidak dapat disewakan atau of clear delineation between service dipindahtangankan) (Article 7(2)): are delivery and regulatory functions. there any circumstances in which water 3. Uncertainty is created by budget can be transferred? constraints and limited human resources. 3. Commercial Irrigation must be licensed 4. The level of mobilization of farmer (Article 8(2)): is Government authorized organizations is still quite low. to pass regulation on "licensing" to farming communities?
WUR framework 6. PUTTING IT ALL TOGETHER 1. Revenue considerations appear to drive water use licensing policies and priorities.
2. There is little consideration of environmental requirements in KEY ISSUES FOR WATER licensing. ALLOCATION IN INDONESIA 3. There is no formal provision for public participation in water use licensing.
A4-24 SCATTERED WATER ADMINISTRATION WA TER RE-ALLOCATION Boundaries + decentralisation have tended to - effects of water scarci#y spread administration non-uniformly * Some heavily-allocated rivers SSurface Ground Water * Some over-allocated groundwater basins Nationl water water qualitv * Poor water quality in many rivers and National MSRI MME EPA aquifers Prov'Bafa, ? ? * No specific allocation of water flows for Distnict ? ? the aquatic environment ('healthy rivers') l______RESULT: - and this doesn't show the layer of PJTs... * Sustainability goals and restoration of RESULT: 'balance' will lead to a potential decrease Coordination is a major challenge, of total water available for all users.
WA TER RE-ALLOCATION WA TER USE PERMITS - effects of other factors - Assessing applications * Rising demand for non-agricultural water * Only about 10% of total use is licensed. * Non-agricultural water mostly has higher * The rest is "unspecified" irrigation economic rights. value * New permits are assessed principally on * Inter-sectoral re-allocation has no clear or water balances (tends to mask local strongly defined processes as yet. effects & gradual erosion of the reliability * Farmers' access rights to adequate flows of al rights). are not formalised or well defined. (Though * Rights often continue to be issued down to 'Water for life" has top priority). historical recorded minimum flows. RESULT: * Nil, or limited, irrigator input to process. * Local re-allocation is by default - RESULT: sometimes ad hoc, and sometimes at * Irrigator rights tend to suffer expense because of farmers. quantification of impacts is not easy.
IRRIGATION FARMERS FEEL SQUEEZED IRRIGATION FARMING SLOWLY CHANGING
Avg farmer age increasing. * Original irrigation schemes were genuinely Over-allocated Next generation turning to non-commercial subsistence farming. season scarcity other ways o life First landholders paid nothing for water. I Commodiy -*New landholders have paid for some Growth in water prices failing. scheme costs capitalised into land values. demand by Iinput costs * Increasing off-farm work and share higher value uses rising, cropping.
* Pressures to grow more commercial crops. Demands for Maintenance oft Generational changes. environmental and irrigation assets RESULT: flushing flows deferred. Service levels falling. * Blurred subsistence & commercial mixes.
A4-25 INDUSTRIES, TOWNS & GOVT 'UMBRELLA' CONCLUSIONS CORPORATIONS ALSO HAVE ISSUES concerning WATER ALLOCATION * Many towns have exhausted locally available water sources. * Due to combined economic, social * Water supply operations worldwide are and environmental pressures, a dominated by capital costs and renewals - more holistic and internally but towns and PJTs struggle to meet O&M. consistent system of allocation and * Reliability of water supply affects re-allocation is a desirable goal. investment.Exeineesweeugst * As irrigation slowly tends to commercial, * Experience elsewhere suggests priority of water access rights Is unclear. that clearly specified and well RESULT: defined rights to abstract water * Risk of increased constraints for economic can provide a useful step toward growth . meeting such a goal.
ISSUES in EXPANDING the COVERAGE of the ISSUES in EXPANDING the COVERAGE of the EXISTING WATER RIGHTS SYSTEM EXISTING WATER RIGHTS SYSTEM If codified rights equivalent to other water abstraction permits are to be For customary users, how should: issued to Irrigators, what are the * their share of water be defined? options? * Bulk permit for each scheme? If so, * their overall rights and who will be the 'owner' of the permit? obligations be expressed? * What options exist for better defining rights within schemes, say at * their right to use water be secondary or even tertiary levels? protected? (Note - It is assumed that issuing rights to individual irrigators is unworkable)
ISSUES in EXPANDING the COVERAGE of the EXISTING WATER RIGHTS SYSTEM __ _
The big issue that shows up in this study is the growing need for an - - orderly way of re-allocating water to meet emerging demands whilst - protecting the interests of all parties. The big question then is: * what is the most appropriate way to accomplish such re-allocations?
A4-26 -- l-
1. LPR-FPR M ethod in East Jawa FPR (Faktor Polowtijo Relatip) shos daharge watertaken IrIo Fntabab LPR (Lu.. Polot io. R.ltip) d P I t5 I weirn onehectares POIowIJO. The formul FPR [Ce, . l e o,.. FPR- Q. - d- LPR, - ro.where FPR = FaktoePoPl-jo Relatbp(/Ils/Ha.p1) w, nLPR, LPRprimay caal ) FPR Iue ce bycaractharaticrstoilI and anallabel atern erR -~' Basedtype of soil, FPRopbmum Is Whe, A ., Clo 0105(Hal FPR HeavySoil Z71s/HaHpoi Cr0, .015Poo1io ::-r.rJ).1': 1 .. .r (ira ln MediumSoil 0.32 I/s/Ha.pIl [rr. [5' uulo 0.11rr.rnlr (ia 201) Light Sod 0.42 I/s/Ha.pol irfa.H,e bonreli,one.stofr thaseQW fOwtil IPhehgarnonbdist-ict rIgat.on included medium il, so FPRPehngaron Dabict Pa.dd(,.i.ao Irrigation s0n.32 llsilHa. iRure,r.vale lSOI 20 FPRb used as refr-ence toapplied water albcaton system in Pehngaron Cu,Oeerr i tlon oFPR >0.70 . 0.32 Irrbation canQvot by continuoesfl0w ,. Sn se cs0> 0.224 All areagie all ble 0,, sernlss nlh 20 FOR 0.15O-0224 Irrlgationcanyotpbyttrmmiltednowe .- ,eet 4 WUA and WUFplans octudo water alocauSc ttneot. ...a. t FsFF 0.10 WUA and WUF 50bMitto Dras, r order to get .Id o water supply I'nm,Bacem Dam (arns-basin)
Irrigation Water Requiremnent Q=LPRx FPR
2. Factor "K" Method in West Jawa Cakai,o- OHWVeo Rit-u/-int Water Allocation
Thee5.laHr.ls - bOor,5se50uag 0 IqJie°_nltsmr05s.HI 5 Waterallocaton on WongWsagara eh.e- is operatedbased on 'K' . u,Hms.s.H,.merHSHi Factor thmdo. .mT .5,50, I. o .. ron.
lZu.eroa.Ines ttses,. c uses t.s.es The 'K' Factor is shown by propon on ti botmoen the aOaliabe lOseomlsef lili 1 a9hi dindhbHge0t the weir end the meter requirement ralar 12iO507tsi IrIS IOn ,i O0 I Fon. - On W r I m n .,i,*pi| oxe OxYj ozoo oX9 os oYo K"Fiittor _ Qdt *.-Oh-Cl
005,05.555H,SaHdS%sheHb,Hi5H.I1O%.In,HSo 0,0 sl5I 01) nI th. 'K'Facro, 0 1, sothat waterdisthiotionforthawhoocropcanbe I w..araOeF99s I rto _ o ( . 100%of thepioo (nontino. s flow)
roanu no.it , It tho 'K'Fator < 1, so lhat water ditributon tor the wholeCrop shail be mHltiplhidby the 'K'Fotor (mterrmntdlino)
..t....,.~ , ~ ~ ...... o
Sensitivity Analysis: Economc Opportunity
Bratntas Basin Farm Economy Survey In 1999/2000 Distribution of 610 Stampla PlotS by Net InCome per ha
A4-27 ------, - Annex 5 Record of the Second National Workshop (June 2004) PRESENTATION OF THE MAIN FINDINGS BY PAK HATSUYA AZUMI, TEAM LEADER
Pak Azumi used PowerPoint to make his presentation (see Attachment 5). At the outset, he mentioned that the word 'rights' could be emotional in some ways, and it would have been better if this study were said to be about 'water sharing' for the benefit of the community.
Indonesia has made a policy decision in favour of 'one management, one basin, and one system' - how much of this is the reality? How are we to reflect the community's wish to participate in the management of water resources, in particular irrigation? What is the meaning of 'participation'? Kimpraswil and the World Bank may not think the same way on this. During the field study, particularly through the PCM workshops, we found out that farmers also had their own ideas. There is no single correct answer as a 'one size fits all' solution for water resource management related WURs. We need to be flexible and to reflect the local needs. We need negotiations, not just rules.
There are, however, some trends that are developing worldwide: one is the recognition of the public ownership of water by the people: water itself is not a private good, although it should be distinguished from the right to abstract and use it (for which costs are associated and someone has to pay for them).
There is also a consensus that water use rights are not permanent. Transparency is becoming more important, through the issuing of notices and registers. Provision for transferability is getting a generally accepted principle in other countries. Within irrigation schemes, there is also more acceptance of participatory irrigation management. Public participation in licensing procedure is another trend. Also 'legal pluralism' is being increasingly recognised. In this regard, Pak Azumi recognized the presence of Pak Bryan Bruns, the author of "Negotiating Water Use Rights", where the idea of 'legal pluralism' is promoted, as well as Pak Willem Van Diest, another author of a paper on water use rights in the SWS Kamper river basin.
Coming back to Indonesia and its definition of water rights, Pak Azumi continued, if we see articles 5-9 of the new Law No. 7 of 2004, we see the distinction between a water use right (the right to get and use water to fulfil daily needs plus rights of irrigation farmers without a permit, tax or fees) and a water exploitation right (the right to exploit water for commercial purposes, which needs a permit and the payment of a tax or fees).
In Stage 2, the Study Team selected the Brantas and Citarum river basins for detailed survey. Since both were under a PJT, they were not really representative of Indonesia but were the best compromise for the Study as more data were available on these river basins than others. We also spent more time on conflict resolution, and re-allocation of water as well as on groundwater compared to Stage 1. He mentioned that the Team would submit the Draft Final Report on or around 20 July 2004.
Pak Azumi then explained the composition of the Team, the pairings between Indonesian experts and international experts and introduced the members present at the workshop.
Finally, Pak Azumi expressed three specific concerns that the Team had on the Study, namely, (i) the timing of the study, (ii) water trade, and (iii) IMT.
A5-2 (i) Timing.
The Parliament election was over but still Presidential election was near. Depending on who wins, the current policies of Gol may change. Was this study ill timed? Should we have waited? It could be said that for the same reasons we should not wait so that WURs could be discussed in more systematic way based on more information available.
(ii) Water Trade
Two hotly debated issues in the Parliament debate were water trade and irrigation management transfer (IMT). Certain NGOs and politicians felt that, as water was not a private good it should not be valued, let alone traded. If it were traded, multinational companies might come in and buy up water and sell it with a high profit margin to farmers, who should be guaranteed free access in the first place. Reflecting this opinion, the Law No. 7 of 2004 provides an outright ban on the leasing or transfer of any kind of water use rights in whole or in part. But in reality, such transfer is going on. Farmers are giving up farming not because of shortage of water but because their kids are not succeeding them. If government does not regulate, informal transfer will still go on. So we should discuss this issue more (and more openly) so that we can set up an equitable, fair and transparent system of water re-allocation.
(iii) Irrigation Management Transfer
As mentioned earlier, there seems to be difference of opinion on the wisdom of continuing the effort on IMT. The Study team noted a definite shift of attitude by Kimpraswil on this question. Aside from whether to promote IMT further, an important question is about whom to give the WURs to. For example, when the Team discussed it with Kimpraswil, Pak Imam and Pak Soekrasno said WURs should be given, under certain circumstances, to the Pengamat (water master). We want to know your views.
In concluding his presentation on the Team's findings, Pak Azumi reiterated that the Study Team's client is the World Bank, although no doubt the Bank will use the report for the benefit of their client, i.e., Indonesia. The Bank wants to know the facts and the Team wants to know your views. The Team will express its views on what is best for Indonesia as a group of professionals. He mentioned that Pak Brian Haisman would present the Team's recommendations.
Discussion on presentation by Hatsuya Azumi
Pak Mahally (BPPT)
Is there scope to discuss weather modification as it has implications for increasing the price of water?
Pak Azumi
Our time today is limited; we are loaded with heavy agenda. Cloud seeding is a very specific topic. I am afraid we cannot set aside time for this topic. [Brian Haisman then volunteered that he has experience with this topic and is available to discuss it at lunchtime].
A5-3 Pak Jamal Gawi (CIDA)
I have a question about the selection of the location of the field surveys. You said that 90% of water users are customary users. This depends on how you define customary. I am concerned that both the river basins are in Java.
Pak Azumi
We had five candidate basins, namely, Ombilin (West Sumatra), Ciujung-Cidurian (Batten), Jratun-Seruna (Central Java), Brantas (East Java) and Citarum (West java). The Ombilin sub- basin in West Sumatra has already been written about by Pak Helmi. He has written a nice paper on this, which crystallised the issues on competition for water in that sub basin. We are going to annex this paper to our report. DG Basoeki of Kimpraswil suggested we go east to ENT, but it was difficult to obtain data there within the limited time and budget. Also Cinju-Cidurian was a serious candidate but there were also problems with data and local support. Indonesia is a large and heterogeneous country and unless we select a large number of basins in wide areas, there is always a limitation about how representative our choice could be. There is provision under WISMP, a World Bank loan, and we hope further studies are conducted under this program.
Pak Soekrasno - Kimpraswil
I apologise that the Director General is not able to attend this event today. I am also sorry that I was late; I had to attend an official function. I would like to read out the Key Note Speech prepared by the Director General, Dr Basoeki. Pak Soekrasno then read the statement, which is shown in Attachment 4.
PRESENTATION OF THE RECOMMENDATIONS BY BRIAN HAISMAN
Pak Haisman mentioned at the outset that this was a complicated study. The recommendations are general and apply across Indonesia. Those who have worked in water resources management in other countries - Mexico, South Africa, Vietnam - will know that the issues, problems and the way ahead are similar.
Pak Haisman then proceeded to present his PowerPoint presentation (Attachment 6). Among others, he presented action programs on six fronts:
1. Creating enforceable, formalized rights for customary water users
2. Establishing orderly, equitable and transparent process of water re-allocation
3. Strengthening a basin-based, participatory approach to water resources management
4. Establishing improved enforcement and conflict resolution mechanisms
5. Reserving river flows to sustain the aquatic environment
6. Reducing groundwater use to match long-term sustainable aquifer yields
A5-4 The recommendations presented were much more specific (and within the framework of the New Water Resource Law) than those of the broad WURs framework and administration systems given by the Stage 1 Study. Especially noted were several new and specific recommendations including:
* Establishment of Basin Community Reference Committee to provide a focus for farmer participation, guide implementation, give advice on equity issues and inter-scheme matters, all of which related to protection of customary rights * Participatory implementation of irrigation scheme Certificates of Water Entitlements (CWEs) with specific steps
* Formulation and implementation of orderly, equitable and transparent processes for water re- allocation in order to under pin economic growth as well as to protect customary right holders
Further details are given in the Attachments 6.
PLENARY SESSION - DISCUSSION OF THE RECOMMENDATIONS Ibu Renyasih J (PDPJUNPAD)
WUR should not only be based on current conditions but must be related to the development plan of regional government even though water has a hydraulic boundary. On another point, it is not clear from your presentation how water quality criteria fit in with the water use entitlement. For example in Wangisagara in Bandung, irrigation water is used by industry and agriculture gets bad water downstream.
Pak Imam - Kimpraswil
I have questions on six aspects of your presentation:
1. Under what conditions will a water right be considered invalid? 2. How is the certificate of entitlement to be issued? In irrigation this is a special issue as irrigation water is not constant. The law says irrigation water does not need a permit. 3. Is the water use right to be held by the owner or by others? We need information on the obligations of the holder of the right if it is to be held by a WUA. 4. If the holder of the right does not do the right thing, intentionally or negligently, and if agreement cannot be reached through consensus, should the court handle it as a criminal or civil matter?
5. Where new licenses are given to industry within an irrigation system by a WUAF, is the licence to use the water or to use the facility? In our opinion, the WUAF should not be licensing water use as such but only the use of the irrigation infrastructure.
A5-5 6. You said there are no community representatives on the PPTPA but the law already accommodates the participation of farmers. We need recommendations on the transition phase. We need concrete recommendations and suggested concrete changes to the regulations and also on empowering the PPTPAs and on the obligations of right holders.
7. My impression is that you have been more focused on WUR in irrigation and not on the administration of WUR.
Pak Tjoek Waluyo
I did not catch clearly your views on the institutions that are involved. There are three types: regulators, operators and users. It would be useful to set the role of each in terms of rights, obligations and sanctions. What will happen if one does not fulfil its obligations such as an operator who cannot provide water?
Pak Haisman
These issues are complex and cannot be dealt with in one hour. One recommendation is that it is time to do it. We cannot answer these questions until designing the implementation. The answers will be unique to the situation. Our recommendations try to answer critical details.
In regard to the question from Ibu Reni:
The comment on water planning: I agree that we need to make provision for growth. This is what the Water Council will do. If priorities and allocation do not provide for spare water, problems will start. It is easy when there is plenty of water. Our recommendations are on what to do when water runs out.
On water quality, this is managed through the environmental institutions. We discuss water quality in our report, in reference to the licensing process and attaching water quality conditions to the water use licence, including water given back to irrigation canals. We recommend that the environment agency and the water agency get together so the two permits are in harmony.
In regard to the questions from Pk Imam:
1. This concerns when rights are effective and under what conditions. There are two types - those that shift water in time and those that don't. If a river is unregulated usually a permit will have rules for water sharing under drought. In regard to regulated rivers, I will cover that under Pk Tjoek's question.
2. There is no format for a water entitlement. What I showed was a simplification and it will be different in each basin. It may be done month-by-month. Don't discard water delivery planning. You will need to build on it with written quantities for each scheme. You need also to involve water users so it makes sense for the users in the basin.
3. In regard to obligations of right holders, especially the WUAF, it is a big question. There are two quick things that can be said. First, don't do much work on the second tier unless the first tier is working, as it is more complicated to compute and work. In effect, you are already doing the first tier. Obligations include water delivery obligations, to take enough water at the intake and deliver the rights to users within the system. This needs to be developed in the contract between the WUAF and the members.
A5-6 4. In relation to the actions of a holder of a water right if negotiation fails; I will refer to Sarah Waddell, the Legal Advisor.
Sarah Waddell: There are criminal provisions in Law No. 7 of 2004; however, they concern aspects such as damage to water resources, infrastructure or transfer of rights. To prosecute you also have to establish intention or negligence. It is difficult to succeed in criminal prosecutions with the courts in Indonesia at the present time and, in addition, there is the burden of proof, which means an offence has to be established beyond reasonable doubt. Although this is not common in Indonesian law, there are good arguments to develop systems of civil enforcement. This is the way that has been developed in some other countries, particularly in environmental law.
5. I agree on your comment on the purpose of the licence issued by the WUAF - it would not be to use the water but to use the facilities of the irrigation system.
6. In relation to the PPTPA, it may be better if farmers form their own organization, which then coordinates with the PPTPA.
Sarah Waddell: I would like to clarify the point about there being no provision for farmer participation in PPTPAs. Actually the law allows it but is very non-specific and it is not a requirement. In some PPTPAs there is a lot of farmer involvement: according to what we were told in Bandung, the meetings are very well attended.
7. Detailed regulations on the administration of WUR would be best done as part of a pilot study. We were not able to go into this level of detail in the study. In regard to the questions from Pak Tjoek:
The institutional arrangements are not clear. I find the law and its consequences worrying. Everybody gets to do everything depending on the geographic boundary. There needs to be more order and less chaos. The underlying principle is that regulatory functions are visibly separated from operation. It is a fundamental principle behind our recommendations.
The issue of sanctions is a difficult one - for example, when there are difficulties in delivering an authorised volume of water. The contract and its surrounding laws govern this. It would be usual to protect the organization although this is an area that is not well developed. There may be a law that says anything we do is not our fault. If an officer fulfils his/her duty it is critical that they be protected by an indemnity.
Pak Soekrasn, Kimpraswil
We are now finalising the irrigation regulation: we are considering WUR to what point and to whom? This has been discussed and put in the draft. Water is still under government control. If control is given to the WUAF, government will give up water management so we need a WUR representative. Responsibility and authority for irrigation water is still with government to manage - to service the farmers based on the WUR.
Our problem is now with the WUAF. In regard to customary rights, if water is not utilised by the owner efficiently, government should have the capacity to review it.
A5-7 In regard to the entitlement and maximum flow, I suggest that monthly flow be noted, based on the area and capacity. Cropping pattern should also be put in the entitlement. This will mean that there is a note in the entitlement if the farmer changes the pattern. In addition, the time of cultivation should be mentioned and continuous flow or rotation should be a condition in the entitlement.
I agree with Pak Imam on the use of water in canals: this needs permission. Where there is lack of water, I do not agree with proportional reduction as sensitivity differs between users - consider water for drinking compared to water for crops. Also, regarding timing, use of water for a crop can be postponed for 3 days but people only 3 hours.
Regarding the constitution of the members of the Water Council, I suggest that it should be a balanced membership and that farmers should not be the majority.
Pak Tjitjin - Farmer, WUAF/WUAF, Kabupaten Bandung
Since 2000 we have had a WUAF. Irrigation management was transferred and we hired a gatekeeper and scheduled the planning. This has worked well. We still have a problem because PJT-2 collects a fee from industry and so does the WUAF; this needs to be sorted out.
I do not agree with the proposal to accelerate the process of forming WUAF without irrigation management transfer. This is important for us as its part of the reformasi of irrigation. We are not interested in transfer for the tertiary level, which is not new - we have had that for ages.
Pak Haisman
In regard to the comments of Pak Tjitjin:
On the collection of fees, in our fieldwork we discovered that the use of water and use of permits attracts fees by everyone. Its not organised. It would be best if the bulk permit attracts a fee for service to the PJT and the WUAF obtains a fee for water distributed within the tertiary system.
In relation to IMT, we made a separate recommendation that IMT should accompany WUR. This is necessary to make rights effective, to give economic choice and power to irrigators. It is difficult to have a bulk water permit, and obligations to deliver, if the permit holder is not also the manager of the system. If there is no WUAF, the government will need to hold the right. However, the two belong together - managing the system and holding the right.
In regard to the comments of Pak Soekrasno:
The law requires efficient use. This makes for equity issues if a scheme is inefficient. Should it be built into the entitlement? I agree there are other factors to influence the entitlement. When the role of the operator and regulator are separated out, water resources management becomes more and more about water - not irrigation. At present, in Indonesia, it is intertwined - as in all countries. Eventually, it will separate out.
On proportional reduction, we made an umbrella comment; in reality, it is not that simple. It will be done sector by sector; we have oversimplified. On our recommendation that the majority of water council members be farmers, we have said provocatively that it should be the majority. It should be balanced.
A5-8 LUNCH BREAK
After lunch the workshop broke up into three groups to discuss three prepared questions. The questions and the explanation of each question are presented in Attachment 8.
After one hour and 15 minutes of small group discussions, the participants gathered again in a plenary session and heard the report from each small group.
GROUP A - WHO SHOULD RECEIVE THE WUR AND WHAT DOES IT MEAN FOR MANAGING IRRIGATION?
1. To whom should Water Use Rights (WUR) be given?
In the explanation it was said that WUR refers to basinlevel water use rights for irrigation schemes. They would apply at the point of intake from the river and cover volume, flow and authorised water use. It was suggested that basically, there are two alternatives in deciding who should receive the WUR:
(a) a government representative of water users or
(b) water users themselves
Group A agreed that each beneficiary of water use should have a WUR. The system of WURs should cover all users with none being left out. It was suggested by one participant (Kimpraswil) that where farmers are concerned, a representative of water users could hold the right, who would be responsible for irrigators. The group did not accept this proposal. It was suggested that, for legal reasons, an individual or a legally recognised entity should hold the right; it would not fit with the concept of a right for it to be given to a community representative
The question arose regarding where the right should arise for farmers' use of water - the entry point to the primary irrigation system? The farmers' representative pointed out that his WUAF has been managing irrigation water from the point of intake of the primary system to the tertiary system. At the intake point for the tertiary system, the WUAF has had management responsibility. They guarantee the water for industry and, likewise, industry is a member of the WUAF. The members of the WUAF set the program of water flow. In regard to the location of the right, it was agreed that it should be operative from the entry point to the primary irrigation system. The conclusion was not expressly reached that the right should be given to the WUAF; however, this would follow from the conclusions of the group on the location of the operation of the right and farmers as the direct holder of the right.
2. If water use rights are to be given to Water User Associations (WUA) should the WUA also be given authority and responsibility for managing irrigation? In the explanation it was suggested that authority and responsibility for managing irrigation refers to the management of irrigation systems after the point of intake from the river, so it covers primary, secondary and tertiary systems. It was also suggested that it includes financing and
A5-9 managing water distribution (cropping patterns, rotations, etc) operation and maintenance of schemes.
Agreement was not reached on this issue.
It was stressed by the farmer representative that it should follow automatically that if the WUAF held a water use right it should also have authority and responsibility for operation and maintenance.
The Kimpraswil representative stated that authority and responsibility for primary and secondary irrigation could not be given to the WUAF under the Act No. 7 of 2004 on Water Resources.
The group asked what should occur if a WUAF was capable and willing? They were of the view that in such circumstances it should be able to take responsibility for managing the irrigation system.
Reference was made to article 64(6)(a) in the Law. The group also looked at the elucidation, which refers to public participation in the operation and maintenance of primary and secondary irrigation.
The farmers' representative said they were very willing. If rehabilitation costs were expensive they could meet the costs through cooperation with government. They could make a proposal for funds from government to carry out the work themselves and because they have a feeling of ownership it would surely be done. He also said they will want to do it if they also have authority and responsibility; but it is not the same thing as simply having the permission to do something such as to rehabilitate a damaged structure.
The representative of Kimpraswil said there were 5 aspects that will be handed over to WUAF under the new regulation:
(a) Water scheduling
(b) The cropping pattern
(c) Development priorities
(d) Rehabilitation
(e) Raising the fee for irrigation management from its members.
Finally, the majority group was of the view that the WUAF should get authority and responsibility for operation and maintenance where a WUAF was capable. However, the group also realised that this position does not deal with the obstacle against transfer of authority and responsibility for operation and maintenance that arises from the Law itself.
AS-10 I
GROUP B - HOW CAN THE RE-ALLOCATION OF WATER RESOURCES BE BEST ADMINISTERED?
How can water resources be re-allocated in an orderly, fair and transparent manner in view of the statutory prohibition against transfer of water use rights (WUR)?
The views of the group were presented as follows:
Water use, as a first priority and a basic need (water for domestic use and farming), cannot be transferred under Law No. 7 of 2004 on Water Resources.
Internal transfers of bulk water received through the point of intake should consider seniority.
The first priority water use must be protected and the water use rights are not absolute. Where water is scarce, the basic human needs must come first. The right to use water is not an absolute or strict (mutlak).
When a new request for water is received, compensation should be decided upon through negotiation between the users.
The mechanism for a permit (non farmer) such as industry or other must be clear. It is important that the licence for the activity itself should also have a condition on water availability.
Government should mediate compensation for loss of water and obtain agreement from the WUAF. If rights are lost then, to ensure a level of transparency, it should be managed through the Basin Water Resources Council, who considers the water allocation plan.
According to the Kimpraswil representative, rather than a version of water trading, transfers could take place in the same way in which government acquires land for use in the public domain, that is, acquisition with compensation.
GROUP C - HOW CAN RIVER BASIN MANAGEMENT AND INSTITUTIONS FOR WATER ALLOCATION BE STRENGTHENED?
How can current institutional weaknesses in river basin management be rectified? Should (a) the role of the Balai be expanded
(b) the role of the Perum Jasa Tirta be expanded or
(c) a new river basin organization be created.
The group was concerned with relations between the river basin and the water use right: the utilisation of the right should be based on river basin management.
The regulator should process the application for the licence with technical recommendation from the technical unit not just on water availability but also the level of agreement from the farmers.
A5-11 Implementation should be based on the real condition of water availability. After the allocation plan has been devised, there is a responsibility to implement according to the pattern.
There should be a condition to the effect that if there is a water shortage then a coordination board is to negotiate between the regulatory, operator and user.
The Balai should only assist provincial government.
Questions:
Pak Van Diest
If an irrigation scheme straddles more than one province, which level of government manages it?
Answerfrom thefloor
Central government, Kimpraswil will establish a central operating section.
Brian Haisman
Currently there is institutional chaos. There is a change of level if a boundary accidentally crosses a line on a map. The ideas put forward by Group C are completely destroyed by the present legal arrangements. If a boundary crosses provincial borders there should be the option for central government to re-delegate down, create joint ventures and have a single basin run it. Our recommendations are about using common sense and having a consistent role. WUR can't work properly under the existing legal arrangements.
The recommendation to split the operational and regulatory functions and to let the Balai be the operator - does it mean separation from the Dinas, if so, who will issue the water permits?
Representativefrom PSDA, Citarum
It's a different situation if the Balai just operates. At present, it is set up as a technical unit - to make technical recommendations. To whom would they be responsible? This is difficult to answer.
Pak Jamal Gawi (CIDA)
There are categories of operator, regulator or quasi-regulatory. In the end there is a clear distinction between regulator and operator. Operation and regulation is now part of the Dinas but they say they are the regulator. The PJT on other hand (in comparison with the Balai) is clearly an operator.
Pak Azumi
I note that Group A did not come to a conclusion on the question if water use rights are to be given to WUA should the WUA also be given authority and responsibility for managing irrigation. If there is a functioning WUAF, there seems to be broad agreement in the group that the WUR should be given to the WUAF. However, if there is no WUAF, who should hold the WUR?
A5-12 Pak Paul Van Hofwegen - World Water Council
The grant of a right means that there are reciprocal obligations to meet the right. A right becomes useful when the right holder can insist on certain things happening so that the right is fulfilled. This can be developed step by step - if the right is there.
CLOSURE - PAK HATSUYA AZUMI
It looks Group A could not come to a complete agreement on the question, if a capable WUAF is given a WUR, whether it should also be given the responsibility and authority to carry out operation, maintenance and management of the irrigation facilities (not only in the tertiaries but also in the secondary and primary canals). Indonesia has already achieved a lot with decentralisation. The important thing is not to give up in the middle. In looking at how to re- allocate rights,
Group B have suggested that an applicant come with a special proposal and negotiate. The question is, when and where to start such a negotiation? How could we do it under the restriction of Law 7/2004? What the group is suggesting appears to be touching on legal pluralism. We need to be pragmatic on this.
In Group C there was lively discussion on separating the role of operator and regulator. This is very important. But there is still the question of the cross-boundary cases; this is a 64 million dollar question. There is no clear answer. Study Team has a consensus that the level of government responsible should not automatically go up, as this would mean the status quo. History has proven it does not work so well.
In concluding the Workshop, I would like to thank the World Bank, Government of Indonesia and Kimpraswil. The people who attended today are the people who really count.
Above all, I want to thank the participants who came today, some from other provinces far away. We have received constructive criticisms to our recommendations. For example, that we have not referred to non-irrigation sectors sufficiently. Although we still believe that it was not a mistake to focus on the sector, which uses 90 percent of the water resources, and there are many references to other sectors in our Draft Final report, we would make sure either we explain more clearly why we have concentrated in irrigation or try to introduce more balanced handling of various sectors. The two workshops, in March and this one have been extraordinarily useful to us, and I thank you all for that. You will all receive a copy of the minutes shortly.
ATTACHMENTS:
1. Agenda
2. List of participants
3. Main Conclusions and Recommendations from Stage One (hand out)
4. Key Note Address, Pak Basoeki, Director General, Water Resources, KimPrasWil
A5-13 5. PowerPoint presentation, Hatsuya Azumi
6. PowerPoint presentation, Brian Haisman
7. Three discussion topics - handouts provided to Groups A, B and C.
A5-14 Attachment 1 INDONESIA
WATER USE RIGHTS STUDY, STAGE 2
SECOND NATIONAL WORKSHOP
June 30, 2004
Jakarta
08:30 Registration
09:00 Opening Remarks:
a) World Bank Jakarta Office
b) Directorate General, Kimpraswil
09:20 Briefing on the Workshop: Study Team
09:30 Presentation of the Findings and Recommendations: Study Team 10:45 Coffee Break
11:00 Plenary Discussion on the Study Team's Presentation
12:15 Lunch
13:15 Briefing on the Small Group Discussions: Study Team 13:30 Small Group Discussions:
Group A: Who should receive the WUR and what does it mean for managing irrigation?
Group B: How can the re-allocationof water resources be best administered?
Group C: How can river basin management and institutionsfor water allocation be strengthened?
15:00 Coffee Break
15:15 Plenary Discussion on the Results of the Small Group Discussions
16:30 Wrap Up Session: Hatsuya Azumi, Team Leader 17:00 End of Workshop
A5-15 Attachment 2
List of Participants
DAFTAR UNDANGAN WORKSHOP NASIONAL STUDI "WUR" TAHAP II NO. NAME INSTITUTION T i F / HP 1 Soleh Hadisutisna Lembaga Pengembangan T/F: 022-7802306 Sumberdaya Lokal (LPSL) 2 Ir. Sadar Purwanto, MM. Kasubdit Kelembagaan Pemakai T: 021-780 5268 Air Dep. Pertanian F: 021-782 3975 3 Yusuke Maruno Sanyu +81-3-5394-8992
4 Maksum PSPK-UGM T: 0274-521318 F: 0274-564463 5 Saiful Rochdayanto FH-UGM T: 0274-550328 HP: 08122940848 6 Sigit R. FH-UGM 7 Tri Nugroho PALYJA T: 5798526 HP: 08161905259 8 Tjichi M. GP3A DI WANING T: 022-5957071 9 Ahmad P3A DI Wangisagara HP: 081320302831 Jawa Barat 10 Darman S. GP3A T: 022-5956953 11 Asmah Yani Universitas Nasional Jakarta T: 78833384 F: 7802719 Hp: 08151844843 12 Gatot Eko S. Kepala Bidang Infrastruktur T: 3456714 Pengairan F: 3456817 13 Sri Hernowo Direktur T: 0264-201 979 PJT R F: 0264-201 971 14 Brian Haisman Sanyu +81-3-5394-8992 15 Hatsuya Azumi Sanyu +81-3-5394-8992 16 Mahally K. BPPTUPTHB T:021-3168830 17 Gunawan Djoko BPPT UPTHB T: 021-3168830 18 Djoko Djatiroso Kepala Balai PSDA Butung T/F: 031-501 8512 Peketingan, Surabaya 19 Yustisia Dinas PU Pengairan T: 031-8292419 Jawa Timur F: 031-8292047 20 Titie Hadiyati World Bank Consultant 21 Sarah Waddel Sanyu T: 0274-882050 Hp: 08562862331 22 Afsdyah Eki PPA Consultant T: 8311566 F: 8291096 Hp: 08151865587 23 Tjoek Waluyo PJT I T: 0341-551971 F: 0341-551976 24 Sadi Wakil Petani DI Menturus Jatim 25 Sarwoko Konsultan EU Hp: 08122910091 26 Williem Van Diest ADB Consultant T/F: 7231784
A5-16 27 Satrio Subdit Konservasi Air Tanah T: 022-72746 76/77 ext. 457 F: 022-720 6167 28 Paul Van Hofwegen World Water Council 29 Bryan Brun F: 021-722 1560 30 Renyasih J. PDP-UNPAD T: 022-2507966 Bandung F: 022-2533690 31 Suliyanti Ka.Dinas PSDA Jawa Barat F: 022-421 5242 / 9848
32 Rudi F. UNAND 33 Djoko Sembodo EU T: 2526592 34 Maeritta Representative Indonesia, T: 7392540 ______ARCADIS Euroconsult F: 7395551 35 Judith Kasperma Representative Indonesia, T: 7392540 ARCADIS Euroconsult F: 7395551 36 Ilham Abla World Bank T: 021-52993024 /52993000 F: 021-52993111 37 Sudarmanto Tenaga Ahli T/F: 79182741 38 Agus Rachmat Bappeprop Jawa Barat (Bappeda) T: 022-251 6061 F: 022- 251 0731 39 Sudar D.A. LP3ES 40 Jamal Gawi CHDA-PSU T: 5251773 HP: 0811144257 41 Shunichi Maeda JICA T: 021-390 7533 F: 021-390 7536 42 Umirusyansusti KLH T: 85904534 43 Sabariddin BPPT 3169840 44 Tusy A.A. BPPT 3169840 45 Sudaryono BPPT 3169833 46 MohIskandar EPA Bandung, Bapedalda Jabar T: 022-420 4871 F: 022-423 1570 47 Dedy Djunaedi Kepala Balai Desa PSDA T/F: 0224215241 Citarum, Bandung 48 Darismanto Kepala Bidang Data, T: 7511844 Dokumentasi dan Diseminasi F: 7511846 49 Soekrasno Direktur PSDA T: 021-722 1907 Dep. Kimpraswil Hp: 0811109784 50 Hasudungan S. Kasubdit Irigasi T: 021-3926186 F: 021-314 9641 HP: 08129212567 51 Imam Anshori Kasubdit Perencanaan T: 021-722 1907 F: 021-720 8285 52 Mohd Ali Chief of Sub-Directorate for T/F: 7221907 Water Resources Conservation HP: 081867775 53 Munawir LP3ES T:5674211
A5-17 Attachment 3
Main Conclusions and Recommendations of Stage 1
WURs are, in essence, simple organized means of managing a planned sharing of water for the benefit of the community. For such a diversified country as Indonesia, there is no such thing as one size fits all principle. Judging from other countries' experiences, however, there are general principles that are being increasingly accepted worldwide and that offer principles and guidelines that could be applied in Indonesia. Those are:
(1) WURs are rights to use water that:
* Are recognised by the laws of a state/nation
* Are protected against damage caused by the actions of third parties
* May be regulated by the state/nation
* May be managed by the state directly, or by the community, or by market forces, or by a mix of any of those.
(2) Sharing of water for the greater benefit of the whole community requires:
* Water rights that are clearly defined as to quantity and reliability of water supply
* Knowledge of the full range of water users within a basin
* Planning on a basin-wide basis
* Unified management of the basin
* Maximum participation of the community in planning
* Reliance on negotiations not just on rules
(3) The general principles being adopted world wide now are:
* Recognition of the underlying public ownership of water resources
* Rights issued for limited duration
* Transparency (e.g. public registers of rights)
* Customary rights changing to specified rights
* Provision for transferability
* Customary rights within irrigation schemes managed by farmers' organizations
* Public participation in licensing processes
A5-18 -F-
Legal pluralism: various types of institutional arrangements may be used to regulate socially accepted claims to water, including user-based self governance (e.g. the importance of Water User Associations - WUAs - and Water user Associations Federations - WUAFs), agency administration and water markets. In practice, different types of institutions are often combined, and a suitable combination may be more workable than imposing a single type of allocation.' This implies the importance of negotiations among stakeholders and not just relying on regulations.
The most important issues facing the WURs in Indonesia currently are:
(1) Unclear farmers' customary rights vis-avis relatively clear license holders' entitlements (2) Unclear rules and administration systems
(3) Lack of institutional mechanism for conflict resolution
(4) Lack of formal mechanism of shifting water from one use to another while protecting the rights of affected parties (basically, fair water trade mechanisms)Given the above general principles, the Stage 1 study recommended the following specific principles to be adopted for Indonesia WURs:
(1) Clearly acknowledged, defined, quantified, and registered customary rights (2) A two tier administration system
(3) Effective conflict resolution through Expert Water Tribunals
(4) Gradual introduction of water trade
(5) People's participation in planning and implementation to reflect legal pluralism Of the abovementioned specific issues, the most critical one that requires urgent attention is the unclear farmers' customary rights vis-avis relatively clear license holders' rights. Water users can be divided into license holders and non-license holders. The license holders are formal entities such as industries, municipalities, and power companies, while non-license holders can be grouped into two sub- categories: (i) farmers under public irrigation schemes, and (ii) traditional users with basic needs such as small village irrigation, religious attributes of water bodies (adat), plus subsistence fishing. The license holders' entitlements are clearly defined by license agreements. On the other hand, while the customary rights of non-4icense holders are recognized by the Constitution and the Water Law (UUl1 of 1974), their rights are not well defined, let alone quantified. Because of this reason and the fact that water fees from license holders usually constitute the major or the only source of income to the water allocation agencies (and customary water users are normally exempted from paying water fees), under water short circumstances, the water allocation agencies always give de facto priority to license holders. Consequently, the farmers get the residual water and thus have been marginalized systematically.
The first order of priority, therefore, is to make the customary rights of the non-license holders clear and quantify them. While there could be various ways of achieving this, one way is to introduce a
' Bryan Bruns and Ruth Meinzen-Dick, "Frameworks for Water Rights: an overview of institutional options", a paper presented to the Water Rights Workshop in Hanoi, February 2003.
A5-19 basin-wide (and eventually nation-wide) public register of historical water use at specified water intake points. Although the transaction costs would make it virtually impossible to quantify each farmer's historical water use, there appear to be record of water quantity passed through certain intake points such as the main canal outlet into secondary canals. Provincial Dinas seem to have been keeping such records for many years. We could possibly use such data as proxies to the customary rights of a group of farmers (say, of WUAFs). By registering such "rights", nonlicense holders can quantify their entitlements just like the license holders. Thus, during the water short period, water allocation agency can reduce all the water users' allocations proportionately. Where such system give undue difficulties to certain water users, e.g. the industries, water trade can take place between stakeholders, e.g., between a WUAF and a factory.
The abovementioned system of public register requires the presence of strong WUAs/WUAFs, which is not yet a reality in the country. The strengthening of WUAs, however, is one of the current priority strategies of the government. Therefore the proposed principle would be compatible with the current government policy, and the adoption of this principle should be made carefully by taking account of the status of the capacity building of those farmer organizations (more on this in the two-tier system).
A two-tier system is gaining support amongst officials and others as a potentially workable approach. The two tiers would comprise (i) a basin-level permit system from natural watercourses, and (ii) a within irrigation district/scheme permit system. A basin- level permit system for all abstractions and discharges to and from natural watercourses would allow the water resource authority to analyze basin and sub-basin water balances and to make plans as mandated on a basin basis and the basin operator to effectively manage resources in real time.
A5-20 Attachment 4
KEYNOTE SPEAK DIRECTOR GENERAL OF WATER RESOURCES
Distinguish guest, ladies and gentlement. Along with the change in the paradigm and to anticipate complexity in the development of issues on water resources we need to put water in harmoniously social, and to give better attention to the basic human rights to water; to put the mechanism and process of formulating policies and a more democratic plans of WRM in place, it is necessary to enact a new law in place of Law Number 11 of 1974 on Water Resources.
Base on philosophic consideration, the new Law on Water Resources declares that water resources are a blessing of the One and Only God that give benefits for the welfare of the whole people of Indonesia. Water resources shall have social, economic and environmental functions and shall be implemented and realized in a balanced manner. Water Use Right (WUR) is an organized means of managing a planned sharing of water for the benefit of a community. WUR in Indonesia is the rights are only limited to use and to utilize the amount of water for various purposes that user is allowed to take at any particular time from common water resources such as river, and lake.
The new law states that WUR does not mean the right to own water, but the right to obtain and use or utilize water an amount (quota) of water following the allocation determined by the Government for the water users, comprising users required to have permits and those who are not so required. The volume of allocation determined in this respect is not conclusive and must be in compliance with the volume stated in the permit, but this may be reviewed if the requirements and conditions used as the basis for determining the permit and the condition of water availability in the related source has changed significantly compared with the water availability condition at the time the allocation was decided.
The community's growing need of water effect the increasing economic value of water compared with its social functions. Such a condition will potentially create conflicts of interests between sectors, regions, and between various parties engaged in water resources.
A5-21 2
Meanwhile WRM that rests more on the economic value tends to favor the capital owner and may ignore the social functions of water resources. Based on these considerations, this law gives more protection to the interests of weak economic groups of the society, by applying the principles of WRM that will ensure the balance of social, environmental and economic functions. WUR to fulfill the basic daily needs of individuals and the people's agriculture activities located within an irrigation system will be protected by the Government or the regional governments.
The new act also reconfirms the importance of water's social function. The use of water (from the natural resources) by individual citizens for their daily necessities of life is free. No license is therefore required. All other forms of water use are subject to license, except of water use for people's irrigation within the existing irrigation system. Water supply to serve the human basic needs shall be the top priority in the provision of water resources over all other needs. The second priority given to the people's irrigation within existing irrigation system. The order of priorities in the provision of water resources for the other uses of water shall be determined in each river basin by the Government or the respective regional governments in accordance with their authorities. If the determinations of the order of priorities in the provision of water resources produce adverse effects on the existing users of the water, the Government or the regional governments shall arrange for the compensation to the users. Reforming WRM policies and strategies as stated in the new water resources law is an important way in achieving sustainable development of water resources in Indonesia. Sustainable development of water resources in Indonesia can only be fully realized through implementation new policies, strategies and systematic programs. It is necessary that the government and the community be understand on substantive of law and given a role in WRM in a consistent manner. Ruling on the implementation of WRM scheme shall be further determined in a government regulation. From this seminar I wish to get some input from the participant'to share the most idea in improving the result of the World Bank study on WUR and of course some of substantive will be elaborated on following the government regulations that we are going to be prepared.
A5-22 3
On this occasion, I would like to extend my sincerest gratitude to the World Bank and The WUR Study Team for their valuable assistance to make this study a succesfull end. I would also extend my appreciation to all participants in supporting the study and participating in this seminar. Finally, I wish you all success in your deliberations. Thank you.
A5-23 Attachment 5
INDONESIA STUDY OBJECTIVES WATER USE RIGHTS STUDY STAGES 1 &2 * To help World Bank (the Client) acquire operational understanding of traditional water allocation and reallocation, and conflict resolution OVERVIEW mechanisms * To create common language for the Bank, Government and other stakeholders Sanyu Consultants, Inc. Through & LP3ES * Conceptualization of WURs framework, and June 30, 2004 - Conceptualization of administration systems
l 2
FOCUS OF THE STUDY STUDY IMPLEMENTATION * Study deals with all sectors/users: a. Customary uwers/non-formalized uwer such as users (2003): Pr.liminaryStudy (mainly of water for basic needs and religious purposes, and Stage 1 (2003): Prelmunary Study (mainlY irrigation fawmers desk study and small sample field surveys) b. Commercial users such as industries, municipalities, power companies, fisheries, and c. Environmental needs Stage 2 (2004): In depth field surveys in * Study focuses more on the first (a) customary users, tworiver basins (Brantas and C,tarum) because it uses almost 90% of water, and yet lttle two river basins (Brantas and Citarum) regulated and therefore lttle protected compared to the rest of the uers: highestpnority in law, lowestpriority in practice
34
WHAT ARE WURS? PROPER SHARING OF WATER REQUIRES * Rights to abstract and use water that are: Rights that are clearly defined and quantified - Recognized by laws of a state/nation * Knowledge of the full range of water users within - Protected against damage caused by third a basin parties - Basin based planning - Regulated by state directly, or by community, * Unified management or by market, or by a mix of any of the above * Maximum participation of the community in * In fact, organized sharing of water for the planning benefit of the community - Reliance on negotiations not just rules
A5-24 GENERAL PRINCIPLES BEING ADOPTED MORE on DEFINITION in WORLD WIDE INDONESIA * Recognition of public ownership of water * New Water Resources Law (UU07/04), Art. 5-9 * Rights issued for limited duration distinguish Water Use Rights (hak gunapakai air) * Transparency (e.g., public register &public notice) and Water Exploitation Rights (hak guna usaha * Custonary rights changing into specific rights air) * Provision of transferability * WUJR = the right to get and use water resources to * Within irrigation schemes, managed by farmers' fulfill daily needs plus rights of irrigation farmers; organizations no permits needed; no tax/fees * Public participation in licensing proces * WER = the right to exploit water resources for * Legal pluralism: allow various types of arfangements: commercial purposes all users need permits irnportance of negotiations cmeca upss l sr edprnt issued by Government; users must pay tax/fees 7 .
Main Issues Identified by Main Principles Recommended by Stage 1 Study Stage 1 Study 1. Clearly acknowledged, defined, quantified, and I. Unclear farmers' customary rights registered rights 2. Unclear rules and administration systems 2. A two-tier administration system (bulk water allocation from natural sources and within 3. Lack of institutional mechanisms for schemes) conflict resolution 3. Conflict resolution through Expert Water 4. Lack of formal mechanisms for water Tribunal reallocation 4. Gradual introduction of water trade 5. Peoples' participation in planning and implementation to reflect legal pluralism
9 10
STAGE 2 Stage 2: Work Plan
* To test the feasibility or appropriateness of Jan-Feb 04 Preparatory Mission Stage 1 recommendations by carrying out further detailed studies and simulations in * Feb-Apr 04 First Fieldwork two river basins covering many more * Jun-Jul 04 Second Fieldwork subjects than Stage I * 20 Jul 04 Draft Final Report * More studies on water re-allocation, conflict * Aug 04 * Final Report resolution, groundwater than Stage I * *Depenlding on the receipt of the WB's comments
11 12
A5-25 Stage 2 TEAM COMPOSITION Management: H. Azumi, B. Adimugroho BASIC METHODOLOGIES Institutional and Legal: Febriamansyah, B. Haisman, W. Martin, IL Literature surveys and interviews S. Waddell, S. iianto and Project Cydce Management (PCM}): Detailed field surveys in Brantas H. Shimaza, S. Rochdiyanto. social: Citarum river basins Project Cycle Management (PCM) Hydrology and T. Nakano Workshops (two national workshops Economics. many field workshops) A. Hata, A. Mavwarni - Interdisciplinary and multi-national experts Advisors: experts) C. Rodges, Helmi (intemnational/national pairing of Logistic Support: 14 T. Nishigaki, Deepink, Y.Maruno 13
OUR SPECIFIC CONCERNS ABOUT THE STUDY
* Timing of the Study: Given the elections, ill-timed? * Two most contentious issues at the Parliamentary debates: - Water trade/ transfer of WURs - Iruigation Management Transfer (WlvT) Hence the choice of topics for small goup discussions this aftemoon. * Study Team is a group of professionals. We will express our honest and professional views 11
AS-26 Attachment 6
INDONESIA WUR 11- RECOMMENDATIONS THE WORLD BANK The Way Forward - Our Main Recommendation INDONESIA WATER USE RIGHTS STUDY PHASE 11 Indonesia should progress towards a Second National Workshop comprehensive, all-inclusive system of Jakarta - 30 June 2004 consistent rights-based water sharing: - Formulated on basis of river basin boundaries; Recommendations - Implemented ina highly participatory manner.
SANYU CONSULTANTS INC.and LP3ES
INDONESIA WUR It - RECOMMENDATIONS INDONESIAWUR 11- RECOMMENDATIONS Action on Six Fronts Action on Six Fronts
1. Creating enforceable, formalised 4. Establishing improved enforcement rights for customary water users and conflict resolution mechanisms 2. Establishing ordery, equitable & 5. Reserving river water flows to sustain transparent processes of water the aquatic environment re-allocation 3. Strengthening a basin-based, 6. Reducing groundwater use to match participatory approach to water long-term sustainable aquifer yields resources management
INDONESIA WUR 11- RECOMMENDATIONS ,. P g C y Rr INDONESIA1 WUR - RECOMMENDATIONS 1. Protecting Customary Rights Customary Rights - a two-tier system Q: Are all water users treated equally and fairly in access and abstraction of water? Bae n Wv r Sharing Irrigaton Scheme Finding: No. Water_Sharing - People with hak guna pakai air have no Compremnsrw rn4ide Defind group water righ formalised, wrtten record of quantity of their Descnpflon Be of buU wste rvignht ar sezndery and tertiry right and get low priority and security of right, of rights: mciudig an alkoczbonfor nllakesmcluing shared despite law giving them top priority. is1rearuses canal loses
Rec'n: Customary rights to be included in G agnq at o level "atin schern basin-wide allocation and rights system Managed bt Incragre sin elIgI coopeaans F are with formal, registered rights parallel to sustnabl opimuro WUA) for the bnfit of rights of existing water use permit holders. e_u_y members
A5-27 INDONESIA WUR I1 - RECOMMENDATIONS Customary RightsCustomary at BasinRights Level Participatory~~Certificates Implementation of Water ofEntitlement Irrigation Scheme
* Consultation and participation from the start. Need Basin Community Reference Committee PrvksclalGovwnor dCV%E probI I Issue * CWEs to - Operating under auspices of Water Resource Council EArse, *a m, rAsouresu schernes - Comprises customary water users ______4Y__ _ Swk_ (Other bodies have insufficient water users) Subnit for - Uniform representation upstream/downstream I Ng* - Access to all official papers Basn r rrrn ndudf re r an - Will require capacity building Rdx n - Include other interests - eg environmental NGOs w p d c v,. usr f - "Sunser body. Close down when WUR complete pIlflfw e.&e * Task is to provide focus for farmer participation, Cr n guide implementation, give advice on equity C 0echnical issues and inter-scheme matters stues ocalconsu toaon ans adsfce
WUR II- RECOMMENDATIONS INDONESIAWUR II - RECOMMENDATIONS INDONESIA Customary Rights at Basin Level Customary Rights at Basin Level UU7/04 * Each irrigation scheme to be given authorised Same status as permits issued under Certificate of Water Entitlement * Specifies maximum quantities/flows at intake - means these water use rights are: • Same status as permits under UU7104 Equally enforceable without * Recorded on open, public Register of Rights Quantity cannot be decreased * Certificate should list: consent (except for provisons of UU7/04) - Authorised water uses - Tertiary areas * Have a right to apply for more water. - Industry WUR Permits within scheme
INDONESIA WUR 11- RECOMMENDATIONS Customary Rights at Basin Level Customary Rights at Basin Level registers schemes in * Govemment automatically and of no cooperation with Basin Community Reference * Water use rights are meaningless Committee (no need for schemes to apply) real effect if they are not held by the body the water. • Require regulations to authorise formal process (person or organisation) that uses * Therefore, Certificate of Water Entitlement user association or * Regulations should include 'safety net': must be held by water - Decree that schemes not on Register (for any reason) federation of associations as applicable. have equal status to those registered; and have a ytrasin,cul be helinrust - Acontinuing right to apply for registration at any time. temporarilyteDuring by provincial water resources -~~~~~~ distant from scheme) * Certificate of Water Entitlement to be issued in service (or similar body of perpetuity with 5-yearly reviews. * Therefore -need to accelerate formation developing WURs * Certificates would attract small water resource WUAF at same time as management fees based on service received.
A5-28 INDONESLAWUR 11- RECOMMENDATIONS INDONESIAWUR I1- RECOMMENDATIONS Customary Rights at Basin Level Customary Rights within Irrig'n Schemes Need discussion paper and consultative process Second tier of rights within basin-level rights to enable Basin Community Ref Committee to in Certificates of Water Entitlement make informed choice between: * EntRlements based on recent historical flows * To be held, controlled and managed by Entitlementsrecenthisorbased ical flowsschemeon federations and associations or * Entitlements based on scheme design factors Second-tier entitlements to be computed at eg - commandable area, intake capacity etc same time as bulk entitlements Help will be needed to uncover and negotiate Scheme management should be transferred the equity issues within this choice. at same time as formal water rights are given.
INDONESIA WUR11 - RECOMMENDATIONS INDONESIAWUR 11- RECOMMENDATIONS New Permits within lrrig'n Schemes Elements of Irrigation Scheme Water Entitlement CERTIFICATEOF WATER ENTITLEMUNT * New hak guna usaha air permits can only be PEMUrHroLW *ULLAMANKAIRRlUAncNscHEFEFMERATI0N used to abstract water from scheme canals EULKIWRENTff'EENt -Etmlknscwnd with the concurrence of scheme federation. Wa,erU, UseTyp. Purpa MuaFlew MaVlume Teliary areaA Basi Ingigcanand domnoic -Us Notappica e * Therefore a new industry would need both: Teary ara B Basic Imgeienand drnesmbc -1Us Notappicable - SIPPA from Provincial Government; and Telary areaC Basc Inigan nd domesfic -Us Notappicatle - Supply agreement from WUAF det
* Certificate of Water Entitlement amended at X .. Cmmnnr Totel - Vs - same time to show additional water permit. Compny Y Commeral PapTemanxsfcn - VI _ndt- (Quantity not deducted from irig'n quantity) MrZ Cmonerii Fcishtaning - Vs - WuMn&ft etc
INDONESIA WUR 11- RECOMMENDATIONS INDONESIA WUR II - RECOMMENDATIONS 2. Re-allocation of Water Resources Re-allocation of Water Resources Q: Is there a fair way of transferring water Within-season 'temporary transfers' of water cnhanging communty needs? (not transfers of rights) are commonplace Finding: No. between neighbours - Direct transfers of rights are banned by law. * These are negotiated under traditional - But no altemative method yet available that methods and should be left alone without meets test of protecting individual rights, govemment intervention facilitating economic development, &serving public interest. * For permanent re-allocation of rights, need Rec'n: Formulation and implementation of regulations that enable govt to acquire water orderly, equitable and transparent and re-allocate it in a way that will: processes required without delay in order optimise water use and share the benefits to underpin economic growth.
A5-29 INDONESIA WUR 11- RECOMMENDATIONS INDONESIAWUR 11- RECOMMENDATIONS Re-allocation of Water Resources 3. Strengthening River Basin Management and that need answering when formulating water Q Is water management participatory Questions eurdb U/4 rights re-allocation regulations include: bsdo ie aisa * Which govt body should plan and control? interest - a common pool Finding: Not sufficiently. * How to serve public user members. 'water bank' or more direct re-allocation? - PPTPA have no water and still connected to * How do people register to give up water? - Balai under-resourced How do people register to acquire water? central govt. payable be made by govt or - PJT role in basin management unclear * Should 'compensation' in permit issue made by holders of new water entitlements? - No public participation Rec'n: Basin management institutions and * Should amount of compensation be set by govt, or Long-term mutually agreed between water users? capabilities to be strengthened. RBO responsible for all * How can the community be properly involved in goal of integrated the process? water and related resources.
INDONESIA WUR II - RECOMMENDATIONS INDONESIA WUR II - RECOMMENDATIONS Strengthening River Basin Management Strengthening River Basin Management should establish * RBO (ie enhanced Balai) all other basin-wide allocation and licensing system, Water resource councils and have majority of including all uses coordinating bodies should * Water allocation should move to probabilistic water user members basis, using enhanced river simulation models shortage, RBO empowered Regulations should be amended to allow * At times of water licensing to reduce entitlements proportionally so public participation in water for 4 weeks reductions shared fairly - Permit application to be advertised * In long-term, new RBOs needed: - citizens have right to make objections (RBO eventually) must - Attached to provincial govt - Permit issuing authority - Responsible for managing sustainability of water take objections into account. and related natural resources, including water planning, allocation and licensing
INDONESIA WUR11 - RECOMMENDATIONS INDONESIA WUR 11- RECOMMENDATIONS Conflict Resolution 4. Improving Enforcement & Conflict Resolution Improving Enforcement & Govemment and Agencies need to create field officers Q Is compliance with water use permit culture of support for compliance conditions adequate, and are mechanisms Capacity building required for compliance available to resolve water disputes? officers (civil servants, police and Courts) Finding: Not really. In compliance. * Courts also need development so that WUR - Field staff not well trained or supported aggrieved by third party actions (incl - Polke and courts not equipped or experienced In this tasai holders by govt) can seek redress. - No established forum for conflict resolution building required to implement * Administrative sanctions applied by restricting Rec'n: Capacity be properly authonsed new Investigation and criminal provisions of access to water should link with discharge UU7104. An expert mediation" capability * Water use permits should established in province level. permit administration and include water should be quality conditions on return water
A5-30 INDONESIA WUR 11- RECOMMENDATIONS INDONESIA WUR11 - RECOMMENDATIONS Improving Enforcement & Conflict Resolution 5. Reserving an Environmental Allocation
* Established capacity for settlement of Q: Is the sustainability of the aquatic disputes outside court (Art 88 (3)) needed environment protected through adequate residual flows in rivers * 'Expert mediation' panel recommended Finding: Not really. * Panel comprises mediation expertise plus - Water allocated davwn to historic minimum flows water management expertise - Abstraction limits not linked to river heights * Goal is negotiated settlement Rec'n: Basin-wide water allocation and licensing * Strength of Indonesian traditional conflict practices should be amended to provide an resolution should not be lost environmental water allocation.
INDONESIA WUR 11- RECOMMENDATIONS INDONESLAWUR 11- RECOMMENDATIONS Reserving an Environmental Allocation 6. Reducing Groundwater Use to Match Sustainable * Research required to determine acceptable Yields environmental water allocation and flow regime Q: Is groundwater allocation planning and water use permit issue aligned with the long-term * Environmental flows should include: recharge capacity of aquifers? - Protection of low flows - Water for wetlands and estuaries Finding: Rarely but progress is being made. - Maintenance of flow variability - Groundwater 'mining' is common * Environmental allocation should be legally - Significant problem of illegal bores and wells recognised Rec'n: All groundwater allocation planning and Water use permits should contain conditions water use licensing should be based on that prevent abstraction that would impact on atesse lonterm sustainable aquifer critical natural low flows. abstraction rates.
INDONESIA WUR 11- RECOMMENDATIONS Reducing Groundwater Use to Match INDONESIA WUR I -RECOMMENDATIONS Sustainable Yields *No new abstraction permits should be issued in groundwater basins where water level is falling * Water entitlements on existing abstraction permits should be gradually decreased to sustainable levels * Rate of entitlement decrease: - determined in consultation with water users, - financially absorbable by the water-using enterprises *Surface and groundwater management should be coordinated - including conjunctive use policies where applicable.
A5-31 Attachment 7
QUESTIONS FOR GROUP ONE -
WHO SHOULD RECEIVE THE WUR AND WHAT DOES IT MEAN FOR MANAGING IRRIGATION?
1. To whom should Water Use Rights (WUR) be given?
2. If water use rights are to be given to Water User Associations (WUA) should the WUA also be given authority and responsibility for managing irrigation?
EXPLANATION
1. To whom should Water Use Rights (WUR) be given?
WUR refers to basin-level water use rights for irrigation schemes. They would apply at the point of intake from the river and cover volume, flow and authorised water use.
Basically, there are two alternatives in deciding who should receive the WUR:
(a) a government representative of water users or
(b) water users themselves
The choice between (a) and (b) is one of principle: (a) relies on the goverrnent acting in the best interest of water users whilst (b) enables water users to act independently of government and gives them responsibility to look after their own interests.
If the group is of the opinion that it is sufficient for a government representative to hold WUR on behalf of water users, the next issue to be considered is which agency in government should hold the right - the Balai, the Water Master or some other agency?
If the group is of the opinion that the water users themselves should hold the WUR, consideration has to be given to the different levels of organization amongst the water users, which range from totally unorganised to legally constituted WUAF/GP3A .
The holder of the right must be a recognised legal entity. Therefore, if the water users themselves are to hold the right, then they will need to have formed a legally recognised entity such as a Federation of Water User Associations (WUAF)/(GP3A). What is to be done if the water users have not formed a legally recognised body? Should there be some kind of interim arrangement whereby the government can hold the right on their behalf for a limited period?
A5-32 2. If water use rights are to be given to Water User Associations (WUA) should the WUA also have authority and responsibility for managing irrigation?
Here again there are basically two alternatives:
(a) WUA have a WUR without authority and responsibility for managing irrigation or
(b) WUA have a WUR with authority and responsibility for managing irrigation.
Authority and responsibility for managing irrigation refers to the management of irrigation systems after the point of intake from the river, so it covers primary, secondary and tertiary systems. It includes financing and managing water distribution (cropping patterns, rotations, etc) operation and maintenance of schemes.
A5-33 QUESTION FOR GROUP TWO -
HOW CAN THE RE-ALLOCATION OF WATER RESOURCES BE BEST ADMINISTERED?
How can water resources be re-allocated in an orderly, fair and transparent manner in view of the statutory prohibition against transfer of water use rights (WUR)?
EXPLANATION
There is a growing demand for water by municipal water supply companies, power companies and industry. At the same time, traditional farmland is being converted to other forms of land use. This means that permanent re-allocation of water is being made away from customary non- formalised uses (basic human needs and irrigation farming) to new uses of water (urban water supply, power supply and industrial water use).
Re-allocation of customary non-formalised rights is occurring now; however, at present there is no formal arrangement for the re-allocation of water use. It happens in an uncontrolled, untransparent way, with little monitoring or publicly available information on trends and practices. In addition, there is no protection for customary users who, in a re-allocation of water use, give up traditional WUR.
Act No. 7 of 2004 on Water Resources states that a WUR cannot be transferred in part or in full (art 7(2)). Some argue that the ability to transfer a WUR would empower customary non- formalised users and, in addition, it would give a financial value to a WUR.
In view of the reality that re-allocations are taking place now, how can water resources be re- allocated in an orderly, fair and transparent manner?
A5-34 QUESTION FOR GROUP THREE -
HOW CAN RIVER BASIN MANAGEMENT AND INSTITUTIONS FOR WATER ALLOCATION BE STRENGTHENED?
How can current institutional weaknesses in river basin management be rectified? Should (a) the role of the Balai be expanded
(b) the role of the Perum Jasa Tirta be expanded or
(c) a new river basin organization be created.
EXPLANATION
It is widely acknowledged that the current institutional arrangements for the management of water resources within the river basin suffer from overlapping functions, a lack of role definition and a failure to achieve coordination between relevant sectors.
If basin-wide allocation and management of water use rights is to be introduced the following additional tasks have to be assigned:
* comprehensive water allocation and licensing to incorporate all water uses
* review of hydrology and hydrogeology within the watershed
* planning, including the conduct of simulation models and adoption of probabilistic concepts in water allocation
* implementation of proportional reductions in basinlevel water entitlements throughout the basin at times of scarcity or drought
* ensuring adherence to water use priorities
Balai as the technical units within the Dinas Pengairanor Dinas Pengelolaan Sumber Daya Air have wide ranging responsibility including management of irrigation, water allocation, water quality standards, control of floods and droughts and protection of the river basin. Should these responsibilities be expanded?
The role of Perum Jasa Tirta includes bulk water supply, operation and maintenance of water infrastructure, collection of fees for these services, expansion of water use as well as management and protection of the river basin. Should these responsibilities be expanded?
Alternatively, would a better solution be to establish a new river basin institution with wide responsibilities for management of water and related resources.
A5-35 i I i I
I I iif Annex 6 Case Study: Ombilin Sub-Basin, West Sumatra ij
Ii i
I Annex 6 WATER DEVELOPMENT AND WATER USE COMPETITION AT OMBILIN RIVER SUB-BASIN, WEST SUMATRA, INDONESIA: Relevant Issues for the Development of Water Use Rights Concept
Prepared by: Helmi The Center for Irrigation, Land and Water Resources, and Development Studies, Andalas University, Padang, Indonesia
1. Intoduction.
This paper attempted to discuss water development and the dynamics of water use and management at Ombilin River Sub-basin, West Sumatra, Indonesia'. River basin management and water allocation from the source has increasingly becoming issues in West Sumatra in last decade. The development of hydro- electric power plant and the growth of settlement area of cities in West Sumatra has increased demand for water, which in turn increased competition for water use between irrigated agriculture and other sector of the economy. The case of Ombilin River Sub-basin provide an illustration of water use competition and water allocation in a river (Ombilin River) as water availability has changed after the development of hydro-electric power plant at the Singkarak Lake, the source of water for Ombilin River.
The first part of the paper presented the settings and hydrological aspects of Ombilin River Sub-basin. It then followed by stakeholders identification; river water balance; the issue related to the changing pattern of water use and its impacts on the poor and other downstream users; and the issue related to the non-existence of a framework for river basin management. Based on the presentation issues and implications for the development of water use rights concept are then identified.
IThe area of West Sumatra province fall into six (6) river basins. These river basins are: Upper Inderagiri River Sub-basin where Ombilin River is belong to; Silaut River Basin; Anai-Sialang River Basin; Rokan River Basin; Kampar River Basin; and Batang Hari River Basin. Two of these basins fully located in West Sumatra province territory (Silaut and Anai- Sialang River Basins) and the rivers flowing down to west-coast of West Sumatra. While the other four are upstream part of river basins which flowing to the east-coast of Sumatra in the province of Riau and Jambi. According to the Public Works Ministerial Decision on the division of the river basins area, the Inderagiri River Basin is fall under the authority central government because of the whole basin located in two provinces. It is the upper part, which is located in West Sumatra Province while the lower part located in Riau Province.
A6-1 2. The Upper Sub-basin of Inderagiri River Basin and Its Hydrology.
2.1 Demographic and Employment Features.
The total population occupying the sub-basin area in 1997 was 662,425 with the average population density 408 persons per square kilometer. The urban-rural population ratio is 0.28. This reality implies that the water supply for urban needs will be one important issue in the near future. In term of household, the population data shows that in 1997 there were 150,466 households in the basin area with the average household's size was 4.59. It is estimated that only around 12.56 percent (or some 18,898) households that have been served by pipe-born water. This data reflects there are still a large number of households that need to be served with pipe-born water in the future. Aside from household, there are also some industries, offices, and other social facilities that have been served by pipe-born water.
With regard to the employment pattern, around 67.59 percent (or 94,508 out of 139,831 households) were categorized as farm household2. The figure indicated that majority of the households in the basin area engaged in agricultural sector as their main type of occupation. It is reasonable enough to expect that water demand for agricultural-related activities will be one of the major issues in the basin area.
2.2 The Ombilin River Sub-basin and Its Area.
The sub-basin consist of three major rivers, namely: Lembang/Sumani, Sumpur, and Ombilin, and two lakes: Danau Dibawah Lake and Singkarak Lake. Water from Lembang/Sumani and Sumpur rivers flows into Singkarak Lake, while the Ombilin river originated from Singkarak Lake and flows eastward to Inderagiri River. The altitude varies from 164 m above sea level at the lowest point (near confluence of Ombilin River and Sinamar River) to 1,200 m at the highest point where the Lembang River originated from the Dibawah Lake. In other words, water supply in Ombilin river is depended largely upon the outflow of Singkarak lake, while Singkarak water supply is influenced by inflow from Lembang/Sumani and Sumpur rivers. Moreover, water supply in Lembang/Sumani river is largely determined by the outflow from Danau Dibawah lake. In sum, it can be said that these three main rivers (and their tributaries) and two lakes constitute a geographical area of a water sub-basin.
The total area of the upper Inderagiri sub-basin was estimated at 3,059.67 sq. km. As a whole, the basin area includes a total of 400 villages within three
2 This data is taken from agricultural census conducted in 1993. There was no data available on the recent number of household by the type of livelihood or occupation. Therefore, data from agricultural census conducted in 1993 were used to estimate the number of household engaged in agriculture and non- agricultural sectors. Assuming that the percentage of people engage on both sectors is the same as before, the number of farm household in the basin area for the year of 1997 would be 97,742.
A6-2 districts and three municipalities. Of these villages, the majority (around 87 percent) were considered as rural.
The distribution of this area within each individual basin of the river in the sub- basin are as following: around 48 percent is under the basin of Lembang/Sumani River; around 13 percent is under the basin of Sumpur River; around 30 percent is under the basin of Ombilin River.
2.3 The Climate and Rainfall.
Another important factor influencing agricultural production of the region is its climate, particularly the amount and distribution of rainfall. The basin area is generally falling under the typical humid tropic climate covering almost entire region of Sumatra. However, a closer look at the climatic features of the basin will raise the point that the differences do exist among regions covered by the basin area. An agro-climatic map of West Sumatra (see, Oldeman3, at. al., 1978) shows that there are five types of climatic zones -composed on the basis of consecutive wet and dry month4 -found in the basin area. Based on the climatic zone a large part of area of the sub-basin under Lembang/Sumani and Sumpur Rivers belong to the wettest zone, while a vast majority of the sub-basin area under Ombilin River is the driest zone which constituted around one-third of the sub-basin area. Consequently, changed in the outflows from Singkarak Lake would affect water availability for the sub-basin area under Ombilin River. Rainfall pattern in the basin area tended to follows the above mentioned of agro- climatic zones. Average rainfall in the sub-basin area was 2,025.91 mm per year. However, there are also differences in term of rainfall pattern between the area of the sub-basins under different river. The data shows that the sub-basin area under Sumpur River is the wettest with the average rainfall of 2,484.3 mm per year. This is slightly higher than the sub-basin area under Lembang/Sumani river with the annual average of rainfall of 2,200.64 mm. Whereas the sub-basin area under Ombilin River is the driest area with annual average of rainfall of 1,789.34 mm per year.
3Oldemann, L. R., Las, I., and Darwis, S. N. An Agroclimatic Map of West Sumatra. Bogor, Central Research Institute for Agriculture, 1978. Climatic zone Type A has 9 consecutive wet months and less than 2 consecutive wet months; Type BI has 7 - 9 consecutive wet months and less than 2 consecutive dry months; Type Cl has 5 - 6 consecutive wet months and less than 2 consecutive dry months; Type D2 has 3 - 4 consecutive wet months and 2 - 3 consecutive dry months; whle Type E2 has less than 3 consecutive wet months and 2 - 3 consecutive dry months. 4 Oldemann et.al. (1978) defined wet month as having monthly average of rainfall of 200 mm and above, while, dry month was defined as having monthly average of rainfall of 100 mm and less.
A6-3 3. The Sub-basin Under Stress: The Construction of Hydroelectric Power Plant (HEPP) at Singkarak Lake and Its Impacts on the Poor and Other Water Users along Ombilin River Sub-basin.
3.1 Identification of Stakeholders along Ombilin River Sub-basin and Water Balance. Stakeholders identification. There are four major groups5 from various sectors having direct interests over the water from Ombilin River. These are farmers/irrigators which used waterwheels to lift the water from the river; the coal mining company which used water for coal washing; domestic water suppliers which provide water for Sawah Lunto town and their and consumers; and electricity company which used water from Singkarak Lake for hydro-power generation (for which the outflows from the lake to Ombilin River need to be 6 reduced) and for two thermal power plants located along the Ombilin River . The next paragraphs provide description of hydrological settings which then followed by the Ombilin River water accounting to show how the water being allocated among the major users.
The Hydrological Settings of Ombilin River. This section provide a description of hydrological settings of the sub-basin which consists of: the origin of and inflow to Ombilin River; rainfall and zoning of the sub-basin; and water uses. (Please see Figure 1 for schematic presentation of the sub-basin which illustrate the following description).
There are seven major rivers flowing in to Omblin Rivers which influence the discharge flow of this river. They are (in the order of upstream downstream): (1) Bengkawas River, (2) Katialo River, (3) Silaki River, (4) Selo River, (5) Malakutan River, (6) Lunto River, and (7) Lasi River. Among these rivers, Selo River has the biggest inflow to Ombilin River, while the lowest from Silaki River. The other rivers fall between these two rivers (see Figure 2).
Zoning of Sub-basin and Water Uses. Based on the type of water uses part of the Ombilin River, which is discussed in this section can be divided into three zones: Zone A (upstream), Zone B (midstream), and Zone C (downstream).
Zone A is from the Singkarak outlet to the confluence with Selo River. In this zone the use of water mainly for irrigation where water lifted by using waterwheels. Three rivers flowing in to Ombilin River in this zone: Bengkawas River, Katialo River, Silaki River. In this zone, there were found 58 waterwheels which currently only 30 of them functioning.
5There are other groups, which do not use water but used the river for various activities. They are fisher folks; users of river for bathing, washing, and other personal needs; other users to include people collecting the building materials such as sand, gravel, and stone from the river. This paper mainly deals with the four major groups. 6 A more detailed description on each user is provided at the section about the impact of Singkarak HEPP on the poor and other users.
A6-4 Figure 1: Inflows, water uses, and zoning of part of the Ombilin River (under study). Lake Singkarak
Irrigation (water wheels) Irrigation (water wheels)
Irrigation (water wheels) - _ River Bengkawas |Zone A | River Katialo
River Silaki
River Selo
Irrigation (pumps) '41 Irrigation (water wheels) R Irrigation (waterwheels) _ V Domestic water supply
_E- 0, Ombilin Steam Power Plant R Irrigation (water wheels= Coal washing
M Domestic water supily Zone B B I Domnestic water supply River Malakutan
River Lunto N Irrigation (water wheels) River Lasi I Zone C
- Irrigation (pumps) Irrigation (water wheels) River Sinamar River Ombilin
A6-5 10
91
7-
64
8
Jan Feb Mar Apr Mei Jun Jul Ags Sep Old Nop Des -4- Bengkawas -- _ Lunto - Malakutan X Katialo + Selo i Lasi -*- Silaki
Figure 2: Graphs showing the dependable flow of seven rivers flowing in to Ombilin River.
A6-6 Zone B is from the confluence with Selo River up to the confluence with Malakutan River, which both of them flowing in to Ombilin River. There are three types of water use in this zone: irrigation, domestic, and industrial. From the inventory, 77 waterwheels for irrigation are found and only 38 functional. In addition to the waterwheels, 5 pumping stations for irrigation are also found in this zone. For domestic and industrial purposes, there are two pumping stations for drinking water and one pumping station for coal washing.
Zone C is from the confluence with Lunto River and confluence with Sinamar River. In this zone water use is mainly for irrigation by using waterwheels to lift water from the river. Two rivers flowing into Ombilin River: Lunto River and Lasi River. In this zone there are 231 waterwheels for irrigation which only 116 functioning. In addition, 9 pumping stations for irrigation are also found in this zone.
Water Balance. The results of water balance computation for each zone showed that the discharge flow in each zone still higher than the outflows or water uses for different purposes (see Table 1). In Zone A, Zone B, and Zone C only about 5.4 percent; 30.6 percent; and 12.7 percent of the water being used respectively. The data tended to suggest that in Zone B pressure on water resources is the highest, followed by Zone C, and Zone A.
A6-7 Table 1: Results of water balance computation for Ombilin River. 1 Zona A Zona B [ Zona C Items | Inflow [ Outflow 1 Inflow | Oufflow Inflow | Outflow l m3/det _[m3/det m3/det j m3/det [ m3/det j_m3/det_J
Singkarak Lake 3.333 _ l l Bengkawas River 1.19 I I I iKatialo River 2.97 l
Silaki River 0.07 - l _ l _ _l Irrigation (Agric.) - 0.41 Water Balance 7.563 [ 0.41 7.153 _ __ ! !11I
Selo River 3.96 | ___l l l Irrigation (Agric.) lI - X 0.92 water Talawi Domestic - 0.04 wate WS Company _ l l l __ flowingdown- PLN Thermal - 0.005 stream Power Plant TBO Thermal - 1.9 Power Plant l_l____| ___l____ Coal washing l_l_____ - 0.14 11 1 1 I Rantih Pump - 0.4 Station (Domestic
[Water Balance !i I_ 11.113 3.405 7.708 Malakutan River 1. _3|2l I Lunto River l jl |I 0.64 - l !Lasi River Hlll I2.02 - l I Irrigation (Agric.) !| ! I I 11 - ! 1.489 [Water Balance li | 31 11.688 1.489 10.199
3.2 Issue #1: The Impacts of Construction of Hydro-electric Power Plant at Singkarak Lake on the Poor and Other Water Users. The development of Singkarak Hydro Electric Power Plant has caused a drastic reduction in the discharge flows of Ombilin River because a large amount of water from Singkarak Lake is drained out to other river, which flowing to the west coast against the Ombilin River that flowing to the east coast of Sumatra. A permanent weir has been built at the outlet of Singkarak Lake to the Ombilin River, and outflow of Singkarak Lake to the studied river has been reduced and kept at a range of 2-6 m3 per second from the average around 40 m3 per second. In other words, the development of Singkarak HEPP has increased the scarcity of water, and therefore, competition over water use at the Ombilin River. Changing amount of water supply has, certainly, brought about a number of changes in the water use pattern of the basin. It has also brought about several problems to the water users along the river.
A6-8 (1) Reduction in the number of water wheels and irrigated area.
Irrigation systems existed along the Ombilin River are traditional water wheels and pumps, and no surface system was found. This method of irrigation is felt by the farmers as the most suitable system under the physical condition of Ombilin river. The limited rice fields available; their locations which are scattered over the narrow flat area along the river; and the average width of river which is around 50 meters would make the construction of weir for surface irrigation would be very costly. In addition, the porosity of the soil is required continuous flows of irrigation. Field inventory, found some 184 water wheels serving a total of 333 hectares command area and 463 farmers. This data indicates that, in average, a water wheel serve an area of 1.8 hectare with 2.5 farmers involved. However, the exact capacity of water wheels as well as serviced area and number of farmers involved vary depending on the size of water wheel which is determined by the length, number, and diameter of its water tube.' In general, it can be said that the capacity of a water wheel increases as the length, number, and diameter of water tubes increases. In reality, there are water wheels that could irrigate up to 15 hectares command area, which involve some 30 farmers. Pump irrigation technology has just started to be used since the last few years. This is especially true for those whose land, which can no longer served by water wheel irrigation systems. At the time when field inventory was conducted there were 14 units of pump irrigation found along the Ombilin River course with a total command area of 138.5 hectare involving some 200 farmers. Most of these pumps were provided by either government or non-government agencies like agricultural service and other related agencies. Pumping machine is usually given to the farmers that grouping themselves into an organization such as farmer organization (FO). In this instance, pump irrigation is owned by a group and not by a farmer personally. In sum, it can be said that there has been a change in the institutional form of irrigation ownership following change in the irrigation technology from traditional water wheel to pump irrigation system.
However, some farmers whose land served by pump irrigation complained about the cost of operation and maintenance of pump compared to water-wheel. Another problem is the soil type of agricultural land in the site which is mostly porous and need continuous inflow of water to maintain the soil remain wet and crop water requirement fulfilled. This is, in fact, a weakness of pump irrigation the technology of which oftentimes is not mastered by the farmers and its operating hour is limited. Waterwheel on the other hand has a comparative advantage, where it can be operated continuously without a significant additional cost.
7 Water tube (locally known as galuak-galuak) is part of the water wheel, which functioning to tap water. Normally, the larger the size of water wheel the higher the number of water tubes it has. However, under a certain condition _for example, when the river water discharge is low_ system operator might reduce the number of water wheel to allow it keep on operating.
A6-9 As mentioned earlier, irrigation has been severely affected by reduction in the discharge of Ombilin River. Looked at the recent number of water wheel, command area, and farm family serviced during the period of post Singkarak HEPP development, it can be concluded that their number has declined markedly. The number of currently existing water wheels is only around 50 percent of that in 1996 (before the operation of the Singkarak HEPP started). Whereas current irrigated area is approximately 61 percent of that in 1996. Table 5 below shows changes in the number of water wheels, service area, and farmers at the Ombilin River during the period of last 5 years (1996-1999).
Table 3. Number of water wheel, service area, and farmers in the Ombilin River from 1996 to 2000
Number of water wheel Total service area fTotal numberiof Note Year farmers Involved
1996 366 549 729 1997 296 469.75 621 1998 237 404.7 556 1999 195 342.95 478 2000 184 333 463 Source: Field inventory
(2) Increased 0 and M Costs of Water Wheel Irrigation Systems. For owners and operators of water wheels, reduction in the water discharge of Ombilin River has caused several problems in the system operation and maintenance (O&M). Firstly, the current discharge flows of Ombilin River, especially in the dry season, oftentimes can not rotate the waterwheels and if it can usually with a very low rotation per minute (rpm). Consequently, operators have to lengthening the traditional weir as a way of increasing water depth and directing water toward the wheel so as to make its rotation faster. Another way of making water wheel keep on operating under such a condition is by reducing the number of water tubes so as water wheel becoming lighter and easier to move. Nevertheless, the consequence of both choices is increased in the workload and cost of operation and maintaining of the system, and reduction in the capacity of wheel to supply water which mean decreased in the number of land can be irrigated and reliability of irrigation water. Secondly, increased intensity of damage on traditional weir and water wheel due to drastically increases of river discharge resulted from suddenly opening of the gate at the Singkarak outlet. According to the farmers, gate keeper usually opened it during the rainy season to avoid flooded on the settlement and irrigated area which are located in the low land surrounding Singkarak Lake.
A6-10 Consequently, Ombilin River discharge increased during rainy season because of the additional inflow coming from Singkarak Lake. It is clear enough that, to the owners and operators of water wheel irrigation systems, increased damage intensity means more labor capital and costs if system to be repaired. Result of socioeconomic survey shows that on average the intensity of water wheel damage increased from 1 per season before the operation of Singkarak HEPP to 2.5 per season since it operation. Table 4. Damage intensity, and average rehabilitation costs of water wheel and weir before and after development of Singkarak HEPP. Average intensity/cost (per Percentage Items season) of increase Before HEPP After HEPP Water wheel damage 1 2.5 150 Weir damage 1 4.5 350 Rehabilitation costs of water wheel Rp.150,000 Rp.1,1 00,000 633 Rehabilitation costs of weir Rp.50,000 Rp.425,000 750 Source: Socioeconomic survey.
(3) Unreliability of irrigation water and declined rice yield rate. The problem of a higher intensity of damage on water wheel has resulted in some problems in term of irrigation water supply. Most farmers reported that irrigation water supply has been unreliable during the period of post development of Singkarak HEPP due to the above-mentioned problems in the system operation and maintenance. As a result, the growth and yield rate of rice on land irrigated by water wheels declined markedly. Some farmers reported a lighter effect while; some other noted a considerable decline. Nonetheless, the result of socioeconomic survey shown that as a whole, yield rate of rice has dropped from an average of 4.2 ton per hectare in the period before the development of Singkarak HEPP to 3.1 ton per hectare in 1999.
(4) Impact on Domestic Water Supply and the Industry. The reduction of the discharge flow in Ombilin river has also affected the water supply of the pump station for coal washing and water quality domestic water supply. However, the coal washing company only experienced it initially. The PLN (the company operated the Singkarak HEPP) has built a weir to improve water level so that problem is solved. Declined water quality of Ombilin River has also brought about some problems to the domestic water suppliers and consumers. The main problems facing the domestic water suppliers (in this case was PDAM) is increase operation and maintenance costs. Domestic water company manager estimated that water
A6-1 1 treatment cost increased by almost 100 percent. However, at the time when raw water quality was very low, the domestic water suppliers did not perform water treatment since it would not bear any improvement in the quality of water. In such a condition, the domestic Water Company would distribute the raw water directly to the customers without treating it. So far, there is no health-related problems reported by the domestic water consumers, which is caused by the low water quality. The latest data shows that in 1999 the company served approximately around 27 percent (or 15,042) people of Sawahlunto municipality. This figure indicates low percentage of people which having access to pipe-born water in Sawahlunto town. Therefore, it is reasonable enough to expect a growing demand for piped water in the near future, and a greater amount of water from Ombilin river to be taken by PDAM since no other water sources in the area.
3.3 Issue #2: Strengthening Organization for River Basin Management and Framework for Water Rights Licensing.
As has been mentioned earlier, the incorporation of idea of river basin management into policy and action are relatively new to Indonesia. Furthermore, the management framework is not yet developed except in two basins in Java Island which managed by publicly own corporation. These two basins are Brantas River in East Java under the management of Jasa Tirta Public Corporation, and Citarum River in West Java under Otorita Jatiluhur Public Corporation.
In other provinces of Indonesia, the idea of river basin management is newly introduced. As the responsibility for water management are fragmented between a number of government agencies a provincial water management committee (in Indonesian language abbreviated as PTPA) supposed to be set up in all provinces8. In West Sumatra the PTPA has been set up in 1994. The characteristics of this committee are as following:
* its main function is to assist the governor in coordinating water management at the provincial level. * the specific tasks are: (1) data collection, processing, and preparing materials to be used to formulate provincial policy on water management coordination; and (2) provide consideration and/or advise to the governor on matters related to water supply, waste water drainage, and flood control. * the members of the committee are the staff from agencies related to water management (other stakeholders are not considered as the members of the committee).
8This is based on the Public Works Ministerial Decision No. 67/PRT/1993 on the Provincial Level Water Management Conmmittee.
A6-12 - I
There was no specific budget allocated for this committee, so that the activity was much more on an ad hoc basis. When there were problems related to water supply, drainage or flood a meeting of provincial staff would be held but it was not very clear whether the meeting was a PTPA meeting or just a meeting related to the performance of general government task.
The government regulation related to the provincial PTPA is also has an articles which stated that the governor could set up basin level water management committee (PPTPA) to assist the PTPA in performing its tasks. However, up until now this committee has not been set up in any of the six river basins located in West Sumatra Province. As the conflicts over water allocation and use tended to increase in West Sumatra, as illustrated with the case of Ombilin River there is clearly a need to strengthen organization for river basin management in the province. The case of Ombilin River can be used as the pilot activity to develop the framework and capacity for integrated water resource management at the basin level.
In terms of priority of water use, GR No. 22/1982 underlines that water for drinking is the highest above all priority because drinking water is the very basic human need for survival. This essentiality water for human life seems to be the basis for the prioritization so that the order of priority can be seen, as one source said, in order as water for life, water for livelihood, and water for amenity. It is to be noted that environmental need for water is not included in the list. However, since there are inter-regional differences in the purpose of water use and in the capacity to make water available, the order of priority below drinking water may be arranged differently in different regions of Indonesia. PTPA is the coordinating body tasked with making such prioritization. Also the prioritization still leaves questions such as how prioritization would be applied in decision making in time of short term or long term water shortage? What about the right of old irrigation systems over water if higher priority uses exert their right over water of the same source? Clarification on these remain to be desired. With regards to water rights, it is to be given in the form of use rights and allocated by the government through the mechanism of licensing. Since water and source of water are considered embodying social functions, there are uses of water that required license, and there are not. Tapping water for non- commercial drinking water and other individual domestic uses are allowed without license as long as they do not harm the source of water and other water users' interests. According to MR No. 48/PRT/1 990, government license is required for the uses like domestic water supply, municipality and real estate, irrigation, animal husbandry, plantation, fishery, industry, mining, energy, navigation, disposing of waste, etc. The Minister of PW or the governor are authorized to issue licenses for water use rights within their respective basins. License for groundwater use is issued by the Minister of Mining and Energy. License for water use may be given to individuals
A6-13 or groups of individuals or any legal entity. Group having license to use water is authorized to arrange water distribution among its members based on government regulations. Those granted license must pay fee to the ministry or to the governor depending on whose water the license is about. According to MR No. 48/PRT/1 990, the fee is to be used for financing O&M of water structures and maintaining the sustainability of water source. Every license on water use has time frame depending on the kind of use. No general reference for this yet, but the fee is supposed to be set every five year. Transfer of water license is prohibited. Article 18 MR 48/PRT/1 990, however, states that giving up water license or selling it to other parties may be allowed if agency issuing license gives its permission. The MR, however, is not explicit on this exception. This formal water use rights and its allocation are hardly implemented, except perhaps to some extent in two basins managed by the publicly own company. The problems are not only the existence of gaps and inconsistencies in the formal regulations, policies and organizations; the lack of consensus on some key concepts (Pusposutardjo 1993; 1996) and the lack of hydrological data in most of the basins (Hehanusa, et al. 1993) makes it impossible for the government to make basin-level planning or even to make the right decisions on whether or not new uses of river water justifiable. Regulation provides that licenses for water uses that potentially affect water balance must be based on general basin-level plans on development, protection, and utilization of the basin water. In cases where such plans have not been made, the issuance of the licenses must be based on consensus made in the coordinating body PTPA. But, what would be the basis for such a consensus? In most of the basins, however, water allocation is governed by whatever local communities have to accept as rules. In predominantly agricultural basins, traditional adat may govern water allocation. Where nonagricultural sectors have exerted their interests, claims over water may be based on political or economic power leading to transferring water from agricultural sector (Kurnia, et. al. 1996). Nevertheless, government wields, and capable of exercising, the authority in water allocation, including inter-basins water transfer. Transferring water from Ombilin River to Anai-Sialang basin is an example. The decisions about this transfer, it seems, have been made on the basis of studies done by the government. The original water users must adjust to the new situation. One of the impacts of the government action to farmers in Ombilin River is that it has affected the operation of their water wheels in supplying water to their paddy fields due to lower river discharge flow. Moreover, the lower flow has also caused domestic pollution more felt in the downstream Ombilin River. This underlines the importance of formalization of irrigation water rights in order to protect the interest of the poor and small farmers. Also, it is important to assess the technologies used by the existing water users in order to predict the impact of river water reallocation and the consequent reduced water supply to them.
A6-14 4. Conclusions and Relevant Issues for the Development of Water Use Rights Concept.
The discussion on the preceding sections illustrated that in the situation where "lwater scarcity" has emerged a careful water allocation is required to fulfill the need of the users. The construction of hydroelectric power plant at Singkarak Lake has significantly reduced the outflow from this lake to Ombilin River which in turn has affected the users along the Ombilin River. Among the impacts were: (1) the cost of operation of waterwheels has been increased and the number of waterwheels for irrigation has going down by around 50 percent; (2) productivity of irrigated rice reported has decreased; and (3) water quality for domestic water supply has decline and increased of the cost for water purification;
All of those indicated that water allocation matters need to be done systematically. Stakeholders proposed that a kind of water board which consist of all of them be set up and given authority to regulate water allocation especially from Singkarak Lake to Ombilin River. At this moment Balai Pengelolaan Sumberdaya Air (BPSDA, water resources management Coordination Body)has been set-up for Kuantan Inderagiri (which also cover Ombilin River Sub-basin), however, BPSDA just newly set-up and in the process of preparing itself to perform the tasks.
In relation to the water use rights there a number of relevant issues as following:
• Data on hydrology and stakeholders. Water allocation can only be done in a better way if information on water and users/stakeholders are sufficiently available. Identifying and have a record of users with small quantity of water requirement is equally important with the users of large quantity of water requirement. If they are not identified and properly recorded, then, their needs could easily ignored in the even of water development or water scarcity. o There is a need to calculate and allocate based flow in the river to maintain the health of environment. L There is a need for a clear institutional arrangements for water allocation and obtaining water use rights.
A6-15 References cited. BAPPENAS. 2000. Letter of Sector Policy: Water Resources and Irrigation Sector: Policy, Institutions, Legal and Regulatory Reform Program. Jakarta: Pokja Reformasi Kebijakan Sektor Sumberdaya Air, Bappenas. Hehanusa, P.E. et a/. 1994. Kebutuhan Riset dan Koordinasi Pengelolaan Sumberdaya Air di Indonesia. (The Research and Coordination Needs of Water Resource Management in Indonesia). DRN Kelompok II, Sumberdaya Alam dan Energi. Jakarta.
Kurnia, Ganjar, et al. 1996. Persaingan dalam Pemanfaatan Sumberdaya Air (Competition in Water Uses), dalam Hermanto, et. al, Persaingan dalam Pemanfaatan Sumberdaya Lahan dan Air. Bogor: PPSEP dan Ford Foundation.
Molden, David. 1997. Accounting for Water Use and Productivity. SWIM Paper 1. Colombo, Sri Lanka: International Irrigation Management Institute. Pusposutardjo, Suprodjo. 1996. Rancangbangun dan Sistem Jejaring Irigasi serta Agihan Air dalam Kaitannya dengan Gerakan Hemat Air. (Design, Irrigation Facilities System, and Water Distribution in Relation with Water Conservation Movement). In Hidayat Pawitan dkk. (eds) Prosiding Seminar Nasional "Pemantapan Gerakan Hemat Air untuk Mengoptimalkan Pemanfaatan Sumberdaya air." Lemhanas, Perhimpi, Peragi, Perhepi. Jakarta.
Oldemann, L. R., Las, I., and Darwis, S. N. 1978. An Agroclimatic Map of West Sumatra. Bogor: Central Research Institute for Agriculture,
A6-16 Annex 7 Demography in Brantas and Citarum Basins
Annex 7
Demography in the Brantas and Citarum Basins
Brartas BasiiV DiurictfMuscqlity Area p op.DlnsitiPoPuolatin GroeU: 1S99 290l 9910999 1997 202Mt 2200100 tm)Ws5-0r hn2 pA ~% peryr Trensgalek 1,20t222 647.4e8323 S24.9 6261594 .63. 63.B68O.61 67 24t4 5 Tukmna,4L 1,046.22 926 878 9W,432 941i8EK 947,79 955 4S1 9f34,1t27 922 C 79 31^ar 1.51 1 46.239.9131.92834 1 2 S1 3.7S O 690
Malanrt 3,072.19 2 267,21 2.39.54 7 2 333,C15 2.34,567 2 93626542,382.267 775 1.0B Sidpario 634.39 1,52.2629 1 243 164.646 1.1923165 ,232.52 t.2B776 1,9971 2.42 101ookeft 692 t5 t 33.6S1 E147,94E S59-290 Bf,60 8S1 .98t NOW,S l1,27: 1.'t Jombag 90390 2I6,4411 078,8S5 t1.09S.6 1 214237021412,11 4.837 1 72 .1.91 Ngtanuk 1,224.33 9643.16 996,911 10O2109 10 3 1.65 ,13.8O1 17 1.02 Kota Kedta E3.40 234.1445 235136 23S,614 236.3074 236157S 2301535 372 B 35 Sota rWRar 32 S7 1 755a9 s 120,056 12000 b 121arC7 122P,17 s.57123C9s 3,782 DstaMala i 110.c6d 7ct,673 707.790ovr.5v 714,32S M 7t0,744 7 o30.76S6,64D O.S3 Krta Uopkerto 16 46 104.41 103421 10B6.134 107,1230 15.0827 190804 46,851 7.74 Koa Sura4aya 327.37 2 329,598 2,34465a 2 356,4E1e 2373,082 24013104 2,414997 97 492 0 193 Bltiar 12.309543.n. 13,7172036 563.918.712t0_ 32 1.7 335.282 18427,26n 184.423.17 4 1,172 t18 0 3 Tt Ead t Ja6a 49,54287 32.969.11 33 18969326 _2f2_ 3430 3.B4.521 346000 697 43 2 78 4. %to East Jaa 26.5 42.0 4Z1 42.16 4260 42.3 4274 1 Source East Jw>zain Fklwes 2D02, BPS: Popufatios in 1995 ad 2COODare basett on Popubbion C:ensus
Ctaumr i3asin: O i 'afulv located winhin the basin) ,ft !"Aclmeliy Area P13opiion Pop. omfl l- Srt 1995 2421 2Ei.1 2 702 9230027 1,72544 krn2 PFTv, %per XTr Banc3 2.324.84 3,3983 42146..97 4,235,i 4.320344 14,865 3.61 SU#WM 1.85SQ1 1.339.285 1 3193,24 1,328.521 1 352,354 721 8.56 PKowakaria 757.17 902711 6984 711033 724 193Og 7 2.17 1 Koawana 1,533.88 1 584,921 1,766 1, 9 337g3 3011191 43.4222.1 0.7030 Kota 2.3S 21 2142310 2142.914 1 27,91 212021,637 8I Tola3t r D. 9.165 t4 1,6I 74 4496 2810,333 Tota WestJava Z51 35951 I 36.07,3221 36,14,2034 1926. 2 01 DistricISMAtuciotafty*ialLd wbcnthte basn: BwWAnV Subm% Purtakwm Karma. andt Kota Banidug Source Wesl Javain FtEas 2aa02.3PS- opt20Popin 198S and 200n aeebasedsS East oa aus
(BCar Sasin Dt = 2 Data Distrct! murscpality EconorriOaIvA hve over 10 vas Old ______nSector aid sharel _ Wor_um seeijio Totalactrie %of,ee wn A,rcftie |dust|Servces TOW Axuiure ndus_ Servces
Trengaiel15 334, 341 94.4234 4.1 21960 2650821 581306379 334, 3s73 27.01 Tuk la 479.715 29.530923, .8 59.7346 191,582 47977156 47461 Z3 39.96 EPar 29041543.2aa 409 5.002 36 301.274 27,2368 180.1274 2439211 340 2.4 332 Kefi -M6690 42.96 718 6.04 309428 52,219 309,t207 61916677 432 7.231 44O Mag 1,204,259 71,83 1,272,081 165 ,374 82.469 5315243 1.8004259 41.82 9 443 Sdoano 727.381 36,01 t Jfi33921 4.71 81.37C| 240,67sl 405.33S1 72273gt1 tl 21 33.1| 5 7 MoiLbsto 420,974. 2QS1 441.8SS 4-7 1550.271 953,007 172,9401 420,9741 363.81 Z.1 41.1l Janst 496M81 32.625 S9,511 fi2| 207,34 48.785 240,7531 496,8B 4t.1J l8| 48.51 N kap 469.3441 38,NO SM83341 7.71 242,7sc t8a03sl 208.ss91 4fi93441 51.71 381 44 4 KotaKeirimG 4 10371 9.717 1137624 161 61360 1,37| 7485397 101,1074001 20 t.27 7406 Kota Sliar St3,780 4.3M SS.0e; 7 9 4.3371 S.C21I 43,4221 50.7831 a 59S 1 6 61 Kota sbJaa 2183.70 2.,46 321.232 7152 1249.6 37526. 2470721812340 32 2742533 KotnaLpnkrt uy 44c941 3.S69 481te P74ba1. td35'51n4 s741 44.94 20.8n 7drl IKott SLabava 1W,1U,7' 2611570 5.21 22,7S0| 210.2391 91156ssaLI ,44:5751 ZO, t841 7s.el gotalEsast Java 1,66b.782 -845ssso t7,sts,3721 4.81 8,29&,6441 1,465 464| 6.sos6741 16.66e97821 49.81 1181 41 41 Source PWealtion faEastfSwa -RBsults Pothe 280 P19atin 20 ae base Censusanan
Distfic3amMDanCtia;myt Abet Poulonovert yews old | bynSectr No. nd sha |~~~~~~~~osn W I seeki ob Total arbse|% ofveng Agicudttre| be st | Sewitces Tota IAanulurel Industry Se;mces|
IB° | 1.&-10208| 334 3341 1,se4.1542 l 16.s| 413sB. 55s,ts71 bs6911 1.660,208| 2S t 33.e 13] ISUan 581,07 69.3131 6,4101 to. 29eo96 .76.05¢1 20639491 591,7 51.3l 131 35sl Pun*akarna | 296.04t1 46.9l61| 34A.e2| t3.S1 101,2741 s4.,ss3 11t2.1741 299041l 3401 2a41 3761 IKarawanaX I M.408l 160.99B6 SM.404l i9.4l 2167741 154,8s9 297.7431 63s,40sl 324T 23A1 44 sl IKotaBadn Bwx04,5591tS9.J13| 963.27tl 165| 9.3U| 242.7691 55243S1 s04s558 1.21 30 21 S76 T lahrDimrs*| 403121 773.317 473s;l t6t . 1 t133,4S5| t.s3s14,¢.t2 s 27.81 4821 iToaWsJa I 11%7SM44s 263,7781 t6,2t26 MI214,sss3 .1.s61.470,7891 15 ID.0 30.21 Z3 2s 'DistntsJunKoa5yful ocatedvg§ithe bash: 3andurg, ubang. Purwt$a Karawarng,andKotaBan&ung Some: West Jav in FVunes 2C0. 9PS: PopuWbfis in 1ss arxt 200 are basec on PopulaRon Cemsu
A7-1 I
3 Annex 8 Regional Gross Domestic Products of Brantas and Citarum Basins I I i I i i
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i
I Annex 8
Gross Regional Domestic Products in Brantas and Citarum Basins RGDP in 1995 and 2000
(Brantas Basin) GRDP (Billion Rp) GRDP (Billion Rp) Annual District/Municipality Current Price Constant Price at 1993 Growth Rate 1995 2000 1995 2000 (1%)
Trenggalek 505 982 473 512 1.6 Tulun gagung 976 3,013 909 1,113 4.1 Blitar 1,037 2,471 937 1,099 3.2 Kediri 1,407 3,242 1,264 1,478 3.2 Malang 2,888 7,500 2,587 2,780 1.4 Sidoarjo 4,203 10,708 3,829 3,841 0.1 Mojokerto 1,319 2,834 1,222 1,267 0.7 Jombang 1,269 3,205 1,093 1,082 -0.2 Nganjuk 1,151 2,442 1,049 1,134 1.6 Kota Kediri 5,768 13,319 4,735 6,163 5.4 Kota Blitar 167 37611 149 170 2.7 Kota Malang 2,569 6,597 2,089 2,429 3.1 Kota Moiokerto 206 542 202 237 3.2 Kota Surabava 15,554 41.000 13,232 13,455 0.3 Total of MajorDistricts. 39,019 98,231 33,770 36,760 1.7 Total East Java 65,883 169,911 57,041 56,857 -0.1 % to East Java 59.2 57.8 59.2 64.7 uS$ Exchange Rate 2,305 9 385 2,118 2,118 RGDP (billion US$ 16.9 0.5 15.9 17.4 Source: Gross Regional Domestic Product Regencies/Municipalities in Indonesia 1993-1998, and 1995-2900, BPS,Jakarta
(Citarum Basin: Districts/Municipality fully lo ated within the basin) GRDP (Billion Rp) GRDP (Billion Rp) Annual DistncVMulnicipality Current Price Constant Price at 1993 Growth Rate 1995 2000 1995 2000 l%l
Bandung 6,804 19,978 6,097 6,872 2.4 Subang 1,706 4,468 1,553 1,795 2.9 Purwakarta 1,066 4,452 911 1,953 16.5 Karawang 2,942 7,315 2,559 2,794 1.8 Kota Bandunq 1 6,833 14,423 5,766 5,738 -0.1 Total ot Major Distrsi 19, 351 50,636 16,886 19,152 2.6 Total West Java 76,197 174,649 62,492 55,569 -2.3 %to West Java II 25.4 29.0 27.0 34.5 US$Exch2angeRate ,3 9,3818 2,118 ______RGDP (billion Us$)I[ 8.4 5.4 8.0 9.0o Source: Gross Regional Domestjc Product Regencies/Municipalities in Indonesia 1993-1998 and 1995-2000, BPS
RDGP by Sector (Provincial Level) in 1995 and 2002
Current Price Province Unit cl GRDP by Sector in 1995 GRDP by Sector in 2002 |_Agriculture - Industry Services I Total Agriculture Industry I Services I Total EastJava bil.Rp 11,165 25,580 29,138 ______65,883| 47,361 80,658 98,9381 226,957 16.9 38.8 44.2 100.0ff 20.9 35.5 43.6 100.0 West Java bil.Rp 11,453 36,764 27,980 I______I °/__ 76,197 33,391 114,162 66,7481 214,301 11 15.0 48.2 36.7 100.0 15.6 53.3 31.1 100.0
IIL Constant Price at Province 1993 Unit r GRDP by Sector in 1995 GRDP by Sector in 2002 j______Agriculture Industry Services I Total AgricuLture Indust East Java bil. Rp Services Total 9,8661 21,640 25,535 57,041 10,462 20,8801 29,412 60,754 ______17.31 37.9 44.8 100.01 17.2 344 8. 100 West Java bil. Rp 9,351 29,513 23,6281 62,492 7,655 30,863 21,195 59,713 I______11__ 15.0k 47.2 37.8 100.0 12.8P 51.7 35.5 100.0 Source: Gross Regional Domesbc Product by Pnoince in Indonesia, BPS, Jakarta
A8-1 I
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I Ii i I Annex 9 Crop Production in Brantas and Citarum Basins i
A i > m l y f allg~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~C
O~~~~~~~~~~~~~~~~~'1 ll,....Ljjz I I i
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I Annex 10 Record of PCM Workshops i
I I i I i i Annex 10-a) Results of the Workshops
I~ ~~I I I I I I I Annex 10 a) 1) Participants of PCM Workshop at Sidoarjo Dinas (Water Resources Office) on 4 March 2004
Farmers (9 participants) Government Officials (13 participants) | Industry (9 participants) Name Organization Name Organization Name Orzanization Tarmudji Leader of WUA Federation in Praptopo Suhudi DINAS (Tax Office) Agung Krembong SidomuktiSecondary____Canal_Subiyantoro Sugar cane Factory ______Supeno Leader of WUA Federation in Delta Sutrisno Mandin Secondary Canal Sub-District Resources Services Heru Prastowo Krembong Sugar cane Factory Ngadino Leader of WUA Federation in DINAS (Environment Bambir-anom Secondary Impact Moh Sidoarjo District Municipal Water Canal Eddy Herwanto Assessment Office) ochtar Cooperation Kasdam Leader of WUA Federation in Ka>amPelayaran Secondary Canal Budi DINAS (Tax Office) Lukman Hakim Taman Tirta BuiDNS(a fie umnHkm Company Municipal Water 0 Waridb Kontaktani Farmer from Prambon Sub-District Province Water Management Sidoarjo District Samsul Anan Project Edi Sucipto Cooa tion Municipal Water
Adjemain Farmer from Prambon Sub-District Taufiq Grogol Water Management ______~~~~~ ~~~~Cooperation Ari Watoetulis Sugarcane Factory H. Sukardi ACH Leader of WUA Federation in ______Ketawang Subaudi Sidoarjo District Development Secondary Canal Planning Office______Ismoyo Tjiwi Kimia Paper Company Thowaf Farmer form WUA Federation Tirto Hadi Prastowo DINAS (Sidoarjo ______Barokah Agriculture Office) Widodo Tjiwi Kimia Paper Company Kanam Kanam ~LeaderSecondary of WUACanal Federation in Juwet AknSub-District Water Resources KucrPeriParCopn Askan Office Kuncoro Pekerin Paper Company M.n Moe Porong Sub-District M. Moezaini Resources Office Water
NGO (2 participants) Sujat Mangetan Sub-District Water ______~~~~~~~~~~~~ResourcesOffices Zaihul Bahri NGO, a farmer Mardjikin Grogol Sub-District Water Resources Offices H. AhyCommunication Forum for Fish i Mangetan Sub-District Water H. Ach Syarief Culture Community Jziwanto Resources Offices Annex 10 a) 2) Sub-Basin Level Stakeholder-Problem Analysis at Sidoarjo Dinas (Water Resources Office) on 4 March 2004 (1/3)
Stakeholders Problems Since When? Why? Solutions Many Canal damages at Sidomukti Secondary Canal. farmers can do 1. Canals are old. / 2. Much Scouring. i smpyrovementof infrastructure Small shops occupy the banks of Sidomukti anything without 2. Improvement of water Secondary Canal. sanction.) management (more efficient). Diversion gate is damaged at Ketawang Secondary Canal.
Downstreamers can not get the enough water. Physical Problems Sedimentation near the secondary canals.
Farmers can not get the water because canal floor is Government removal of sedimentation (by too low at Pelayaran Secondary Canal. machine) is too deep.
Pelayaran secondary canal farmers can not get enough water sometimes in dry season.
Quality of water is getting worse.
197O canali . SSThe om a (rerseal 1. Improvement of law enforcement. HumanRelaupstretd t.version.r.re: gates . not satiasiedtwithhsibiltty the, /'2.- Tomk.mk duty and respdo were ,4'rnplerzed.) . of iovernmenrt oMfcials (especiall'y Farmers oairrs go _arbagerototihe rule wat.tp . ba 1rto.Exarintake, cessie at use amre f oe farmers. farmersSarity bfate asier to renartc . oep ent recoamends secondrycraop0 mechanizatiol)
HumanRelated . I~~~~c.psreamiMhi)-daon't. .siderte:situation Increase in~~~~~~~~~~aser9i cmear ubion Pypo ..~ ~~ ~ ~ ~ ~ ~ ~~~~~~te d1ownsteaersn"M_ 3. Cropping p'atterns hvgutar-gat~~ ~ipay~ ~ ~ ~ ~~~~~~frmr dorinota fe o tecaimno Problems______People dump garbage into the secondary canal. Increase in income by production 1. The incentive to chairmen is low because increase. farmers do not pay fee for the chairmen of Water user's associations are not operating properly. Water user's associations since 1998. / 2. Government and village chiefs do not support associations.
Improvement of water management 1. Excessive water use of farmers (more efficient). Problems in Dry Scarcity of water at Porong secondary canal. (especially upstreamers). / 2. Season Sedimentation. / 3. Capacity of canal is not enough.
1/3 Annex 10 a) 2) Sub-Basin Level Stakeholder-Problem Analysis at Sidoarjo Dinas (Water Resources Office) on 4 March 2004 (2/3)
Stakeholders Problems Since When? Why? Solutions Scarcity of water in dry season gets worse by huge Problems in Dry intake of water by PDAM. Farmers Season Flooding in rainy season.
.1. of oatc~mint area. ,.,rmanagement/21.Lmanrvement of land constrv
Water Ncarolty av K)rembop sureaa $ Water-.user do noy compliant to the law logging at the cato / (Sep-.,N ' .), . . . ,. and rogultions.' Pub,li awareneos on illegal ,logging.
Industry Water for irrigation is taken by industry from farmers.
Water pollution occurs in Borong River. > It is not clear who (District or Province) - should control and give the sanction to the polluting O) factories. Turbidity (A lot of small particles) at the intake of PDAM is getting worse. Illegal construction of weirs redues the amount of Water competition among water users Consensus on water management intake of PDAM in dry season. " etting more severe. among farmers industry and PDAM. 1. Miny faetoies;do.not have the. waste Law enforeement on water PDAM Water quality at the intake of PDAM is getting worse. watertrestment bypassing the watprplants. treatment / 2. Factories plmnts. /are 3. pollution. ______No law enforement on pollution. PDAM uses discharge water, but discharge Water quality of dischargeWaterqualiy canalcanal is very bad. water has more water ofi verydischrge bad.also takes big amount ofquality flushing problem. water It away from the irrigation system.
I..-- .i.~~~~~~.,.-. . - - .. - '. ~~~~~~~ Cleow definktion of responsibility of NGO' cannot know whom to report when NGO farmers meet Unclearnesa of' tesponsibility of lawI ' poemschpqIuon...... *. each govrnmnoffice rlating problemns,such No 0lu,tlon', - -.. efoemn : water issuea..*inoludiing onforoomont . ,. water. polution, land conservationallocation of ______'__. etc. 1. Limitation of water availability. / 2. 1. Law enforcement and land Government Limited Sedimentation is high in the main river. information of water availability conservation (forest protection). / (supply of water) also cropping pattern 2. Public awareness on water (demand of water). availability and cropping pattern.
2/3 Annex 10 a) 2) Sub-Basin Level Stakeholder-Problem Analysis at Sidoarjo Dinas (Water Resources Office) on 4 March 2004 (3/3)
Stakeholders Problems Since When? Why? Solutions Water is not enough in dry season, and too much in Poor management of the catchment area. rain season in the main river. 1. Sedimentation rate is very high in the 1. Normalization of canal. / 2. Many damagescanal. in the primary secondary canals. / 2. Villagers dump Government give enough funding for Many damages in the primary canal. garbage into the secondary canals. / 3. normalization of canal. / 3. Illegal Small shops occupy the banks of the shops must be banned.
Sedimentation in the primary canal. Highway from Surabaya to Malang causes a Capacity of secondary canals is decreasing. lot of sedimentation. Destruction of the banks of secondary canals.
Government officials tend not to visit irrigation scheme regularly to monitor water allocation. Schedule>> of flushing sedimentation is not clear. Farmers are not well informed about - Schedule of flushing sedimentation is not clear, ~~~~~~flushingschedule.______O The water is not allocated fairly among the secondary canals. Government Farmer's destruction of some diversion gates. FarmersResoures, tink Dt~¶act Offic tends ~Pnrioty on water allocation etc. between Priority on water allocation should am ead inOus not clry defined b ned wer el Ircgtio n give too much! priority for hIdustry than farmers. by heistictOffice. aOominitte,. Government officials say that they need to work longer to keep control proper use of gates. Some farmers do not follow the rules such as cropping pattern in dry season. (Porong canal) (* 1. Some farmers say water masters take money for There are a lot of people who take / give Improvement of water management irregular operation of gates.) the money for the water allocation. by farmers. Improvement of public awareness of farmers. 1. Canals need to be dried up twice a year,
* 2. Maintenance of the secondary canals is not done but the announedmdenly / 2. Government properly. maintenance of the canals are not properly done.
(Note) * 1: Some officials did not agree about the problem. *2: This was discussed but not written on a card. The facilitator added this card after the workshop.
3/3 Annex 10 a) 3) Participants of PCM Workshop at Tempel Village on 6 March 2004
Farmers (1 participants) Name Location Sipon Middle stream
Sudin Middle stream
Samuji Middle stream 0
Dasir. K Middle stream
H. Sholikin Middle stream
Suwardi. SP Middle stream
ABD. Karim Middle stream
Kasdan Down stream
Abdul Hamid Up stream
H. Kastur Up stream
M. Kusen Up stream Annex 10 a) 4) Participants of PCM Workshop at Dinas East Jawa on 9 March 2004
No. Name Institution Position I Edy Tambeng Province Development Planning of East Java Staff (BAPPEDA Propinsi Jawa Timur) 2 Sjahrul Environment Impact Management of East Java Field Head (Bappedal Propinsi Jawa Timur) 3 A. Yasid Financial Management of East Java Province Section Head of Recruitment 4 Endro Agriculture Management of East Java Province Section Head 5 Rudy K. Provincial of Mineral Resources and Energy of East Staff 6 Imelda S. Provincial of Water Resources for O&M of East Section Head 7 Joav H. Provincial of Water Resources for Using of East Section Head 8 S. Priamboda Provincial of Water Resources for Partnership of Staff 9 Siswadi Provincial of Water Resources Management of East Section Head of 10 Zuhan Basin Management for Surabava Regional Section Head O&M 11 Parminto Water Municipality Corporation for Surabava Staff 12 Ismail LSM Spektra Surabava / NGO Leader 13 Susanto Airlangga University Lecturer 14 Sugeng Wiiava Kusuma University Lecturer Head 15 Moehtar Water Municipality at Sidoario Supplying 16 Soeiitno District of Water Resources for Sidoario Provincial Head 17 Karsono District of Mineral Resources and Enerav of Environment Staff of Land Use 18 Hadi Prastowo District of Agriculture of Sidoarjo Section Head _Plannin ______19 Thowet Water Users Association Federation Leader 20 Tarmudii Water Users Association Federation 21 Ngadino Water Users Association Federation Leader 22 Rachmat Petro Kimia Corporation Gresik Engineering Staff 23 Iwan S. Cement Corporation Gresik Staff 24 lsngadi District of Water Resources of Jombang Section Head of Water ______Reso u rces 25 Sudarmo Farmer from Mrican Canal Leader 26 A. Ridwan Farmer from Mrican Canal Leader 27 Musikin A.W Farmer from Mrican Canal Leader 28 Suprijadi District of Water Resources of Mojokerto Sub Provincial Head of Water Resources 29 Sadi Farmer Representation Leader 30 lYoshi Aiinomoto Corporation Manager Department 31 Widodo Ciwi Kimia Corporation Staff 32 Agus Surwano Basin Manaaement for Kediri Regional Basin Leader 33 Ani Pudvastuti Basin Manaaement for Malana Regional Technical Staff and 34 Purwantoro Electric Power Corporation (PLN) Malang Division of Maintenance Operation 35 Fahmi Hidavat Jasa Tirta II Corporation Staff 36 Muslim Brawiiaya University Lecturer 37 Suparman Ngadireio Sugar Corporation Engineer of a ship 38 Ridwan Provincial of Water Resources Staff Leader 39 Theresia S. Irriaation Proiect Vice Proiect 40 Tarmain Consultants DHV Surabaya Team Leader
AIO a) -6 Annex 10 a) 5) Sub-Basin Level Sellection of Core Problem at Majalaya on 16 March 2004
Farmers' Problems Industry and PDAM's Problems Government's Problems [ All the Water Users' Problems Too many kinds of taxes and fees on Farmers' income is low water at many levels of goves ment and Regulations on water allocation ______w are not Conflict on water among farmers, UaFetm n eeso o e m n n clear industry and PDAM Farmers cannot get enough water in dry It is difficult to get recommendations Law enforcement is low Water shortage in dry season season from WUAF
Flooding in rainy season Industry and PDAM tend to take more water than licensed Water users don't follow the rules
Polluted water come into rice field Priority on water allocation is not clear
) Water use of farmers is not efficient
Many damages in irrigation structure
Small shops occupy the banks of the canal illegally
Remark: taxes and fees are (1) tax collected by Province (70% goes back to District), (2) fee collected by PJT (Rp.23/m3), (3) fee collected by WUAF (Rp. 150,000 250,000 / month /industry) to Annex 10 a) 6) Sub-Basin Level Self-Evaluation at Majalaya on 16 March 2004
Way Forward Specific Problems Efforts to Solve the Results So Far [ Lessons Learned J [ Problems I T 1. Govemment should allocate enough money for regular the canals maintenance. / 2. Government should build small dumping sites and (1) Maintenance of the Several secondary canals Water flows fluently in Maintenance of all collecting stations. / 3. WUAF will campaign not to dump and canals is not good. Whave already maintaine y several secondary canals. should be done regularly. WUAI monitor. 1. Removal of sedimentation must be done by heavy machinery. / 2. banks should be done as soon as of sedimentation Water flows fluently in Removal of sedimentation Removal of sedimentation on the (2) Sedimentation in the Removal ofsedmnation possible. / 3. Canal lining need to be done by Government. / 4. (2) Sedimentatoninth has been done at several Water sefuntly in al regularly. Canal banks should be normalized. / 5. Govemment should allocate canals. secondary canals several secondary canals. should be done money for removal of sedimentation.
- August). downstreamers of gate 12 (125ha) Rotation: 6am to 4pm for 1. In dry season (June does not hould be irrigated using pumps and fuel should be paid by farmers (3) Conflict among farmers ats 1 to 8 (15ha) and 4pm Gate 12 does not get enough Water distribution ate treatmen flt and discharged water should go back to at secondary level. o 6am for gates 9 to 12 water in dry season. go well. wtrtetnn aiiisaddshre ae hudg akt (~~~~~~~~~~350ha) canal. O350h) lirrigation When there was a conflict with the guards of rich None (4) Conflict among farmers farmers who didn't let others . None at tertiary level. to take water, WUAF invited the guards to a meeting and got a consensus. should keep standardized rice price because farmers Village leader had a meeting If farmers plant at the same 1. Govemment the harvest at the same time. / 2. Goverment should give subsidies for (5) Farmers do not follow with farmers to decide Farmers plant at the same time, that reduces fertilizers and pesticides. the cropping pattemn. planting time and kind of time with same kind of crops. number of pests. crops. (6) Industry and PDAM have be one and only by WUAF, if water is taken from a letter Not yet None None 1. License should difficulties in getting canal. of water allocation irrigation agreement from WUAF. l None None 1. Fee should be one and only by WUAF, if water is taken from (7) Too many kinds oftr. Not yet canal. related fees for industry. NtytonNneirrigation Annex 10 a) 7) Province Level Definition of Core Problem at Dinas West Java on 18 March 2004
WUAF [ Govemment Industry and PDAM
No clear rule on water use right. Many damages in canals because money for operation and Industry cannot take enough water in maintenance is small. dry season.
Farmers of Ciherang are fighting with PLN and PDAM over Demand of s a Quality of water in rivers, canals and lakes is deteriorating water allocation. suppy of water are unbaanced. due to industry discharge.
Farmers of Wangisagara are fighting with industry and No control on ground water exploitation. Industry has to pay too many kinds of taxes and fees. PDAM over water allocation.
Coordination among water users related institutions is It is difficult for PDAM No communications between water masters and farmers. weak. regulations) to find new water sources. (Many
Industry feels they have priority over farmers' water, Human resources, organization and regulations do not because they pay tax and fee. support law enforcement fully.
Farmers do not know how much water industry takes, Conflict between govemment and forestry companies. because irrigation canals go through industry area.
Quality of the water does not satisfy the requirement of PDAM.
Contract-base government officials by honorarium cannot get full status for long time. Annex 10 a) 8) Provincial Level Self-Evaluation at Dinas West Java on 18 March 2004
_ __Way Forward EfotstSle 1h Lessons Learned Wae Usersd Specific Probles Efforts to Sve the Results So Far Feserabon Industry and PDAM Govemment I Problems Water not 1. Empowerment of 1. Establishment of forum 1. Improvement of law is IRegulation on water use 1. Some people still don't Law enforcement is m1)Law enforcement farmers cooperating with among water users in enforcement in each has already composed and follow the rules. still optimal. weak. village leaders. Cisangkuy river, government office. implemented. 2. Government officials 2. Strengthening of punishment the law do not 2.Monitoring and control who upholds and reward. a resolute step. has already implemented. take 3. People's involvement in making government regulation. Adjustment of cropping 1. Operation of water 1. Preparation of water pond. in 1.Farmers adjusted 1.Famers follow the new New cropping pattem is not 1. (2) Limitation of water according to treatment facilities. 2. Normalization of traditional cropping pattem according cropping pattem. still appropriate. pattem dry season availability. 2. Flow the suitable waste lakes. o the water availability. 2. Industry still takes much water Planting crops at the water to irrigation canal. 2.Reforestation has been water ignoring the license. 2. same time. implemented (not only in 0 of efficient e government land but 3. Application water use in agricultural also inthe community land _.. system. o of farmer's group). water regulation is (3) No None None None None available on rivers Not yet None of 1. Construction of Water 1. Preparation of water Rotation system has been Most of farmers can get Efficiency of water use can 1.Improvement (4) Farmers in downstream every reservoir. / allocation manual. (daytime for enough water. be increased by appropriate rotation system in don't get enough water by modified 2. Proper water use evening for water management dry season. rotation system in dry upstream, according to the license. season downstream) Campaign for not 1. Construction of 1. Construction of collective in the District regulation on water Several industries have 1.Quality level of discharge 1. (5) Water is polluted garbage into storage for hazardous hazardous waste treatment pollution has formed and become to treat their water is still bad (B3- dumping river canal cooperating with waste. center. already implemented. waste water properly. worst). 2. Some people are still 2.Treatment of hazardous village leader. dumping garbage into canal. waste should be done in the national treatment center. 1. Establishment of one-stop (6) Too many kinds of govemment service system. related fees and fee system. water None None None 2. Simplify the tax & taxes for industry. Not yet None Annex 10 a) 9) Definition of Core Problem at WUAF Wanir on 20 March 2004
1. Quantity (supply) 2. Rotation System 3. Quantity (demand) 4. Pollution ______1 5. Communication and 6. Operation and _ 1 _ coordination j Maintenance (financial) Communication between Water in canal is limited in Not enough water downstream Industry uses bodyguards to Industry discharges polluted WUAF and other water users WUAF does not get any fund dry season. even with rotation. get enough water. water into the canal. (PDAM, industry etc.) is not from water taxes or fees. good.
PDAM continuously takes The water use license should Water resources are limited large amount of water in dry require recommendation from in the catchment area. season. WUAF.
Govemment gives water use license to industry too easily. Annex 10 a) 10) Self-Evaluation of WUAF Wanir on 20 March 2004
Results So Far Lessons Learned Specific Problems Efforts to Solve the Problems j
of understanding between 1. Coordination of all stakeholders should distribution among 1. WUAF consulted government office for 1. Memorandum (1) Conflict on water / 2. be done well. / 2. Government should give having discussion with PDAM. / 2. WUAF and PDAM is not still available. WUAF, PDAM, and industry. the license according to the water Government facilitated discussion with PDAM still do not follow the rotation availability. / 3. Farmers should get PDAM. / 3. WUAF asked PDAM not to system. / 3. PDAM still operate their for permission by government when they take water in dry season, and follow the company in dry season. / 4. Water fee change their activities (farming to small- rotation system. WUAF has not been paid by industry legally. / 5. Person who came from PDAM scale industry). / 4. Government officers was not decision maker. who give the license should be more responsible. do 1. WUAF collect water fee from farmers 1.WUA/WUAF must be proactive to (2) Rehabilitation and maintenance done 1. WUAF had meeting with village leaders. - village fund for maintenance their own rehabilitation/maintenance office does not meet / 2. WUAF submitted farmer's needs to to establish Pa by government 2. PIAJB (project program to the government/ 2. Members secondary canal) government office (district). / 3. Water of irrigation canal. / farmer's needs. (primary, of WUA/WUAF should pay water fee for 0 users had a formal meeting (among under central government) agreed several - 3. & M. / 3. Planning should be done regional planning agency, water resource WUAF proposals (farmers' needs). / and coordinating with WUAF, village leader, office, and all the WUAF). There is agreement between WUAF government to do rehabilitation and and district office. maintenance based on farmers' priority). Farmers (except for downstreamer) follow Water distribution schedule should be (3)Water distribution among the members Water distribution schedule was the water distribution schedule under discussed by WUAF. of WUAF (14 units) is not suitable. discussed at members' meeting and decided as 6:00-18:00 for upstream and monitoring by WUA/WUAF. 18:00-6:00 for downstream. Water distribution are going well. WUAF should organizemanagement (4) Government gatekeepers are not WUAF had a meeting about arrangement to system (not voluntary). functioning. of their own gatekeepers, and reported the government (Government gatekeepers were replaced by WUAF gatekeepers.) Annex 1O a) 11) Way Forward of WUAF Wanir on 20 March 2004
Way Forward Specific Problems l Water User's Association Federation Industry and PDAM Government (1) Illegal logging 1I.Strengthening of public awareness. / 2. 1. Establishment of fund for land 1. Establishment of fund for land Application of punishment / 3. conservation. conservation. /2. Control and law Strengthening of law enforcement enforcement. / 3. Appointment of proper coordinating with related govemment office. person for campaign of reforestation. 4. I______Proper command on illegal logging. (2) Farmers tend not to be disciplined. 1.Adjustment of cropping pattem 1. Strengthening govemment role in according to water availability. / 2. Planting discipline enforcement. / 2. Coordination crops at the same time. / 3. Application of None with farmers' leaders on law enforcement. lfficient water use in agricultural svstem. (3) PDAM and industry take much water. Regular control of water gate for PDAM. 1. Taking water according to the license / 1.Monitoring of every intake for PDAM. 2. Establishment of compensation fund for canal maintenance and land conservation. (4) Illegal taking water in upstream of Wanir Strengthening of coordination with village 1. Development of technical dam for village weir. leaders, sub-district leaders, and tertiary None irrigation/simple irrigation system block leaders.
(5) Bodyguard hired by industry 1. Stop hiring bodyguard. 1.Campaign for industry that water management should be managed by None WUA/WUAF.
(6) Canals are polluted. Campaign for not dumping garbage into 1. Installation of water treatment facilities. 1. Campaign for industry that they should canal coordinating with village leader. have water treatment facilities.
(7) Water users tend to be selfish. Campaign for following the water 1. Consideration of water availability and distribution regulation. other water user's situation. None (8) Canal maintenance is poor. Regular maintenance of canal according to 1.Payment of water fee for 0 & M. 1. Financial support for 0 & M cost. armer's capacity (finance as well as manpower). I
I
i i
Annex 1O-b) Problem Analysis I i I I I Annex lO.b) 1) Problem Analysis at Tempel Village in East Java (6 March 2004)
| ~~> avalailty ~~~~~~~~~~~~~~~~~~~at a lot of losses the weir of water at| a ~~~~~~~~~~~~~~~~~~isvery limite secondary canal
Tertiary _Norain in canals _Level of dry season _ maintenance at are not in the _ working-well secondary canal rn-trearj is low
Tertiary Level of |No drying up canals maintenance of for are tertiary canals canal too long is low maintenance
Construction of tertiary canals PDAM did not follow does not the design want no flows Annex l O.b) 2) Problem Analysis of Group A at Dinas East Java
7 ~~~~~~~~~(9March 2004)
*F- rii Annex I O.b) 3) Problem Analysis of Group B at Dinas East Java (9 March 2004)
5. Implementation n
. .mpirmen>LX 0 ~~~~3.Farmers 4* fIndustry of water allocation d o edt s does| not ~~~~~~~followthe !|more wtrta follow the plan cropping pattem al ----. -- i l- . Local govemment i Skills of govemment Farmers do not | Farmers | Industry and PDAM Industry and PDAM_ is weak at officers (ex. water get the j cannot want to I do not monitoring masters) j ] information of the I plant rice maximize understand and control is low cropping pattemr on time the product j the e
Irrigation Farmers tend Sanction for Sanction for Committee to grow rice j using more water using more water Li) 4 does not as much as than allocated than allocated ' | perform wel possible is too light is too light
Local govemment _j does not pay Sanction for proper attention Inot following the I to monitoring etc. I crapDing patte- . ___ | ~~~~~~~~~~~~~~~~~~istoo light |
Farmers do not have enough information on cropping pattern
Farmners have other jobs to do
Young people do not stay in the village
The area _ is I being urbanized j Annex 1O.b) 4) Problem Analysis of Group C at Dinas East Java (9 March 2004)
~~~ 1 ~~~~~3.Excessiv use oF dlnsle j z~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~ pesticides / fertilizersinmutmae
Farming is Illegal logging / not properly legal and illegal mining practiced i by the people
Farmers Farming Farmers Low law | People don't don't follow technique do not have I enforcement | comply with the the instruction L is not good good tools on logging lows
Not enough There are no E1 There are instruction supporting little job material I regulations in the area
Local government | Local government have limited do not have resources enough resources Annex 1O.b) 5) District-level Problem Analysis at Majalaya, West Java (16 March 2004)
Conflict on water among farmers, industry and PDAM
the l ortagecan of p ter t dorum useneb for water do not communication in follow and coordination dry season the rules is not optimal
moWateravailability Many damages othFarmers'famr s PDAM and L Iigion For i O ~~ ~ ~~ofin water use industry tend to on water enforcement committee at irrigation at the river irrigationdevel is not take more water is not is district level is province dn ~~~goes down _ structure efficieryt _than licensed clear low not working well does not exist
Catchment Maintenance Farmers PDAM and Regulation on Government area level of do not industry irrigation officials tend to is n the canals plant need at district level be soft to decreasing is low at the same time | much water | is not available | illegal activities|
l | ~~~~~~Toomuch | |Some farmers | | Control by | || Illegal | sedimentati'on | do not l the government| L logging in in the think about | is not l || mountain | | canals | other farmers | | enough l Il area I l | ~~~~Farmers l || Farmers | |do not have | Lg plant l enough l food crops manpower |
l l l | ~~Small shops| ||Government | occupy the | L reforestation banks of the | program is not |canals illegaly| |working well| Annex 1O.b) 6) Problem Analysis at Dinas West Java (18 March 2004)
Conflict among water users on 1. Quantity, 2. Quality, 3. Corntrol and regulation, 4. water fee and license, and 5. Land use
1. Water ll 2. Flow ll 3. Illegal | |4. Gate keeper ||5. Water quality || 6. Too many availability in capacity water intake / water master of rivers kinds of the rivers and of the rivers by industry does not follow and canals water fees lakes is low is low and PDAM the rules is bad for industy
A lot of Industry needs Planning at There is Water Reclamation sedimentation constant amount province and Polluted waste People no clear resources of in the of water all district level water from dump garbages regulation on are lakes rivers year around is not good industry goes into into water use decreasing rivers and canals canals lIl j .| | Water demand | | No water and Forest to farm Implementation co s No by the regulations Pesticides and i Forest to farm | Implementation | i conservation | n industry is available on Not many fertilizers from transformation of master plan of the increasing rivers water paddy field go into in catchment is not catchment area treatment drainage canals area working well Water is Implementation facilities limited of rules does not Polluted I lI 1 in work well in Industry does domestic waste Implementation Low dry season irrigation schemes not operate water goes into of master plan law water treatment rivers and canals is not enforcement facilities properly working well on land use i Domestic waste water |Low l l is not |law i | treated well enforcement on land use Annex I1O.b) 7) Problem Analysis at WUAF Wanir, West Java (20 March 2004)
Conflict among water users on I------1. Quantity (supply) 2. Rotation System, 3. Quantity (demanc I 4. Pollution, 5. Commnunication and Coordination, and 6. 0 & M (financial)j
------I ------1. Water 2. No nuh3. ------PDAM 1 4. Industry uses jf 5. Industry 6. Canal in canal wate dontemcontinuously takes 7. Water 8. Irrigation bodygurads jj does not follow water allocation among is limited in enwihlarge amout of canals to get the water is the wter users dry season roainwater in dry season are enough water allocation rule polluted is not disciplined ------~ ~ ------~ ~ ~---- -…------damaged - …------Water resources It takes five PDAMsiltks1 Industry cannot > I industry needs Industry All water usersj Operation ~ ~~arelimited hours to reach wfree L and get enough ~ water constantly discharges in the downstream though thwaef ~ think their needs ~ maintenance f water without even in poliluted water have priority o) catchment area (canal: 8 km long) is alreadylmtd bodyguards are not done dry season into the canal over others properly r------f ------Farmers have Industr I~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~------.4 ~~~~~~Illegal made many ------~I dus IPeople --- logging illegal LI PDAMlocates intake is too throw Government I------j profit I garbages not give anydoes Operationmaintenance and in the intakes upstream of oriented catcmen are itthe canal information on Larg water------_Wanirda [ fund is water allocation limited There are users are C~ustomers of There is so many in upstream and PDAM no forum1 r --- - j among water users middlestream a re rapidly water users WUAF does for Wanir dami -increasing at irrigation not get any fund scheme levelJ from water taxes ------~ o r fees Canals Fish ponds PDAM are j inmiddlestream is too ...... -11 .. - damaged uses profit Natural factors J ~~~~alot of water oriented such as hilsli~deand Downstream farmers als ------Illegal grow t.imes a yercanal rice three ~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~landuse of banks II ---rticltur by small shops II needs high Horticulture ~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~Canals production cost are with high risk daaedb cattle
Illegal digging of sand at the primary canal i i Annex 11 Quantification of Customary Rights and Water Quality in Brantas Basin
il Annex 11-a) Location and Layout of the Pehngaron Irrigation Scheme -- K.Brangkal
Pehngaron Irrigation Scheme A TK.4.ki . 6M.l.Ka KL.[ikl A =978ha 89Ha 76 Ha H
Flow measurement point TKAT_ I|Te 7. K 11 Ha B.G M,l BA .11 _TK.4.ka | | KINTELAN
29 Ha 68
- ~~~~~~~PG.2.ki PG.3.ki PGA4.k TK.3.Ka..2 > 27Ha 13Ha 4Ha 13 Ha - < < L m B. TK.3 TP.5.Te TK.3.Ka..l1 88 Ha 34 Ha
B. TIK1 I I 1 |TTP-2-ki |K|aTP-3.ki | PR.l.a.kl PR.la. S.T K2 I B.6HP.I5 2 Ha _ H TK.L.ka S. 7 . L j TP.2.ki TP.3..ki PADANGAN ~~TIRIM KIDUL 6 aIHa 10OHa
B. TP.I - TAMPU G /B.PR.la -- B.PR.I B.PR.2 PENHGARON B. TP.2 B. TP.3 B. TP.4 R.I.~~ ~ ~~~~~.P. / PR.l . ka ~~~~~~~~~~~~~~~~~~~~~~TP.l.ka ||TP.4.ki|
llOHa X |~~~~~~~~~~~~~lH23 Ha| i I i
i
I Annex 11 -b) Flow Data of Pehngaron Irrigation Scheme
Annex 11 b)
Table 1. Dischange of Weir
Month Period ______2003 Overflow _ Intbke Total I II Average PR. Ki Pehngaron Total Overflow + Main Canal Intake (l/s) (/s) I/s) (1/s) (l/s) (l/s) (l/s) I 190 1.152 671 4 544 548 1.219 Jan II 127 431 279 4 544 548 827 III 1.330 4.291 2.811 4 595 599 3.410 I _ 6.831 8.224 7.528 4 603 607 8.135 Feb II 3.693 9.566 6.630 4 594 598 7.228 III 8.579 8.578 8.579 4 595 599 9.178 I 8.641 1.306 4.974 4 598 602 5.576 Mar II 6.325 8.525 7.425 4 595 599 8.024 III 2.888 2.336 2.612 0 471 471 3.083 I 575 412 494 0 361 361 855 Apr II 216 216 216 0 443 443 659 III 0 0 0 4 467 471 471 I 0 0 0 4 467 471 471 May II 0 0 0 4 473 477 477 III 0 0 0 4 479 483 483 I __0 0 0 4 483 487 487 Jun II 0 0 0 4 389 393 393 ______III 0 0 0 4 378 382 382 I 0 0 0 4 366 370 370 Jul II 0 0 0 0 309 309 309 III 0 0 0 0 307 307 307 Aug I 0 0 0 1 331 332 332 II 0 0 0 1 331 332 332 III 0 0 0 1 330 331 331 I 0 0 0 1 316 317 317 Sep II 0 0 0 1 320 321 321 III 0 0 0 1 320 321 321 I 0 0 0 1 320 321 321 Oct II 0 0 0 1 288 289 289 IIII 0 0 0 1 256 257 257 I 0 0 0 1 246 247 247 Nov II 0 0 0 0 236 236 236 III 0 0 0 0 311 311 311 I 0 0 0 0 385 385 385 Des II 0 0 0 2 557 559 559 III 0 0 0 3 460 463 463
Al l b) -1
I
Annex 1 1 -c) LPR-fPR Method
Annex 11 c)
(1)Operation of Pehngaron District Irrigation
Water allocation of Pehngaron District Irrigation Scheme is operated by LPR+-PR Method. LPR-FPR method is a operation method of water allocation in Jawa Timur Province except Madiun District Irrigation. The Operation of water allocation in Madiun is carried out by Faktor K method.
(2)LPR (Luas Polowijo Relative)
LPR (Luas Polowijo Relatip) means conversion area of plant to area of polowijo based on water requirement. LPR, = k x Acrop n S LPRt(i LPRS = i- fj m , LPRS,j LPR = fl=1 lp
Where LPRt Luas Polowijo Relatip tertiary (Ha.pol) LPR, Luas Polowijo Relatip secondary (Ha.pol) LPRp Luas Polowijo Relatip primary/main (Ha.pol) k conversion factor influence by type of crop and phase of growth
Paddy Rainy Season Nursery/Seedling 10 Cultivation 6 Growth 4 Dry Season Nursery/Seedling 20 Cultivation 6 Growth 4 Paddy not permitted all season 1 Sugarcane Young 1.5 Old 0 Polowijo, Fiber, Tobbaco 1 Acrop = Area crop (Ha) lIj = efficiency sub secondary canal
Al1 c) -1 Note: 11padangan QT. PG. 1Ki + * + QT. PG. 4 Ka QPadangan
qtirimkdul QT.TK.1Kj + -- + QT.TK.4Ka QTirimkidul
=lTampunganl= QT.TP.lKa + -- + QT.TP.SKi QTampungan
lkintenan = QT.KL.1Kj + -- + QT.KL.lKa QK int enan qp = efficiency primary/main canal
= Qpadangani + Qtirimkidul + Qtampungan + Qkintenan + QT.PR.1Ka + QT.PR.2Ka + QT.GM.lKa Qint ake dam Based on 2003's crop data in Pehngaron District Irrigation, area for each secondary canal and calculated LPR is shown as follows:
180 - 900
- -0 160
14070
600 120
l _ / -4 500 -, ,, 100 - l'iooss7g- i
4 00 80
| / _ 300 60 . .i- .i j 200 40 .* * * * *
} - 100 .', 20
20 Au,Q Sep Opt N.p DI. 30\ P.3b N, AP, N. uo JYl Month
1 PolowijoIr Polowijo111 -- LPR(Ha.Pol) Paddy-MH Paddy-MKI Paddy-MKIC SSgarnane-Young _ Sugarne -Old Polootjo Area and LPR in Padangan Secondary Canal
- - - - - 1.400 250
100~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~.0
6000
600 i. 100~~~~~~~~~~~~~~~~~~~~~~~~~
200
N.,','lt 0 - w w 50~~~~~~~P -
NAU SPp N.Y Sep DY, 3.P, F.b. ...Np, . ....Nup' .. JAn 3- Month
1 Poloowijo11 Polowijo 111 -0-LPR (Ha.Pol) =Paddy-MH _ Paddy-MK = Paddy-MKII oSgarrane-Young _ Sugaoane -Old -Polowjo Area and LPR in Tirim Kidul Secondary Canal
All c) -2 250 1.000
900 200 - 800
700 150- - 600
100 [ 400
300
S0 ; t * - 2002-0
00
Month
r Paddy-MH _ Paddy-MKI r Paddy-MKn r Sugarcane-Young _ Sugarcane-Old Polo-u1o I Polowijo 11 Polowljo III 0 LPR(HadPol) Area and LPR in Tampungan Secondary Canal
200 700 180 600 160
140 J50
120 -0 ;100 -40
rt _- _._ _ _ _3 * 1 300 60 200*~~5n;
40
-1 ____ ii ______100
0 FeD MY 00, M. Fen 34 og Sep urn NOD DeS 0 Month
Paddy-MH _Paddy-MKI = Paddy-MK 11 Sugarcane-Young _Sugarcane -Old rPolow3jo I _Polowijo 11r Polowijo III -O-LPR (Ha.Pol) Area and LPR in Kintelan Secondary Canal
1200 4,500 LW0 40000 3.500
800 32000
< C _ r ~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~2.000 r 400 U U U U U U - j - 1.500
200 _~>X_wwzr-__ 0
lJn Frf ?S 0p M0.9 h Sp Dt = Month r3Paddy-MHO Paddy-MtI1 =Paddy-K1 =MI v ;i_Sugarcane-Old r Poluoulo I _Polowijo 11I PulDojlo111 -0LPR (HdaPol) Area and LPR in Pehngaron Primary Canal
Soo ~ ~ ~
All c) -3 (3)FPR
FPR (Faktor Polowijo Relatip) means a discharge water taken from intake weir for one hectare of polowijo. The formula FPR:
FPR = Qint ake dam LPRP where FPR = Faktor Polowijo Relatip (1/s/Ha.pol) LPRp = LPR primary canal
FPR influence by characteristic soil and available water. Based on type of soil, FPR optimum are shown as follows; FPR Heavy Soil 0.27 VIs/Ha.pol Medium Soil 0.32 V/s/Ha.pol Light Soil 0.42 VIs/Ha.pol In Pehngaron district irrigation, medium soil dominates, so FPR of Pehngaron District Irrigation is 0.32 l/s/Ha. Value of FPR is used as reference to applied water allocation system in Pehngaron FPR 0.32 x 0.7=0224 Irrigation by continuous flow All area given all time FPR 0.15 - 0.224 Irrigation by intermitted flow (Rotational irrigation) WUA /WUF plans to schedule water allocation FPR <0.10 WUA /WUF requests Dinas to get water supply from Bacem Weir
Based On 2003's data, average FPR Pehngaron district irrigation are shown as follows: FPR Rainy Season 0.234 V/s/Ha.pol Dry Season I 0.332 V/s/Ha.pol Dry Season II 0.256 V/s/Ha.pol In case of FPR is lower than FPR optimum, rainfall is added for water shortage in rainy season, but in dry season II, limited available water from dam.
(4)Discharge
Based on FPR calculation in primary : FPR = Qint ake dam LPRP
Allocation discharge calculated: Tertiary : Q = LPR x FPR Secondary Canal : = LPRS x FPR
Based on 2003's data, discharge in Pehngaron District Irrigation is shown as follows:
All c) -4 300 ------1.000------
_ LPR 900 -Q Operated 250 -e-- QCalculation -- -=Q Optimum 800
2001 --- -- :700
600 150 - 1 500(
l l
100~~~~~~~~~~~~~~~~~~~~~~~~~~~~~0 400
300 0 _ 400 |-3Qprte 300 .00
450 1 1U400
450------~~~~~~~~~~~~~~~~~~~~~~~1.4000 Month Paai a300~~~~P Secondary Canal
200 Oertd 6-4-.00
350 400 ---1 - -11--2--- --Q1 -Oprae ----i- u------i- 2L00- 14000
.50 -
0 0 Month Tirim Kidul Secondary Canal
2'~ I
AllI c) -5 400 .. ___1.200
_ LPR 350 - . +QOperated ------Q Calculation 1.000 3- Q Optimum 300' _ _.__
800
250 -r
600 Z E 200
400
100.__20
200
0 0 Month
Tampungan Secondary Canal
250 l _ _ _ _._ 80 0
LPR : Q Operated 700 200 Q Calculation - Q Optimum 600
500 150
2' 400 Z
300
200
50 100
0 0 Month
Kintenan Secondary Canal
(5)Year Total Water requirement (MCM/year/ha)
Based on 2003's data, year total water requirement in Pehngaron District Irrigation is shown as follows:
Q optimum 16.78 MCM/year
Q operated= 13.09MCM/year
There is about 3.6 MCM difference between Q optimum and Q operated.
All c) -6 I
Annex 11 -d) Water Quality Monitoring at Brantas and Subaraya Rivers
Location of River Water Quality Monitoring G Station in Brantas River
~~~~~~-- -; VA 1.
RJO~~~~~~~O
i f NGML X P ,; ~~~~~~~~~~~~~~~~~~~~~~044 03XJ3
MUERA ID
Data source: PJT1 YEARLY AVERAGE BOD CONCENTRATION Along Brantas River, Surabaya River and Mas River
27 24 ) BrantasRiver T Surabaya T RrvtMas 24 Rivraby River
21
"18
015 0
A 1 2
t~~~~ a A: ,2 ' . S } 6~~~~~~~~~( z Z Q. . V. In ( | 3 ~~~ l 2
o 0 0 0 0 08 0 0 0 0 0 0 0o0 00 00
° °~ °~ D) C' ° 2nw N° ° OoN oo… °° N N N°< N N N N N
I Kt. Malang I Kab.Malang I Kab. Blitar I Kab. T.Agung I Kt. Kediri I Kab.Nganjul4Kab.Jbg. IKab/Kt.M.kertolGresik IKt.Surabaya MonitoringDistance (kin)
CStandarMaks. Th.1991 Th.1992 Th. 2000 Th.2001 Th.2002
Date source: PMT1 YEARLY AVERAGE COD CONCENTRATION Along Brantas River, Surabaya River and Mas River 60
Brantas River Mas Surabaya River 50 River
40
0 30 0
A ii 20
10
co a s O c O 0 j 1 010 0 10 0 Q- 0 01 m~~ -, z -, -~ 10 0 0 0 T0 00 0 QCI 703 cl) 771 0 0 0 0 C7 ) 0 1- 0 F-C A 0 0 0A - -' -t ir co01 P 1 0 19 0 0) C 0 00l~ 10 (00 01 01 01 0 100 ~ C 10 (0 0Th C 0F-W1C 0 0 0 10 00 1 0 0 0 \C.r - CII 9) t (0) 0D - CDII C') OJ L (0 N ( 0 0 CDII ') CO ( NC N C\1 0 CO C\)l co
I Kt. Malang I Kab.Malang I Kab. Blitar I Kab. T.Agung I Kt. Kediri I Kab.NganjuRKab.Jbg.lKab/Kt.M.kertolGresik iKt.Surabaya Monitoring Distance (km) -'-Standar Maks. A*Th. 1991 --a--Th. 1992 + Th. 2000 e Th. 2001 -'Th. 2002 Data source: PJT1 YEARLY AVERAGE OF DO CONCENTRATION Along Brantas River, Surabaya River and Mas River 9 Brantas River Surabaya Mas River River 7
6
> =,5 _t__
- 0) a A 3
2 cn-cn = ._ - c ° C _c c '
* Z -,^^ 0 -, 0 c 010 0 o Qj00nG) oo . Oo ~o 0 o *uoome oC o o2 oo 0000oo o ^o *(/3CDEo o 0 o o' oE o' o o o 0 COO,0 0 C C0 0 ' 0CC0 0 0 0 0 00 0 0 0 0 00 w 0 0 000 0 0 0 0 0 OCO 0 0 O OO O Oc O cOo~ O O O O 0 O O O O 0 0 0 0A 00 C0 C 0 0 0) 0 0 0 0) 0 0 0 0C0 0 0 0 0C 0 0 0 0 0 0 0D 0 0 0DC0 0 C' N- CD ) 0 N: C') if CD C 0 0 N C "') 24) c0 N- CO 0) a N - NQ q 1') U) (0 ~ N U\ NChiD t N0\o NC\1IS} N N I Kt. Malang I Kab.Malang I Kab. Blitar I Kab. T.Agung I Kt. Kediri I Kab.Nganju9Kab.Jbg. IKab/Kt.M.kertolGresik IKt.Surabaya Monitoring Distance (km) -l-Standar Min. Th. 1991 - Th. 1992 +Th. 2000 oTh. 2001 -- Th. 2002 Data source: PIT Annex 12 Quantification of Customary Rights and Water Quality in Citarum Basin Annex 12-a) Observation Points on Water Quality in Citarum Basin iI North Tarum Canal OBSERVATION POINT ON I WATER QUALITY I IN CITARUM RIVER BASIN (Data source: PJT 2) 2 !22 WALAHAR WEIR West Tarum Canal C WEast Tarum Canal >~~~~~~~~~~~~~~~~~ _ ~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~20-CURUG WEIR KETERANGAN :A 1. Wangisagara BEKASI CIKARANG CIBEET 2. Majalaya 3. Citarik Sapan is 4. Ciganitri 17 JATILUHUR CINANGKA 5. Sapan CIKUNDUL CIKEMBANG 6. Cisangkuy 16 CISOMANG 7. Margahayu CIBALAGUNG 8. Cibeureum Burujul 9. Nanjung CIRATA 10. Cimahi Nanjung 14 CISOKAN u4 11. Batujajar CIRANJANG 12. Inlet 13 CIMETA Saguling SAGULING 13. Outlet Saguling 14. Inlet Cirata 12 15. Outlet Cirata * 16. Inlet Jatiluhur CIMAHI 9 CIBEUREUM 17. Intake PDAM CIWIDEY 18. Outlet Jatiluhur C 19. Cikao Bandung CISANGKUY 20. Bendung Curug CIKAPUNDUNg 21. Bendung Walahar CIGANITRI 4- 22. Tanjungpura CIRASEACITARIK 23. Tunggakjati 24. Rengasdengklok 25. Muara Gembong 2 U I II I I I | I | I I | I | I . . .~~~~~~~~~~~~~ BOD CONTENT IN CITARUM RIVER (1992 - 2002) 180 160f992 - 2002 161.4 mg/litre 1. WangNEgara 160 - 0~~~~~~~~~~~~~~~~2. Majalaya NOTE: 3. Citarik Sapan 4. Clganitri 140 -Threshold: 6 mg/litre 5. Sapan 6. Cisangkuy 7. Margahayu | \ 8. Cibeureum Burujul j 120 9. Nanjung Cimahi Nanjung > _ l lo10. 11. Batujajar lm 94.5 mg/li945 12. Inlet Saguling _ _ 100 9.m gltr 13. Outlet Saguling CD 14. Inlet Cirata E 80 - 15. Outlet Cirata 0 16. Inlet Jatliuhur C.) | / \ 17. Intake PDAM D 60 | | \ \ 18. Outlet Jatiluhur o 60 - 19. Clikao Bandung / | \ \ 20. Bendung Curug 21. Bendung Walahar 40 - 22. Tanjungpura Tunggakiati / AJ X \ ~~~~~~~~23. / ~~~~~~/ \ ~~24. | t Rengasdengklokk 20 - 25. Muara Gembonq 6/ mg/litre ...v t,...... 1 2 3 4 5 6 7 8 9 10 11 12 13 14 15 16 17 18 19 20 21 22 23 24 25 Data source: PJT2 Sampling Points in Citarum River AVERAGE BOD CONTENT IN WEST TARUM CANAL AVERAGE BOD CONTENT WEST TARUM CANAL YEAR OF 2000, 14.0 2001 & 2002 12.0 10.0 >~~~ P, ~ I-8.0 z z 0 6.00 0 0.0 4.0~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~( 2.0 0.0 BTb. 1 BTb.10 Sungai BTb.23 Sungai BTb.35 Sungai BTb.45 BTb.49 Inlet Pulo BTb.51 Btb.53 Inlet Cibeet Cikarang Bekasi Gadung Pejom- pongan Data source: PJT 2 OBSERVATION POINT Th.2000 Th.2001 Th.2002 AVERAGE COD CONTENT IN WEST TARUM CANAL AVERAGE COD CONTENT WEST TARUM CANAL YEAR OF 2000, 2001 & 2002 25.0 20.0 0)~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~1 5.0 z CG z 0 O 010.0 Mc 0 5.0 0.0 Bin. 1 BTh. 10 Sungai BTh.23 Sungai BTM3 Sungai BTh.45 BTh.49 Inlet PUbo BTh.51 l3tb.53 Inlet Cbeet akarang Bekasi Gadung Pejorn- pongan Data source: PJT 2 OBSERVATION POINT Th.2000 -Th.2001 - Th.2002 Annex 13 Economic Analysis -~ ~ - l - - Annex 13-a) Water Use in Brantas and Citarum Basins I Annex 13 a) STATUS OF WATER USE IN THE BRANTAS AND CITARUM RIVER BASINS 1. Introduction In this annex, main findings of the field surveys carried out in the Brantas basin (mainly delta area) and Citarum basin (upper region: Bandung District) are summarized. We describe the findings of each basin by topic and summarize the difference and common issues between the two basins. Topics for findings are 1) Water demand Projection in the Two Basins, 2) Water Shortage and Sufferings, 3) Conflicts, and 4) Current Practice of Securing Water. 2. Outline of the Field survey We carried out interviews of officials of provincial and district offices, PJTs and PDAM, farmers and industry personnel, as well as collecting statistical data and existing study documents. PCM workshops also gave us a lot of insight about the stakehosders in the field. Details of the interviewees are included in Annex --. 3. Water Demand Projection in the Two Basins To glimpse the long-term structural trend of the water demand in the two basins, we referred to a study by International Food Policy Research Institute (IFPRI) / Asian Development Bank (ADB)(2003)1 for the Brantas basin and PJT-II company profile in 2002 for the Citarum basin. These projections are shown Tables in 7.2 and 7.3 and Figures 7.1 and 7.2 below2. The projections in both basins show similar tendencies that are increase of total demand (1.07 and 1.32 times in Brantas and Citarum respectively), decline of irrigation demand (0.74 and 0.95 in Brantas and Citarum respectively), and gradual increase of demands from others industry and municipality. These structural trends indicate unless there is no further 1 "Irrigation Investment, Fiscal Policy and Water Resources Investment in Indonesia and Vietnam" (IFPRI/ADB, 2003). 2 In the Brantas basin, there are another two studies conducted water demand projection, that are "The Study on Comprehensive Management Plan for The Water Resources of The Brantas River Basin in The Repubhc of Indonesia (JICA, 1998) and "Surabaya River Pollution Control Action Plan Study (SRPCAPS, 1999). Those studies were carried out before the impacts of the 1997-98 Asian Currency Crisis were filly manifest in the Brantas basin, but basic trends resulted in the three studies are common. A-13 a)- 1 development of water resources, the reallocation of water from irrigation sector to others would inevitably gain force. Table 1. Brantas Basin Water Demand Projection Based on IFPRI/ADB Study 2003 Year 2003 2020 Growth Irrigation 2,575.0 82.8% 1,902.3 57.1% 0.74 Domestic 220.0 7.1% 955.1 28.6% 4.34 Industry 106.5 3.4% 270.6 8.1% 2.54 Flow Maintenance 207.4 6.7% 207.4 6.2% 1.00 Total 3,108.9 100.0% 3,335.4 100.0% 1.07 (Unit: million m3/year) Figure 1. Brantas Basin Water Demand Projection (IFPRI/ADB 2003) 4,000.0 ~ mIation ' * Domestic .-| Ind~sty' -K -FlowMaintenance 3,500.0 -tota , 3,000.0 _ 2,500.0 ' _ _ -_ -_ - 1 Z02,000.0_ E 1,500.0 Q 1,000.0 -__i 500.0 0.0 S .' . _ ____ - - 2003 2020 Year A-13 a)-2 Table 2. Citarum Basin Water demand Projection Based on PJT-2, 2003 Year 1990 2020 Growth Irrigation 177.30 85.4% 168.00 61.5% 0.95 Industry 7.91 3.8% 25.00 9.2% 3.16 Drinking Water 9.77 4.7% 45.00 16.5% 4.61 Fishery 1.00 0.5% 20.00 7.3% 20.00 Flushing 2.00 1.0% 15.00 5.5% 7.50 Peak Hour Load 9.51 4.6% 0.00 0.0% - Total 207.49 100.0% 273.00 100.0% 1.32 (Unit: m3/s) Figure 2. Citarum Basin Water Demand Projection (PJT-I1, 2002) 300.00 - Irrigation .W - Industry . 'DrinkingWater -X-Fishery - Flushing Peak Hour Load| 250.00 Total i 200.00 E -- - - _ ------X 150.00 IE a8 100.00 50.00 0.00. 1990 2025 Year 4. Water Shortage and Sufferings 4.1 Shortage in downstream reaches of irrigationsystems It has been confirmed that water shortage is more severe downstream in the both basins as has been said everywhere and there is a situation in the Brantas that while upstream farmers grow paddy, options of downstream farmers are narrowed and forced to grow other secondary A-13 a)-3 5. Conflicts According to the officials at East Java Provincial Water Resource Management Office, conflicts between farmers are more visible, especially when farmers upstream grow paddy three times per year. It is also heard that illegal water abstraction (breaking rotation rule) by farmers is in place. In de facto situation, water shortage is not equally shared among farmers as downstream farmers are suffering more. The officials in East Java further told that conflicts over water usually take place within district territory. Farmers downstream would not go beyond the district boundary up along the secondary canal for claiming unfairness on water abstraction. Also the point indicated by the government officials and farmers interviewed are the fact that there is no adequate place to make complaints against unfair water abstraction over district boundary. As for inter-sectoral conflicts, from farmers' point of view in the both Brantas and Citarum basins, it seems for them to make complaints against industry is more difficult unless they are firmly united as federation. In the Citarum basin a committee member of Wanir water users. association federation told that water pollution by industry is current issue to protest, but it was difficult for them to carry out the protest activity due to high expenses of logistics for it. The interest of farmers, however, does not always clash with industries. There was an incident in Mojokerto district in the Brantas basin that when a plan to build a factory in the area came up, farmers adjacent to the site were rather supporting the plan because it would give them job opportunity. Some of the farmers interviewed in the Citarum basin also said that they could not really oppose industry, since their family are working in the factories and giving subsistent support to their living. 6. Current Practice of Securing Water To secure water to maintain the products of each water user, there are several ways to secure water taken by water users. What was found through the field survey and described here from economic point of view is 1) to find alternative water resources other than surface water, such as groundwater and drain water, and 2) Improvement of efficiency, and 3) negotiation between water users for water reallocation. Interviews to stakeholders in the both two basins revealed that there are informal negotiations among water users, and inter-sectoral and intra- sectoral water reallocation during water shortage period in dry season. A-13 a)-6 5.1 Alternatives to Surface Water There are alternative water resources to surface water such as groundwater and re-use water. Groundwater is commonly used by industry in the Brantas basin, but not all the factories are equipped with well constrained by cost. As for the upper Citarum basin, the aquifer of groundwater is as deep as more than 100 meters and therefore, it is not physically and economically feasible for most of the industries and PDAM to drill the deep well. It is also reported that in the upper Citarum basin, water quality of the groundwater is not satisfactory swelling the groundwater development cost. According to the officials at Provincial Water Resource Management Office in East Java, the use of groundwater for irrigation is not significant in the Brantas basin. Instead, there is a case that some farmers re-use drainage water by pumping. The officials of West Java Provincial Water Resources Management Office also told that during water shortage period, the office rents out pump sets to farmers especially located downstream to re-use drain water, though the effect of the pumping re-use water is not so significant. 5.2 Improvement of Efficiency Improvement of irrigation efficiency is mostly expected from tertiary level of irrigation systems. Irrigation facilities are owned and maintained by the government up to secondary canal. The facility improvement up to secondary level has been advanced, while most of tertiary canals have left unlined. According to the empirical investigation by West Java Provincial Water Resources Management Office, it is estimated that the expected efficiency improvement from primary, secondary and tertiary levels are 10%, 10% and 25% respectively. To increase, however, efficiency from primary and secondary levels need to costly and elaborate technology like installing pipeline system, but for the tertiary level, canal concrete lining or wet masonry work can increase the efficiency ratio to such extent. Industries are aware of saving water and installment of recycling system mainly for cooling use is a countermeasure for saving water, which is even obligated by the government. But there is constraint for small-scale factories to install such expensive recycling system. As for PDAM Kota Bandung, current loss of water as a whole system is 54% and they target to reduce the loss up to 30% toward year 2010 (see Table 7.4). They also apply progressive water tariff system to give saving incentive to customers (see Table 7.5). They classify the water consumers according to income level and type of uses as social use, household, shops and industry. The issues that the water tariff is decided by the central A-13 a)-7 government and hence the PDAM cannot decide their water tariff to cover O&M cost and also scrap up investment cost. Table 4. Progressive Tariff Structure of PDAM Kota Bandung (2001) Use Tariff Structure (Rp/m3) m 3 Social Household Commercial Industry IA IB IIA1 IIA2 IIA3 IIA4 IIIB IIIA IIIB IVA IVB 0 -10 560 560 560 700 875 1,050 700 1,050 1,400 1,750 2,100 11-20 560 560 875 1,225 1,400 1,750 1,225 1,750 2,100 2,450 2,800 560 875 1,225 1,750 2,100 2,625 1,750 2,625 2,975 3,325 3,675 21 -30 25 Above 30 560 1,225 1,750 2,450 2,975 3,500 2,450 3,500 3,850 14,375 Note: IA - IVB classifies users according to use and income level Source: PDAM Kota Bandung 5.3 Negotiation for Water Reallocation In the Brantas basin, WUAF Sumber Lancar Jaya in Mojokerto district is practicing rearrangement of rotation in a situation of water shortage. When there is water shortage, farmers concerned discuss rotation appointment to be changed. In normal situation rotation is three days interval among the tertiary canals, but when there is water shortage, it changes to daily interval. There are 12 WUAs under the federation and they will decide the change of rotation in the Federation meeting. Change of rotation is fully decided by the WUAF and the government is just reported about the change. There is also a case of water reallocation between irrigation systems in the Brantas basin. Pehngaron irrigation system in Mojokerto district is receiving lOOVsec during dry season from Bacem Irrigation System located upstream reaches of Pehngaron to mitigate water shortage. This arrangement is coordinated by the district office and there is no compensation given to Bacem Irrigation System. In the Brantas basin, negotiations between the provincial / district office and factories (paper factory, sugar factory), or between farmers and factories have been taking place informally to solve an emergency water shortage, which occurs in spots in a short period during dry season. Industry is not always successful in getting water by the negotiations as the sugar factory and paper factory had to slow down the operation last year. According to the cases collected by the interviews, there was no clear statement on compensation as the result of the negotiation, but it could have been the case that some kind of compensation was compelled to settle the negotiation. As for the cases in the upper Citarum basin, The above article (Bruns and Meinzen- Dick, 2000) about Ciwalengke (Wangisagara) irrigation system describes how industry acquires A-13 a)-8 water to meet their demand, which are apart from legal permits, industry are informal ways of getting water from farmers. In the upper Citarum basin survey we tried to confirm the existence of such practice, that are: * Buying and renting farmland to get water * Cooperation with farmers in maintaining irrigation canal * Rotation of water between farmers and industry (morning for industry and evening for farmers) In the Citarum basin, the sub-team interviewed two personnel of textile factories located in Wangisagara irrigation system in Bandung district, one of whom is the chairman of industry association in Bandung capital. They said when there is water shortage in dry season, they corporate with farmers. They agree with farmers to arrange rotational use of canal water. They agree with the rule that farmers take water at evening and factories take water from morning to evening. This arrangement was mutual agreement between farmers and the factories and the district officer is just to approve it. It is, however, heard from farmer side that industry does not follow the rotation rule and take water even during evening when farmers have their turn to use water. Also industry could get water from farmers as exchange of giving services to farmers. Industry pay 0 &M cost of secondary canal and also they maintain or rehabilitate canal at their expenses. They said cash contribution to farmers for giving up their water is little but mainly paid by services. This mutual cooperation is also confirmed from farmer side. The water giving up to industry from farmers is not excess water since this arrangement is practiced during dry season. Surrender of some extent of water might have caused reduction of harvest to the farmers, but the chairman of the industry association said that the farmers have never appeared with complaints. The chairman of the industry association explained that family members of the farmers are working in the factories, so that the maintaining of operation of the factory is also their concern. Textile industry has long history in the area, as textile industry was established in Wangisagara area in 1940's. In 2003, there are 27 textile factories taking water from Citarum river or Ciwalngke river /canal 5. Farmers have been seeks job opportunity of factory work, but for recent four years, the growth of textile industry is stagnant or even getting worse, some of the factories are even 5 West java Provincial Water Resource Management Office, List of License Holders, Dec. 2003 A-13 a)-9 week. bankrupt, so that working days of factory labor has been cut to three to four days per to Declining of prospects for off-farm job opportunity would again shift farmers' interest group to fanning and that will make industry difficult to get current agreement with fanner secure water and they might violate the allocation of water to their permit and irrigation. this As for the case that industry was buying or renting land just for getting water, liter/s/ha, if practice was not reported from the interviews. Provided paddy crop needs one permits of industry buys or rents 1Oha, they could get 101/s of water, which is close to average water resource the textile factories in Wangisagara irrigation system. However, the chief of use will be division at Bandung District told that to selling or buying farmland to shift the land appraised very difficult, since such transaction with the change of land use requires permission and by a team organized by the board of land, agriculture office, public works (Kimpraswil), head office of Bandung district. A-13 a)-10 Annexu a -- 1 3- b) We V a Annex 13-b) Water Valuation I Annex 13 b) WATER VALUATION AND SENSITIVITY ANALYSIS 1 Value of Water 1.1 Introduction In Brantas and Citarum basins, with the limited potential of further development of water resources and increasing demand especially from industry and municipality sectors, water reallocation with compensation among water users has come up as an issue to consider for efficient water use and economic growth of the nation. The Study team evidenced informal water reallocation between water users on the ground in the two basins. If there were an authorized reallocation of water and consequent exchange of compensation, how would the compensation rate be determined? In this Annex, we try to guess the value of water from observable data, which would be the basis of compensation rate for formalized water reallocation. The analysis of determining compensation rate requires attention to three distinct albeit related concepts: the cost, price and value of water, respectively. The cost of water refers to some measure of realized expenditures for storing, controlling and managing water resources as required to make such resources reliably available for various uses, expressed on a per-unit basis. Such expenditures are incurred, for example, in the construction of dams, weirs and intakes; river improvement works and irrigation networks, and in maintaining and operating such works. The price of water is also a financial concept, the actual tariff charged to various users of water on a comparable per-unit basis. The value of water is an economic concept, typically the average (or marginal) value product of a unit of water in its most profitable use or value of irrigated land on which the value of water is capitalized. The price and cost of water, respectively, can in principle be observed directly and/or derived from financial data, including project documents. The value of water, by contrast, must be estimated or imputed, since it is seldom (if ever) the case that farmers bid for water under competitive market conditions involving other economic sectors. Here with available data, following concepts are discussed. (1) Cost and Price of Water as Wholesale (2) Efficiency Improvement Cost (3) Benefit per unit of water A13 b)- 1 1.2 Cost and Price of Water: PJTs are responsible for managing basin water and delivery of bulk water to users. PJT as wholesaler, charges bulk water fee from the users, which is defined as wholesale price of water. Water charge of bulk water to municipality and industry needs to be approved by Provincial Governor based on recommendation of a inter agency committee and the charges are revised every two years. Hydro-power water charge from PJT-I to National Power Corporation (PLN) is approved by the Ministry of Finance. Even without considering capital investment, ideal tariffs based on properly implemented O&M cost (operational cost recovery level) are already over the current water charges according to the estimations by both PJT-I and PJT-II. PJT-l quotes the situation in 2001 on its study report' saying that a few of O&M activities had to be canceled due to short of water tariff collection. Tables 1 and 2 show the actual tariff and ideal tariff level estimated in PJTs. PJT4II data shows both operational cost recovery (O&M cost recovery) and full cost recovery, which includes capital cost. It shows that full cost recovery level in PJT4I reaches Rp 200/m3 as for the water cost of PAM Jaya, the cooperation delivering municipal water to Jakarta. Since PJTs do not levy water tariff from irrigation sector (also flood control and maintenance flow), policy of cross-subsidy is considered, that is, other municipal and industrial users pay tariffs in excess of fair share levels in order to eliminate the need to charge farmers. The tariff study carried out for PJT-I in 2002 examines the cases of ideal tariff to each sector without cross-subsidy and with additional load to power, municipality and industry as it is shown in Table 1. The cases with additional load, cross-subsidy, to the above three sectors are examined with adding charge borne from 25% to 100% of costs which are supposed to be borne by other sectors like irrigation. 1 "Comprehensive Proposal for Water Resources Financial Management (Usulan KomprehensifPembiayaan PengelolaanSumberdaya Air Di Wilayah Sungai (WS) Kali Brantas)", Jan 2002, Tariff Evaluation Team, Ministry of Resettlement and Infrastructure A13 b)- 2 Table 1 Actual Water Tariff and Cost Recovery Study (Brantas) (Brantas Basin: Study in 2002: Operational Cost Recovery Level) Actual Tariff Operational Cost Recovery Level (WI and W/O Cross-subsidy) Sector Unit 2002 W/O Subsidy W/Subsidy 25% WI Subsidy 500/o W/ Subsidy 1000/o Power Rp/kwh 18.5 33.07 35.40 37.73 42.39 Irrigation Rp/ha/yr - 85.66 Municipal Rp/m3 45 84.98 90.97 96.95 108.92 Industrial 3 Rp/m 80 179.57 183.45 195.52 219.66 Flood Rp/ha/yr 28.28 1 1 Maintenance Rp/m3 14.94 1 1 Source: Comprehensive Proposal for Water Resources Financial Management, Jan 2002, Tariff Evaluation Team, Ministry of Resettlement and Infrastructure Table 2. Actual Water Tariff and Cost Recovery Study (Citarum) (Citarum Basin: Data from PJT-I1: Operational Cost Recovery and Full Cost Recovery Levels) 2003 Sector Unit Actual Ideal Power Rp/kwh 115 166 (200) Irrigation Rp/ha/yr - - PAM Jaya Rp/m3 80 165 (195) Municipal Rp/m3 40 65 (115) Industrial Rp/m3 50 65 (115) Source: PJT-I1 Note: Ideal = Tariff necessary for Operational Cost Recovery Level, ( ) = Full Cost Recovery Level 1.3 Water saved by irrigationefficiency improvement There is a key issue that if farmers gave up paddy cultivation to obtain compensation, it would contradict national food security policy. Regarding this, the compensation rate which would be set for public transaction of water reallocation should not be high enough for farmers getting motivated to sell water, but the investment in efficiency improvement to create surplus water to return to basin operator should be awarded. Most prospective field of improving efficiency is tertiary level of irrigation systems. Though, it is very difficult to measure how much of water can be saved by improving water delivery facilities, by the empirical investigation of the West Java provincial water resources management office, it is considered that delivery efficiency of 25% can be improved by concrete lining of the tertiary canals. The average value of water by efficiency improvement is calculated as annual investment and O&M costs divided by annually saved volume of water. Annual investment cost is calculated applying cost recovery factor given with duration of the investment and discount rate. Assuming the O&M cost is annually equal, annual invest cost and consequent average value of water saved by the tertiary improvement is calculated by the following formulae: A13 b)- 3 S =P x i (1i) +M (,+d/ -1 Y- S/Q 3 Y: Ave. Value of Water Released by Tertiary Improvement (Rp/m /yr) S: Annual Cost for Tertiary Improvement (Rp/ha/yr) Q: Annual Saved Water (m3/ha/yr) P: Investment Cost at Present Value (Rp/ha) M: Annual Maintenance Cost (Rp/ha/yr) i: Discount Rate (%) n: Operation Duration (Year) Applying the numerical values below, the average value of water saved by efficiency 3 improvement is estimated at around 86 Rp/m , which is a little higher than the bulk water charge for industry by PJT. * Investment cost: US$ 260/ha or Rp484,809/ha (US$=Rp8,300) estimated based on standard concrete lining work. * Annual O&M: assumed 1% of Investment Cost: Rp5,530/ha/yr * Discount Rate: 17% (Average investment loan interest of 5 years at State Banks: Source: Economic Indicators 2002 Oct. BPS) * Duration of investment: 10 years (Standard) 3 * Volume of water saved by tertiary improvement: 5,609m /yr (Average of the Brantas and Citarum basins: data from East and West Java provincial water resources management offices) 1.4 Average Value of Water in Economic Use 1.4.1 Irrigation The mean gross and net values of water, respectively, in irrigated agriculture are estimated from data on crop-profit analysis and water requirement. For crop-profit analysis, we applied the IFPRIVCASER 2000 sample survey of 480 farm households within four major Brantas irrigation systems (Sumaryanto, et al., 2002)2. This data are compared to production Area of 2 Sumaryanto, Masdjidin Siregar and Wahida M, 'Socio Economic Analysis of Farm Households in Irrigated Brantas River Basin', "Irrigation Investment, Fiscal Policy and Water Resource Allocation in Indonesia and Vietnam, Country Report Indonesia, Chapter 7 (P557 - 661), ADB (RETA 5866) A13 b)- 4 cost survey data collected in the Provincial Agriculture Office in East Java. As the table below shows the results of both survey are fairly consistent. Also crop production cost survey data collected in West Java provincial Agriculture Office was used for the analysis. The mean value of water is calculated for irrigated paddy by dividing net returns in Rp. per hectare by estimates of field-level water requirement in cubic meters per hectare. Estimated water values in both Brantas and Citarum basins are summarized in Tables 7.9 and 7.10 below. Two measures of water value or crop water requirement are estimated as gross value, which includes effective precipitation, and net value, which applies to supplemental irrigation only. The data for crop water requirement were collected from provincial water resource management offices and FAO database was used for obtaining effective precipitation in Surabaya and Bandung. Gross water requirements for paddy cultivation at field level are 11,000 - 12,000 m3/ha It is estimated that irrigation water has an average value of Rp. 200 - 500 per m3 for paddy approximately. These are observed to be a full order of magnitude higher than the estimated full cost recovery prices charged to respective sectors by PJTs. One clear implication of this disparity is that volumetric tariffs set at or near cost-recovery levels are unlikely to alter levels of consumption dramatically, as values greatly exceed costs. Table 3. Estimation of Average Value of water of Unit Product (Paddy, Brantas) Brantas Basin (East Java) Gross Production Net Income Gross Gross Net Water Net Value Source Season Income Cost Water Value I______ooo000 Rp/ha 000 Rp/ha m3/ha Rp/m3 m3/ha 1 2000 Dry 1 7,700 Rp/m3 4,608 3,092 11,059 280 7,806 396 1 2000 Dry 2 7,360 4,873 2,487 11,059 2 2003 225 8,563 290 Dry 11 6,463 3,930 2,532 11,059 229 8,563 Average(dry) 7,174 296 4,471 2,7041 11,059 244 8,311 325 Source: 1 IFPRI/CASER Farm Sample Survey (2000) (No. of Sample = 480) 2 Dinas Pertanian Jawa Timur (East Java Provincial Agriculture Office) 2003 Water Requirement: Estimated by the data from East Java Provincial Water Resources Office and Effective Rainfall in FAO database 2000 Prices are adjusted to 2003 by Commodity Price Index of Rice to Income and Index of Prices Paid by Farmers EastJava (Source: Economic Indicator, Oct. 2003, BPS) Table 4. Estimation of Average Value of water of Unit Product (Paddy, Citarum) Citarum Basin (West Java) Gross Production Net Income Gross Gross Net Water Net Value Condition Season Income Cost Water Value 000 Rp/ha 000 Rp/ha 000 Rp/ha m3/ha Rp/m3 m3/ha 2003 Dryl 7,763 Rp/m3 3,478 4,285 11,858 361 8,168 525 Upland 2003 4,600 2,250 2,350 11,858 Average(dry) 198 8,168 288 6,1811 2,864 3,317 11,858 280 8,168 406 Source: West Java Provincial Agriculture Office Water Requiremrent: Estimated by the data from West Java Provincial Water Resources Office and Effective Rainfall in FAO database A13 b)- 5 1.4.2 Industry Industrial water use would probably not expand significantly even if the price of bulk water to industries were reduced, since current demand levels reflect technical characteristics and capacities of water-using plant technologies, the efficiencies of which have recently been improved. This assumption was vindicated to some extent via field interviews conducted in the Brantas basin. Two of three plant managers interviewed (food industry and paper) confirmed that current levels of water use were not price elastic, but rather reflect internal technical factors, although the sugar processing facility does not follow this pattern. The mean value of water for industry differs by type of products, capacity of processing facilities, quality of water etc. Here we estimate an example of mean value of water for sugar production obtained from the field interview in the Brantas basin. Sugar industry has been historically dominant and still major water users in the Brantas basin. The case is of a sugar factory located in the Brantas delta. Following are the estimation basis: 3 Water demand: 449,280m3 /month (permit: 2001/s (518,400m /month)) Production: 16,300t/year (average) 3 Water demand per production: 165.4m3/t (0. 165m /kg) 3 Ave. cost of water: Rp 35million/month or Rp 68/i (based on PJT-I water charge) Price of sugar: Rp 3,100/kg at factory gate Income sharing with contract farmers: 35% to factory (Rp 1,085/kg) From the basis above, Figure 1. Range of Indicators implying Water Value is Ta (Munipaliy PJT-) cost of water per unit product 600( afl(ucpn J4 estimated at Rp 1 1/kg, which 1 2 Tarditf(Industry PJT-11) 3 Tariffl(Municipality PJT41) counts 0.35% to the gross 500 - 4 IdealOperational Cost Recovery Level(Industry, PJT91) 5 IdealOperational Cost Recovery Level (Municipality. PJT91) 6 TanttOndustry PJTvu y revenue of one kg product at I IdealOperational Cost RecoveryLe l IuncatyPT) 400 BWater Releasedby TertiaryImproverent factory gate price, or 1% of 9 Sealt2p..-onl Cue ReceunyLe"i vr5rOnu-edM&Y lMrustpy, PT4 share of the factory. 10 FullCost Recovery Level(IndustryPJT-5) income E 300 11 FullCost Recovery Level (Municipality PJT-ll) Therateindie tt12Ideal Operational Cost Recovery Level (Industry, PJT-9) The rate indicates that the cost 13 Ide Oper-inal Cot Rcovery Levelal, Cs-sbdy (bdtrny PJT-) 14 AverageValue of Water of PaddyProduction (Ave. of TwoBasins) of water is very low to the 200 15 Average Valueot Water ol SugaroPmeosing(Sample) industry. However, it should be taken account that degrading 100 _ water quality would force I S factory to install intake water 1 2 3 4 5 6 7 B 9 10 11 12 13 14 15 A13 b)- 6 treatment infrastructure as well as effluent treatment leading to increase of cost of water. Average gross value of product per unit water is calculated by Rp3,100/0.165m 3, and it arrives 3 at Rp 18,788/m . Profitability of sugar fluctuates every year due to risks of international market, foreign exchange rate, weather, etc. Here provide net profit ratio of sugar product is on average 3%, the average net value of product per unit of water counts at Rp 564/m3, which is higher than irrigated agriculture. 1.4.3 Range of Water Value As roughly estimated above, the value of water varies by use and viewpoints, but it showed the 3 3 ranges from Rp 20/m to Rp 560/m in different use and process of water used (See Figure 1). Difficulty 3 is to measure marginal value of water . If there were ample of water like during wet season, marginal value of water or user's willingness to pay could be zero and higher bound of the value of water would be restrained with the profitability of irrigated agriculture and industries. The value of water differs by occasion and therefore, estimating compensation rate in case of reallocation occurs would have to clarify the condition on which the reallocation takes place. Conditions are occasional water availability, use of water, production cost of water, profitability of water by location, natural, social condition etc. 2. Sensitivity of Water Transfer to Economic Factors in Irrigated Agriculture 2.1 Introduction An analysis of the sensitivity of trade levels to agricultural economic factors including costs of production, productivity and producer prices; changes in land use, opportunities for earning income off-farm, and transactions costs invariably associated with transfers. The cost, value and price of water in irrigated agriculture, respectively, and in competing uses are described. The analysis is based on survey and secondary data on production, productivity (yield), costs of production and producer prices. Emphasis is placed on trends in net profitability of important irrigated crops, which are critical variables in projecting the extent of water trade. A sensitivity analysis of water trade levels is performed with respect 3 The marginal value of water is considerably more difficult to assess. In theory, the marginal values, equivalent to the derivatives of the total value product with respect to a unit change in water supply, could be obtained as shadow prices dependent on the crop-water production function, which would, however, obscure the roles of numerous "real world" factors influencing the marginal value of water in actual irrigated cropping. These include location, soil characteristics, crop stage, stochastic behavior of rainfall (Perry, C. J. "Charging for Irrigation Water: The Issues Options with and a Case Study from Iran", IMWI 2001). In this study, the marginal value of water was, considered. therefore, not A13 b)- 7 to commodity price levels, costs of production and tariffs (willingness to pay) in competing sectors. 2.2 Sensitivity analysis A sensitivity analysis was performed which examines the likely extent of economically- induced water transfers under a range of assumptions concerning microeconomic and macroeconomic factors. These factors include the producer price of paddy, the cost structure of paddy production, the opportunity costs of family and hired labor, the price at which water could be sold between or across sectors, and a range of administrative, legal and information- related costs collectively referred to as transactions costs. Paddy producer prices reflect a range of factors, including the price of rice traded in international markets (currently set primarily by low-cost regional exporters Thailand and 4 Vietnam); Indonesian government polices including the aggressiveness by which BULOG defends floor prices and the extent of border control mechanisms, and local supply effects. The costs of production are dominated by land rents and the cost of hired labor, and by the costs of purchased inputs, Nitrogen fertilizer being the most significant. The opportunity cost of labor is influenced by the proximity of the farm community to urban labor markets and the unemployment rate in those markets. Water sale prices are set and/or constrained primarily by official water tariff rates (in the Brantas, established by Perum Jasa Tirta 1) and by the relative scarcity of water, in turn a function of season, climate and the basic framework of demand. Transactions costs are, in the context of this analysis, essentially unknowns, although they are clearly positive and potentially significant, depending critically on the statutory requirements and limitations on water transfers and the presence and effectiveness of information coordinating mechanisms or institutions. The basic model described here assumes the following: (i) Water transfers are permitted by law, either as private transactions or, more reasonably, as government-brokered trades; (ii) potential trades do not conflict with the statutory structure of use rights, permits and/or priority of rights; (iii) transfers are motivated and justified by economic opportunity; and (iv) trades are restricted to the Dry Season (May-October, approximately) since water is unlikely to be sufficiently scarce during the wet season to motivate transfers. In this simplified exercise, would set a floor 4 Bureau of Logistics, which is the state-operated rice buffer stock program. Historically, BULOG price for paddy, and would be prepared to purchase rice if the market price fell below this floor. Similarly, BULOG would release rice to the wholesale market if wholesale prices got too high. In recent years, BULOG has not been functioning in exactly this way. A13 b)- 8 --______- ' - I farmers (or farm communities) are assumed to face two basic choices: they can cultivate paddy for profit, or they can forego cultivation and sell (or more properly lease) their water use right- based allotment to other parties and sell their labor in regional labor markets. By taking the latter course, they avoid the ordinary costs associated with paddy production. It is not assumed that they are able to derive income from the lease of their lands, since irrigation water would not accompany the land under the scenario described. The expected return from each option determines the farm community's choice. The data supporting the analysis was collected in 2000 as a component of the IFPRI/PJT/CASER Brantas study described in Rodgers, et al. (2003)5. Recall data for the 1999- 2000 cropping season was collected from 480 farmers in the Brantas Basin, 40 each from 12 tertiary blocks stratified within the four major Brantas irrigation systems Lodoyo-Tulungagung (upper Basin), Mrican Kanan and Mrican Kiri (middle Basin) and Brantas Delta (lower Basin). The 480 farm families collectively cultivated 610 plots during the Dry Season of 2000. Basic accounting of revenues and costs for these 610 plots is summarized in Attachment of this chapter for a farmgate price of Rp 900 per Kg of GKS paddy. It is observed that at this price, the approximate sample mean for the survey period, net returns per hectare of Dry Season paddy are around Rp. 2,580,000. This estimate ignores the costs associated with land rental, since sample farmers are primarily (but not exclusively) owner-cultivators, and treats the (opportunity) cost of contributed family labor as a return to management rather than as a cost of production. The variation within this sample of 610 plots with respect to yields, costs of production and family labor intensity provides the basis for the sensitivity analysis. The variation in net returns to paddy cultivation per hectare is depicted in Figure 2. Figure 2. Sample Distribution of Net Returns to Paddy Cultivation, Brantas 2000 18.00 16.00 ______- 14.00 ______ 110.00 _ - _ _ . _ . . _ 8.00 - 6*.00 ------ 4.00 - -- -- Rp/Ha Not 5 Charles Rodgers, Claudia Ringler and Mark Rosegrant, "Irrigation Investment, Fiscal Policy and Water Resources Allocation in Indonesia and Vietnam. Final Report prepared for ADB and IFPRI", Oct. 2003 A13 b)- 9 In the sensitivity analysis, we examine variation in three factors that influence the relative profitability of paddy cultivation, and hence the extent of water trade: (1) the producer price of paddy, (2) the opportunity cost of family labor and (3) the potential sale price of water. As transactions costs are ignored in the analysis, the extent of water trade is most likely biased upward. The sample suggests a distribution of net profits per hectare as influenced by all factors affecting costs and returns, including yield and the use of purchased and family inputs (Figure 7.4). A farmer (or plot owner) is assumed to prefer water sales to cultivation if the revenue (s)he earns from the combined sale of family labor and water exceeds the net profit from cultivation. The extent of family labor in man-day equivalents is known from the farm sample survey. Family labor is assigned a relative value expressed as a fraction of the effective or shadow value of that labor applied on-farm. The hired labor wage was used as the shadow value of family labor. In the sensitivity analysis, off-farm opportunities were varied between 50% and 120% of the value of family labor on-farm (100%). The amount of water each plot could sell was calculated using the relative polowijo factor (LPR) method used by East Java Provincial Water Resources Management Office. The LPR method will not be described in detail here, beyond noting that water demand is calculated through a correspondence between an actual cropping pattern and the equivalent hectarage of a polowijo, or secondary (irrigated, dry-footed) crop such as maize, soybeans or groundnuts. In 3 this analysis, the irrigation demand for dry-season paddy is calculated at roughly 15,000 m /ha in the dry season. Calculations appear in Attachment of this chapter. The range of prices at which this water might be sold is suggested by the actual pattern of water tariffs prevailing in the Brantas Basin. These tariffs are currently Rp 40/m3 for municipal (PDAM) and roughly Rp 80/m3 for industrial customers, respectively. Feasible water sales prices were assumed to take on a range from Rp 10/m3 to Rp 100/m3. Producer prices (GKS) averaged roughly Rp 900 per Kg at the time of study (2000). Observed prices reflect, among other factors, the distorting influences of a range of Indonesian government policies, some deliberately targeting producer prices and some influencing them inadvertently. Among the former are BULOG price support levels, border controls and the current import tax of Rp 435 per kg. The likely level of producer prices in the absence of distorting factors is extremely difficult to determine, but it is likely that equilibrium producer prices are below Rp 900 per Kg, possibly in the range Rp 750 to Rp 850 per Kg. In the sensitivity analysis, we examine a range of prices from Rp. 750 to Rp 1,200 per Kg, which approximates the range of producer prices reported by our sample respondents. The results of the sensitivity analysis are summarized in Figure 3 (off-farm income 3 opportunities and water prices, (paddy prices assumed Rp 900 per m )) and Figure 4 (paddy A13 b)- 10 producer prices and water prices, (off-farm wage opportunities at 100% of on-farm wage)). It is observed that when opportunities for off-farm income are restricted, so that farm families can only expect to earn, on average, 50% of their implicit farm wage through off-farm wage labor, only a minority finds it profitable to become wage laborer/water sellers. Even when water can 3 be sold at Rp 100 per in , only 30% of plot owners are better off selling water and labor. However, if off-farm earning potential is equal to implicit on-farm family wages, roughly 23% of farmers are better off as water sellers at water prices of Rp 40 per m3 (the current Municipal tariff) and 45% are better off at Rp 100 per m3 , assuming paddy producer prices of Rp 900 per Kg. The extent of trading is even more sensitive to variation in paddy producer prices. At low producer prices (Rp 750 per Kg), over 25% of farmers are better off as water sellers, even at 3 water sale prices as low as Rp 10 per m . If water can be sold for Rp 100 per in3 , over 2/3 of farmers find it more profitable to sell water and labor than to farm paddy. However, at high producer prices (Rp 1,200 per Kg), only 16% of farmers would choose to sell water, even at Rp 3 100 per m , and at more realistic prices of Rp 40 - Rp 75 per m3, less than 10% find it more profitable to sell than to cultivate. It should be noted that over 3 % of our sample farmers will always find it more profitable to sell water and labor, since they are losing money, at least at Rp 900 per Kg paddy. Figure 3. Extent of Trade with Respect to Water Price and Off-Farm Income Opportunity 5. 0 20% o 20.00 - 40.0% ~ ~ ~ ~ ~ ~ ~ ~ ~ -0. O-ar ae 100 90- 80 7605400.6 08° WaterPricep 3 30 0 .5 5.I I I % Al3 b)- 11 Producer Price Figure 4. Extent of Trade with Respect to Water Price and Paddy 70,0% Au 6a50.0%0.0% -- 0.0% 0.0%'- O- N O _~ Prod. Price RplKg Water Price RpM^3 ap,sOLo 0 OKP and The sensitivity analysis demonstrated here revealed what kind of economic factors to others or use it for how strong they are influencing farmers deciding whether to release water demonstrated in growing paddy. It should be remarked that the strength of economic incentive value or price of the analysis does not mean that water transfer would immediately take place if incentives but water is assigned, since farmers would not make decision only with economic circumstances of consider cultural value and morals. The analysis just indicates the economic irrigated agriculture under the on-going urbanization and industrialization. A13 b)- 12 r l l l l l l l l l l l l | | | | | | | g | g | S | | g | - Annex 14 Institution and Legal Analysis i I Annex 14 a) REPORT OF THE INSTITUTION AND LEGAL TEAM (ILT) ON BRANTAS AND CITARUM RIVER BASIN FIELD TRIPS The ILT spent three and half days in the Brantas River Basin and five days in the Citarum River Basin. In East Java, the team met with: 1. PJTBrantas(PJTI) 2. Provincial Dinas Pekerjaan Umum-Pengairan 3. Balai PSDA WS Buntung Paketingan 4. District Dinas Pekerjaan Umum-Pengairan, Kabupaten Sidoarjo 5. PDAM 'Delta Tirta' Sidoarjo The team also observed a PCM workshop at Tempel Village, Krian Subdistrict, Sidoarjo. In West Java, the team met with: 1. Jasa Tira I (PJT1I) 2. Provincial Dinas Pengairan 3. Balai PSDA WS Citarum 4. Provincial Badan PengendalianLingkungan Hidup Daerah (BPLHD) 5. PDAM Kota Bandung 6. District Dinas Pengairan, Kabupaten Bandung 7. District Dinas Lingkungan Hidup, Kabupaten Bandung 8. Chairman of Industry Association of Bandung 9. Chairman of a WUAF from Wangi Segara irrigation system In Bandung, the team also visited two offices concerned with groundwater, namely: 1. National Departemen Energi dan Sumber Daya Mineral and 2. District Department Sumber Daya Mineral, Kabupaten Bandung. There were a number of investigations that were not possible due to shortage of time. It was not possible to collect records of meetings of the PTPA or PPTPA or to meet with members of the committees. The team did not visit offices responsible for decentralisation. In East Java, the team did not visit the environmental management agencies or agencies responsible for groundwater. A14 a) -1 The following account will outline the findings from discussions in each province under the following headings: A. East Java B. West Java C. Groundwater D. Summary of findings A. EAST JAVA 1. Perum Jasa Tirta I - Brantas River Basin The ILT met with expert staff Pk. Eddy and Pk. Barsono. The team was later joined by Pk. Tjoek Walujo Subijanto (Director of Operations) and Pk. Raymond Valiant (Bureau of Quality Management). Key issues: o PJTI are only able to meet 50 percent of the optimal operational and maintenance expenses and rely on deferred maintenance. They do not receive a government subsidy for O&M. Dams are owned by central government. o Each customer signs a contract with PJTI for access to raw water. There are different contracts for the different kind of users eg: hydroelectric power, PDAMs and industry. The contract is conditional on the user having a licence with the Provincial Dinas. o There are overlapping roles between PJTI and Balai in water resources management, which creates uncertainty. PJTI have been given a strong role in water resources management but has only implemented this role in a limited way related to water quality. There is no external audit PJTI's water resources management. River flows are determined by the PTPA. o PJTI mixes a service provider function with a regulatory function. The team was informed that contracts for service provision include wastewater discharge conditions, which are monitored by PJTI (although none of the copy contracts provided contained such terms). o It is possible that in the future PJTI will also manage groundwater on receipt of a transfer of authority from the Ministry for Mining. It was not clarified exactly what it will involve. o Longer-term security of supply is seen as an issue by PJTI. According to PJTI, the Brantas River is in a crisis situation as by year 2020 it will need two new dams to maintain water supply. They are focusing on demand management and the promotion of efficiency. PJTI can only generally provide 80 percent' of the farmers' need for irrigation The estimation of water availability is 80% of effective rainfall within the basin. A14 a) -2 water (according to targets set by the Department of Agriculture) and in times of water shortages (such as in 1997) they can only meet 50 percent of the need. o The understanding of PJTI is that the new Water Resources Act prohibits transfers between users without the involvement of government. They have considered the option of allowing farmers have a quantified right to water so that in the event of a water shortage they are entitled to compensation as long as it is used to manage the irrigation system. This solution would avoid criticism that water user right transfers will expose farmers to commercial exploitation by economically powerful interests. 2. Provincial Department of Public Works - Irrigation (Dinas Pekerjaan Umum -Pengairan Propinsi) 2.1 Data and Research Section The ILT visited the Data and Research Section (Seksi Pendataan dan Penelitian) of the Sub- Directorate on Water Resources Use (Sub-Dinas PenatagunaanSumberdaya Air) and met with the head of the section, Tbu Endang Wasiati and officials from her section. Tasks and functions: The Sub-Directorate on Water Resources Use is concerned with coordinating the formulation of guidelines for water resources use. They also carry out surveys, research and studies. They draft guidelines and technical standards and report on the outcome of water resources use. The Data and Research Section is concerned with the collection of data and material and research for the drafting of guidelines on water resources use. Key issues: o Their office was not consulted in the national water law reform program in a systematic way. They consider that there was a lack of transparency in dealings between the national and provincial government in developing water resources management program. o The Provincial Dinas relies on the Provincial Water Management Committee (Panitia Tata Pengaturan Air Propinsi) (PTPA) for coordination between the various sectors relating to water resources management. The PTPA is only required to meet twice a year. It may meet up to ten times a year; however, this level of frequency will be event-driven. o They do not consider longer-term environmental sustainability of the river system overall. O They have not considered procedures that may be involved in application of transferable water entitlement markets (TWE). The Provincial Dinas is dependant on managing through a supply-side approach, which has not considered transfer issues in terms of water use right but merely in terms of physical movement of water. They have not considered the implications of transfer of water from one side of the basin to another (resumption of a water right and relocation of that right). o They are of the view that there are not many disputes over water use. Conflicts are usually resolved by providing additional water. A14 a) -3 2.2 Provincial Department of Public Works - Irrigation (Dinas Pekerjaan Umum - Pengairan Propinsi) - Licensing Section The ILT visited the Licensing Section (Seksi Perijinan)within the Exploitation Sub-Directorate (Sub Dinas Manfaat) and met with Pk. Uki Basuki, Head of the Licensing Section. Tasks and functions: The Licensing Section is responsible for licensing all surface water users including the alteration of water resources infrastructure, use of land for water supply, land use change from irrigation to non-irrigation and technical recommendations for wastewater disposal. Key issues: o Licensing is kept up to date and well organised. This is possibly attributable to the fact that a licence brings in revenue for the Province. o Industry is not required to reduce intake in times of water shortage in the same way as irrigation farmers. There is provision within licences for reduction of intake by industry during water shortages but it is not clearly expressed. o Bulk water supply and irrigation allocation, delivery and regulation are separate. Industry gets a licence from the Provincial Dinas but they also obtain a guarantee of supply from PJTI. Where industry withdraws water from an irrigation system or canal there is potential for confusion between who is the provider (Provincal Dinas (through the Balai) or PJTI) and who is the user (Provincial Dinas or industry). o All licences are basically the same and adopt standard conditions. There is tailoring licence conditions the needs of particular users. o A user-pays system has not been introduced. Transaction costs (cost of processing the licence, technical assessment and monitoring) amount to a subsidy to the user. o There is no provision for notification or public participation in licensing decisions. As a result, farmers are not informed of an impending licence decision in an area that may affect their water use. 3. Water Resources Management Bureau - Buntung Paketingan River (Balai Pengelolaan Sumberdaya Air Wilayah Sungai (PSDA) Buntung Paketingan The Balai PSDA for the Buntung Paketingan River is one of nine bureaus in East Java, and three bureaus in the Brantas river basin, established within the Provincial Dinas in accordance with sub-basin boundaries. Its area of operations covers six district governments. The current role of the Balai is to carry out operational tasks in the field of water resources management. It has the primary role in water resources management including implementing community services, conservation and preservation of water resources, maintenance of water resources and water supply structures, control of floods and handling droughts and control of water pollution. The Balai operates the O&M for irrigation systems that straddle districts. The ILT met with the following staff from the Balai: A14 a) -4 Head of the Balai: Pk. Joko Adi Roso, Head of the Operation Section: Pk. Johan, Hydrology Section: Pk. Rustamadji and Water Allocation Section: Pk. Sujoko. Key issues: o The Balai is very aware of its capability limitations. They have deficiencies in human resources, technology and funding, which hinder their capacity to fulfil their tasks and functions and are currently seeking increased resources. The ILT was provided with a document dated December 2003 arguing for additional resources.2 o There are major changes afoot in the structure of Provincial Dinas, which is likely to affect the Balai. At present there is a process of national restructuring to reduce the number of Provincial Dinas through PeraturanPemerintah tentang Pedoman Organisasi Perangkat Daerah. This may mean that the role of the Balai is streamlined. The team was provided with an academic paper in response to proposed changes. o Arrangements for monitoring water use by the Balai in secondary canals are not in place and there is no self-reporting obligation. Responsibility for monitoring is shared between the PJTI, Balai, Department of Revenue and District Government; however, in reality only the PJTI monitors water withdrawals. There is an overlay of responsibility between PJTI and the Environment Agency (BAPEDALDA). No single authority has responsibility for monitoring levels of water use. o Responsibility for long term environmental protection such as the overall environmental condition of the river basin or biodiversity along and within the river has not been allocated. o The Balai from different sub-basins do not meet between themselves. 4. District Irrigation Department, Kabupaten Sidoarjo (Dinas Pengairan Kabupaten Sidoarjo) The ILT team met with Pk. Soejitno, Head of the Exploitation and Rehabilitation Sub-Agency. The Sidoarjo District is in a low-lying area close to the outskirts of Surabaya. Many people commute from Sidoarjo to Surabaya. It contains primary, secondary and tertiary irrigation channels. Some of the secondary channels straddle district boundaries and are therefore under the authority of the Province whilst others are contained within the boundary of the Sidoarjo District and are therefore under the authority of the District. Sidoarjo district has one big irrigation system, New Lengkong Irrigation system. The district is responsible for O&M of at least one secondary canal within the district. Another secondary canal (the Pelayaran Canal) is also used to supply PDAM Surabaya and, for this reason, is managed by the Province, with operational responsibility held by Balai. The role sharing between Balai and the District Dinas is arranged as follows: 2Memori Balai Pengelolaan Sumberdaya Air Wilayah Sungai Buntung Peketingan, Surabaya, Desember 2003 A14 a) -5 o The primary canal, from the headwork to the secondary diversion point and the service canal is the responsibility of the Balai. o The other secondary canal is the responsibility of District Dinas. Key issues: o Institutional boundary arrangements have created problems in identifying accountabilities. Routine O&M for the Pelayaran Canal is considered the responsibility of the Balai. However, the Balai is short of funds and does not recover the cost from the PDAM. Even though PJTI has a supply agreement with the PDAMs, PJTI is not responsible for O&M in the secondary canals.3 o The District Dinas does not play a role in regulation. Where a canal begins and ends within the district, the province still carries out licensing. Up to year 2000, the District Dinas played a stronger role in licensing as they submitted technical specifications to the province. Since year 2000, it has only participated in a joint meeting at Provincial level to check and approve licence documentation. o The District Dinas does not have a defined role in water quality control; requirements to notify the provincial BAPEDALDA of a pollution incident are non formal o There are formal and informal arrangements for WUAs. The 5 WUAF for secondary canals systems only cover 20 percent of users. Where farmers take direct from primary canals there are ad hoc WUA. o Urbanisation is impacting of use of water for irrigation. The amount of land under irrigation in the district is rapidly reducing (estimates 1994: 36,000 ha., 2004: 20,000 ha., 2010: 15,000 ha.) with agricultural land being used for housing. Farmers surrender irrigation water without a reassignment policy. There is no conception that the farmers have lost anything as water is seen as a 'free' good. 5. Regional Public Company for Water Supply (Perusahaan Daerah Air Minum) - PDAM 'Delta Tirta' Sidoarjo The ILT met with staff from the Water Production Division who process raw water (surface and groundwater) to consumable water: Pk. Mochtar, Pk. Agus and Pk. Sudrajat Jatmiko. Ninety- four per cent of the PDAM customers are domestic users and six percent are from industry and other users. All customers pay a fixed fee, which varies between customer groups. They operate on a full-cost recovery basis with no government subsidies. Key Issue: canal through a project called 3There was some uncertainty whether PJTI is involved in the O&M of the secondary be involved 'Project Brantas'. For instance, when the PDAM Surabaya want to increase their abstraction, PJTI may in the improvement of the Palayaran secondary canal to guarantee water for PDAM. A14 a) -6 o Whilst the PDAM has a licence with the Provincial Dinas they do not have a fornal arrangement with PJTI. The PDAM has attempted to secure a supply contract with PJTI but without success. This interferes with their financial security and ability to plan. B. WEST JAVA 1. Perum Jasa Tirta II (PJTII) - Citarum River Basin The team met with the Director Sri Hermowo and a number of staff members. A powerpoint presentation was made with much useful information. Key Issues: * Responsibility for managing irrigation infrastructure is divided between PJTII in the areas downstream of the Citarum Reservoir and the Balai in the areas upstream. * PJTII has US$166 million rehabilitation costs outstanding. Their books only mention income generating assets but they carry out operation and maintenance for all assets. The other assets are in the control of Central Government. As a result the enterprise looks more profitable than it is. * Their income only covers 30-40% of what would be ideally covered on O&M (as best practice). This is dominated by irrigation. In this sense, they feel they are going backwards. * We were told by the PJTH that they look after ST To 3rd order rivers whilst the Balai looks after the 4th order rivers. However, when this was mentioned to the Balai, they did not recognise this categorisation. * PJTII has a role in broad natural resources management and in education. There is an overlap with the Balai on natural resources management and in water allocation. PJTII feel they are better able to carry out these roles. * Water diversion from the basin to Jakarta places them in a powerless position. * There appears to be a very different organisational culture in the PJTI/Il when compared to government offices as seen in the financial mindset and the level of energy of staff members. 2. Provincial Department of Water Resources (Dinas Pengelolaan Sumber Daya Air Propinsi) 2.1 Meeting with Head of the Dinas, Pk. Maksun. Pk. Maksun expressed concern about a number of problems in the Bandung river basin such as the depletion of groundwater and surface water shortages caused by changes upstream including deforestation. Other problems are water pollution from industrial and domestic waste. He said that in the 'water for life' category there was enough water in Bandung basin to meet the needs till 2020; however, the main problem was the leaking canal that transports water to Jakarta. A14 a) -7 He advised that a Provincial Perda had been passed to implement Government Regulation No. 77 of 2001 on Irrigation (PeraturanPemerintah No. 77 Tahun 2001 tentang Irigasi) but that it had not been signed pending resolution of issues at the national level. He expressed general support for a scheme to register farmers' entitlements quantitatively as it would make farmers more accountable in following the cropping pattern. 2.2 Meeting with Licensing Section The ILT met with Pk. Sasuta (Head of Licensing Section), Pk. Soekarman (Licensing staff member) and Pk. Samsudin (Water Acquisition Pricing). It was explained that there are three sub-sections, namely Tax, Oversight and Institutional Cooperation. * In 2003, they received 15 new licence applications and did 20-30 renewals. Licences are renewed every 2 years. In a renewal, authorised water extraction is usually raised or lowered in accordance with actual use. The renewal process is part of the monitoring process, which is a partial explanation for the frequency of renewal. Licence applications are occasionally refused. * Only industry, PDAMs and enterprises in the oil sector are licensed. They have tried to licence the PLN but have not succeeded to date although PLN does pay a small amount of tax. * There are 600 irrigation schemes in Citarum. If they were licensed, there would be 600 more licenses. How well this could be managed would depend on the budget. * If the licence application is for more than 100 litres/sec an environmental impact assessment is required. * There is no requirement that farmers participate in licensing decisions. However, this year, the Head of the Dinas gave an oral instruction that any new licence is not to be given without the approval of the WUA. This procedure has been put in place. One new licence received written approval from the WUA. Effectiveness will depend on the level of organization of the farmers. * In relation to coordination mechanisms, the only institutions are the PTPA and PPTPA. However, theses bodies are not focused on groundwater use. The PTPA meets twice a year. The PPTPA for Citarum meets more often, up to four times during the dry season. About 50-60 people attend including WUA. This may include Dinas from 2-5 Districts. Each Dinas raises its problems. * Sanctions consist of three warnings by the Head of the Dinas followed by a transfer of the case to civil investigators (Penyidik Pegawai Negeri Sipil (PPNS), who are located in the Dinas. 3. Water Resources Management Bureau (Balai Pengelolaan Sumberdaya Air) (Balai PSDA), Citarum River Basin In the meeting with the Provincial Dinas, the following information was provided about the Balai: A14 a) -8 It was explained that there are 5 Balai in West Java established according to catchment areas. Whilst the Citarum Basin and the Balai have the same boundary, there are a number of self- contained sub-basins under the authority of the Balai. The boundaries were set out as river districts (wilayah sungai) in Peraturan Menteri Pekerjaan Umum No. 39/PRT/1989 tentang Pembagian Wilayah Sungai but do not always follow the boundaries of a single watershed. The role of the Balai is essentially that of water resource manager: one of their functions is water allocation and they are also involved in water quality and data management. They also have an Operations Section. The team then met with officers from the Balai: * The Balai plays a role in asset management concerning dams, weirs and river structures where irrigation straddles districts. Where an irrigation system is contained within a district, the district manages the assets. As a result, there are three sets of people doing different kinds of asset management within the jurisdiction of the Balai: PJTII, Balai and District Dinas. * Water quality monitoring of irrigation water is not carried out by the Balai, the system is dependant on self-reporting. The Balai and BPLHD both carry out water quality monitoring of river water. * In deciding on water allocation, they ensure the allocation does not exceed the historical limit. They do not consider limits that may be desirable for the environment (environmental flows). They will not support a licence application if water balance is already at a minimum or there is potential conflict with other users. * Licenses within irrigations systems (Surat Izin Pengairan JaringanIrigasi)(SIPJI) need a recommendation of support from the District government and this is considered a way of avoiding future conflict. In addition, the Balai is able to discern whether or not there is likely to be potential conflict by going to the field. If there is opposition to a licence application, the farmers will approach them informally. * The Balai monitors water use on a monthly basis. They also make technical assessments on the availability of water, which are used in the licensing process. However, they are not able to predict water conditions for the next ten years. Studies have shown a 5-10% reduction of water in the dry season but they are not able to say where it has gone. They are not aware of findings from studies on whether or not deforestation is causing the decline in water availability. A few days later the team returned to the Balai and spoke with Azhari Dwikora, Section Head of Licensing and other staff members: * Eleven irrigation schemes cross over district boundaries and the Balai manages these schemes. The Balai have a list of licences granted to industry within each scheme. However, if a scheme is located within a district, the district government will license. * Whilst they have enough staff for licensing, they do not have enough for monitoring. They only have three staff for monitoring. Within irrigation schemes that straddle districts, only the Balai do monitoring, not PJTII or district government. If non-compliance is A14 a) -9 discovered a warning will be issued. Frequently, there is no sanction, only a change in the licence. They do not know how many entities remain unlicensed. * The Balai employ the water master/gate keeper to measure the water flow. At present there are seven and they need to employ four more gatekeepers this year. * They do not have much connection with the WUA apart from employment for routine maintenance. 4. Regional Environmental Control Board (Badan Pengendalian Lingkungan Hidup Daerah) (BPLHD) The team met with Lex Laksamana, Director BPLHD. * There are a number of institutions that monitor water quality, namely Badan Pengelitian dan Pengembangan Teknologi (BPPT), PJT, PLN, Balai and BPLHD. There is a centralised database that has been published since 2002. * Wastewater discharge licences are not usually issued for industry operating in irrigation systems that return water to the irrigation flow. * Environmental agencies do not have any input into water use licences. If they are to have responsibility for environmental consequences of flows they should have an input. * They do some biological monitoring using micro invertebrates as a river health indicator. They do not monitor fish populations; however, it is fair to say that fish are basically non- existent in the moderately and heavily polluted areas. * Water extraction levels do not greatly influence pollution levels. Pollution levels vary with the season. In the dry season, as the quantity of water in the river reduces, the sources of pollution become overwhelming in impact. Additional extractions to not make a great deal of difference to this situation. * BPLHD should be in the process that considers water allocation, as the change in flow is important for the environment. Changes in flow variability matter for geomorphology and microbiology. Setting water allocation at the minimum historical level is not environmentally sound. BPLHD should not only be involved in issues related to waste water treatment plants. * Groundwater levels are continuing to go down. BPLHD does not monitor groundwater quality. A main reason is the excessive exploitation by industry. Whilst a ban has been instituted, enforcement is not by BPLHD but by the District office of the Ministry of Minerals and Energy. 5. PDAM Kota Bandung The team met with Ibu Syani Widia Fauzani, Director of Clean Water and Pk. Agus Setiyawan, Research and Development. * The PDAM extracts water in the following sources: A14 a) -10 159 litres/sec from springs 171 litres/sec from groundwater wells 2,139 litres/sec from surface water (almost all from Cisangkuy) This makes a total extraction of 2469 litres/sec. However, their total need is 3027 litres/sec, so the deficit in 2002 was 558 litres/sec. * In year 2020, there will be a 4,839 litres/sec shortfall based on 80% population coverage and a population growth from 2.5 million in 2002 to 3.7 million in 2020. The shortfall is partly due to an increase in population and an increase in coverage. * At present, in the deep wells there is no water. Housing areas already suffer from water shortages. The PDAM's big problem is lack of water and they wonder how they will cope in the future. New dams are needed but where is the finance to come from? In fact, no new dams are planned for the future apart from some small hydro-electricity dams. Any new dams will have to be multi-purpose dams for the supply of electricity and other uses. PDAM has suggested to central government that a tunnel be built from another basin to transport water to the Citarum River. * The PDAM pays taxes and fees: Surface water - Rp 10 per cubic metre to the Provincial Government. Spring and groundwater - Rp 20 per cubic metre for each well to the District Government. * They have recently refused to make any payment to PJTII on the grounds that PDAM extracts water from an area that is not managed by PJTII but is higher up in Cisangkuy. * The tariff for water supply is set by the government and fixed according to different categories of use, namely, social use, household use, hospital use and industrial use. Ninety percent of users of PDAM water are households. The remaining users consist of hotels and others; however, usually they have backup supply sources from groundwater. * The PDAM experiences a 50 percent loss of efficiency due to illegal connections. * The suggestion that the supply of irrigation water be reduced has been discussed in the past. Farmers would have to be compensated. If a farmer gives up a right to water by selling their right to a PDAM, who is going to pay the farmer? The farmers would want to obtain an amount to cover the volume of rice not sold. The cost would have to be passed on to the consumers. In any event, this is unlikely to be possible as the Government controls the tariff. Another solution is to raise the efficiency of water use through progressive tariffs. 5. District Dinas Pengairan, Kabupaten Bandung The team met with Pk. Bunbun Sabur from the Operations and Maintenance Section. A14 a) -11 * Operations covers management, allocation, distribution and gate management where an irrigation system is located within a district. Therefore, his section operates weirs on rivers and secondary canals. The Dinas has 300 staff consisting of office and field workers. They do not operate irrigation in the tertiary systems, which is done by the farmers. * Water allocation is done in accordance with the cropping pattern. The farmers' planting schedule goes to the Sub-District Irrigation Committee and then the District Irrigation Committee. The data comes from the Department of Agriculture Sub-District Office. * Water scarcity is managed through a rotation system. One alternative is to rotate on a daily basis (3 days/4 days) the other is to alternate on a 24-hour basis (day/night). The rotation arrangement is decided between the farmers and the sub-district Dinas office (Sub-Dinas Pengairan)and is formalised by a letter of agreement. It can also include the PDAM close to Wangi Segara and the PDAM close to Wanira, which is usually on a day/night rotation. Industry will also be included in the agreement. If industry needs a continuous supply of water they have to find some other means of obtaining water such as through water storage. * Water shortages can be attributed to sediment levels, which lower the water level. There is a heavy silt load in the system with a 5-10 cm growth each year. Another problem is that upland farmers use more water than they need. They take water from the secondary canals, which are not always locked. Also, there are leaks in the lining of the secondary canals, which are only made of clay. * Industry does not take enough water to make a difference to water availability. Usually industry takes directly from the river rather than from irrigation schemes. They comply with rotation arrangements and also use groundwater. However, there is a problem as groundwater levels are going down. The Dinas recommends industry to build deepwater storage wells for artificial recharge. * The Operations and Maintenance Section is usually consulted after a licence application is received but there is no formal arrangement and this can cause difficulties. * Maintenance of irrigation (except tertiary systems) is all under the authority of the District; the PJTII do not carry out any maintenance. In inter-district irrigation systems, such as between Kota Bandung and Kabupaten Bandung, maintenance is actually done by the Kabupaten Bandung and even the gatekeeper is employed by this District as the most of the irrigated area is found in Kabupaten Bandung. In relation to the weir, the Balai says they are responsible but in fact they employ someone from the District. When the District carries out maintenance they will use office staff if it is light, routine work. Otherwise, they will use contractors. * The farmers maintain the tertiary systems and are quite independent from the Dinas. They may join in the maintenance of secondary systems but only if there is an emergency or something serious happens. Eleven of the 25 irrigation systems have WUAF. Farmers are not competent to do routine maintenance for more than the tertiary systems. * In reality, since July 2003, no money has been available for maintenance. Routine maintenance costs about Rp 200,000 - 300,000 per hectare. Money is budgeted for but A14 a) -12 no money has been provided to his office. He does not want to protest, as he is about to take his pension in any event. 6. District Department of the Environment (Dinas Lingkungan Hidup) (DLH), Kabupaten Bandung The team met with Tbu Yunita, Head of the Sub-Dinas Lingkungan Hidup. * Thirteen sectors impact on water quality but the most important one is industry. Heavy metals are also discharged by hospitals and abattoirs. The jurisdiction of DLH does not cover the Citarum River, which crosses district boundaries. Basically, only small rivers come under the responsibility of the districts. * The DLH is the result of a merger between Environmental Management Board (Badan Pengelolaan Lingkungan Hidup), the Department of Minerals and Energy and the Department of Forestry. This arrangement is based on the watershed. Different districts have different institutional arrangements for environmental management. * After receiving a wastewater discharge licence application, DLH coordinates with the Balai. A team is formed consisting of the Dinas Pengairan,Dinas Perindustrian,Dinas Pekerjaan Umum and the Sub-District. The team visits the site of the licence application. However, when Dinas Pengairan receives a licence application for use of surface water or when the Dinas Pertambanganreceives a licence for groundwater extraction, there is no coordination with the DLH. * DLH coordinates with the Balai in water quality monitoring and also with the Provincial Environmental Control Board (Badan Pengendalian Lingkungan Hidup Daerah) (BPLHD). They do water quality sampling by contracting with accredited laboratories in West Java. There are eleven for the whole Province. There are serious environmental problems for water quality caused by pesticide and fertiliser use. * To be effective they need more staff especially environmental engineers. They have to control 200 large industries and thousands of small industries. Arrangements for coordination are adequate; the main problem is money and human resources. However, there is still a problem with allocating responsibility for pollution problems, for example, the BPLHD tends to blame the City of Bandung for the high pollution levels in the Citarum River, when in fact the pollution comes from upstream. * They started issuing wastewater licences in 2002 and have now licensed 126 out of 200 industries. Prior to regional autonomy, the Province only issued 44 licences. A fee is payable for the licence but it is not based on pollution load. 7. Pk. Suganda - Chairman of the Bandung Textile Industry Association His factory does weaving, washing, dying and printing of polyester fabrics. The production capacity is 4.5 million meters of fabric (per year). They use 33,000 cubic meters of water each month. They have a licence for 12 litre/sec but only use 9 litre/sec flow. The water is pumped in from the irrigation canal. A14 a) -13 * In choosing a site for a textile factory, the most important factors are availability of groundwater and surface water. In terms of price, there is not much difference between irrigated and non-irrigated land. * When the reliability of water supply goes down, a rotation schedule is organised between the users of the irrigation system. Industry also buys water from farmers groups such as in the Wangi Segara irrigation scheme. The types of factory include textiles, printing fabric and cattle farms. This has happened for many years as a private arrangement. Money is rarely exchanged, if ever. Usually industry assists the scheme by repairing canals or something similar. Many farmers work in the factories so they want the factories to succeed. * Groundwater is now hard to obtain and factories are experiencing problems with water supply. Many factories are building their own water storage systems. * Each month someone comes to inspect water abstraction and return rates. * There seem to be a lot of different institutions involved, which he finds confusing for example both the PJTH and the Provincial Department of Revenue record the abstraction rate. He pays three different fees: PJTII (since October 2003) - Rp5O per cubic metre The Province- Rp 100 per cubic meter District DLH - Rp25 per cubic meter It is likely in the future that the factory will have to pay an amount to the WUA; this is still being negotiated. The only service they receive is from PJTII, who at least provide the dams. 8. Pk. Ahmad - Chairman of Wangi Segara WUAF * There are 16 WUA in his federation. 14 of the 34 industries in his area assist with O&M of the irrigation system. This has increased from 4 industries last year. They are not part of the WUA. The last licence was given by the Dinas to industry in 2000 and the WUAF was not informed. * Whilst there are five new industries in his area, none take water directly from the irrigation system. * District government manages water sharing between schemes. * In times of water shortage, a rotation system is introduced within each scheme. In addition, they try to stop leaks in the channels or get funds from the Dinas to improve the condition of the canals or install pumps. * If one farmer decides not to plant in a time of shortage, he does not expect anything in return for the water he has not used. In such a situation, it is generally thought that those who decide to plant do so at their own risk. A14 a) -14 C. GROUNDWATER 1. National Department of Minerals and Energy - Groundwater Conservation Sub- division (Departemen Energi dan Sumber Daya Mineral, Sub-Bagian Konservasi Air Tanah) The team met with Pk. Syaiful Ruchijat, Head of Groundwater Conservation and Pk. H Danaryanto, Hydrogeologist. Tasks and functions: Policy advice on groundwater conservation. This includes the drafting of guidelines for the implementation of groundwater management under the New Law. Key findings: * No national policy on groundwater has been produced to date. This is the sort of topic that will be covered by the National Water Resources Council, when it is operative. * Information systems are built at three levels. From the District level, information can be obtained from the licensing system. The province is aware of the volume of groundwater use from the taxation system, which taxes groundwater use. * Indonesia has been divided up into 263 groundwater basins, 80 of which are found in Java. It is not yet decided how these groundwater basins will be allocated between the three levels of government. However, in any event, the Districts have responsibility for licensing groundwater use. * Institutional weakness at the District level is a concern. Problems with securing implementation of the guidelines could develop if the Districts are unable to implement them. Other issues could arise if the Districts fail to implement technical recommendations issued Central or Provincial government. There is very little that can be done to ensure that technical recommendations are followed. * The level of resources at the district level to manage groundwater varies. Not all Districts have a Department of Mining and Energy, especially if there is no mining activity in the District. In such a situation, if the only resource to be managed is groundwater, it will be merged with a different institution. * In relation to clarifying the limit of water use that can be obtained without using a licence, this is 100 cubic meters/month for one well and one household. In Jakarta the limit is 50 cubic meters/month - DKI Jakarta has introduced the stricter standard. Non-domestic use will also need a licence. * There is a crisis in groundwater supply in the Citarum river basin area. Whilst they have figures on the estimated use of groundwater by industry, they do not have complete figures on the total of non-licensed use but rely on estimates. Extraction rates are exceeding recharge rates. Groundwater use is continuing to increase because the population is growing. The only way to reduce domestic use of groundwater is to increase the supply of piped water; however, there are constraints in achieving this. As stated by the officers: "we are worried, we are in crisis". A14 a) -15 as being * A ban on new licences has been introduced in areas identified by the Department illegal in a critical state. Districts are carrying out 'sweeping' operations to identify new use by use by industry. In fact, since the economic crisis, the level of groundwater industry has gone down due to economic factors. water is used * A major cause of the crisis is due to the fact that a large amount of surface the local by Jakarta. The only thing that can be done is to build dams higher up, so that use, population can use surface water from these dams. This could be done as conjunctive will where a user has both a surface and groundwater licence. However, consumers complain if the tariff for water use goes up. of the 2. Sub-Department of Mining and Energy within the District Department Lingkungan Environment, Soreang District (Sub-Dinas Pertambangandan Energi; Dinas Hidup, Kabupaten Soreang) The team met with Pk. Drajat, staff member in the Groundwater Licensing Section. Tasks and functions: In relation to monitoring, the water metre for licensed users is checked monthly. Key findings: relies on * In attempting to reduce the level of abstractions of groundwater, the office voluntary reductions after advising users that they are in a critical zone. and then, * If there is an illegal bore (one without a SIPPA), two warning letters are issued if there is no response, the bore is locked up. New water extraction found in prohibited areas will be closed. * They do not have any data on the volume used by households. D. SUMMARY OF FINDINGS Institutional issues - surface water 1. Institutionalcoordination is a major challenge of regional Institutional coordination poses major challenges in Indonesia given the context of integrated autonomy, the arrangements of authority proposed in the New Law and the nature water resources management. district levels of Whist regional autonomy requires coordination between central, provincial and a river basin government, there is a lack of formal channels for vertical coordination. Where is also a need for straddles provinces or districts, as established under the New Law, there integrated water horizontal coordination between those provinces or districts. In addition, and surface resources management requires coordination of the management of groundwater spread between water as well as water quality and quantity, the responsibilities for which are institutions and levels of government. A14 a) -16 At present, the primary coordinative bodies are the PTPA (provincial level) and PPTPA (basin level). These bodies respond to immediate issues rather than carry out basin-wide water resources planning and management. Groundwater is not regarded as key focus for the PPTPA. The only formal procedural coordination mechanism concerns the consideration of a licence application. 2. Overlapping and splitfunctions obscure lines of authority and responsibility The complicated configuration of overlapping and split functions makes it difficult to see the overall picture of who is doing what. An attempt has been made in Tables 1 and 2 to map the arrangement of basic functions in accordance with the classification as either a function in service provision or regulation. A14 a) -17 Table 1: Service Provision - rivers and irrigation systems Large rivers Small rivers Rivers Rivers Irrigation Irrigation (East Java) (East Java) downstream upstream across within Citarum Citarum districts districts (West Java) (West Java) Rivers - PJTI Balai PJTII Balai operation District Irrigation Balai Dinas systems - operation District Irrigation Balai Dinas systems - asset management Table 2: Regulation - rivers and irrigation systems Large rivers Small rivers Rivers Rivers Irrigation Irrigation (East Java) (East Java) downstream upstream across within Citarum Citarum districts districts (West Java) (West Java) District Management PJTI, Balai Balai PJTII, Balai Balai Balai Dinas Provincial Licensing Provincial Provincial Provincial Provincial Provincial Dinas water use Dinas Dinas Dinas Dinas Dinas ? Licensing District District District District ? wastewater Environment Environment Environment Environment discharges Agency Agency Agency Agency District Monitoring PJTI, Balai Balai PJTII, Balai Balai Balai Dinas quantity ? Monitoring PJTI, Balai, Balai, PJTII, Balai Balai, ? quality Provincial District District District Environment Environment Environment Environment Agency, Agency Agency/ Agency District Provincial Environment Environment Agency Agency District Law Provincial ? District Provincial ? District Provincial Dinas enforcement Dinas Dinas Dinas Dinas Dinas A14 a) -18 It can be seen that the same institutions play both a service provision and regulatory role in the locality under their jurisdiction. In service provision, there is also a splitting of functions between the PJTI/II and provincial and district levels of government. Furthermore, in regulation, there are both split and overlapping functions in management and monitoring. There are also gaps in functions, particularly in relation to environmental management. For example: * Who is ultimately responsible for considering long-term environmental sustainability? * Who issues discharge licences for industry operating in irrigation systems? * Who monitors water quality in irrigation channels? 3. Financialand human resources are limited Budget constraints and limited human resources allocations within Provincial and District government create uncertainty about capacity to implement expanded responsibilities. Budget constraints were found within all the institutions visited. In particular, the Balai have deficiencies in human resources, technology and funding, which hinder their capacity to fulfil tasks and functions. 4. The level of mobilization offarmer organizations is still quite low Only a small percentage of farmers are organised into WUA. In Sidoarjo District, East Java, there are formal and informal arrangements for WUA. There were 5 WUAF for secondary canals systems from the 11 secondary diversion systems, which only cover 20 percent of farmers. Where farmers take water direct from primary canals there are many 'ad hoc' WUA of uncertain legal status. WUR Framework S. Revenue considerationsappear to drive water use licensing policies and priorities The issuing or renewal of a licence is a source of revenue for provincial government. Licences are not regarded as administrative/management tools for the governance of water use - to support a management system, to protect the rights of the licence holder or to provide information to assist water resources management. 6. There is inadequate consideration of environmental aspects in licensing water use Licences are allocated so as not to exceed the 'historical limit'; however, this limit may not coincide with the limit that is desirable for environmental reasons. The Provincial Environment Agency in West Java expressed the view that they would like to provide input into decisions that affect water flow. The minimum flow of a river (like the Citarum River) should be maintained so that it is higher than the lowest historical flow so as to protect the long-term sustainability of the use of water resources. A14 a) -19 7. There is noformalprovisionforpublicparticipationin water use licensing to the There is no procedural requirement to ensure that new licence applications are notified Only surrounding community and that the community can participate in the licensing process. environmental impact assessment (for new enterprises) has a procedure for public participation. Groundwater 8. There is a needfor a nationalpolicy on groundwater use the To date no national policy on groundwater use has been prepared. Responsibility for in the definition and creation of WUR to groundwater is unclear. There is a possibility of failure effective collection of hydrological data within groundwater basins due to the lack of effective information management systems. 9. Institutionalfragmentationneeds to be overcome Coordinative mechanisms are needed to integrate institutional responsibility for surface water and groundwater use including the management of water groundwater quantity and quality. 10. Regulatory capacity is uncertain Under regional autonomy, the district level is responsible for regulating groundwater use. The level of institutional capacity to fulfil this responsibility is unknown; there is likely to be a wide at variation across Indonesia. This situation is exacerbated by a lack of regulatory authority higher levels of government. A14 a) -20 ~~--' - 'I ' ' g ' Annex 14-b) Institutions for Water Resources Management I iI Annex 14 b) INSTITUTIONS FOR WATER RESOURCES MANAGEMENT This annexure will set out the institutional arrangements currently in place for the management of water resources in Indonesia. It will consider the following: 1. Provision for water resources management based on the river basin. 2. The role of central government under regional autonomy, national coordination and the Perum Jasa Tirta. 3. The role of provincial government under regional autonomy, the provincial Dinas, the future Provincial Water Councils, the Balai PSDA, stakeholder organisations and irrigation committees. 4. District level: the district Dinas and irrigation committees 5. Farmers' Water Users Associations under existing national law the regional response in East Java. 1. WATER RESOURCES MANAGEMENT BASED ON THE RIVER BASIN 1.1 National and provincial river districts/territories before the New Law The concept of management based on the watershed was introduced in Indonesia in 1989, when the national government established 90 river territories across the country: PeraturanMenteri Pekerjaan Umum No. 39/PRT/1989 tentang Pembagian Wilayah Sungai (PerMen 39/89). The river territory has been defined as a hydrological unit, which results from one or more watersheds (daerah aliran sungai) (PerMen 39/89 art 1(1)). Watershed (daerah aliran sungai (DAS)) has been defined as one hydrological unit that is formed naturally wherever water penetrates or flows through a river and its tributaries (PerMen 39/89 art 1(2)). Management authority for river territories has been established since 1990: Peraturan Menteri Pekerjaan Umum Nomor: 48/PRT/1990 tentang PengelolaanAtas Air Dan Atau Sumber Air Pada Wilayah Sungai. Seventy-three river territories have been under provincial government since 1990. In 15 river territories, management was allocated to the Department of Public Works. In two river territories, the Brantas River (East Java) and the Citarum river (West Java), management authority was allocated to state corporate bodies: Perum Jasa Tirta Brantas and PT Otorita Jatiluhur. Peraturan Pemerintah No. 35 Tahun 1991 tentang Sungai establishes the respective government authority for managing rivers based on the river district. It also allows for the authority and responsibility for fostering (pembinaan) rivers of central government to be transferred from central government to a state-owned government enterprise (BUMN)(Badan Usaha Milik Negara) and to regional government (PP35/91 art 10). The Minister (with the possibility of delegation to a BUMN or a region government) has had responsibility for planning within the river district, which has been stated to include the making of an inventory of the development of the river, it potential and characteristics, observation and evaluation regarding floods and water quality, determining plans to foster the river, drafting A14 b) -1 guidelines and coordination (art 11(1)-{3)). Development of rivers has been primarily carried out by central govermnent or BUMN (art 12(1)). PP35/91 uses the terms exploitation and protection/maintenance (eksploitation dan pemeliharaan). These activities, where they include welfare and safety, can be carried out by either the government or BUMN (PP35/91 art 13(2)). Where they include planning, implementation, observation and evaluation, they can be carried out by legal entities, social organisations or individuals (PP35/91 art 13(3)). 1.2 River territory boundaries under the New Law Act No. 7 of 2004 on Water Resources (the New Law) establishes four arrangements (Articles 14- 17): whole of which is - where there is a river territory, a section of a river territory or a river basin, the found within a district; - where a river territory exists in more than one district government area; - where a river territory exists in more than one province or straddles national boundaries; and - strategic river territories. Previously, only the national and provincial government had responsibility for river districts. This has changed under the New Law, which introduces responsibility at the district level. There is still a certain amount of fluidity as to how the responsibility for implementing water resources are management will be allocated between the different layers of government. These arrangements awaiting determination through the passing of a Presidential Decree. 2. NATIONAL INSTITUTIONS 2.1 The role of central government under regional autonomy Before regional autonomy, central government had the functions of setting policy, planning, providing a program, regulating, fostering operational tasks and control (art 8(2)): Peraturan Menteri Pekerjaan Umum No. 65/PRT/1993 tentang Penyuluhan Pengairan(PerMen 65/93). Under Undang-undang No.11 tahun 1974 tentang Pengairan) the Minister for Public Works had responsibility to coordinate the planning, oversight, protection and the use of water and water for resources (not including groundwater) (arts 5(1)&(2)). The Minister's responsibility coordination was elaborated in the PeraturanPemerintah (PP) No. 22 Tahun 1982 tentang Tata Pengaturan Air (art 8). The regulation lists coordination tasks such as the setting of planning priorities, the administration of the water use, the regulation of the disposal of liquid waste and the development of irrigation (art 9). This involved the collection of data regarding the quality and quantity of water, the maintenance of an inventory, the preparation of policy on the development of water resources, and the arrangement of the means and conditions for the disposal of liquid waste (art 10). Since regional autonomy, if Government Regulation No. 25 of 2000 on The Authority of the Government and the Authority of the Provinces as Autonomous Regions (PP25/2000) is considered, it would seem that central government's role has been curtailed to the stipulation of guidelines and standards (art 2(3)(15)-(16)). Indeed, the only reference to central government responsibility for irrigation in PP25/2000 concerns the stipulation of a standard irrigation. However, as against these A14b) -2 provisions, it also seems that central government may have wide authority in relation to the 'efficient use of natural resources' (art 2(2)). Under the New Law, central government has authority for water resources management in river territories that span provinces or states and strategic river territories. This role is set out under article 14 and includes policy making, planning, implementation of water resources management and licensing. Furthernore, in relation to the operation and maintenance of irrigation, central government has authority and responsibility for primary and secondary irrigation in all areas under their authority (art 64(6)(a)). 2.2 A National Coordination Agency The following Ministries share responsibility for different aspects of water management at the national level: (i) The State Minister of the Environment (ii) The Minister for Mines and Energy (groundwater) (iii) The Minister for Industry and Trade (iv) The Minister for Agriculture (v) The Minister for Forestry and Plantations (vi) The Minister for Health (vii) The National Planning and Development Agency (viii) The Minister for Home Affairs. A National Coordination Team (Tim Koordinasi Sumberdaya Air) was to be established under Keputusan Presiden No. 123 Tahun 2001 tentang Tim Koordinasi Pengelolaan Sumberdaya Air. The team was to be set up in the form of a non-structural, coordination body for determining national policy with direct responsibility responsible to the President (art 1) and was to assist the President in deternining general policy on water resources (art 2). A primary function of the Team was to formulate national policy on water resources management (art 3). The functions of the team were stated to be the coordination of the development of policy, internal and external consultation with all parties both government and non-government, provision of opinions to the President, monitoring and evaluation and reporting to the President (art 4). The National Coordination Team was never brought into existence as an operational entity. Furthermore, the idea behind its formation did not address certain issues. First, the respective roles for Team and the Minister for Settlement and Regional Infrastructure needed to be settled, as there are areas of potential overlap. Second, there was no detailed statement on the areas of policy for which the Team was to be responsible. Since then, the New Law proposes the establishment of a National Water Council 14(h). Little detail has been made available at this stage regarding the constitution, role and functions of the National Water Council. A14 b) -3 2.3 National Government-Owned Enterprises - Perum Jasa Tirta The two particularly important river basins in Indonesia, the Brantas and Citarum rivers are managed by state corporate bodies: Perum Jasa Tirta Brantas and PT Otorita Jatiluhur. The Perum as a kind of National Government-Owned Enterprise (BUMN) delivers services for general benefit as well as to obtain a profit (Peraturan Pemerintah No. 3 Tahun 1983 Tentang Tata Cara Pembinaan Dan Pengawasan Perusahaan Jawatan (Perjan), Perusahaan Umum (Perum) Dan Perusahaan Perseroan(Persero) (PP3/83 art 2(1)(b)). The objectives of a Perum includes the following (PP3/83 art 2(2)): - to contribute to econonmic development - to generate income - to protect public benefits - to pioneer activities that are not able to be carried out by the private sector or cooperatives - to participate in the implementation of government policy in the field of econornic development. Perum are to be fostered by the Minister (Director-General) of their sector (PP3/83 art 4). Management of the Perum is the responsibility of the Executive Director (PP3/83 art 9). Work reports have to be forwarded to the Minister and are assessed by the Minister of Finance (PP3/83 art 12). The oversight of the Perum is to be carried out by a Supervisory Board (Dewan Pengawas) (PP3/82 art 24) who carries out the directives of the Minister and has wide-ranging authority (PP3/83 arts 25-29). Members of the Board are appointed by the Minister from technical departments, the Department of Finance and other government offices associated with the Perum. East Java - PJTI Government Regulations were passed regarding the Perum in the field of water resources, the Perum Jasa Tirta. Peraturan Pemerintah No. 5 Tahun 1990 tentang Perusahaan Umum (Perum) Jasa Tirta (PP5/90) stated that the Perum Jasa Tirta (PJT) is to be established to carry out the exploitation and protection of water resources infrastructure and well as commercially use water and water resources in accordance with existing legislation (PP5/90 art 3(1)-(2)). In addition, PeraturanMenteri Pekerjaan Umum No.56/PRT/I991 tentang Kebijaksanaan Umum Pengelolaan Perusahaan Umum (PERUM) Jasa Tirta states that the main tasks of PJT are to operate and maintain water infrastructure, commercially use water and water resources, manage the river basin including protection, expansion and use of water and water resources and rehabilitation of water infrastructure (art 6). It can be seen that Perum Jasa Tirta has both an operational and a management role. It also carries out the beneficial use of water resources and management of the watershed where specific tasks are given by Central Government including protection, expansion and use of the river and or water resources including the giving of information, recommendation and guidance ((PP5/90) art 5(2)). These tasks include rehabilitation (PP5/90 art 6(1)). PJT had its name changed to PJTI pursuant to PeraturanPemerintah No. 93 Tahun 1999 tentang Perusahaan Umum (PERUM) Jasa Tirta I (art 2(2)). This Government Regulation listed the A14 b) -4 - - --I^ > S S activities of PJTI in the supply of water for drinking water companies, electricity companies, human settlements, fish farming, plantations, industry, irrigation, hydroelectricity and other uses (art 8a.). It also sets out the arrangements for the direction of PJTI including the Governing Council (Dewan Pengawas). The management role of PJTI is mentioned in this Government Regulation but in a more limited manner as relating to certain tasks given to it by central government in the management of the river basin that include protection, expansion and use of the river and/or resources including giving information, recommendations, information and guidance (art 6(2)). In September 2000, the work area of the PJTI was altered to cover the Bengawan Solo River in Central Java. PJTI now has a work area that straddles Provinces: Keputusan Presiden No. 129 Tahun 2000 tentang Penambahan Wilaya Kerja Perusahaan Umum (PERUM) Jasa Tirta I di Wilaya Sungai Bengawan Solo. 3. PROVINCIAL LEVEL ORGANISATIONS 3.1 The role of provincial government under regional autonomy Before regional autonomy, management tasks referred to Provincial Government included the following (Peraturan Menteri Pekerjaan Umum Nomor: 48/PRT/1I990 tentang PengelolaanAtas Air Dan Atau Sumber Air Pada Wilayah Sungai) (PerMen 48/90 art 2): a. management and expansion of the benefits of water and water resources b. licensing based on planning, technical planning and arrangement of water c. licensing water allocation, use and supply d. licensing the commercial use of water e. determining and regulating law-making and legal relations f. coordinating the system for arranging water Under regional autonomy law, the role of the province in the public works sector (irrigation) extends to support to the districts in the development of infrastructure and facilities (PP25/2000 art 3(5)(14)(b)). In addition, the provincial office (dinas propinsi) has the task of implementing the authority of central government delegated to the governor as the representative of the central government through the framework of deconcentration. I This arrangement needs to be reconciled with the New Law under which provincial government has authority for water resources management, including managing irrigation systems. This role is set out under article 15 and includes policy making, planning, implementation of water resources management and licensing in river basins that straddle district boundaries. Furthermore, in relation to the operation and maintenance of irrigation, provincial government has authority and responsibility for primary and secondary irrigation in all areas under their authority (art 64(6)(a)). Ministerial Circular from the Minister of Home Affairs 061/729/53 dated 21.3.2000 Part 3(a) Ad.3 (b)&(c) A14 b) -5 3.2 Coordination at the Provincial Level Coordination is to be carried out by the Provincial Administration Office (Sekretariat Daerah Propinsi). Public works, communications and the environment along with settlement and regional 2 development have been grouped together into a coordination bureau. In relation to water resources management the following sectors share responsibility: * Public Works * Agriculture and Forestry * Health and Social Welfare * Industry and Commerce * Energy and Mineral Resources (ground water) * Fisheries and Maritime Affairs * Regional Environmental Impact Management Agency (Badan Pengendalian Dampak Lingkungan Daerah)(BAPEDALDA) * Regional Development Planning Agency (Badan Perencanaan Pembangunan Daerah)(BAPPEDA) In view of the enormity of this coordination task, the New Law has provided for the formation of a Provincial Water Resources Council at the Provincial or river territory level (art 15(h)). As with the National Water Council, the constitution, role and functions of these councils have yet to be determined. 3.3 The Provincial Dinas East Java: The Provincial Department of Public Works - Water (Dinas Pekerjaan Umum - Pengairan) The irrigation institutions were set out in Peraturan Pemerintah No. 23 Tahun 1982 tentang Irigasi (PP23/82). The arrangement and regulation of irrigation has ben the responsibility of Provincial Government (PP23/82 art 2(1)). Licensing procedure has been regulated by regional regulation (PP23/82 art 5(3)). After regional autonomy, which devolved many administrative functions to district government, the Provincial Government in East Java passed a Provincial Regulation (Perda) to clarify the role of the Department of Public Works-Water (Dinas Pekerjaan Umum Pengairan). According to PeraturanPropinsi Jawa Timur No. 23 Tahun 2000 tentang Dinas Pekerjaan Umum Pengairan PropinsiJawa, the functions of the Provincial Dinas are: (art 4) 2 ibid Part 3(a) Ad.l(e)(4) A14 b) -6 a. Planning technical development policy and the management of water resources that cross district boundaries b. Provision of support and assistance for joint ventures with district government and the development of infrastructure for water and dams c. Provision of support for the management of surface water resources, operation and maintenance of irrigation networks and drainage across district boundaries and their structures d. Licensing the commercial use of surface water in watersheds that cross district boundaries e. Licensing the establishment, alteration or demolition of structures within, above or crossing over water resources or irrigation channels straddling district boundaries f. Development and improvement of irrigation networks that cross districts as well as their structures g. Composing plans for the supply of irrigation water. The licensing function of the Provincial Dinas was elaborated in Keputusan Gubernur Kepala Daerah Tingkat 1 Jawa Timur 76 Tahun 2002 tentang Pelimpahan Kewenangan Pemberian dan Penandatanganan Izin di Bidang Pekerjaan Umum Pengairan (KepGub 76/2002), which gives authority to the Head of the Provincial Dinas for licensing the taking of water, the commercial use of water, the use of ground water, alterations to water channels and infrastructure that cross over districts in addition to licensing the alteration of structures that exist above and below water resources (KepGub 76/2002 art 1). The Head of the Provincial Dinas is obliged to determine licensing mechanisms, administration, oversight and control of licensing and protection of water resources through licensing and to report to the Governor (KepGub 76/2002 art 2(2)). West Java: Provincial Office for Water Resources Management (Dinas Pengelolaan Sumber Daya Air Propinsi) The list of various Provincial Offices is set out under Perda No. 5 Tahun. 2002 Tentang Perubahan Atas PeraturanDaerah Propinsi Jawa Barat No. 15 Tahun. 2000 Tentang Dinas Daerah PropinsiJawa Barat (Perda 5/2002) including the Provincial Office for Water Resources Management (Dinas Pengelolaan Sumber Daya Air Propinsi). Detail regarding the functions of the Dinas for Water Resources are set out in Keputusan Gubernur No.49 Tahun 2001 tentang Tugas Pokok, Fungsi dan Rincian Tugas Unit Dinas PengelolaanSumber Daya Air PropinsiJawa Barat. They include (art 2): - formulation of operational policy, - fostering operations that include the program, conservation, technical aspects, operations and maintenance exploitation, and - preparing facilities and a system for investment, - licensing, - facilitating the management of water resources, - oversight, control and evaluation of water resources A14 b) -7 One product of the Dinas is the Master Plan for the Management of Water Resources in West Java: Peraturan Daerah Propinsi Jawa Barat No. 3 Tahun 2001 tentang Pola Induk PengelolaanSumber Daya Air di Jawa Barat. 3.4 Balai PSDA Technical units known as Balai Pengelolaan Sumberdaya Air (Balai PSDA) were established nationally as a technical agency of the Provincial Dinas in 1996 pursuant to Keputusan Menteri Dalam Negeri Nomor 179 Tahun 1996 Tentang Pedoman Organisasi Dan Tata Kerja Balai PengelolaanSumberdaya Air) (arts 2 & 3). The Balai PSDA has wide ranging responsibility for the management of irrigation, preparation of water quality standards, rivers, lakes, reservoirs, control of floods and droughts, swamps, control of pollution and the protection of beaches, estuaries and deltas. Their functions include the implementation of operational services for the community in irrigation, conservation and preservation of water resources as well as technical services (art 4). The delegation of functions to Balai PSDA also includes some regulatory functions including (arts 8 &10): - monitoring water quality and quantity; - carrying out water allocation to fulfil various interests; - maling technical recommendations regarding licensing and water resources; - carrying out monitoring and making the inventory on the condition and function of irrigation infrastructure; - control of floods and droughts; - pollution control; - treatment, protection, repair and development of infrastructure; - control over the exploitation of water resources; and - provision of information. East Java: Balai PSDA 56 In East Java, the Balai has a key role in data collection as set out in Keputusan Gubernor No. Tahun 2001 tentang Petunjuk Pelaksanaan Peraturan Daerah Propinsi Jawa Timur No. 16 Tahun 2001 tentang Pajak Pengambilan dan Pemanfaatan Air Bawah Tanah dan Air Permukaan_(KepGub 56/2001). Data is to be collected each month (KepGub 56/2001 art 5(1)) by the Technical Implementation Unit (Unit PelaksanaanTeknis Dinas) 'together with' the Balai, PJTI and District Offices in accordance with their authority (KepGub 56/2001 art 5(3)). The Balai is to report to the Head of the Provincial Dinas every three months (KepGub 56/2001 art 5(4)). The results of the collection of data on use of water for plantations, farming and hydroelectricity are to be reported to by the Balai to the Head of the Provincial Dinas each year. West Java - Balai PSDA In West Java, there are six river districts. the arrangement of the five Balai PSDA are set out under the technical offices of the Dinas Pengelolaan Sumber Daya (Perda 5/2002). The structure is set out as consisting of (art 3A) - The head of the Balai - Sub-division on Method of Operations - Operations and Data Processing - Restoration and Improvements - Control and Security - Installations - Functional officers A14 b) -8 The technical offices of the Dinas Pengelolaan Sumber Daya include the five Balai PSDA for the main river territories. The tasks and functions of these offices are set out under Keputusan Gubernur No. 61 Tahun 2002 tentang Tugas Pokok, Fungsi dan Rincian Tugas Pada Unit Pelaksana Teknis Dinas di Lingkungan Dinas PengelolaanSumberdaya Air (KepGub 61/2002). There seems to be a name change as the Balai within the Dinas are referred to as Balai Pendayagunaan Sumber Daya Air (BPSDA) - pendayagunaanreferring to the efficient use of water resources rather than the management of water resources. The structure is the same as that mentioned in Perda 5/2002. It can be seen that the role of the Balai PSDA in West Java is very wide and encompasses management and regulatory functions (KepGub 61/2002 art 5-8). The overall tasks of the BPSDA are to provide operational services, management of data, restoration and improvement of water resources infrastructure, control and water resources security. In addition, they are tasked with technical services that includes general management, finances and employment (KepGub 61/2002 art 2(4)a&b.) 3.5 Stakeholder Participation Institutions The stakeholder participation institutions at the Provincial level are the Provincial Water Management Committees (Panitia Tata PengaturanAir Propinsi)(PTPA) and the River Basin Water Management Committees (Panitia Pelaksana Tata Pengaturan Air Propinsi) (PPTPA). Currently the composition and functions of the PTPA and PPTPA are set out in Peraturan Menteri Pekerjaan Umum Nomor: 67/PRT/1993 tentang Panitia Tata PengaturanAir Propinsi Daerah Tingkat I (PerMenPU 67/93). The Governor forms the PTPA and they are responsible to the Governor (PerMenPU 67/93 arts 2 & 3) as a consultative forum (art 3(2) to assist the Governor in coordination tasks. In particular, their functions are: (PerMenPU 67/93 art 4) * determining priorities for planning the use of water and water resources * deterrnining the order of priorities for water use in plans for the protection, development and use of water * arranging water use * arranging waste disposal * arranging the development and expansion of irrigation and * other matters that may arise. The Governor can form a PTPA for the Province and a PPTPA in river territories within the Province to assist the PTPA (PerMenPU 67/93 art 6(3)). No further detail is given in relation to the PPTPA. The members of the PTPA are all government officials (PerMenPU 67/93 art 6) with minimal provision for public involvement. It is merely stated that the PTPA is able to invite water users or other interested parties and individuals to attend PTPA sittings, to assist with the provision of data and information as required (PerMenPU 67/93 art 8). The financial support for the PTPA comes from central government (PerMenPU 67/93 art 9(a)) and funds received from the levy (iuran) imposed on water users (PerMenPU 67/93 art 9(b)). A14 b) -9 3.5.1 Provincial Water Management Committees (Panitia Tata Pengaturan Air Propinsi) (PTPA) A PTPA has been established in East Java pursuant to Keputusan Gubernur Kepala Daerah Tingkat 1 Jawa Timur No. 59 Tahun 1994 tentang Pembentukan Panitia Tata PengaturanAir, Propinsi Daerah Tingkat 1 Jawa Timur (KepGub 59/94). There are 21 members of the committee including two experts on water resources. This decree states the tasks of the PTPA as (KepGub 59/94 art 5):3 (a) Collection, processing and preparation of material obtained from technical management units: 1. data on the quantity of surface water and groundwater 2. data on the quality of surface water and groundwater 3. data on water conservation 4. data on water use needs on the past, present and future from relevant sectors based on time, space, total and good quality 5. data on the exploitation of water resources for the past, present and future. (b) Considering and resolving issues: 1. on the supply and use of water resources including the allocation of water in the wet and dry season to support the needs of each sector based on agreed criteria that refer to legislation 2. determination of locations and the method of disposal of wastewater including finance and management 3. determination of flood flows to minimise damage 4. coordination of problems related to sand/gravel mining (c) Oversight: 1. collation and assessment of report from relevant offices 2. preparing suggestions for action to be taken regarding oversight reports. (d) Reporting to the Governor and Minister for Public Works through the Director General of Water. 3.5.2 River Basin Water Management Committees (PanitiaPelaksana Tata PengaturanAir Propinsi) (PPTPA) East Java In East Java, the Governor has formed seven PPTPAs (KepGub 59/94 art 8), which coordinate receipt of data, decision making and reporting on the implementation of tasks to the PTPA Tingkat I Jawa BaratNo. 18 Tahun 3 Identical provisions are made for West Java: Keputusan Gubernur Kepala Daerah 1994 tentang Pembentukan Panitia Tata Pengaturan Air Propinsi A14 b) -10 Keputusan Gubernur Kepala Daerah No. 131 Tahun 1997 tentang Pembentukan Panitia Pelaksana Tata Pengaturan Air Propinsi Daerah Tingkat I Jawa Timur (art 8(3)) (KepGub 59/94). The seven watersheds (art 2) each contain a number of district govermments (art 10). The role of the PPTPA is elaborated as follows (art 5): (a) Collect data as needed by PTPA and related offices (b) Set priorities for water use, the need for water and plan the allocation of water (c) Compose the plan for water supply, allocation of water, water quality standards, pollution loads in the framework of water quality control (d) Compose the plan for determining the borders of rivers (e) Resolution of problems regarding sand and gravel mining for water resources and groundwater extraction (f) Implementing other integrated programs related to water resources including conservation of groundwater and surface water (g) Lifting the awareness and participation of the community in the protection, expansion, use and control of water and water resources (h) Resolving problems that arise as a consequence of implementing the above tasks. To complete the above tasks the PPTPA is to meet three times per year (art 7). It consists of a Head of the Committee, a Secretary and the Members of the Committee (art 6(1)). The same limited provisions for public participation apply, with the PPTPA being 'able to invite' representatives of affected parties to meetings (art 8). Without further elaboration, relations with the PTPA are stated to be 'consultative' and relations with the Irrigation Committee for the District (PanitiaIrigasi Kabupaten/Kota) are 'coordinative' (art 9(1)). West Java In West Java, a PPTPA have been formed for the Wilayah Sungai Citarum: SK Gubernur No. 614.05/SK.834-Huk/97*4 The tasks of this PPTPA are slightly different to the tasks of the PPTPA in East Java. 1. Coordination of the collection and processing of data as needed by PTPA including: a. water quality and quantity (surface and groundwater) b. data on land and water resources conservation c. data on needs for water d. data on the exploitation of water both that which is used and not yet used e. data on areas affected by floods and droughts 2. Coordinating the management of water: 4 Also for Wilayah Sungai Ciujung-Ciliman: SK GubernurNo. 614.05/SK.2123-PerekW94 and at least territories. six other river A14 b) -11 a. Composition of the annual water allocation plan and setting use priorities b. Determining the priorities for allocating water in the wet and dry season of to the c. Determining water quality standards including volume of waste that is able to be disposed river d. Composing land use plans in areas of the river management as well as plans for water resources developments e. Composing operational plans to manage floods f. Composing plans for floods beyond river borders g. Handling of natural disasters h. Resolution of land use problems i. Resolution of problems with gravel mining 3. Provision of consideration and suggestions on the management of surface and groundwater protection 4. Lifting the level of awareness and participation of the conununity in the development, exploitation, and control of water resources. 5. Monitoring and oversight in the regulation of water in the Citarum River conservation 6. Support for other integrated programs connected with water resources including land and water 7. Reporting to the Governor 8. Other tasks as directed by PTPA. 3.6 PJTI Licensing Working Group In East Java, a LicensingWorking Group was established in 2002 to give input to the Governor concerning licensing applications: Keputusan Gubernur Kepala Daerah Tingkat 1 Jawa Timur No. 188/266/KPTS/013/2002 tentang Kelompok Kerja Pertimbangan Perizinan Pergambilan dan PemanfaatanAir Permukaan di Wilaya Kerja PerusahaanUmum (PERUM) Jasa Tirta 1 . It is also to collect data, impose sanctions, evaluate reports and coordinate between the Provincial and District level. Its membership includes representatives from the Law Bureau, Economics Bureau, the Environment Agency, and the Departments of Public Works, Finance, Agriculture, Industry, Health, Tourism as well as PJTI. 3.7 Irrigation Committees The arrangements for irrigation institutions have been set out in Peraturan Pemerintah No. 23 Tahun 1982 Tentang Irigasi (PP23/82). Provincial Government arranges and regulates irrigation (PP23/82 art 2(1)). However, a legal entity, social organization, village, subak or individual can develop irrigation for commercial use on obtaining a licence from the Governor (PP23/82 art 6(2)) and also direct water through existing irrigation channels (PP23/82 art 9). The institutional arrangements for irrigation provide for the establishment of Provincial Irrigation Committees (Panitia Irigasi Propinsi) (PP23/82 art 37). These committees are to be a consultative forum to assist the Governor in the supply, division and provision of irrigation water for crops and A14 b) -12 - ~~~-- - other needs (PP23/82 art 37(2)). The Provincial committee is made up of the Governor and a government official from the water sector and high-evel officials from technical offices related to irrigation (PP23/82 art 37(3)&(4)). Further provision is to be made by the Governor (PP23/82 art 40). 4. DISTRICT LEVEL ORGANISATIONS 4.1 District Dinas and the New Water Law Regional autonomy and the New Water Law has added another layer of possible variation to the arrangement of levels of governmental responsibility. Under regional autonomy law, district government and the district level Dinas Pengairan has the task of implementing new responsibilities at the regional level. Under the New Water Law, major changes will occur where a river basin is considered to fall within the boundaries of district government as in such cases, the powers of the Provincial Dinas will be devolved to the district. The number of such river basins is yet to be determined by the Ministry for Settlements and Infrastructure. According to information received by the ILT team, it is likely to be less than 10 river basins. East Java: Kabupaten Sidoarjo, Department of Public Works - Water (Dinas Kabupaten/Kota Pekerjaan Umum - Pengairan. In East Java, the Provincial level of government transferred its authority to District Governments in 1994: Peraturan Daerah Propinsi Jawa Timur No. 17 Tahun 1994 tentang Penyerahan Sebagian Urusan Pemerintah Propinsi Daerah Tingkat I Jawa Timur Dalam Bidang Pekerjaan Umum Pengairankepada Daerah Tingkat II As set out in Peraturan Daerah Kabupaten Daerah Tingkat II Sidoarjo No. 53 tahun 1996 tentang Irigasi di Kabupaten Daerah Tingkat II Sidoarjo, this District Government has had authority for managing irrigation systems within its geographical area since 1996 under a transfer of authority from the Province. This authority has included planning, implementation, determination of irrigation priorities including licensing of irrigation systems within the district not including tertiary systems or systems built by legal entities (art 3). West Java: Kabupaten Bandung, Department of Public Works - Water (Dinas Pekerjaan Umum Penganian) Similarly to East Java, the Provincial level of government in West Java transferred its authority to District Governments in 1996: Peraturan Daerah Tingkat I Propinsi Jawa Barat No. 10 Tahun 1996 tentang Penyerahan Sebagian Urusan Pemerintahan di Bidang Pengairan kepada Pemerintah Daerah Tingkat II di Jawa Barat. As a result, the Bandung District issued a regulation on licensing to provide for a licence to use irrigation systems (Ijin Penggunaan Jaringan Irigasi): Surat Keputusan Kepala Dinas Pekerjaan Umum Pengairan Kabupaten Bandung No: 611/609/BM/Sk-Air Kab.IAP/2002. 4.2 Irrigation committees The institutional arrangements for irrigation have provided for the establishment of District Irrigation Committees (Panitia Irigasi Propinsi) by the Governor (PP23/82 art 37). These committees were to be a consultative forum to assist the Governor in the supply, division and provision of irrigation water for crops and other needs (PP23/82 art 37(2)). A14 b) -13 East Java: Kabupaten Sidoarjo In response to national laws on the WUA, in 2003 the Kabupaten of Sidoarjo passed a Decree on Irrigation Committee: Keputusan Bupati Sidoarjo No. 188/514/404.1.1.3/2003. This decree sets out the tasks of the committee including coordinating the provision of water in accordance with annual plan prepared by the WUA, determining the cropping plan and water allocation. The members of the committee include the Dinas Agriculture, Industry, Small and Medium-Sized Cooperatives and Fisheries, the Community Empowerment Board, the Police, a representative of an NGO and the WUA. 5. FARMERS' WATER USERS ASSOCIATIONS (WUA) 5.1 National Law on WUA The idea of the farmers' water users association (WUA) for farmers in tertiary irrigation, village irrigation or subaks has been around at least since 1982. PP23/82 transferred authority for managing tertiary irrigation systems, village irrigation or subaks to farmer users of water, the village or subak (art 2(2)). It also stated that regional government was to determine the form and expansion of farmers' water users associations (WUA) for the handing over of functions and responsibilities (art 20). Subsequently, a Presidential Instruction was issued, Instruksi President No. 2 Tahun 1984 tentang Pembinaan Perkumpulan Petani Pemakai Air, delineating the work area of the WUA, the form of organization, tasks and authority as well as rights and obligations. National provision was again made for the establishment of WUAs through Peraturan Menteri Pekerjaan Umum No. 42/PRT1989 tentang Tata Laksana Penyerahan Jaringan Irigasi Kecil Perikut Wewenang PengurusannyaKepada Perkumpulan Petani Pemakai Air (P3A) (PerMenPU 42/1989). The WUA is stated to be an umbrella institution of farmers or groups of farmers that manage irrigation water within a small irrigation network (art l(g)), which is less than 500 hectares (art 1(1)). They have authority for managing such irrigation networks (art 2) after meeting certain criteria and following a set procedure (art 2-5). This was followed by a decree of the Minister for Home Affairs: PeraturanMenteri Dalam Negeri No. 12 Tahun 1992 tentang Pembentukan dan Pembinaan Perkumpulan Petani Pemakai Air. This decree states that guidelines are to be issued by the Provinces and the WUA must fulfil certain conditions. The formation of WUA is to be determined by a decision of the head of the district. The management of the WUA is registers the organization with the County Court (Pengadilan Negeri) based on Ordinance dated 25 September 1939 regarding Indonesian Associations to obtain a legal status (art 5). This decree also sets out the functions and authority, rights and obligations of WUA. It also sets out the work areas, work relations and financing of WUAs. It was followed by Instruksi Menteri Dalam Negeri No. 42 of 1995 tentang Petunjuk PelaksanaanPeraturan Menteri Dalam Negeri No. 12 Tahun 1992 tentang Pembentukan Dan Pembinaan Perkumpulan Petani Pemakai Air (P3A) which provides a draft District Regulation to be passed by District Government and an example of the memorandum of association of the WUA (Anggaran Dasar). Instruksi Presiden No. 3 Tahun 1999 tentang Pembaharuan Kebijaksanaan PengelolaanIrigasi was passed to give a wider role to farmers in the management of irrigation systems. It was envisaged that there would be a transfer in stages of management in accordance with the principle "One irrigation system, one manager" (Part 2(3)). It was thought that a levy (iuran) for A14 b) -14 -I irrigation services would provide a source of income for financing operation and maintenance, rehabilitation and the development of infrastructure (Part 2 (4)). 5.2 Further reform on WUA: Regulation No. 77 of 2001 on Irrigation Since that time, central government passed Regulation No. 77 of 2001 on Irrigation (Peraturan Pemerintah No. 77 Tahun 2001 tentang Irigasi) which detailed the concept of Irrigation Management Transfer (IMT). IMT transfer concerns the transfer of rights, authority and responsibility from regional government to Water User Associations to arrange the management of irrigation and the financing of irrigation management in their work area. The work area is based on the principle 'one irrigation system, one manager' (art 5(2)) and could conceivably include primary, secondary or tertiary irrigation areas. It was envisaged that the arrangement would be as follows: * Farmers would form legal entities and that the transfer would be carried out through a written agreement without any transfer of the ownership of the irrigation assets (art 9(3)). Where irrigation systems are multi-use, the agreement would be between the farmers, the government and other users of the irrigation system (art 10). If after an audit, it is apparent that the transfer of management has not succeeded, management could be re- transferred to the government. * A right to use irrigation water would be given to WUAs, legal bodies, social bodies, individuals and users of irrigation water for their various needs (art 14(1)). This would be given in the form of a licence to take water (izin pengambilan air) (art 15(1)). * A yearly plan for the supply of irrigation water would be devised based on the suggestions of farmer's groups and users of irrigation water in accordance with their rights to use irrigation water (art 18(1)). The Governor or Mayor would determine the plan in accordance with their authority (art 18(2)). * During times of shortages the rights to use irrigation water would enable compensation to be provided for water shortages (art 18(4)). * The division of water of each water irrigation area would be determined each year by farmers users groups (art 19(1)). In multi-function areas it would be finalised through mediation through a coordination forum (art 19(2)). Excess water from one irrigation system could be used for planting needs outside the system or other needs after obtaining a licence (art 20). * The division and provision of water is to be set out in a program of water use (art 21(1)) and if it is thought that the deficit in water will not meet the need, then the fanner water users group is able to determine the priorities for water use without affecting the needs of domestic users (art 21(2)-(3)). * In relation to operation and maintenance, the WUA have both authority and responsibility for the irrigation systems in their work area (art 31(1)). In multi-use areas they are to coordinate through a coordination forum (art 31(2)). Regional government is to give help and assistance whilst considering the independence of the association (art 32). A14 b) -15 After PP77/2001, two guidelines were passed on the transfer of authority to WUA. The first, Keputusan Menteri Permukiman dan Prasarana Wilayah No 529/KPTS/M/2001 tentang Pedoman PenyerahanKewenangan PengelolaanIrigasi kepada Perkumpulan Pertani Pemakai Air details how the transfer of authority for irrigation management is to be transferred to WUA from Provincial or District government. It sets out the scope of the transfer as well as the authority, rights, obligations and responsibility of WUAs. It also details the conditions to be met for transfer and when cancellation can occur, the respective roles of government and WUA in management and financial arrangements. Keputusan Menteri Dalam Negeri No. 50 tahun 2001 tentang Pedoman PemberdayaanPerkumpulan Petani Pemakai Air is a complementary decree, which covers such topics as the method of forming a WUA, authority, rights and obligations, empowerment, working areas, work relations and sources of funds. A lot of work has gone into establishing the respective roles and functions of the WUA and District government in managing irrigation, as set out in Keputusan Menteri Dalam Negeri No. 22 Tahun 2003 tentang Pedoman Pengaturan Wewenang, Tugas dan Tanggung Jawab Lembaga Pengelolaan Irigasi Propinsi dan Kabupaten/Kota. In the annexures, which cover irrigation is systems found within one district, between districts and between provinces, a clear idea provided of who is to carry out what functions (a) at the district level between the WUA, the irrigation office, the agriculture office, and the irrigation commission (b) at the provincial level between the WUA, the irrigation office, the agriculture office and the irrigation coordinating body. Considerable detail has been provided in Keputusan Menteri Keuangan No. 298/KMK.02/2003 tentang Pedoman PenyediaanDana PengelolaanIrigasi Kabupaten/Kota on the financing of the management of irrigation within District government. 5.3 Response at the regional level: East Java In response to Peraturan Pemerintah No. 77 Tahun 2001 tentang Irigasi, which detailed the concept of Irrigation Management Transfer (IMT), East Java Province passed an implementing Regional Regulation, PeraturanDaerah Propinsi Jawa Timur No. 6 Tahun 2003 tentang Irigasi. As the national regulation is under review, no action was taken by East Java to proceed with reorganisation of authority set out in the regional regulation. A14 b) -16 Annex 14-c) Legal and Institutional Context - The Capability of the Present System to Support WUR i I Annex 14 c) LEGAL AND INSTITUTIONAL CONTEXT - The capability of the present system to support WUR The capability of the present licensing system to support WUR will be assessed by looking at the components of a WUR system, which can be said to consist of the following steps: (a) definition and creation of WUR (b) assignment and modification of WUR (c) delivery of WUR (d) protection of WUR and (e) securing compliance with WUR Reference has been made to the Water Resources Act No. 7 of 2004 (Undang-undang No 7 Tahun 2004 tentang Sumberdaya Air) ('the New Law') and well as the present system established under Act No. 11 of 1974 regarding Water (Undang-undang No. 11 Tahun 1974 tentang Pengairan) ('the Old Law'). Definition and creation of rights Before rights can be defined or created, there is a need for policy making on river basin management and WURs as a management tool. As a first step, an inventory of the features of a river basin needs to be compiled. This is likely to involve the collection of hydrological data within a river basin and developing an information management system. The next stage involves planning river basin management including estimation of the sustainability limit of water use in the basin and defining different types of rights and their purposes. This is followed by setting priorities for water use. In completing these tasks coordination between sectors is required. Once rights have been defined, they need to be created, which can be achieved through allocation of bulk basin shares with reference to priorities for water use. In a two-tier system, it also requires an allocation of water within the second tier. A14 c) -1 Table 1: Definition and Creation of Rights Activity Findings The DGWRD within Kimpraswil carries out national policy formulation on water resources management and the PWRS is responsible for technical policy. This policy making could conceivably include policy on WUR. and There seems to be a lack if understanding of WUR concepts in both the government uses community in general. For example, the use of licences for utilities and non-consumptive are not appropriate. At present there is litte conception of a two-tier System. Level two Policy formulation entities will need to be formulated. on river basin tools for the governance of water use management and WUR as a Licences are not regarded as administrative/management of the licence holder or to provide tool - to support a management system, to protect the rights of information to assist water resources management. There appears to be a poor awareness WUR concepts among government personnel at management and operational levels. A There appears to be poor coordination between government institutions in lawmaking. New detailed policy document was not prepared prior to drafting the New Law. In drafting the Law there was little formal consultation with the PWRS or DWRS. This raises questions about the coordination of policy making including the ability of farmers to influence policy. However, limited resources available Making of inventory Balai PSDA has responsibility for making an inventory. of the features of to the Balai raise questions about the adequacy of the inventory. the river basin Balai PSDA has overal responsibility for information management. Again, limited resources to meet this requirement. Collection of hydrological available to the Balai raise questions about their capacity data within a river Finance Office collect the data on basin and developing In East Java, the Balai PSDA and PJTI and the Provincial of data are to be reported by the an informnation management the volume of water extractions. The results of the collection ILT was not able to make a full system Balai PSDA to the PWRS. In the time available, the assessment of how well this system works in practice. is This function is carried out by the PWRS and coordinated by the PTPA and PPTPA. There a question about the capacity of the system to identify the overall quantity of water available in for allocation to various uses within a specified water source as an upper limit as contained of the basin plan. Whilst there may be planning of river basin management and setting be a priorities, river health issues seem to be inadequately considered. There needs to posed by water allocations. Planning river basin detailed evaluation of a river basin's behaviour and the risks management Shares between the various competitive uses should be worked out after the sustainability limit has been determined. Current processes do not provide data on the risks of potential over commitments of water supply. There are no sustainability limit or supply security figures available for the Brantas or Citarum river basins. Future planning is based on average statistics. There is no assessment of risks of security loss from increasing extractions. To This function is also carried out by the PWRS and coordinated by the PTPA and PPTPA. for areas of land under wet rice Creation - setting allocate water for irrigated farming, water is provided PJTII on a volumetric basis. priorities for water cultivation. Water for other uses is allocated by PJTI and use and annual allocation selected basin will be contained of water in accordance with Under the New Law, the water allocation policy for each this plan will determine the priorities within the water resources management plan. In particular, allocations for various classes of use and in stream needs. Whilst these bodies may operate Coordinationwith The coordinative bodies are the PTPA and PPTPA. to be equipped to carry out Coordinaton with effectively for routine and emergency events, they do not appear longer-term planning. A14 c) -2 Assignment and modification of rights Assignment involves the provision of legal evidence that a person or a group has a water right. The existence of a licence is the clearest evidence of the existence of right. Another form could be a certificate of an entitlement as has been recommended in this study. A question arises regarding the nature of the assignment, that is, whether it goes as far as providing a right to receive particular services from the Government. Furthermore, does the right involve a set and agreed priority to ensure that water is received on time, in the right amount and quality, and that the supply infrastructure (rivers, groundwater basins and water supply structures) are safe? Licenses generally need to be provided for the variety of uses of water. In addition, it may be considered desirable to make an allowance for the flow necessary to protect the environment, in effect, providing a right to the environment for a certain minimum flow considered necessary for environmental protection. There also needs to be scope for modification of rights to allow for adaption to changes in circumstances. Table 2: Assignment and Modification of Rights Activity Findings Grant and modification of operating licence for raw Neither PJTI or PJTTI, who provide raw water, function under an operating licence; however water supply they are under the oversight of Kimpraswil and Kementrian BUMN Approval for the establishment of PWRS approves the establishment of infrastructure for primary water supply within irrigation infrastructure for primary on the basis of technical recommendations from PJTIVPJTII, Balai PSDA and DWRS. irrigation Approval for the establishment of PWRS licenses the establishment of infrastructure for secondary water supply within irrigation infrastructure for secondary on the basis of technical recommendations from PJTIVPJTII, Balai PSDA and DWRS. irrigation A right to use water without a license has existed for basic daily human needs and the needs of animals. This right has covered drinking water, water for cooking, washing, worship and household needs. There appears to be an understanding both under the Old Law and the New Law that the first priority is water for drinking. In the time available, the ILT was not able to discern The right to water for basic the mechanism for securing this priority. For example, there are no provisions on prioritising needs - drinking water drinking water supply in licence conditions imposed by PWRS in licensing PDAMs in East Java. A question remains as to how drinking water is to be prioritised by PDAMs who also supply industry and other uses? Much will depend on Government Regulations passed under the New Law. A question to be addressed is how to establish the respective priorities of the supply of drinking water and the provision of irrigation water for farming communities. Irrigation water has also been able to be used without a licence such as water for daily needs, extinguishing fires, non-commercial transport, fishing, washing and drinking water for animals. The right to irrigation water In effect, the interpretation of this provision has been that irrigation water used for famnily- by farming communities based farming has not required a licence, as it is water for daily needs. The proviso has been that activities can only be carried out in a way that does not obstruct water flow, change water characteristics and or damage the irrigation network or land. A14 c) -3 The right to farming communities to use irrigation water without a licence is reiterated under the New Law. modified from time to time as required by circumstances, for example, in Modification of farmers' Farmers' rights are of in-scheme roights o ffres times of scarcity. Within irrigation systems, the water rotation is a modification times of scarcity. rights rights. In addition, there is negotiation between users to apportion water in Licensing is carried out by PWRS on receipt of technical recommendations from PJTIVPJTII, Balai PSDA and DWRS. Licence conditions are standardised and follow the minimum conditions set out in provincial regulations. The issuing or renewal of a licence is a source of revenue for provincial government and revenue considerations appear to drive water use licensing policies and priorities. Records of licensing activities (by type, rate of new licences indicates limited Licensing urban water by type and location, renewals etc) are not always accurate, which supplyen urby: water institutional capacity supply by: - PDAMs Criteria to assess adequacy: - uGuarantee the availability of water: Tenure of authorisations for all types of WUR is is a lack of formal longer-term secure rights, especially for - 1ndustry short (2 to 3 years). There industries and water supply companies. The supply contract with PJTIH provides a level width of the provisions on unavoidable - State Electricity Corp. of guarantee of supply but is limited by the circumstances, which at least in East Java includes droughts. - new irrigation systems, * Protect the environment: Limited - commercial farming and * Provide equity in access to water: Limited - as licensing is as not part of an overall system - others of WUR * Provide a basis for compensation for non-available water or re-location of water: The New Law has a provision for compensation, which will have to be developed procedurally. The short licence periods of 2-3 years allow for adjustment in licence conditions. However, the common practice appears to be simply to renew the licence under the same conditions. Modification of licenses The New Law caters for government to step in and adjust rights. It is reasonably specific on the circumstances and means for modification including suspension or cancellation of the rights. There is no provision for licensing flows necessary for environmental protection. Licences are not coincide with Licensing environmental allocated so as not to exceed the 'historical limit' even though this limit may river health issues may flows the limit that is desirable for environmental reasons. As a result, whilst be recognized and articulated in Basin Plans they are not within the concept of WUR. Environmental Impact Assessment is required for applications to use more than 100 litres/sec & listed activities predetermined as likely to have a large effect on the environment. The impact crosses district Environmental Impact Provincial Environment Agency will carry out an EIA if possible ELA if possible impact is Assessment boundaries and the District Environment Agency will carry out an contained within district boundaries. There are public participation provisions in environmental impact assessment. The ILT was not able to assess the effectiveness of the EIA procedure in relation to water use. PWRS is responsible for coordination of licence decision-making. The current licensing system has a clear procedure as well as a system for coordination between the PJT, Balai and District Level. Discussions with the DWRS indicated there might be a lack of full input from the Coordination with relevant District level, at least in some regions. sectors in license decision In East Java, a Licensing Working Group has been provided for in the PJTI work area. The ILT was not able to determine how effectively it coordinates the relevant sectors, for example, the Environment Agencies, the PWRS and DWRS. A14 c) -4 Delivery of rights Delivery of rights is concerned with the delivery of the service protected by the right, for example, water supply allocated for a particular use. This requires maintenance of rivers as well as construction and maintenance of canals and infrastructure. It also involves the actual supply of water. Table 3: Delivery of Rights Activity Findings Maintenance of rivers DGWRD is authorised to provide finance for maintenance of the Brantas and Citarum River basins; however, finance is not always readily available. PJTI and PJTII rely on deferred maintenance. PWRS as the resource manager provides support and assistance but with a limited budget. User's fees do not have a cost recovery function for maintenance. Construction and In Citarum River Basin, downstream from the Citarum Reservoir, PJTII has responsibility maintenance of primary and for construction and maintenance of primary and secondary canals and infrastructure; secondary canals and however, it is experiencing severe financial constraints. infrastructure In the area upstream of the Citarum Reservoir and in Brantas, PWRS has a limited budget for the construction of irrigation systems that staddle district boundaries. DWRS also has a limited budget for irrigation systems within district boundaries. User's fees do not have a cost recovery function for either capital investment or maintenance. Construction and DWRS has been responsible for initial construction and major refurbishment. There has maintenance of tertiary only been a limited degree of devolution of authority to WUAs. Therefore, the degree canals infrastructure to which WUA are able to carry out construction and maintenance has been lirmited. Construction and PDAM, or privatised PDAMs have responsibility. Again these organizations are under maintenance of severe financial constraints. infrastructure for urban and industrial water supply Delivery of annual water East Java allocation, supply raw water PJTI delivers water up to the headwork and supplies raw water for distribution to users. for distribution to users and Balai PSDA operates the water flow from the headwork to secondary canal. supply of raw water for irrigation and other uses West Java PJTII downstream of Citarum Reservoir delivers water up to the head work, supplies raw water for distribution to users and also irrigation and other uses. This situation leads to inconsistency in the role of the PJT across provinces. The role of PJT in irrigation systems needs to be clarified. If rights are to be transferred to farmers, PJTI1 will have to give up its role as the supply of raw water for irrigation. Supply of treated water for PDAM has responsibility for supplying and treating water to ensure it reaches a standard urban, industrial and other suitable for 'potable' water. In West Java, the PDAM's main problem is lack consumers of water. Other PDAMs suffer from high rates of water loss due to illegal connections and leakage. A14 c) -5 Protection of WUR Protection of WUR ensures that a right holder is able to use water in accordance with their right in such a way that is free from any detrimental impact on the right from other users. It involves imposing obligations on licence holders not to impair the rights of others to use water or to endanger the environment. Third parties whose rights may be adversely impacted by the introduction of new rights or changes to existing licence conditions also need to be protected. Protection also requires conditions in licences that impose obligations on the government to provide a service on a set and agreed system of priorities, so that water is received on time and in the agreed amount and quality. Implicit in these obligations is the understanding that supply infrastructure (rivers and water supply structures) will be safe, which requires safe construction and adequate remedial work on multi-purpose dams. A14 c) -6 Table 4: Protection of Rights Activity Findings Safe construction and refurbishment DGWRD is responsible for dam construction and remedial work. The ILT was of existing major works (not not able to investigate this topic. However, comments made by DGWRD maintenance) adequate remedial indicated that central government regards such expenses as a heavy financial work on multi-purpose water storage burden. dams Adequate maintenance PJTI and PJTII are only able to carry out deferred maintenance. multi-purpose water storage dams Inclusion of conditions in licences Licences reviewed by the ILT did not include conditions imposing obligations on on the right to get services from the government. Government on a set and agreed priority, on time, in the right amount In East Java there is an obligation to reduce the intake if water availability and quality. is reduced as a result of river or canal maintenance or rotation of provision within a canal. If this causes disturbance then the licence holders can change the extraction site at their own cost. Inclusion of license obligations to: * not endanger the environment In some instances there are conditions on not endangering the environment. There are no standard conditions not to impair the ability of others to use water or to * not disturb water use by others help maintain infrastructure and facilities. * help maintain infrastructure and facilities Notification of licence application There is no formal procedure for public participation in licensing. New licence and facilitation of public applications do not have to be notified to the surrounding community and the participation community has not right to participate in the licensing process. The only formal requirement for public participation comes from the procedure for environmental impact assessment of new enterprises. Oversight of licensing procedure There is no organization tasked with oversight of licensing procedure to ensure correct procedure is followed and the best results are obtained. Third party appeal against a licence There are no provisions to enable a third party to appeal against a licence decision. grant or conditions Dispute resolution - PJTIIM & users The provisions on dispute resolution between PJTI/II and users are set out in supply contracts. The provisions are not standard. Although all contracts require efforts to mediate disputes at least in some cases in East Java an ongoing dispute can be taken to court whilst in West Java it goes to arbitration. There is no detail regarding how the mediation is to be arranged. Dispute resolution - between users PWRS and DWRS have offices responsible for dispute resolution and are able to arrange mediation of disputes between users. In the time available, the ILT was not able to ascertain how effective the PWRS or DWRS is in this role. The New Law provides for mediation as a first stage in resolving disputes to be followed by either resort to the court system or through arbitration. Dispute resolution - PDAM and A provision on dispute resolution is not contained in any customer contract. customers A14 c) -7 Ensuring compliance - monitoring, surveillance and sanctions Ensuring adherence to legal obligations or obligations in licence conditions is important to guarantee the functioning of the overall system. It requires surveillance and monitoring of compliance with legal obligations and the application of appropriate sanctions in the event of non-compliance. Table 5: Compliance with Rights Activity Findings Supervision of delivery schedules The delivery schedules are contained in a Letters of Decision issued by PJTI/h. According to the supply contracts, failure to deliver (except from forced circumstances) makes the PJT liable to a fine. In the time available, the ILT was not able to discern the means for ensuring compliance with the schedules or how the fine is to be imposed. number of Oversight of compliance with Oversight of licences for bulk water supply is shared between a is likely to license conditions, metering etc institutions (Provincial Dinas, Balai, relevant District Dinas) and this lead to problems in coordination. Balai PSDA is responsible for irrigation channels that straddle districts. They have insufficient financial and human resources to adequately oversee compliance with licence conditions. District Dinas are responsible for irrigation channels within districts. They are also lacking in financial and human resources to adequately oversee compliance with licence conditions but do not have to cope with the same travel demands as the Balai. PJTI/IH, Balai PSDA, as well as Provincial and District Environment Agencies monitor water quality in rivers. This needs effective coordination. The ILT was not able to discem the extent to which coordination is adequate. There is a gap in allocation of responsibility for monitoring water quality in irrigation channels. in such Administrative enforcement Licences contain provisions for the imposition of penalties circumstances as a failure to install an effectively working meter. The conditions do not state who will impose the sanction. Regional regulations also provide for administrative sanctions such as closing a meter or revoking a water use licence. In practice, there appears to be very little administrative enforcement. If a licence holder uses water in excess of the licence, it is likely that the licence will be amended to provide for an increase in extraction rates. use, it has Criminal enforcement Whilst there is provision for criminal enforcement in licensing water rarely been resorted to, if ever. Criminal enforcement for water pollution offences is still rare in Indonesia. However, the ILT was informed of three recent prosecutions launched by the Environmental Agency in the Bandung District. is not Civil enforcement Civil enforcement by the government of environmental proceedings provided for in legislation in Indonesia. However, the New Law includes a provision that allows the Government to act on behalf of the public interest, which may be an allusion to some form of civil proceedings. standing for Other civil proceedings The New Law provides for the possibility of and class actions legal environmental organisations in limited circumstances. Similar provisions exist in environmental legislation. The effectiveness of these provisions, which rely on functional court system, is still being tested. A14 c) -8 Annex 14-d) Outline of Licensing Surface Water Use II i I Annex 14 d) OUTLINE OF LICENSING SURFACE WATER USE Introduction This annexure will outline the licensing system that was established for surface water use under Act No.11 of 1974 regarding Water ('the Old Law') and provisions in the new Act No.7 of 2004 on Water Resources ('the New Law'). It will start by looking at the nature of water use rights and what kinds of rights have existed in Indonesia under the Old Law and now exist under the New Law. It will also look at customary rights and the water allocation mechanism. It will go on to review water use rights provided under licences, licence procedures and licence obligations. It will also look at licensing law in East Java and West Java, supply contracts and provisions for enforcement and resolution of disputes. The Constitutional basis for the protection of Indonesia's natural environment is article 33(3), which states: Land and water and the natural resources therein are controlled by the state and utilised for the greatest welfare of the people. Article 33(3) is an example of a power-conferring provision that confers considerable legislative and administrative power to the state to use and control land, water and the natural resources of Indonesia. It provides the necessary foundation for a scheme to control and manage water resources through a system of water use rights. To date in Indonesia, there is an incomplete system, which consists of minimalist-style licences for certain water uses, essentially related to commercial use of water. WHAT IS A WATER USE RIGHT AND WHAT KINDS OF WATER USE RIGHT EXIST? Nature of a water use right (WUR) A water use right (WUR) grants to person or group the right to use water in such a manner that is recognised and protected by the formal legal system. A complete system of WURs will document all water uses in a river basin as a form of resource accounting in the allocation of water across a river basin. A Water Users Right (WUR) has been defined as 'an organised means of managing a planned sharing of water for the benefit of a community'.' It was suggested at the First National Workshop on WUR Study, Stage 2 on 26 March 2004 that a WUR provides: - a guarantee of a certain availability of water - protection for the environment - a system to establish equity in access to water l Sanyu Consultants Inc/ LP3ES Indonesia: Water Rights Study Stage 1 Final Report World p.7. Bank July 2003 at A14 d) -1 - a basis for compensation for non-available water or re-ocation of water. A licence can provide clear legal evidence that a person or group has been assigned a water use right. A licence brings a WUR into existence when it authorizes the use of water from a specified water source and imposes conditions on its access, extraction and use. This is done by specifying in a licence the authorized "exploitation entitlements" and "discharge rights" and the conditions applying to accessing, extracting and using water from a specified water source and/or to discharge to a water source, consistent with its sustainability limit. Outside the licence system, mechanisms that need to be looked at to assess the extent of water use rights in Indonesia are the system of prioritising water use and the annual allocation of water through cropping patterns as a form of right for farmers. Recognition of rights under the Old Law Under the Agriculture Act No. 5 of 1960 (Undang-undang No. S Tahun 1960 Tentang PeraturanDasar Pokok-pokok Agraria) there is a reference to a right to use water as being separate from a right to land but this concept is not developed further (art 4(3)). Under the previous national water resources statute, Undang-undang No. 11 Tahun 1974 tentang Pengairan(UU 11/74), it was stated that water resources are controlled by the state (UU 11/74 art 3 (1)). The Government had a 'right' to control water resources and as such it had 'authority' to arrange the validation and/or provision of licences based on planning and the technical planning of the regulation of water (UUI 1/74 art 3(2)(b)). There was no mention of rights to use water by individuals or the community. The right to use water was introduced in PeraturanPemerintah No. 22 Tahun 1982 tentang Tata PengaturanAir (PP22/82). A right to use water without a license has been available for basic daily human needs and the needs of animals (PP22/82 art 16(1)). As elaborated in the elucidation, this right covers drinking water, water for cooking, washing, worship and household needs. It is stated that the use of water by individuals or community groups is to accord with local adat tradition and conditions associated with health and the environment (PP22/82 art 17). The relationship between traditional (adat) rights to water use, the authority of government to control and manage water and the rights obtained under a licence needs to be set out. For example, does government authority co-exist with traditional rights? Furthermore, is a traditional right subject to the rights of licensed users, can a licence for use impair traditional rights or does it have to recognise pre-existing traditional rights. This appears to be an area of uncertainty. Pursuant to PeraturanPemerintah No. 23 Tahun 1982 tentang Irigasi (PP23/82), irrigation water has been used without a licence for daily needs, extinguishing fires, non-commercial transport, fishing, washing and drinking water for animals (PP23/82 art 22 (1)). The interpretation of this provision has been that irrigation water used for family-based farming has not required a licence, as it is water for daily needs. These activities have been permitted to the extent that they do not obstruct water flow and do not change water characteristics or damage the irrigation network or land (PP23/82 art 22 (2)). Recognition of rights under the New Law The New Law commences with an undertaking by the state to 'guarantee the right of every person to obtain water for their basic minimal daily needs to fulfil a healthy, clean and productive life' (art 5). In the Old Law there was no explicit reference to the right to use water for water for production although it existed in practice. A14 d) -2 The New Law (art 7) establishes two broad rights under the heading of water use rights (hak guna air) (a) a right to obtain and make use of water and (b) a right to commercially use water for various needs. Some aspects of these rights require a licence. However, the right to use irrigation water without a licence is stated under the New Law, which states that 'A right to make use of water is obtained without a licence, to fulfil basic daily needs for individuals and for farming communities within irrigation sistems' (art 8 (1)). Priority uses under the Old Law PP 22/82 established the use of drinking water as the highest priority in the management of water resources (PP22/82 art 13(1)). Apart from this use, other uses for water are to accord with the needs of the local community and situation (PP22/82 art 13(2)). Water use priorities are to be set out in a water resources development plan (PP22/82 art 13(3)). The situation is anticipated that there may be more than one community group using water from a development or water pipes and, if so, the division is to be arranged by the group based on guidelines issued by the Governor (PP22/82 art 15). In East Java, a Governor's Decree sets out the priority of water use by relating it to licensing (Keputusan Gubernur tanggal 11 Juli 1988 No 316 tentang Petunjuk PelaksanaanPeraturan Daerah No. 15 Tahun 1987 tentang Perizinan PenggunaanAir di Jawa Timur) as follows (art 3): Drinking water, agriculture, plantation, fisheries, industry, hydroelectricity, flushing and swimming pools. In West Java, it is stated that the first priority is drinking water and the order of priorities is to be determined in the plan for water resources development (Perda No. 12 Tahun 1989 tentang Tata PengaturanAir (art 9). Priority uses under the New Law As mentioned above, the New Law commences with an undertaking by the state to 'guarantee the right of every person to obtain water for their basic minimal daily needs to fulfil a healthy, clean and productive life' (art 5). This right is supported by a provision that states (art 29(3)): the supply of water to meet basic daily needs and irrigation for farming communities within irrigation is the first priority of water supply above all other needs. This provision seems to create two priorities. It can be seen that the two priorities also appear in the provisions that identify when a licence will not be needed (art 8(1)), use of water resources (art 32(3)) and non-liability for a service fee (art 80(1)). In the elucidation of article 8(1) it states that what is meant by 'basic daily needs' does not include water that is taken from a distribution pipe, which seems to exclude water supplied by PDAMs. Therefore, the intention seems to be that PDAM water is not considered a basic daily need but only water A14 d) -3 that is taken directly from a water resource such as would occur in a traditional farming community. In practice, drinking water is provided (with varying levels of water quality) through a number of means including direct taking from rivers, from irrigation channels, from groundwater, purchase of drinking water from water vendors and piped water from PDAMs. Exactly how this priority is to be guaranteed in relation to each source will need to be made the subject of further regulations. Apart from these two priority uses, the order of other priorities is to be determined in each river district by central or regional government (art 29(4)). This is to be set out in the water resources management plan in each river district (art 29(6)). There is no reason why further regulations should not define the range of priorities and how their respective purposes are to be achieved such as * drinking water * other basic human needs such as cooking, washing, worship and caring for animals * irrigation water for farmers as part of their basic daily needs * irrigation water for farmers beyond basic daily needs * water for industry and other sectors However, if this is something that is left for policy making at the regional level, arrangements could vary between regions. The WUR framework will need to have a generic structure to address government policies and the law but with sufficient scope to allow variation in content to cover the diversity that exists at the regional level. Customary rights Provisions to protect customary rights are usually qualified by references to the national interest or other overriding priorities. The protection of traditional rights to use water is not directly covered by article 33(3) in the Constitution: utilization 'for the greatest welfare of the people' does not expressly protect traditional rights of a local community to use water. Under amendment No. 2 to the Constitution, it is provided that the state recognises and respects customary law and traditional rights to the extent that they are still alive and accord with the development of the community and national unity (art 18B(2)). Under UU11/74 state authority was to be exercised whilst recognising rights of traditional communities as long as they did not conflict with the national interest (art 3(3)). PP22/82 provides that water use arrangements for the needs of farmers are to respect traditions of local communities to the extent that there is no conflict with the general interest and existing legislation (art 20). Under the New Law, the same proviso applies (art 6(2)&(3)). A stronger provision is found in Act No. 39 of 1999 on Basic Human Rights (Undang- Undang No. 39 Tahun 1999 Tentang Hak Asasi Manusia) which provides that in the framework of the protection of basic human rights, differences and needs of communities A14 d) -4 ______-_ I guided by traditional law must be given attention and protected by the law, community and government (art 6(1)). WUR and the water allocation mechanism The ILT has access to the Governor's Decree on the cropping pattern which sets out the water allocation for irrigation-based farming communities: Keputusan Gubernur Jawa Barat Nomor: 521/Kep/1088-Benprod/2003 tentang Penetapan Rencana Tanam Padi Rendeng MT.2003/2004 dan Gadu MT. 2004 Serta Tanam Palawija MT.2004 Di Daerah Irigasi Jatiluhur. The allocation for irrigation only addresses the surface area of land under wet rice cultivation and is not expressed volume as litres/second. At the District level, each sub- district's allocation of water is set out according to the number of hectares under cultivation and the type of irrigation system: Keputusan Bupati Bandung Panitia Irigasi Kabupaten Bandung Nomor: 520/Kep602A.DPU/2002 tanggal 29 Oktober 2002. In what appears to be a conflict with the stated priority of water use, pursuant to the Decree of the Governor, water allocation for PAM DKI, PDAM and industry from Jatiluhur that is arranged by PJTII is to be adjusted with the planting season during periods of drought. Exactly how the priority for water is allocated during droughts was not investigated by the ILT. There is no undertaking by the Provincial Government that farmers will receive the amount of water mentioned. Further detail concerning seeds and cropping systems, the program for delivery of water and ways of handling water shortages are arranged by the Mayor. There is no standard complaint procedure if water is not provided as stated in the Decree; .2 however the ILT was told that informal avenues exist. It can be seen that if this form of water allocation is compared to a system of WUR, there is a minimal guarantee of a certain availability of water, there is no provision for protection for the environment, nor is there a basis for compensation for non-available water or re-location of water. WATER USE RIGHTS PROVIDED BY A LICENCE Licensed water use under the Old Law General approach before regionalautonomy Under UUl 1/74, the Government could regulate, validate and provide licences for the allocation, water use and the supply of water and or water resources (UU 11/74 art 3(2)(c)). The Government could also regulate, validate and provide licences for the commercial use of water or water resource (UU1 1/74 art 3(2)(c)). Licensing is elaborated in Peraturan Pemerintah No. 22 Tahun 1982 tentang Tata PengaturanAir (PP22/82). If a river district or part of a river district is within a provincial government then the Provincial Government has authority (PP22/82 art 5(1)) and is responsible to the Minister (art 5(2)). In other situations, where the borders of a river district cross over a Province, the Central Government has authority (PP22/82 art 5(3)). As this regulation predates regional autonomy, the arrangement of government authority for water follows the borders of river districts (wilayah sungai) but does not mention the role of district government. 2 By participants in the First National Workshop on WUR Study, Stage 2 on 26 March 2004 A14 d) -5 Provision has been made for licensing water use for all needs that are not basic daily needs (PP22/82 art 19(1)). The activities that need a licence are listed as including urban development, farming, energy, industry, mining, water transport, floating materials, recreation, health and other needs (PP22/82 art 19(2)). It appears that different arrangements have applied depending upon whether the use is for farming, energy, industry or the oil and gas sector. It is stated that in assessing all licence applications, attention must be given to the value of use of the need along with the consequences for water balance concerning both water quality and quantity and fulfillment of requirements for waste disposal in existing legislation (PP22/82 art 24(3)). Pursuant to Peraturan Menteri Pekerjaan Umum No. 49/PRT/1990 tentang Tata Cara PersyaratanIzin Penggunaan Air dan atau Sumber Air (PerMen PU 49/1990) licenses have been required for the following activities: ((PerMen PU 49/1990 art 4) a. drinking water supply b. urban development and housing c. supply of irrigation water for farming d. animal husbandry e. plantations f. fish farming g. industry h. mining i. energy j. floating activities k. soaking 1. water transport m. recreation n. wastewater disposal o. development, alteration or demolition of all structures above or below water. Industry, mining, and oil and gas To date, the regulation of water use by different sectors has been carried out by the Minister for that particular sector such as industry, mining, and the oil and gas sector (PP22/82 art 22). This arrangement has meant that each sector issues licenses independently. The request for a licence has been made to an authorized party within Central or Provincial Government together with information and data as regulated by the Minister (PP22/82 art 23(1)). The application must contain a plan for the disposal of wastewater and other liquid and solid waste (PP22/82 art 23(3)). A14 d) -6 Electricity A licence to use water for power generation has been provided by the Minister (PP22/82 art 23(2)). Licensing procedure is to be arranged by the Minister (PP22/82 art 23(4)). When water is to be used for energy production it must not exceed the installation capacity (daya terpasang tertentu) and is to be based on the plan for the water resources development. In this regard, the relevant Minister (the Minister for Minerals and Energy) has been authorised to impose technical conditions (PP22/82 art 21). Irrigationwater The arrangements for licensing water use in irrigation have been set out in PP23/82 under which irrigation water used for daily needs, to manage fires, non-commercial water transport, fishing and farm animals (PP23/82 art 22) does not require a licence. The interpretation of this provision has been that water used for irrigation by farming communities is considered to be water for daily needs. All other uses of irrigation water have required a licence from the Governor (PP23/82 art 23). Irrigation water and systems established by a legal entity, social organisation or individual for commercial use is transferred to such bodies (PP23/82 art 2(3)), which apply for a licence from the Governor (PP23/82 art 5(2)). The licensing procedure is to be regulated by regional regulation (PP23/82 art 5(3)). The supply of irrigation water is to be implemented by the Province; however, a legal entity, social organization, village, subak or individual is able to develop irrigation for commercial use on obtaining a licence from the Governor (PP23/82 art 6(2)) and to also direct water through existing irrigation channels (PP23/82 art 9). Primary responsibility has been held by Provincial government for organizing the allocation of water use in irrigation, which has included making allowances for water shortages in the dry season (PP23/82 art 12-16). hrrigation water can only be taken from tertiary level channels (saluran tersier) or level four channels (saluran kwarter) from places determined by authorized people (art 17). This is to be organized by the farmers themselves in accordance with technical directives and policy issued by Provincial Government (PP23/82 art 18(1)). Irrigation water in tertiary channels for agricultural industry (tanaman industri) is to be prioritized for crops in the nearby irrigation section (petak irigasi). If irrigation water is not sufficient to meet the needs of the agricultural industry and other crops then the use of water can be arranged in rotation based on a Decree of the Governor (PP23/82 art 19). Local farmers can carry out these activities by using village irrigation or subak (PP23/82 art 21). Licensed water use under the New Law Under the New Law, the right to make use of water (hak guna pakai air) will need a licence if (art 8(2)): a. the method of use is such as to change the natural condition of the water resource. A14 d) -7 b. it points to a need of a group who need water in large quantities; or c. it is to be used by a farming community outside an existing irrigation sistem This test for the need for a licence requires an assessment of whether 'the natural condition of water resources' is to be 'changed' by the water use or whether water is to be used in 'large' quantities. The most detailed reference to licensing concerns the right to use water commercially (hak guna usaha air) under a licence (art 9(1)). Only water resources enterprises (an individual, company or joint venture) whose extent of activity does not cover a whole river district can be licensed. Enterprises which use water commercially are required to obtain a business licence to carry out their activities (art 45 (3)). Such licenses cover the use of water at a specific site, the exploitation of reservoirs and the exploitation of water power/energy at a specific site (art 45(4) (a)-(c)). The water licence will include the allocation of water allowed for water use (art 46(3)). However, there are additional provisions for licensing. In the provisions which outline the respective authority of central, provincial and district government, it is stated that each level of governmeilt has authority for 'the regulation, determination and provision of licences for the supply, allocation, use and commercial use of water resources' .... within their area of authority (arts 14 (f), 15(f) and 16(f)). This provision seems to support the provision of licenses and hence water use rights for * Water supply * Water use * Commercial use of water. Other references to licensing concern licensing weather modification (art 38(2)) and exploitation of sea water (art 39(2)) There is also a reference to licensing the construction of water resources infrastructure by individuals or enterprises (art 63 (3)). All licences that have been granted under previous law are still operative (art 98). LICENCE PROCEDURES The procedural law on licensing water is set out in a ministerial decree: PeraturanMenteri Pekerjaan Umum No. 49/PRT/1990 tentang Tata Cara PersyaratanIzin PenggunaanAir dan atau Sumber Air (PerMen PU 49/1990). The grant of a licence is to be based on the plan for the protection and development of water use for each water resource in river territory (wilayah sungai) (PerMen PU 49/1990 art 2(2)) and if a river territory has not been provided for, it is to be based on agreement between relevant departments (PerMen PU 49/1990 art 2(3)). The Director-General provides guidelines regarding minimum technical conditions that must be contained in licences (PerMen PU 49/1990 art 2(4)). The level of government with authority for licensing was divided between the Governor and the Minister depending on the demarcation of the river district (art 5). If it is a river district managed by the central government, the Director-General of the Department of Public Works had authority to make technical recommendations. If it is a river district managed by a legal A14 d) -8 body then technical recommendations are to be given by that body (PerMen PU 49/1990 art 10 (2)). The authority of the Governor to issue licenses is to be the topic of a Perda (PerMen PU 49/1990 art 7). LICENCE OBLIGATIONS Statutory prohibitions Statutory prohibitions imposed on the licence holder have been follows: - not to assign the licence to a third party without the agreement of the licensor (PerMen PU 49/1990 art 18(1)). - not to sell the licence to another party except in accordance with the conditions in the licence (PerMen PU 49/1990 art 18(2)). Under the New Law, these provisions seem to have been made more strict as there is a strongly worded provision that water use rights (hak guna air) are not able to be leased or transferred in part or in full (art 7(2)). It is stated in the Elucidation that leases or transfers should not take place for whatever reason. It is also stated that if the right holder does not use a water use right, the government is able to revoke the right. Renting out (disewakan) would seem to refer to a temporary transfer of access to water use, which at the end of the period returns to the original holder of the right. Transfer (dipindahtangankan) could be seen to refer to a more permanent arrangement where there is a transfer of an existing right between an existing water user or a new water user with the right staying with the receiver not the giver of the right. This provision is backed by a strong sanction which states that any person who intentionally leases or transfers part or whole of a water use right will be liable to a maximum of 3 years jail and a maximum fine of Rp 500 million (art 94(3)a). Levies (Iuran) According to Peraturan Pemerintah No. 6 Tahun 1981 tentang luran Pembiayaan Eksploitasi dan Pemeliharaan PrasaranaPengairan (PP6/81) a levy (iuran) is payable to cover the exploitation and maintenance of water infrastructure by those who benefit from the supply of water through water infrastructure (PP6/81 arts 2&3). The obligation to pay a levy only applies to licensees who intend to use water for commercial purposes (PerMen PU49/1990 art 14)). This levy does not apply to farmers who pay the Regional Development Levy (luran Pembangunan Daerah (IPEDA) (PP6/81art 3(2)). The levy is to be used to finance the exploitation and maintenance of water infrastructure and the protection of water resources (PerMen PU 49/1990 art 14(2)). The size of a levy for power supply (not micro-hydroelectricity) is set by the Minister (PerMen PU 49/1990 art 15(1)). In relation to other uses of water, the size of the levy is also set by the Minister but with input from the Provinces (PerMen PU 49/1990 art 15(2)). Levies payable by the oil and gas sector for the use of groundwater are arranged under separate legal instruments. 3 Keputusan Bersama Direktur Jenderal Moneter, Direktur Jenderal Pemerintahan Umum dan Otonomi Daerah, Direktur Jenderal Minyak dan Gas Bumi, Dan Direktur Jenderal Pengairan KEP-4802/m/1991 No. 974-718 A14 d) -9 Before regional autonomy, the level of the levy was to be set by central government after taking into account exploitation and maintenance, amortisation, interest, depreciation and development (PP6/81art 5(1)). Exactly how this arrangement was to work in practice was not elaborated upon in Keputusan Presiden No. 58 Tahun 1990 tentang Penetapan Perusahaan Umum (PERUM) Jasa Tirta Sebagai Perusahaanyang Dapat Menarik dan Menerima luran Pembiayaan Eksploitasi dan Pemeliharaan Prasarana Pengairan. In any event, since regional autonomy this authority has been devolved to the regional level. Taxes According to Undang-undang No. 34 Tahun 2000 tentang PerubahanAtas Undang-undang No. 18 Tahun 1997 tentang Pajak Daerahdan Retribusi Daerah (UU34/2000), the province can impose taxes for the extraction and use of surface water (art 2(1)(d)). At least 70 per cent of the proceeds from this tax are to be transferred by the Province to the local government (art 2A). However, it is not clear whether the revenue raised from a particular locality is to be returned to that locality or can be diverted to another locality. It is stated that the division between localities is to be determined by a Provincial Regional Regulation with attention to equity and potential between localities (UU34/2000 art 2A (3)). The rate of tax is set in UU34/2000 and is to be set in the same manner across Indonesia and is to be arranged by a Government Regulation (UU34/2000 art 3(2)). It is notable that whilst local government is able to impose taxes, they are not able to raise levies or impose taxes that can be imposed by provincial or central government (UU34/2000 art 2(4)(a)&(d)). This seems to deny local government the opportunity to raise a levy or tax, which is an important consideration where the local government is responsible for managing a river basin or sub-basin under the New Law. The tax is payable on the taking, using, and taking for use of surface water: Peraturan PemerintahNo. 65 Tahun 2001 tentang Pajak Daerah (PP65/2001) (art 33(1)). Government, and government-owned enterprises established for water exploitation or protection do not have to pay tax (PP65/2001 art 33(2)(a)&(b)). Other exceptions are farming communities (pertanian rakyat) (PP65/2001 art 33(2)(c)) and households (rumah tangga) (PP65/2001 art 33(2)(d)). The exception allowed to 'farming communities' allows for uncertainty, as this concept is not defined. The basis for the calculation of the tax rate is the value of the gain (perolehan) of water (PP65/2001 art 35(1)). This is calculated taking into account (PP65/2001 art 35(2)): a. type of water resource; b. location of the water resource; c. objective of the taking or use of the water; 107K/101/DD JM/91-137/KPTS/A1991 tentang Tata Cara Pembayaran Retribusi Air atau Sumber Air Untuk Kegiatan Usaha Otonomi Daerah, Minyak dan Gas Bunii dan Pengusahaan Sumber Daya Panas Bumi [see blue booklet] Keputusan Bersama Direktur Jenderal Menteri Pekerjaan Umum dan Menteri Pertambangan dan Energi No. 04/KPTS/1991 tentang Penggunaan Air dan atau Sumber Air Untuk Kegiatan Usaha Pertambangan Termasuk Pertambangan Minyak dan Gas Bumi dan Pengusahaan Sumber Daya Panas Burni [see blue booklet] A14 d) -10 d. volume of water that is taken or used or taken for use; e. water quality; f. the size of the location from with water is taken or used; g. the season in which the water is taken or used or taken for use; h. the extent of environmental damage that is caused by the taking or use or taking for use. Where water is used by a Government-owned enterprise (BUMN) or Regional Government- owned enterprise (BUMD) that provides services to the public or the mining and gas sector, the value is determined by the Minister of Home Affairs with consideration of the Minister for Finance (PP65/2001 art 35(3)). In relation to the receipt of water used by BUMN and BUMD that provide public services and the oil and natural gas sectors, a decree of the Minister for Home Affairs has been passed: Keputusan Menteri Dalam Negeri No. 12 Tahun 2002 tentang Nilai Perolehan Air Yang Digunakan Badan Usaha Milik Negara, Badan Usaha Milik Daerah yang Memberikan Pelayanan Publik, PertambanganMinyak Bumi dan Gas Alam. The basis for the payment of the tax is the value of water, which is set out in the KepMen (art 3). Regional Fees (Retribusi Daerah) The imposition of a fee relates to use of public facilities. A regional fee can be imposed in relation to licensing (retribusi perizinan tertentu) where licensing is needed to protect the public interest, when there is a financial burden on the region related to the issuing of the licence licence and a cost in responding to negative impact in granting the licence: Undang- undang No. 34 Tahun 2000 tentang Perubahan Atas Undang-undang No. 18 Tahun 1997 tentang PajakDaerah dan Retribusi Daerah (UU34/2000) (art 18(3)c.). It would appear national law does not authorise the passing of a regional regulation imposing a fee for the taking or use of water. Peraturan Pemerintah No.66 Tahun 2001 tentang Retribusi Daerah (PP66/2001) contains the definition of a licence fee (retribusi perizinan) which includes licences for the regulation of the use of natural resources (art 1(5) & 4(1)). This would seem at first glance to apply to the licensing of water use; however, such a licence is not included in the list of types of licence fees (art 4(2)). Separate provision is made for the payment of a fee (retribusi) for the use of water by the oil and gas sector. 4 4Keputusan Bersama Direktur Jenderal Moneter, Direktur Jenderal Pemerintahan Umum dan Otonomi Daerah, Direktur Jenderal Minyak dan Gas Bumi, Dan Direktur Jenderal Pengairan KEP-4802/M/1991 No. 107K/101/DD JM/91-137/KPTS/A1991 974-718 tentang Tata Cara Pembayaran Retribusi Air atau Sumber Air Untuk Kegiatan Usaha Otonomi Daerah, Minyak dan Gas Bumi dan Pengusahaan Sumber Daya Panas Bumi. A14 d) -11 LICENSING WATER USE IN EAST JAVA Background The basis for licensing water use in East Java is Peraturan Propinsi Jawa Timur No.15 Tahun 1987 tentang Perizinan Penggunaan Air di Jawa Timur . This regulation sets out the overall framework for all licensing in the Province including basic licence conditions, the payment of fees and levies, oversight and sanctions. According to national law, in the PJTI work area, all enterprises, individuals and legal entities that use water are obliged to possess a Water Use Licence (Surat jin Penggunaan Air atau Sumber Air) (SIPA) issued by the Governor: Peraturan Menteri Pekerjaan Umum No.614/PRT/1991 tentang Pelimpahan Wewenang PelaksanaanPemberian Ijin Penggunaan Air dan atau Sumber Air di Wilaya Kerja Perusahaan Umum (PERUM) Jasa Tirta kepada Gubernur Kepala Daerah Tingkat 1 Jawa Timur (PerMen 614/91 Point 3(1)). The SIPA is to cover water used for the following: a. supply of water for drinking water b. urban development and housing c. supply of irrigation water for farming d. animal husbandry e. plantations f. fish farming g. industry h. mining i. floating activities j. soaking activities k. water transport 1. recreation m. wastewater disposal n. development, alteration or demolition of all structures above or below water. It can be seen that this list repeats the list contained in PerMen PU 49/1990 (art 4) with the deletion of reference to energy. Licence procedure in East Java According to national law passed in 1991, the Governor issues the licence based on a recommendation from PJT (PerMen 614/91 Point 4). The SIPA contains technical conditions as set out in the technical recommendations received from PJT (PerMen6l4/91 Point 7). A14 d) -12 These recommendations must be provided to the Governor and Head of the KanWil PU to enable monitoring and oversight and also reporting to the Ministry (PerMen614/91 Point 8). To facilitate licensing, a Licensing Group (Kelompok PertimbanganPerizinan) is established consisting of PJT, KanWil Public Works, Dinas Public Works (water) and other relevant offices Keputusan Gubernur Kepala Daerah Tingkat 1 Jawa Timur No. 649 Tahun 1991 tentang Pelaksanaan Perizinan Penggunaan Air dan atau Sumber Air di Wilayah Kerja PerusahaanUmum (Perum) Jasa Tirta (KepGub 649/91) (art 7). This has been the subject of a further Governorial Decree: Keputusan Gubernur No. 53 Tahun 1992 tentang Pembentukan Pelompok Pertimbangan Perijinan Penggunaan Air di Wilayah Kerja Perusahaan Umum (Perum) Jasa Tirta. In 1991, the licence application procedure established two systems based on whether water was taken from rivers under the management of PJTI or from the irrigation system. The arrangements for licensing were elaborated in Keputusan Gubernur Kepala Daerah Tingkat I Jawa Timur No. 668 Tahun 1991 tentang Tatacara Perijinan dan Pemungutan luran Pembiayaan Eksploitasi dan Pemeliharaan Prasarana Pengairan Di Wilayah Kerja Perusahaan Umum (Perum Jasa Tirta) (KepGub688/91). Since regional autonomy, a further Decree of the Governor was passed to cover the arrangernents for licensing within the work area of PJT: Keputusan Gubernur Kepala Daerah Tingkat 1 Jawa Timur No. 74 Tahun 2002 tentang Perizinan Pengambilan dan Pemanfataan Air Permukaanpada Sumber-sumber Air serta Pemungutan luran Pembiayaan Eksploitasi dan Pemeliharaan PrasaranaPengairan di Wilayah Kerja Perusahaan Umum (PERUM) Jasa Tita I (KepGub 74/2002). The work area is very broad and covers all surface water including natural water resources, the built environment and all levels of irrigation (KepGub 74/2002 art 1(2)). In return, PJT guarantees the supply of water (KepGub 74/2002 art 1(4)). According to the more recent governor's decree, the licence application is made to the Head of the Provincial Department of Public Works - Water through the local Balai PSDA (KepGub 74/2002 art 2(1)). A licence can only be provided after a supporting recommendation is received from PJTI the relevant Mayor and the Group for the Consideration of Water Licences (Kelompok Pertimbangan Perizinan Pengambilan dan PermanfaatanAir Permukaan) (KepGub 74/2002 art 3(1)). The working group was set up pursuant to a Keputusan Gubernur Kepala Daerah Tingkat I Jawa Timur No. 188/266/KPTS/013/2002 tentang Kelompok Kerja Pertimbangan PerizinanPergambilan dan PemanfaatanAir Permukaan di Wilaya Kerja Perusahaan Umum (PERUM) Jasa Tirta 1. A directive has also been issued by the East Java Department of Public Works on the licensing of water use, which provides for a slightly different licensing procedure for water resources outside the PJTI work area: Keputusan Kepala Dinas Pekerjaan Umum Pengairan Propinsi Jawa Timur No. I Tahun 2003 tentang Petunjuk Teknis Pelaksanaan Perizinan Pengambilan, Pemanfaatan, Pengambilan dan Pemanfaatan Air Permukaan di Propinsi Jawa Timur (KepKa Dinas 1/2003). According to KepKa Dinas 1/2003, the procedure is follows: as 1. Applicant files application with the Balai PSDA. 2. Balai PSDA checks the completeness of the application and the accuracy of the data. A14 d) -13 3. A copy of the application is sent by the Balai to the Head of Provincial Dinas together with a technical recommendation. 4. Head of Provincial Dinas sends the application to the Mayor in his capacity as the Head of the Irrigation Committee. 5. Mayor sends his considerations to Head of Provincial Dinas. 6. Head of Provincial Dinas organizes a coordination meeting with relevant sub-Dinas. 7. Head of Provincial Dinas processes the licence and sends the original licence to the Balai with a copy to the Mayor. 8. Balai sends the original licence to the applicant. Licence conditions Standard conditions The minimum conditions of the licence for water use within the PJTI work area include obligations to pay a levy, tax, installation of a meter and to not allow third parties to use the water commercially (KepGub 74/2002 art 3(3)). Further detail is provided in the KepKa Dinas 1/2003, which sets out the licence conditions as including the following (art 3(2): (a) obligation to pay tax (b) obligation to pay fees (c) obligation to install a meter (d) prohibition against another party using the water or infrastructure except for the social interest (e) obligation to follow PJTI directives (f) obligation to report any damage to the meter to Provincial Dinas or PJTI (g) obligation to return water without substances that will damage the environment or breach discharge standards (h) obligation to build an entrance to the facilities. There is an obligation to reduce the intake if water availability is reduced as a result of river or canal maintenance or rotation of provision within a canal (art 3(2)(k)). If this causes disturbance then the licence holder can change the location of extraction at their own cost (art 3(2)(1)). There is also an obligation to enter into an agreement with PJTI if water is taken from the PJTI work area (art 3(2)(n)). The licences reviewed essentially repeated the conditions mentioned in KepKa Dinas 1/2003. There is no express grant of authority to the licensing officer to impose other conditions based on site-specific conditions, which limits the authority of licensing officers. Taxes In East Java, a tax on the use of surface water (and ground water) has been imposed for the taking and use of water, except water used for household purposes or by farmers: Peraturan Propinsi Jawa Timur No. 16 Tahun 2001 tentang Pajak Pengambilan dan PemanfaatanAir Bawah Tanah dan Air Permukaan (Perda 16/2001) (arts 1(6) & 2). Those exempted from paying the tax are (art 4): 1. Central and regional government 2. BUMN and BUMD established for the exploitation of water resources, the protection of waters and the commercial use of water resources 3. Farming communities 4. Household use, religious use and other social organisations. A14 d) -14 Those subjected to the tax are private individuals and legal entities that take or commercially use or take and commercially use surface water (Perda 16/2001 art 5). The assessment of the tax is stated to be based on the value of the acquisition of water, which is calculated according to the same list of factors contained national law, with no further detail provided (Perda 16/2001 art 6(2)). Other arrangements have been made for water used by BUMN, BUMD (such as electricity), the oil and gas sector. These are covered by the Minister for Home Affairs and the Minister for Finance (Perda 16/2001 art 6(5)&9(2)). The office authorised to raise the tax is stated to be the Finance Office (Perda 16/2001 art 10(2)). A directive on the implementation of the tax has been issued in the form of Keputusan Gubernor No. 56 Tahun 2001 tentang Petunjuk Pelaksanaan Peraturan Daerah Propinsi Jawa Timur No. 16 Tahun 2001 tentang Pajak Pengambilan dan Pemanfaatan Air Bawah Tanah dan Air Permukaan (KepGub 56/2001). It is stated that the imposition of the tax is combined with an obligation to obtain a licence (KepGub 56/2001 art 2(2)). There is also an obligation to install a meter to measure the withdrawal of water (KepGub 56/2001 art 4)). Data collected on water use is to be used by Department of Public Works (Water) to determine the allowable volume of water to be used within a maximum of seven months (KepGub 56/2001 art 6(2)). The volume of the commercial use of water for plantations, farming and hydroelectricity is to be determined by the Department of Public Works (Water) annually (KepGub 56/2001 art 6(3)). There is no mention of the basis for this decision. The format to register for the payment of the tax is called the Letter of Notification of Regional Tax (Surat Pemberitahuan Pajak Daerah (SPTPD)). The Head of the Finance Office sets the tax rate (KepGub 56/2001 art 10(1)). The calculation of the tariff for surface water is not completely explained in this instrument and is to be regulated further by the Governor (KepGub 56/2001 art 11). However, based on the annexure it appears to be related to the volume of extraction, the price of water and the tariff of the tax. A Governor's decree has been issued on value of water: Keputusan Gubernur No. 57 Tahun 2001 tentang Penetapan Nilai Perolehan Air untuk Menghitung Pajak Air Bawah Tanah dan Air Permukaan Tahun 2002 (KepGub 57/2001). This instrument gives different tax rates for various categories of users, namely: 1. industry 2. drinking water supply 3. plantations 4. commercial fish farming/horticulture/crops not including the farming conmmunity (pertanian rakyat) 5. recreation 6. washing and cooling machinery 7. swimnning pools, fish ponds/laundries and animal husbandry 8. electricity PT. PLN 9. electricity that is not PT.PLN A14 d) -15 10. Pertamina and their sub-contractors 11. Small-scale industry and cooperatives Levies (Iuran) Prior to regional autonomy, any levies charged by PJTI were based on the principle of covering costs and were set by the issuing of a Ministerial Decree on the suggestion of the Director and consideration by the Minister for Finance (PP5/90 art 23). Further investigation is needed to work out the situation since regional autonomy. A Ministerial Decree was passed in 1991 that established that levy could be imposed on a legal entity, social organisation or individual but could not be imposed on farmers who use water for farming and who are already liable to a Land and Development Tax (Pajak Bumi dan Bangungan (PBB): Keputusan Menteri Pekerjaan Umum Nomor 534/KPTS/1991 tentang Tarif Dasar Iuran Pembiayaan Eksploitasi dan PemeliharaanPrasarana Pengairan Perum Jasa Tirta (KepMen 534/91) (art 2). KepMen 534/91 set the rate of the levy (Rpl6 per cubic meter) (KepMen 534/91 art 3). A distinction is made between the tariff of the levy (iuran) and a fee to use a public facility (retribusi) that can be set by the Governor (KepMen 534/91 art 3(2)). It also acknowledges that it does not cover a tariff for the use of water for electricity, which is to be set by the Minister (KepMen 534/91 art 4)). Keputusan Gubernur Kepala Daerah Tingkat I Jawa Timur No. 649 Tahun 1991 tentang PelaksanaanPerizinan PenggunaanAir dan atau Sumber Air di Wilayah Kerja Perusahaan Umum (Perum) Jasa Tirta (KepGub 649/91) mentions the payment of a levy in the issuing of the licence (KepGub 649/91 art 3(2)). A distinction is made between the levy (iuran) and fee (retribusi) for water use (KepGub 649/9lart 4(2)). However, the levy and fee are to be imposed at the same time in the licensing process (KepGub 649/91 art 5(1)). The raising of the levy is for water users who take water from the irrigation system. This would seem to conflict with article 2 of KepMen 534/91 mentioned above. This aspect needs clarification. The levy is implemented by the Finance Office (Dinas PendapatanDaerah Propinsi Daerah Tingkat 1) (KepGub 649/91 art 5(2)). How this is to be achieved is deferred to the passing of a lower level direction (petunjuk) that is to be passed by the Head of the Finance Office, the Head of the Public Works Department (Water) and PJT (KepGub 649/91 art 6). The size of the levy is to be based on a decree issued by the Minister of Settlement and Regional Infrastructure after obtaining input from the Governor (KepGub 74/2002 art 8). The amount of the levy is to be set by the Provincial Finance Office (KepGub 74/2002 art 12)) but the actual collection of the levy is to be carried out by PJT (KepGub 74/2002 art 13(1)) as a joint effort (kerjasama) with the Provincial Department of Public Works - Water and the Provincial Finance Office (KepGub 74/2002 art 13(2)). A14 d) -16 LICENCSING WATER USE IN WEST JAVA Background In West Java, according to regional regulation, all enterprises, individuals and legal entities that use water are obliged to possess a Water Use Licence (Surat Ijin Pengambilan dan Pemanfaatan Air) (SIPPA) that is issued by the Governor through the head of the Water Resources Management Bureau (Dinas Pengelolaan Sumber Daya Air): PeraturanDaerah Propinsi Jawa Barat No. 10 Tahun 2001 Tentang Pengambilan dan Pemanfaatan Air Permukaan (Perda 10/2001 art 3(1)). It covers the same range of activities as in East Java (elucidation Art 3(1)) with the inclusion of energy. The exemptions from obtaining a SIPPA are as follows (Perda 10/2001 art 5): Religious worship, fire extinguishing, subsistence farming, research activities that do not give rise to damage to water resources and its environment, water supply structures and land underneath them, household needs of less than 100 cubic meters/month. This list of exemptions could be interpreted as being narrower than East Java as the obligation to obtain a licence seems to apply to all farmers who are not subsistence farmers. However, in practice there is no difference and farming communities in irrigation systems are not required to obtain a licence for use of irrigation water. Licensing procedure Licence procedure is set out in Keputusan Gubernur No. 3 Tahun 2002 tentang Petunjuk PelaksanaanPeraturan Daerah No. 10 Tahun 2001 tentang Pengambilan dan Pemanfaatan Air Pemukaan (KepGub 3/2002). The application is made to the Governor through the Provincial Dinas with a copy to the local technical unit (Unit Pelaksana Teknis - the Provincial Balai Pengelolaan Sumber Daya Air (Balai PSDA) and the local Mayor (KepGub 3/2002 art 4(1)). If the extraction location is within the PJTII work area then a copy is provided to PJTII (KepGub 3/2002 art 4(2)). The application must attach a number of documents. It must attach technical recommendations from the Balai PSDA and/or PJTII. (KepGub 3/2002 art 4(2)(d)). This provision seems to allow for different site locations: if the site is within the PJTII work area, then the recommendation must come from PJTII but if it is outside the PJTII work area then the recommendation must come from the Balia PSDA. The licence application must also contain a copy of the location licence, business licence (KepGub 3/2002art 4(2)(e)) and information regarding the wastewater disposal licence (KepGub 3/2002 art 4(2)(f)). It is stated that the local government (the office with responsibility for irrigation) must give a technical recommendation on the application (KepGub 3/2002 art 5(l)&(2)). The recommendation must be given within 20 days of receiving the application (KepGub 3/2002 art 5(3)). A similar time limit applies to PJTII and the Balai PSDA (KepGub 3/2002 art 5(4)). In giving the recommendation, local government is to work together with PJTII and the Balai PSDA (KepGub 3/2002 art 5(5)). A14 d) -17 Licence conditions Some of the licences reviewed by the ILT were very short and contained very little in terms of obligations and prohibitions. However, this seems to have changed recently as licences issued in 2004 were more comprehensive. Prohibitions There is a prohibition against the sale of water by licence holders except under a licence from the Dinas (Perda 10/2001 art 14). Licence holders who are able to sell water are housing developments without access to piped water through PDAM, industrial estates or industry that is not able to access water (Perda 10/2001 art 15).5 There are a number of prohibitions that are imposed on licence holders including against the sale of water except under a licence (KepGub 3/2002 art 9(a) & art 13). The same provisions apply on the sale of water as are stated in Perda 10/2001 except that the Governor is able to licence sale to other parties (art 14(d)). Any licence holder who is able to sell water must work together with the local PDAM (art 15(1)). Obligations There are a number of statutory obligations set out in Perda 10/2001 including: - to renew the licence every two years (art 8(2)) - to comply with the conditions regarding the taking of water (art 11 (a)) - to measure the volume of water taken per second (art 11 (b)) - to pay tax (Perda 10/2001 art 11 (c)) - to report on water extraction each month to the Dinas (art 11 (e)). In addition, unlike in East Java, there is an obligation to provide a portion of water to the surrounding community if needed through an agreement between the licence holder and the community (art 11(d)). This obligation may provide the basis for agreements that were discovered by the ILT team between industry and farmers within irrigation systems. Tax A tax on the use of surface water (and ground water) has been imposed for the taking and use of water: Perda No. 6 Tahun 2001 Tentang Pajak Pengambilan Dan Pemanfaatan Air Permukaan (Perda 6/200 1). Those exempted from paying the tax are (Perda 6/2001 art 3(2)): a. central and regional government b. farming communities c. households d. religious use, fire extinguishing, research, investigations that do not give rise to environmental damage or structures related to water delivery and related land. Those liable for the tax are private individuals and legal entities that take or commercially use or take and commercially use surface water (Perda 6/2001 art 4). The assessment of the tax is based on similar factors as in East Java but there is no reference to the objective of water use, sold. 5 This provision is difficult to translate and may refer to those to whom water is able to be A14 d) -18 rather there is a reference to the water function (Perda 6/2001 art 5(2)). The calculation of the rate of the tax is to be done by the technical bureau (dinas teknis) (Perda 6/2001 art 5(3)). The Governor has authority to raise the tax but this authority is to be implemented by the Dinas (Perda 6/2001 art 9). A directive on the implementation of the tax been issued in the form of Keputusan Gubernor Jawa Barat No. 11 Tahun 2002 tentang Petunjuk Pelaksanaan Peraturan Daerah No. 6 Tahun 2001 Tentang Pajak Pengambilan dan Pemanfaatan Air Bawah Tanah dan Permukaan. Every licence holder is required to pay tax on water use. The format to register for the payment of the tax called the Letter of Notification of Regional Tax (Surat PemberitahuanPajak Daerah (SPTPD)). The basis for the calculation of the tax is not set out in the instrument; rather it would seem to be an aspect within the authority of the Dinas. However, Keputusan Gubernor No. 29 Tahun 2002 tentang Tata Cara Perhitungan Harga Dasar Air Sebagai Dasar Penetapan Nilai Perolehan Air Bawah Tanah dan Air Permukaan (KepGub 29/2002) has been passed to set out the basis for determining the value of receipt of surface and groundwater. This decree sets out a number of categories of water users, namely (KepGub 29/2002 art 2): - Social - Non commercial - Commercial and services - Industry and production - Farmning - Water businesses (not PDAM) - Electricity. The amount is calculated based on natural components, the price of raw water and the group of water users (KepGub 29/2002 art 11(1)). Each of these components is set out in further detail in the Governor's Decree together with indexes (KepGub 29/2002 art 11- 15). Licensing use of irrigation water by the District As a result and the 1996 transfer of authority from Provincial to District Government of aspects of water resources management and additional licence is provided in West Java (at least in some districts) for the use of irrigation water. The Bandung District issued a regulation on licensing to provide for a licence to use irrigation systems (Ijin PenggunaanJaringan Irigasi) to supplement the licence issued at the provincial level. In the licensing decision set out in Surat Keputusan Kepala Dinas Pekerjaan Umum Pengairan Kabupaten Bandung No: 611/609/BMISk-Air Kab./AP/2000 a number of conditions are imposed including: - prohibition against water diversion - prohibition against blocking or disturbing the water flow - obligation to comply with in operation and maintenance activities - obligation to obtain a SIPA. In East Java, it was the impression of the ILT that the District Level did not issue any additional licence for use of irrigation water. However, it is possible that it does occur in certain districts. A14 d) -19 SUPPLY CONTRACTS Delivery schedules are set by PJTII through a letter of decision issued by the Director (for example: Surat Keputusan Direksi Perum Jasa Tirta II Nomor: 1/609/KpTS/2003 tentang Recana Pokok Penyediaan dan PenggunaanAir Untuk Tanam Padi Rendeng MT.2003/2004, Tanam Padi Gadu MT. 2004 dan Tanam PalawijaMT. 2004 Serta Kebutuhan Air Untuk Air Minum, Industri, Perkebunan dan Pengelontoran Kota Tahun 2003/2004). Supply contracts are generally entered into between PJTI/PJTII and those who have obtained water use licences.6 The contracts in each province have a different structure and slightly different contractual details. The contracts specify that the amount of water to be extracted complies with the licence and that PJTI/II will supply water in accordance with the licence. However, there is no guarantee by PJTI/II as to the quality of the water supplied. For example, in the contract between PJTI and PDAM Surabaya, the quality of water is stated to be the responsibility of PJTI, the Dinas at Provincial and District level and the community. If pollution is such that the PDAM is not able to process the raw water supplied by PJTI, the PDAM is not able to claim compensation. The obligations of PJTIIII are to provide the volume of water as stated in the licence, to defend water elevation levels as stated in the annexure to the contract and to routinely monitor and report to the Governor on water quality. The rights of the PDAM are to take water as stated in the licence, to receive a volume of water and water elevation that is appropriate for the water use as set out in the licence. In East Java, the PDAM is entitled to receive the water quality monitoring reports every month from PJTI. In addition a levy/subscription is paid for the water supply to PJTIMPJTI. Forced circumstances are not considered a breach of the contract. In East Java this is stated to include lateness or failure to supply water in a drought; however, there are obligations to inform in such circumstances following standard operational procedure. If a loss of production is sustained due to a fall in water elevation (not from forced circumstances) then a fine is payable by PJTI based on loss of production. In both East Java and West Java, disputes are to be resolved firstly through mediation. In West Java, if the dispute is not able to be resolved through mediation it goes to arbitration. In East Java, court proceedings can be filed if mediation fails. PROVISIONS FOR ENFORCEMENT AND RESOLUTOIN OF DISPUTES Administrative sanctions The New Law does not establish a system of administrative sanctions, which appears to be an aspect that has been left to the regions to develop. Regional regulations provide for administrative sanctions such as closing a meter or revoking a water use licence. Licences 6 This does not always occur, as emerged from discussions with the PDAM "Delta Tirta" Sidoarjo in East Java. A14 d) -20 provide for the imposition of penalties in such circumstances as a failure to install an effectively working meter. The conditions do not state who will impose the sanction. In practice, there appears to be very little administrative enforcement. If a licence holder uses water in excess of the licence, it is likely that the licence will be amended to provide for an increase in extraction rates. Criminal sanctions It was the impression of the ILT that criminal sanctions have been rarely, if ever, used in water resources law. Under UUl 1/74 anyone who intentionally failed to comply with water resources planning or technical planning, commercially used water without a licence, or with a licence failed to carry out environmental protection measures could be liable to two years imprisonment or up to five million rupiah fine (art 15(1)). There was a lesser penalty for negligence. Criminal penalties were further elaborated in PP22/82 and PP23/82 to include such offences as use of water without a licence and failure to join in water security efforts (art 43). The New Law also sets out criminal sanction for intentionally carrying out certain activities, which include the following: - An activity which causes damage to water resources and infrastructure, disturbs the preservation of water and or causes water pollution (arts 24 & 94(l)(a)) - An activity that is able to give rise to damaging effect of water (art 94(l)(b) & 52) - Use of water that causes loss to another person or party and damages the function of the water resource (art 94(2)(a)). This provision seems to be directed to farmers as it is cross referenced to a prohibition against using a water resource for daily minimum needs, social needs or community farming in such a way as to damage the water resource and its environment or general infrastructure (art 32(2)). - An activity that damages water resources infrastructure (art 94(2)(b) & 64(7)). - Rental or transfer of a water use right (art 94(3) & 7(2)). - Commercial use of a water resource without a licence (art 94(3) & 45(3)). There are corresponding provisions that establish criminal liability for negligently carrying out these activities activities (art 95). Notably there is no criminal sanction for interfering with the basic right established in article 5 to obtain water for basic minimal daily needs although this could be interpreted as falling within damage to water resources. Should a prosecution be brought by an enforcement agency, it is difficult to predict at this stage how these provisions would be interpreted by a court. Civil sanctions There is no provision for enforcement through the use of civil sanctions. Civil sanctions, at least in other legal systems, provide a wider range of remedies such as an injunction and damages. They also carry a lower burden of proof, that is, proof on the balance of A14 d) -21 probabilities - significantly less onerous than establishing the criminal burden of proof, which requires proof beyond all reasonable doubt. Dispute resolution Initial stage of dispute The New Law states that all disputes in the first stage should be attempted to be resolved through negotiation and mediation (art 88(1)). The elucidation states that such disputes include disputes over the management of water resources, the right to make use of water or the right to commercially use water. It is said that this provision covers disputes between water users, between commercial users of water or between users and commercial users of water, between districts or between regions upstream and downstream. If the dispute is not able to be resolved, it may be processed through the court system or outside the court system (art 88(2)). Alternative Dispute Resolution Resolution outside the court system or alternative dispute resolution (ADR) can be carried out through arbitration or mediation (art 88(3)). Indonesian legislation on alternative dispute resolution therefore needs to be referred to in this regard. There is likely to be a need to develop ADR procedures with specific reference to water resources. In particular, if an arbitration system is to become a reality such as a Water Tribunal it will need supporting legislation. Dispute resolution through the courts If such disputes cannot be resolved informally then the dispute may be processed through the court system or outside the court system (art 88(2)). There is no further explanation regarding how such disputes could be processed through the court system. There is a provision that permits class actions (gugatan perwakilan) by communities that are adversely affected by water resources problems (art 90). This provision could open up the way for affected farming communities to protect the basic right established to obtain water for basic minimal daily needs (art 5). It could also be used to protect a water use right, should one be provided in the future. However, to provide certainty, the implications of a water use right (in terms of reciprocal obligations on government and other parties) would need to be detailed in practical terms in legislation to give the provision on class actions real meaning. There is also a provision that gives legal standing to environmental organizations to bring proceedings to protect the environment (art 92(1)). Legal standing is limited to organizations that meet set requirements (art 92(3)). The elucidation says that this is a class action, which is a legal confusion of terminology and demonstrates a fundamental misunderstanding of the difference between a class action and legal standing. Clearly, the resolution of disputes through the court system is an area of law that needs to be further developed. A14 d) -22 Annex 14-e) Review of National Legislation on Groundwater I Annex 14 e) REVIEW OF NATIONAL LEGISLATION ON GROUNDWATER 1. Separation of administration of groundwater and surface water The definition of water and water resources has included groundwater (art 1(3)&(4)); however, authority granted to the Minister for Public Works under Undang-undang No. 11 Tahun 1974 tentang Pengairanfor managing surface water has not extended to groundwater or hot springs (UU1 1/74 art 5(2)). According to Peraturan Pemerintah No. 22 Tahun 1982 tentang Tata Pengaturan Air, the Minister for Mining and Energy has been the relevant Minister in relation to groundwater and hot springs (PP22/82 art 6(1)). There has been no separate statute on groundwater, neither have any government regulations been passed to date on groundwater use. The New Law does not go into detail of groundwater management and relies on the passing of government regulations. The management of groundwater is to be based on the groundwater basin (art 12(2)). It is stated that the system for planning the management of water resources is based on the river basin with the principle of the intergratedness of surface and groundwater. However, how this is to occur is not set out (art 11 (2)). Government regulations are to be passed on a number of aspects of water resources management, which could conceivably also concern groundwater. It remains to be seen whether all these aspects will be taken up in groundwater regulations issued by the Ministry of Mines and Energy: (a) the right to use water (art 10) (b) management of groundwater based on the groundwater basin (art 12(3)) (c) criteria for determining groundwater basins (art 13(5)) (d) preservation (pengawetan) (art 22(3) (e) management of water quality (art 23(4)) (f) conservation of water resources (art 25(3)) (g) expansion of groundwater (art 37(3)) (h) drinking water (art 40(7)) (i) control of the destructive power of water regarding groundwater basins (art 58(2)) (j) planning water resources management (art 59-60) (k) oversight of water resources management (art 76) There is little reference to the interconnectedness between the use of surface water and groundwater apart from mention of groundwater in relation to effective use (pendayagunaan) A14 e) -1 of water resources. It is stated that effective use of water resources is to be based on the relationship between rain water, surface water and groundwater with priority of effective use (mengutamakan pendayagunaan air permukaan) being given to surface water (art 26(5)). There is also a statement to the effect that the expansion of groundwater from a groundwater basin is to be done 'integratedly' with water resources in a river district (art 37(2)). There is no specific reference to groundwater in the provisions on developing a model/system for managing water resources (art 11), water allocation (art 28), water supply (art 29-30), water use (art 32), inventory making (art 61), information management systems (art 65-69), finance (art 77-80), the role of the community (art 82-84). The application of the New Law to businesses selling mineral water is not immediately apparent. The draft government regulation that the ILT obtained from the Ministry of Mines and Energy.... [need to complete] 2. Inconsistent definition of groundwater There appears to be inconsistency in the definition of groundwater. It is sometimes defined so as to include springs that arise naturally to the surface of the earth (Keputusan Menteri Energi dan Sumber Daya Mineral No. 1451 K/10/MEM/2000 tentang Pedoman Teknis Penyelenggaraan Tugas Pemerintahan di Bidang PengelolaanAir Bawah Tanah (KepMen No 1451/2000) (art 1 (12)). This would appear to conflict with the definition of rivers which has always included springs as the starting point. Also, the New Law defines groundwater as water that is below the earth's surface (art 1(4)). This would appear to exclude springs. 3. Regional autonomy Under regional autonomy law, pursuant to PeraturanPemerintah No. 25 Tahun 2000 tentang Kewenangan Pemerintah dan Kewenangan Propinsi Sebagai Daerah Otonom (PP25/2000), the Minister of Mining and Energy has authority for determining standards for general research and standards for managing groundwater (art 2(3)3.d) and arranging the groundwater survey at a scale of 1:250,000 (2(3)3.g). Provincial government only has authority to prepare support for the development and exploitation of groundwater (art 3(5)3.a.). This allocation of authority is not clear as to an intended meaning. The balance of responsibility for managing groundwater falls to District Govermnent. Under regulations passed since regional autonomy, the role of the Province is essentially to coordinate and facilitate the management of groundwater (KepMen No 1451/2000 art 3(2)). How other roles are divided and coordinated between each level of government has not been clearly stated in national law. For example, in relation to inventory making, this is stated to be carried out be central, provincial and district government (KepMen No 1451/2000 art 4(4)). It is to be provided to the Director General ((KepMen No 1451/2000 art 18(1)&(5)). 4. Act No. 7 of 2004 on Water Resources Management Act (the New Law) The arrangement of authority introduced under regional autonomy is adjusted under the New Law to take account of the borders of the groundwater basins. The groundwater basin areas are to be determined by a Presidential Decree (art 13(1)). Groundwater basins can be located within a district or straddle district, provincial or state boundaries (13(4)). The criteria for determining groundwater basins are to be set out in a government regulation (13(5)). A14 e) -2 In the same way as river basins, if the borders of a groundwater basin straddle provinces, the central government has authority, if the borders of a groundwater basin straddle districts, the provincial government has authority and district government has authority for groundwater basins found in the district. How this is to be achieved will be the subject of a government regulation (art 12(3)). It would seem that the arrangement is to be as follows: - If the groundwater bore is in a groundwater basin that is contained within a district, then the District government provides the licence (art 16(f)) - If the groundwater bore is in a groundwater basin that straddles districts, then the District government provides the licence but technical recommendations are given by the Province (art 15(g)) - If the groundwater bore is in a groundwater basin that straddles provinces, then the District government provides the licence but technical recommendations are given by Central government (art 14(g)). In this regard, the level of government responsible for licensing differs between surface and groundwater. In surface water, the level of government responsible for licensing will be determined by the configuration of the river basin. 5. Conservation of groundwater resources The main focus of activity in managing groundwater use is conservation of groundwater, according to the Ministry of Mining and Energy. Conservation is to be based on identifying and evaluating groundwater basins, recharge areas and discharge areas, planning the use of groundwater and information concerning the change in condition of groundwater (KepMen No 1451/2000 art 7(3)). Whilst it is stated that the District determines the location of monitoring wells (KepMen No 1451/2000 art 8(3), the responsibility for conservation is shared between each level of government (KepMen No 1451/2000 art 9(1)). 6. Priorities in groundwater use The groundwater use priorities set out prior to passing the New Law only concern surface water, not groundwater. Priorities have been set out in a Ministerial Decree as follows (KepMen No 1451/2000 art 10(2)): a. drinking water b. domestic use c. animal husbandry and simple farming d. industry e. irrigation f. mining g. urban affairs h. other interests. A14 e) -3 It can be seen that this arrangement of priorities is different to the priorities for surface water use in that industry has a higher priority than irrigation. Furthermore, this arrangement of priorities can be changed by a Governor or Mayor in accordance with the general public interest and site-specific conditions (KepMen No 1451/2000 art 10(3)). There is potential for conflict with the priorities established for the use of surface water. There are also issues regarding how these priorities are to be implemented when there is insufficient water to meet all needs as compared to when there is sufficient water. 7. Licensing groundwater extraction Licensing groundwater extraction was previously carried out by the Governor with attention to technical directions from the Minister of Mining and Energy (PP22/82 art 6(2)). Since regional autonomy licensing is the responsibility of the District Government. This has been done in accordance with guidelines issued by central government. Licenses are for activities such as exploration, installing bores, taking groundwater and taking water from springs and are to be provided by the Districts (KepMen No 1451/2000 artl 1(2)&(3)). The licence procedure is set out in annexures to the Ministerial Decree. Taking groundwater for drinking water and domestic use 'up to certain limits' does not require a licence (KepMen No 1451/2000 art 14(1)). Those limits are to be determined by District government. This provision means that limits may vary between districts. 8. Taxes According to UU34/2000, the province can impose taxes for the extraction and use of groundwater (UU34/2000 art 2(1)d.) At least 70 per cent of the proceeds from this tax are to be transferred by the province to the district government (UU34/2000 art 2A) with attention to equity and potential between localities (UU34/2000 art 2A (3)). It is notable that whilst local government is able to impose taxes, they are not able to raise levies or impose taxes that are imposed by provincial or central government (UU34/2000 art 2(4)a.&d.) This denies local government the opportunity to raise a levy or tax, which is inappropriate where the local government is responsible for managing a groundwater basin under the new Water Resources Act. The tax is payable on the taking, using and taking for use of groundwater Peraturan Pemerintah No. 65 Tahun 2001 tentang Pajak Daerah (PP65/2001) (art 33(1)). Government, and government-owned enterprises established for water exploitation or protection do not have to pay tax (PP65/2001 art 33(2a. &b.)) Other exceptions are farming communities (pertanian rakyat) (PP65/2001 art 33(2c.)) and households (rumah tangga) (PP65/2001 art 33(2d.)) The exception allowed to farming communities is of uncertain application, as this concept is not defined. The basis for the calculation of the tax rate is the value of the gain (perolehan) of water (PP65/2001 art 35(1)). This is calculated taking into account the following factors: (PP65/2001 art 35(2)). a. the type of water resource b. the location A14 e) -4 c. the objective of taking or using the water d. volume e. water quality f. the width of the site g. the season in which the water is taken or used h. the level of environmental damage caused. 9. Oversight and control Oversight and control of aspects such s exploration, drilling, extraction, pollution and environmental damage is the responsibility of District government and the community (KepMen No 1451/2000 art 15 (2)). There is no further explanation regarding how this will be achieved. B. SOME REGIONAL LAWS ON GROUNDWATER USE East Java - tax Provincial regulations passed in East Java mirror the national guidelines: PeraturanPropinsi Jawa Timur No. 16 Tahun 2001 tentang Pajak Pengambilan dan Pemanfaatan Air Bawah Tanah dan Air Permukaan. Those exempted from paying the tax are (Perda 16/2001 art 4): 1. Central and regional govermment 2. BUMN and BUMD established for the exploitation of water resources, the protection of waters and the commercial use of water resources 3. Farming communities 4. Household use, religious use and other social organisations. Those subjected to the tax are private individuals and legal entities that take or commercially use or take and commercially use ground water (Perda 16/2001 art 5). The office authorised to raise the tax is stated to be the Finance Office (Perda 16/2001 art 10(2)). A directive on the implementation of the tax has been issued in the form of Keputusan Gubernor No. 56 Tahun 2001 tentang Petunjuk Pelaksanaan Peraturan Daerah Propinsi Jawa Timur No. 16 Tahun 2001 tentang Pajak Pengambilan dan Pemanfaatan Air Bawah Tanah dan Air Permukaan. The imposition of the tax is combined with an obligation to obtain a licence (art 2(2)). There is also an obligation to install a meter to measure the withdrawal of water (art 4)). The arrangements for the collection of data are rather briefly stated. The collection of data on the extraction and commercial use of groundwater is to be carried out by the Technical Implementation Unit (Unit Pelaksanaan Teknis Dinas) (UPTD)) and offices of the District Government in accordance with their respective authority (art 5(2)). This data is to be used to determine the volume of water extraction by the Finance Office (Dinas Pendapatan) (art 6(1)). A14 e) -5 The format to register for the payment of the tax is called the Letter of Notification of Regional Tax (Surat Pemberitahuan Pajak Daerah (SPTPD)). The Head of the Finance Office sets the tax rate (art 10(1)). The calculation of the tariff for surface water is not completely explained and is to be regulated further by the Governor (art 11). However, based on the annexure it appears to be related to the volume of extraction, the price of water and the tariff of the tax. A Governor's decree has been issued on the value of water for the purpose of calculating the tax: Keputusan Gubernur No. 57 Tahun 2001 tentang PenetapanNilai PerolehanAir untuk Menghitung Pajak Air Bawah Tanah dan Air Permukaan Tahun 2002. This instrument gives different rates for commerical use, non commercial use and the water industry (industri dengan bahan baku air). There is also a differential based on whether the water comes from a spring (mata air) or not (bukan mata air). West Java - tax In West Java, a directive on the implementation of the tax raised on the use of groundwater been issued in the form of Keputusan Gubernor Jawa Barat No. 11 Tahun 2002 tentang Petunjuk PelaksanaanPeraturan Daerah No. 6 Tahun 2001 Tentang Pajak Pengambilandan Pemanfaatan Air Bawah Tanah dan Permukaan. The format to register for the payment of the tax called the Letter of Notification of Regional Tax (Surat PemberitahuanPajak Daerah (SPTPD)). The basis for the calculation of the tax is not set out in the instrument; rather it would seem to be an aspect within the authority of the Dinas Teknis. However, Keputusan Gubernor No. 29 Tahun 2002 tentang Tata Cara Perhitungan Harga Dasar Air Sebagai Dasar Penetapan Nilai PerolehanAir Bawah Tanah dan Air Permukaanhas been passed to set out the basis for determining the value of receipt of groundwater. This decree sets out a number of categories of water users, namely (KepGub 29/2002 art 2): - Social - Non commercial - Commercial and services - Industry and production - Farniing - Water businesses (not PDAM) - Electricity. The price of groundwater (dasar air) is calculated based on natural components, components for compensation for restoration and components of the price of basic water (air baku) (KepGub 29/2002 art 4(1)). Each of these components is set out in further detail in the Governor's Decree together with indexes (KepGub 29/2002 art 5-11). C. SUMMARY OF ROLES AND FUNCTIONS RELATED TO WATER USE RIGHTS - GROUNDWATER The following is an attempt to summarise the division of roles and functions related to groundwater water use rights in East Java and West Java. (See a similar summary in SW1) If a comparison is made with surface water, it can be seen from the table that the management of groundwater does not concern the same range of issues as surface water. Particularly in relation to the assignment and modification of rights there is no need to be concerned with a licence for raw water supply, licensing the establishment of infrastructure for primary or secondary water supply within irrigation. In relation to the delivery of rights there is no need to be concerned A14 e) -6 with the construction, operation or maintenance of infrastructure, apart from urban or industrial water supply that originates from groundwater. In relation to protection of rights, construction, remedial work and maintenance of multipurpose storage dams is not an issue. In addition, dispute resolution is likely to be limited to situations where there is conflict between users of groundwater due to water shortages or where groundwater supplies have been polluted from land contamination or water pollution. Concerning compliance with rights, there is no need for supervision of delivery schedules although there is still a need to supervise metering. Table 1: Definition and Creation of Rights National Provincial District Other Activities Government Government Government - basin level org. - users Policy formulation on groundwater DESDSM unclear basin management unclear Planning unclear groundwater basin management, setting priorities for use Coordination with unclear unclear relevant sectors Collection of hydrological data within a groundwater DESDSM Dinas Dinas basin, developing an information management system Making of inventory of the features of DESDSM Dinas Dinas the groundwater basin A14 e) -7 Table 2: Assignment and Modification of Rights Other National Provincial District - basin level Activity Government Government Government - non government Licensing groundwater water use by PDAMs, industry and others _ Dinas Environmental Impact Assessment District (for predetermined Provincial BAPEDALDA - if Public participation activities likely to BAPEDALDA - if impact contained provisions in have a large effect impact crosses within district environmental on the environment) district boundaries boundaries impact assessment Coordination with relevant sectors in license decision District Dinas Oversight of licensing procedure Table 3: Delivery of Rights Activity Other National Provincial District - basin level or Government Government Government - non government Construction of PWRS PDAM infrastructure for -issues licence urban and industrial water supply Maintenance of PDAM infrastructure for urban and industrial water supply Supply of treated Dinas PDAM water for urban, - issues licence industrial and other consumers Coordination with unclear unclear relevant sectors A14 e) -8 Table 4: Protection of Rights Activity National Provincial District Other Government Government Government - basin level - non government Notification of licence application and facilitation of public participation Oversight of licensing procedure Coordination of unclear licence decision Appeal against licence grant or conditions Dispute resolution unclear - between users Table 5: Compliance with Rights Activity National Provincial District Other Government Government Government -basin level or - non government Supervision of Dinas metering Oversight of compliance with license conditions Dinas by monitoring and metering Administrative Dinas enforcement BAPEDALDA - water quality Criminal BAPEDALDA enforcement -water quality Civil enforcement A14 e) -9 i ti i ii I I I i I i i i I i i I t I i i i i