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  • 33129VOL.2

    THE WORLD BANK

    INDONE WATER USE RIiS S*UDY

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  • THE WORLD BANK

    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 PresentSystem to Support WUR

    d) Outline of Licensing Surface Water Usee) Review of National Legislation on Groundwater

  • Annex 1 Terms of Reference for Stage 2

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  • Annex 1

    10/22/2003INDONESIA

    Water Resources and Irrigation Sector Dialogue

    Water Use Rights in IndonesiaANALYSIS OF TRADITIONAL ALLOCATION AND CONFLICT RESOLUTION MECHANISMSAND 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 overthe past five years, both at the policy and regulatory level, and in investment programs. Theseactivities form a broad-based Water Policy Dialogue. The efforts are geared to modernize thelarge and strategically important sector, which has a strong impact on sustainability and povertyalleviation efforts, and should be strengthened to spur economic development. These initiativesare comprehensive and internally coherent. They also create the framework that isaccommodating and streamlining the investment and advisory activities by all other donors activein this sector.

    2. A serious and as yet unresolved issue is the institution of a regulatory system that is ableto 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 allocationsystem. However, the nation, nor the Bank, have prior experience with the nature and applicationpotential 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 experienceas this cannot be transplanted to Indonesia, which is a large sprawling country with a highcultural diversity. Future Bank supported programs, such as the new APL Water Resources andIrrigation Sector Management Program, as well as water supply programs, will have to graduallyaddress 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-downprescriptive ones the government typically applies. The proposed study will allow to acquire anoperational 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 demiseof the strongly centralistic Soeharto government that has governed the country for the past threedecades. In 1999 and 2000, Parliament adopted a series of laws that outline the administrativeand fiscal decentralization. The new administrative framework establishes empowered localgovernments at the levels of districts (kabupaten) and provinces, besides central government.Notwithstanding numerous exceptions, the new decentralized administration generally attributesauthority and managerial responsibility over irrigation schemes to the districts, and that overriver basins to provinces. Districts and provinces receive substantial block grants from the centerto execute their new tasks.

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  • Annex 2 List of Persons Contacted

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  • List of Persons Contacted (1/8)No. I Namne Position / Office/Address 0T Phone / Fax (Office E-mail Address

    The World BankI Guy Alaerts Sr. Water Resources Specialist, Ph: 021-5299-3000 [email protected]

    World Bank Office, Jakarta Fax: 021-5299-3111Jakarta Stock Exchange Buildign Tower 2 12th floor,Ji. Jenderal Sudiman Kav. 52-53

    _ _ _ _ _ _ _ _ _ _ ___ Jakarta2 Rahul Raturi Sector Manager, Ph: 021-5299-3000 rraturinworldbank.org

    Rural Development and Natural Resources Sector Unit, Fax: 021-5299-3111East Asia and Pacific Region,World Bank Office, JakartaJakarta Stock Exchange Buildign Tower 2 12th floor,Jl. Jenderal Sudiman Kav. 52-53Jakarta

    3 Shobha Shetty Senior Economist, Rural Development, Ph: 021-5299-3000 sshetty I worldbank.orgWorld Bank Office, Jakarta Fax: 021-5299-3111Jakarta Stock Exchange Buildign Tower 2 12th floor,Jl. Jenderal Sudiman Kav. 52-53Jakarta

    4 lIham Abla Operations Officer, Ph: 021-5299-3000 [email protected] Bank Office, Jakarta Fax: 021-5299-3111Jakarta Stock Exchange Buildign Tower 2 12th floor,Jl. Jenderal Sudiman Kav. 52-53Jakarta

    5 Kikkeri V Ramu Consultants, Ph & Fax: +1-301-990-9564 [email protected] Worlbank, [email protected] H Street, N.W.Washington, DC 20433 U.S.A.

    6 Paul Van Hofwegen World Bank Consultant [email protected] 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] Bank Office, Jakarta Fax: 021-5299-3111Jakarta Stock Exchange Buildign Tower 2 12h floor,Jl. Jenderal Sudiman Kav. 52-53_Jakarta I

  • List of Persons Contacted (2/8)No. I Name Position / Office/Address l Phone /Fax (Office

    E-mail Address

    Kimn raswil (Ministry of Settlement and Regional Infrastructure)9 H. Basuki Director General

    10 Soekrasno Kasubdit Wil. Barat m, Ph: 021-7203951Ministry 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 _

    I1 Suharto Sarwan Chief of Sub Directorate for WR Institutional, Ph & Fax: 021- [email protected]

    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 _ _ _ _ _ _ _ _ _ _ _ _ _

    12 Imam Anshori Ministry of Human Settlement and Regional Infrastructure, Ph & Fax: 021- [email protected]

    Directorate General of Water Resourdces, 7221907/7396616(ext. 633)

    Derectorate of Water Resouces Management,Building G-8. Jn. Pattimura 20, Jakarta

    13 Mohd Ali Chief of Sub-Directorate for Water Resources Conservation, Ph: 021-7221907 [email protected]

    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

    14 Tsutomu Asada JICA Expert on Irrigation Planning, Ph & Fax: 021-7260218 [email protected]

    Ministry of SetPhement and Regional Infrastructure,Director Genreral of Water Resources,Main Building, 3rd Floor, Jl Pattimura No.20 Kebayoran Baru

    15 Shuichi Maeda Jica Expert on Water Resouces Policy, Ph & Fax: 021-7229588 [email protected])n.net.id

    Ministry of SetPhement and Regional Infrastructure, Mobile: 081-28000845

    Directorate General of Water Resources,Directorate of Technical Guidance Building. I st Floor,P1 Pattimura 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 963JI. Patimura No. 20 Gedung VlII Lt. 2, Kebayoran Baru-Jakarta

    17 Daniel A. Crickx Central Co-ordinator, Ph & Fax: 021-72794767 ggwrmncbn.net.idThe European Union/Ministry of Settlement & Regional Mobile: 081-28698162Infrastrucure,Good Governance in Water Resource Management Project, Ministryof Settlement and Regional Infrastructure, Directrate General ofWater Resources

    Banaenas

    18 Donny Azdan Dir SDA, BAPPENAS Ph: 021-391-5254 [email protected] Taman SuroDati 2. JakartaDirector, Water Resources Ph: 021-392-6820

    19 Basuki Yusuf iskandar BAPPENAS Fax: 021-390-5649 basukibappenas.go.idJl. Taman Suronati 2 Jakarta

    E ast J~ava _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _20 Syamul Bachri Kepala Divisi Jasa ASA IV, Ph: 0341-551971 [email protected]

    Perusahaan Umum (Perum), Jasa Tirta I (PJT-1), Fax: 0341-551976Jl. Surabaya 2 A Malang

    21 Tjoek Walujo Subijanto Director of Operation for Brantas River, Ph: 0341-551971(Ext. 300) [email protected] of Indonesia, Jasa Tirta I Public Cooperation, Fax: 0341-565531/551976 [email protected] Surabaya 2A PO. Box. 39 Malang

    22 Sudjali (Home) Ds. Tampungrejo Kec. Puri, Ph: 0321-511987Mojokerto

    23 Aris Harnanto Kepala Biro Penelitian & Pengembangan, Ph: 0341-551971 [email protected] Surabava 2A PO Box. 39. Malang Fax: 0341-551976

    24 Suliyas Chief of the division, Ph:8294809East Java Provincial Office Fax: 8280630

    25 Pudjo Buntro Chief of operation section, Ph:8294809 [email protected] East Java Provincial Office (Operation & maintenance division) Fax: 8280630

    26 Zainal Arifm Operation section, Ph:8294809East Java Provincial Office (Operation & maintenance division) Fax: 8280630

  • List of Persons Contacted (4/8)No. Name Position / Office/Address Phone / Fax (Office) E-mail Address

    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 Ematra33 Ismet Head, Ph: 0751-57801

    Water Resource Development Service, Fax: 0751-50424

    West Sumatera Province,Ti Khatih Sulaiman Nn 1 O6 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 Java35 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

    36 Satriyo Hadipurwo Hydrogeologist, Ph: 022- [email protected] dpe.go.id

    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 AreaJ1. 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: 022-4215242/4233401Propinsi Jawa Barat,JI Braea No. 137 BandunR-

    38 Lex Laksamana Regional Environment Control Body of West Java Province, Ph: 022-4204871 [email protected] Naripan No.25 Bandung Fax: 022-4231570

    39 H. Yulianto Secretary, Ph: 022-2507133 [email protected] of Teritory Management Association of Water Corporation, Fax: 022-2508063West Java,JI. Badaksinga No. 10, Bandung

    40 Syaiful Ruchijat Section Head of Ground Water Conservation Guidance, Ph: 022-7274676/4677(Ext. [email protected] of Mineral Resources and Energy, 457)Directorate General of Mineral Resources and Geology, Fax: 022-7206167Directorate of Geology Environment Management and Mining Area,Sub-Directorate of Ground Water Conservation,

    lAlest.hva _Continued~ Jl. Diponegoro No. 57, BandungWest Java (Continued)

    41 Sri Hemowo Technical Director, Ph: 0264-201971 dirteksri,jasatirta2.co.idPerusahaan Umum (PERUM), Fax: 0264-201979Jasa Tirta II (PJT-2),Jl. Lurah Kawi - Jatiluhur. Purwakarta. Jawa Barat

    42 Edi Mulyadi Chief of operation section, Ph: 022-4210756Dinas PSDA Jawa West Province

    43 Dadan Hermajanda Institutional Specialist, Ph/Fax: 022-4235409 [email protected] IDTO West Java Provincail Team (Gd. Kerta Mukti Lantai IIJl. 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)

    No. Name Position / Office/Address Phone / Fax (Office) E-mail Address

    48 Ms Ermi Murniati Assistant for Technical Director, Ph:0264-201979

    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 _

    51 Agus Setiyawan Research and Development, Ph: 022 2509030

    Perusahaan Daerah Air Minum Kota Bandung, Fax: 022 2508063

    JI Badaksinga No. 10 Bandung 40132

    52 Syani Widia Fausani Director of Clean Water, Ph: 022 2509030

    City Government of Bandung Water Supply Enterprise, Fax: 022 2508063

    Ji Badaksinga No. 10 Bandung 40132

    53 Dasuta Kerala, Water Permit Division, Jalan Braga No 137,

    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 Scheme56 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)59 Herman Idrus PJT-2, Ph: 0264-201972

    [email protected]

    ___________________________ Jl Tnrah Kawi Jatiiiihiir Purwakarta West-Java

    60 Tatang Hidayat PJT-2, Ph: 0264-215382

    ____ _________________________iJi Bink R/l 6 Sadana - Pnrwakarta West-Java

    Consu Itants61 Anthony R. Kemur Kasubdid, KIMPRASWIL Ph: 021-722-1907

    reymond [email protected]

    fax )01-722-1907

    62 Bryan Bruns Sociologist, Ph: +1-850-231-1787 [email protected]

    84 West Grove Avenue, Seagrove Beach, Mobile: +1-850-217-0677

    P.O. Box 4614 Santa Rosa Beach FL 32459 USA

    63 Heru Emanda Universitas Jumber, Ph: 0331-338014 [email protected]

    Gunung Baru Permai 6 - 18, Jl.Kolimantan I No.37, Jember Fax: 0331-338014

    64 Hiroshi Kuronuma Team Leader, Nippon Koei Ph:021-726-0556 ext 4329 [email protected]

    Fax: 021-7279-6082

  • List of Persons Contacted (7/8)Nito. PersonsContacName Position / Office/Address Phone / Fax (Office E-mail Address

    LP3ES65 Imam Ahmad Director, LP3ES Ph: 021-567-4211 [email protected]

    Fax- ()21-i6H 179S66 Sudar D. Atmanto Vice Chair, LP3ES Ph: 021-567-4211 [email protected]

    Fax: 021-568-3785

    NGO & Others67 A. Hafield A. Gany President, Indonesian Chapter of INPIM, INPIM-INA, Ph: 021-7230317 [email protected]

    Vice President, INACID for International Affairs, INPIM, Fax: 021-7200930JI. Pattimura No. 20-perc. 7, Kebayoran Baru, Jalkarta Selatan

    68 Cecep Aminudin Assistant Researcher, Ph: 021-7262740/7233390 [email protected] Center for Envirownental Law (ICEL), Fax: 021-7269331 [email protected] Pengembangan Hukum Lingkungan Indonesia, Mobile: 0812-185-9676Ji. Dempo II No. 21, Kebayoran Baru, Jakarta

    69 Budi Santosa Wignyosukarto Program Coodinator, Ph: 0274-901170/901172 [email protected] Regional Development Program, Fax: 0274-515391Institute 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 JAYANGO & Others (Continued)

    No. Name Position / Office/Address Phone / Fax (Office) E-mail Address73 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] Fax: 021-726-2834

    75 Agus Loekman Prog Off, The Asia foundation Ji. Darmwangsa raya 50, Kb Baru, Ph: 021-726-1860 [email protected] 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: 021-570-55167 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 -390-7536779 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] 021-390-75367

    81 Motoo Taki JICA Plaza BRl, Tower n 27th Floor. J1. M.H. Thamrin 51 Ph: 021-390-7533 [email protected] 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: 021-3907536Plaza 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: 021-3907536Japan 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. 61-62Jakarta

    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 tants90 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 ~Pstiimursu Wn on IRkart_

  • Annex 3 List of Materials Collected

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  • Annex 3List of Materials Collected (1/5)No. Title Publisher Author

    Surabaya Urban Development Project (TA from *Ministry of Public WorksIBRD Loan No. 3726-IND), Surabaya River Directorate General of HumanPollution Control Action Plan Study, March 1999 Settlements East java Water Supply

    Project1*Ministry of Public WorksDirectorate General of WaterResource Management PerusahaanUmum Jasa Tirta

    The Study on Comprehensive Management Plan for *Ministry of Public WorksThe 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, Masdjidin3 Irnigated Area of Brantas River Basin Siregar and Wahida M.

    Usulan Komprehensif Pembiayaan Pengelolaan PJT-I Tim Evaluasi Tarip DasarSumberdaya 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-1Brantas Musim Hujan 2003/04 (Operation of damand Water Allocation River Brantas area RainySeason 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 Worksmanagement Project, Basin Water Resources Directorate General of Water

    9 Planning, Integrated Water Management Plan for Resource Developmentthe Citarum River Basin, June 1997 -The World Bank

    Indentification of National Policy for Intersectoral JICA10 Water Allocation Study, March 2001

    Jatiluhur Water Resources Management Project Ministry of Public Works -1 1 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 NEDECOIrrigation Management

    14 Jawa Barat In Figures 2002 BPS

    hIrigation Investment, Fiscal Policy and Water ADB/IFPRI Charles Rodgers, Claudia15 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. & Nanar16 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 NEDECOCitaraum 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 PUBLIC23 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 CitramRiver Basin (Draft)

    Perusahaan Umum (Perum) JASA TIRTA II JASA TIRTA II PUBLIC27 CORPORATION,

    28 Peta Sekma Eksploitasi Cabang Dinas Pengairan Proyek Irrigasi Jawa Timur

    Sekma Kontruksi Bangunan Dinas Pekeijaan Umum Pengarian

    29 Daerah Propinsi Daerah Tingkat IJawa 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 Feasibility Report 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 JawaTimur

    Memori Balai Pengelolaan Sumerdaya Air

    35 Wilayah Sungai BuntungPeketingan Surabaya

    Ringkasan Bahasan Outline of Brantas Basin Case Dinas PU Pengairan Propinsi Jawa

    36 Study Background Paper Dr Karin Kemper (World TimurBank)

    Tugas Pokok & Fungsi dan Jabatan non Strucktural Sub Dinas PenatagunaanSumberdaya 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 PengairanPedesaan & Tada Hujan, Tahun 2001 Pemerintah Kabupaten Daerah

    39 Tingkat II Bandung, Seksi Operasidan Pemeliharaan

    Annual State of the Environment Report 2002 West Java Environmental Protection40 Agency

    Perum Jasa Tirta II Dalam Pengelolaan Kualitans Perusahaan Umum (Perum) Jasa41 Air dan Lingkungan Sungai - Sungai Citarum Tirta II

    Bagian Hulu

    2 Pengelolaan Lingkungan Daerah Aliran Sungai Pemerintah Propinsi Jawa Barat42 Citarum (copy of powerpoint)

    Data Inventarisasi Perkumpulan Petani Pemakai Kabupaten Bandung Periode TahunAir (P3A) 2001

    44 Peta Sungai Sumber Air Baku PDAM 'Delta Tirta' PDAM 'Delta Tirta' SidoarjoSidoarjo

    Peta Distribusi Air PDAM Delta Tirta Sidoaijo PDAM 'Delta Tirta' Sidoarjo45 Bulan Desember 2003

    Peta Stasiun Hujan Dan AWLR Wilayah Balai Balai Pengelolaan Sumerdaya Air46 PSAWS, Buntung Peketingan Surabaya Wilayah Sungai Buntung

    Peketingan Surabaya

    Peta Perusahaan Pengambil Air Permukaan Di Balai Pengelolaan Sumerdaya Air47 Wilayah Balai PSAWS, Buntung Peketingan Wilayah Sungai Buntung

    Surabaya Peketingan Surabaya

    Peta Lokasi Bendung Wilayah Balai PSAWS, Balai Pengelolaan Sumerdaya Air48 Buntung Peketingan Surabaya Wilayah Sungai Buntung

    Peketingan Surabaya49 Peta Saluran/Afour DPU Pengairan Daerah Dinas PU Pengairan Kabupaten

    SidoarjoPeta Distribusi Air PDAM Delta Tirta Sidoarjo PDAM 'Delta Tirta' Sidoarjo

    50 Tahun 2003

    Laporan Penangana, Ijin Pengambilan dan Dinas Pengelolaan Sumber Daya51 Pemanfaata Air Permukaan, Bulan Desember 2003 Air, Pemerintah Propinsi Jawa Barat

    52 Negotiating Water Rights IFPRI, ITDG Publishing, 2000 Bryan Randolph Brunsand Ruth S. Meinzen-

    53 Water Law and Land Management Lecture Papers, IDI, Japan, Prof. Kenji SanbongiNovember 1999

    Intemational Comparison Of Irrigation Sector JBIC, December 2002 SAPS Team54 (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, T56 Indonesia Approach Hemnan, G. Alaerts

    Proposed Legal Empowerment Component For The Papers, The Asia Foundation The Asia Foundation57 Participatory Irrigation Sector Project (PISP)

    58 River Basin Management Corporations An Paper, World Bank, 1999 Kikkeri V. RamuIndonesia Approach

    59 Water Allocation and Pricing Srategies in the Paper Charles Rodges, RizaldiBrantas River Basin, East Java, Indonesia Zaafrano

    Formal Water Use Rights System For Indonesia Paper, DGWRD-JICA-INACID, Kikkeri V. Ramu, Soediro60 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 Haisman61 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 of66 Japan construction Japan

    67 Water Rights in Vietnam Paper, IFPRI-INWENT-ADB- Pham Xuan Su, Vu TienBNWPP Lue

    TOR for The Study On Empowerment Plan For JICA JICA

    68 Regional Water Resources Development andManagement System

    Inter-states Water Dispute in India : An Analysis of Water Policy, World Bank, 2002 Salman M.A. Salman69 The Settlement Process

    Country Background of Laos Paper for Workshop of Water Phalasack Pheddara70 Reform Task Fsorce, Jakarta, 2001

    Water Rights Reform m South Africa Draft Ashwin R. Steetal, Gavin71 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. Herman76 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. Kenney81 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, Axel84 Inmproving Water Allocation for Water User Dourojeanni, Paul

    Communities and Platform In The Andean HoogendamCountries

    85 Inter-state Basin Management in federal Countries Water & Development, 2003 John Briscoe, SalmanSaan, Walter Garvey

    86 Multi-Sectoral Approaches in River Basin Water & Development, 2003 Nagaraja HarshadeepManagement

    87 Integrated Water Management: Yemen Sana'a Handout, 2003Basin Water Management Project

    88 Water Rights Implementation In Mexico Handout, Hanoi, 2003 Hector Garduno89 Impact of Water Rights Reform In Australia Handout, Hanoi, 2003 Brian Haisman90 The Political of Water Reform Handout, Hanoi, 2003 Edella Schlager91 Challenge Program on Water and Food Handout CGIAR92 Skematik Pengambilan air oleh Perusahaan tekstil92 DI Wangisagara

    93 Skematik Pengambilan air oleh Perusahaan tekstilDI Kali/Sungai

    94 Daftar Inventarisasi Areal irigasi Teknis DI Cab Dinas PU Pengairan, MajalayaWangisagara

    Surat: Data Kondisi air waduk Sutani, Selorejo, JASA TIRTA I95 Bening, Wonorejo dan Pemberian Air Irigasi

    Bulan Maret 2003

    96 Pola vs Aktual Operasi Waduk Sutami-LahorTahun 2002-2003

    97 Data: Debit Sungai Cisangkuy

    Peta Wilayah Kerja Cab Dinas Pengairan Wilayah98 IV Banjaran

    Peta Balai Pengelolaan Sumberdaya Air Wilayah99 Sungai Sampean Baru Bondowoso

    Realisasi dan Rencana Pendapatan/Biaya Tahun100 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 Azumi102 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 (March2004)

  • zIiIi

  • 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 NaturalResources 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 tounderstand the issues together with a wide range of stakeholders. Water is a social good and wehave 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 possibleuse without damaging the historical rights of water users. Rights must be protected but a countrymust also move forward, and historical patterns cannot be cast in stone. The findings from thisworkshop will be helpful for the Government. The Bank wants to work closely with allstakeholders. 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 themost important beneficiary of this workshop would be the Study Team itself, which consisted ofnine 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) gatherthe views of stakeholders on those findings. The team will not present any recommendations atthis stage. The team's findings are still developing and their eventual recommendations will bepresented at the next workshop in June, to which all the participants of this workshop will beagain 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 foreveryone 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 subsistenceirrigation 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 isthe number one goal for water resources management. New uses are being created fromexisting 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 havea 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: oneset of rules and administration systems at bulk water allocation from natural sources, and theother 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 twodifferent types of irrigation schemes in the Citarum Basin (upper and lower basins). In the lowerbasin, 90 per cent of the water in the basin goes to agriculture and only 10 per cent goes toindustry and PDAM, mostly from irrigation canals. In the upper basin, 90 percent is being usedby agriculture and only 10 percent by the rest, but only one quarter of industry uses water fromirrigation 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 than60 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 inthe downstream - 240,000 hectares, and asked what would be the priority use of water in thisarea.

    Pk Sri H Hernowon Sasjhudi answered that the main aim of water allocation was to enhance riceproduction. 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, itprovides water for Jakarta. The Bekasi - Jakarta channel used to be aimed for irrigation but nowit is simply for urban water supply to Jakarta.

    Pk Tjoek Walujo Subijanto opined that if farmers' rights were clearly written down, farmerswould be able to get compensation. There are three requirements before a rights system canwork:

    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. Thepolicy of government should not be full-cost recovery but only for operation and maintenancesufficient 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 rolesshould be kept distinct.

    In establishing rights, both rights and obligations need to be considered. It is very important tounderstand that whoever provides the service guarantees water supply.

    Pk Satriyo Hadipurwo of Ministry of Mining and Energy, Bandung asked how groundwater canbe brought into this arrangement. Definitely the conduct is different. Also the tax is different inamount. 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 whythe Team went to visit the Ministry of Mining and Energy in Bandung. The study has to deal withsurface water, groundwater, water quality and water quantity, at the national, provincial anddistrict/municipal levels. There is lack of coordination among those concerned agencies. Forexample, the team learned from KimPrasWil that they are drafting 9 Government Regulationsbut the team does not know how they relate to groundwater. Pk Satriyo mentioned that Pk Basukifrom KimPrasWil will discuss this with the Ministry of Mining and Energy on March 26. Tillthen, he said that his ministry is not clear if they will have an input into the 9 regulations underpreparation by KimPrasWil.

    Pk Sudar of Ministry of Agriculture referred to the presentation of Pk Akihiko Hata (theEconomic Sub-Team of the Study Team) and pointed out that the cropping pattern isrecommended 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 mentionedthat in his opinion the highest priority in water use must be drinking water even though the NewLaw seems to support two highest uses, namely, water for basic daily needs and water forfarming communities.

    Pk , Chairman of a WUAF at Mojokerto, East Java, shared his WUAF's situation with themeeting. Their system takes water from the Menturus Weir. The system is 3,000 ha. They onlyget 60 percent of the water they need in the wet season and in the dry season the situation isworse. They have three problems:

    1. They are dependant on PJT-I for water supply. The gate master simply tells them thatwater allocation is all decided, but does not tell them how much they will receive.

    2. Since 1977, when the government introduced agricultural intensification, their croppingpattern has been unclear.

    3. Their channels at upstream and downstream are well constructed thanks to a centralisedrehabilitation project in 1989-1993. However, there is a bottleneck in the channels inbetween. 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 thataccompanied 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 beprotected.

    Taking this into account it was agreed that a licence would not be necessary and what is moreimportant is the public recognition of the water use right - including irrigation, basic needs andthe 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 theconsequence 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 basinplan? Other? What equity issues arise with each option?

    It was agreed that rights should be quantified based on water balance and future protections ofneed. It requires a system of water accounting (in both the river and irrigation system), whichwill include historical use and forecasting and consider the level of the river, the level ofirrigation and water availability.

    3. How should right holders be able to assert their rights against parties that disturb their rightto use water? In particular, what should be the process to ensure protection of farmers'srights 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 wateris taken for other uses. The emphasis in addressing these issues was on the need for publicconsultation with farmers and putting the 'formalisation' on the public record. It was suggestedthat the PPTPA should be developed further. It was also stressed that the rights and obligationsbetween 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 theGroup have taken a more strategic approach?

    Pk Helmi replied that it would be difficult for farmers to go through the process of licensing. It isbetter that the government protect the farmers's rights through a Decree and then the governmentcan battle for the farmers. We need recognition of collective rights through a Decree issued bylocal government stating the size of the area and the water balance.

    Pk Bryon Bruns, currently ADB Consultant for Flood Control Study, added that in Japan there isa rule to the effect that a farmers' group will be treated as having a licence even if they don'thave 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, eitherprovincial basin or district basin.

    2. What are the pros and cons of creating an irrigators/government partnership model to carryout both tasks in an integrated manner?

    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 irrigationmodel 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 thegroup'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) onhow to subdivide rights within one large system. One option for subdividing is: the right given toone system is a big bulk right that clearly lists all subdividing rights within the system (eg. eachWUAF 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 nolonger operative.

    Pk Tjoek Walujo Subijanto commented that the licence should be given, not by the DistrictGovernment, but by the authority in charge of managing the basin. In large-scale irrigation, itdoes 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 existingallocations. The WUA should be able to make recommendations, but about what? It should onlybe about the irrigation infrastructure. Other issues can be dealt with by an agreement betweenfarmers 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 waterdemand, emergency (scarcity-induced) transfers and issues of compensation. Pk Hata introducedthe topic to the group including: (i) interpretation of the new Water Resource Law regardingtransfer of WURs under various situations (e.g., structural changes in water demand andemergency 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 rightscannot be transferred or rented either in whole or in part; elucidation states that rights cannot betransferred to any other party. He also said that when rights are not utilized, they may bereclaimed 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) presumedto 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 theland is sold to another farmer, then the new owner acquires the right. Thus, the water useright adheres not (necessarily) to the land, and clearly not to the owner of the land, but israther contingent on the use to which the land is put.

    * Another point is that transfers are indeed permitted under the new law, but only throughthe agency of the Government (appropriate level), which re-acquires the right when sawah isconverted 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 otheruses would appear to work at cross-purposes with this goal.

    Also, another question was raised concerning compensation, when water is transferred out ofagriculture. The scenario is that farmers (locally, with their own resources) increased irrigationsystem efficiency, which resulted in reduced effective demand for water below their historicaluse 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 himwhether 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 ofirrigated 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 subjectto private transactions? Pk Tjoek explained that this was discussed, but rejected under the newlaw.

    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 givecompensation to irrigators not necessarily in cash but in some other forms such as contribution tocanal maintenance or rehabilitation. He asked the Group if this kind of arrangement is allowedunder the new Law.

    Pk Tjoek commented that if such arrangements pre-dated the new law, they would probably beallowed to continue, but new such arrangements would probably not be allowed under the newlaw. An important question is, who is responsible for guaranteeing the water delivery? Does theWUA or WUAF guarantee water to the industry under these circumstances? Then he said basinoperator is responsible for delivering water, so compensation between farmers and industryshould 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 thenprovides it to the industry.

    Question was raised if actual contracts would be required in such arrangements? That is, wouldthere need to be a formal contract between the industry and the WUA, and the industry'sabstractions (quantitative) be reflected in the WUA's "contract" (use right, more properly)? PkSaiful also indicated that in Wanisagara transfers of water have taken place based on informalagreements with WUAF. Pk Tjoek answered probably yes and PJT would license WUA andWUA would effectively "license" industries.

    Pk Tri from municipal water supply company provided an example of multi-tier contracting thatthe company contracts with PAN Jaya (cooperation which supplies water from Citarum basin toJakarta), but not with PJT-2. Therefore, if there is a system default in PJT-2 and consequentlytrouble in delivering water, the operation of the company is affected but they cannot take anycontractual 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 quantityor quality of water if the basin infrastructure is in poor condition or poorly maintained. In thiscontext, the inability of PJT (or similar Basin management organizations) to recover O&M costsfrom 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, whereelevated industrial tariffs in part compensate for the lack of irrigation tariffs). However,commercial users complain about cross-subsidy, and argue that the Government (and notthemselves) should pay for the O&M share associated with irrigation, since it is by Governmentregulation that PJT is not allowed to charge irrigation tariffs (PP81). Pk Tjoek howeverrecommends that under expanded water use rights for irrigators, the possibility of cost recoveryshould be considered.

    Pk Tjoek also noted that in the context of the question: who is responsible for water deliveries insituations such as that described previously (industries abstracting from irrigation secondaries) itis encouraging that (in West Java) the head of Provincial Dinas has issued instructions thataffected 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 ormunicipality who will abstract water from irrigation canal, there should be a subsidiary contractbetween three parties, namely basin operator, industry (municipality) and the farmer group. Withrespect to the observed trading near Bandung, under the new law, this practice would not bepermitted, since only the appropriate Government agencies can issue licenses. However, PkTjoek actually approves of such three-party configurations, e.g. PJT to WUAF, WUAF toIndustry.

    Pk Maeda, JICA expert attached to KimPrasWil raised a question concerning the requirementthat all unused rights be returned to the Government: what about the case where private investorsbuilt a reservoir - what should their rights be? That is, should they not be free to reallocate thewater they store/control in whatever way they consider appropriate?

    Pk Tjoek doubted how such arrangements would comply with the law. He said that there existcases 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 primarilyon 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 beproportional 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 resourcesgovernance body - the Dewan Sumber Daya Air, or Water Resources Council. This wouldcontain 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 willbe 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 thatthose attended this first national workshop would be invited again to the second one planned forJune, 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-allocatewater?"

    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./FaxGovernment 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 52993000Jakarta

    28 11ham Abla World Bank Jakarta 52993024

    WURs Study Team

    29 Hatsuya Azumi Team Leader / InstitutionSpecialist, Sanyu Consultants

    30 Bambang Adinugroho Deputy Team Leader / WaterResource Management, LP3ES

    31 Tomoko Nishigaki Logistic Support Coordinator /Institution Specialist, Sanyu

    32 Brian Haisman WURs Specialist, SanyuConsultants

    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, SanyuConsultants

    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, 08148170609Sanyu Consultants

    43 Helmi Water Resources Management 08126604703Advisor, 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 arenot quatified. The right to use water without a licence for basic daily needs for life and the needsof animals has been long recognised in Indonesian water law. Although not stated in law, thisright 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 NationalWater Resources Act (art 8(1)).

    However, in practice such rights are weak in comparison to rights to use water obtained under alicence, which are quanitified and officially recognised user by user. It is generally agreed thatcustomary/non-formalised rights need protection against stronger, formalised rights. Formalisedrights are increasing in number and volume and, little by little, they are slowly altering reliabilityof non-formalised rights. This is happening over broad areas and also in local situations such aslimited 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 thatimpacts 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 basinplan? Other? What equity issues arise with each option?

    3. How should right holders be able to assert their rights against parties that disturb theirright to use water? In particular, what should be the process to ensure protection offarmers' rights in the case where a new industry seeks to access water from the canalsystem?

    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 thatprotection of irrigation water use rights will be made by the formulation and issue of somedocument that lists a specific quantified volume and/or flow rate for each recognised irrigationscheme. That is, a single, bulk allocation of water computed and applied at the offtake from theriver to the scheme.

    The following questions are designed to gain information on implementation issues should thisoption be eventually followed.

    A4-17

  • 1. Some competent body needs to be at least the custodian or, preferably, the holder of the bulkwater 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 amongsectors (irrigation, municipality, industry). With limited potential of water resource developmentor even degradation of basin capacity by deforestation, re-allocation of water use from one userto 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 respectiveroles 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-2FIRST NATIONAL WORKSHOP

    MARCH 25, 2004tCompetitionftLWater W orkshop Agenda

    Obiectives of the Workshop

    Water Use Rights Study* Share the Study Team's findings Stage-t2to-dateStg 2

    * Discuss identified issues* Gather views of stakeholders Preliminary Findings

    BUT* Our findings are still developing

    and our eventualrecommendations will bepresented in the next workshop

    Team CompositionManagement: Component Findings

    H. Azumi, B. AdinugrohoLegal and Administration:

    B. Haisman, W. Martin, R. Febriamansyah, 1. PCM findingsS. Waddell, S. Rianto

    PCM: 2. Social & Demographic ContextH. Shimazu, S. Rochdiyanto, T. NishigakiSocial issue: 3. Hydrological Context

    D. Guillet, Munawir 4 Economic ContextHydrology:T. Nakano, Heru 5. Institutional ContextEconomy:A. Hata, A. Mawarni 6. Putting It All TogetherAdvisor:C. Rodgers, Helmi

    A4-19

  • 1. PCM Findings 1

    __________ tigr77SPCM Workshops Held

    r.7L -1. Six PCM workshops at province, districtand village / WUAF level were held.

    Province District VillageIProvince Basin level level WUAF level

    ____ ; . . East Java Brantas Surabaya Sidoarjo Tempel

    7- v; ail M t - ' * West Java Citarum Bandung Bandung Wanir-= 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 workshopand way forward in this study. except Tempel Village (two and half hours).

    , ---.

    Fundamental Questions Comparison of Two BasinsCommon 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.i~~~~Irn1 ~does not meet(including third crop ise o*ntms

    farmers' needs. (West) Farmers decided the cropping pattern2.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 thecoordination the problem? rules. (West) Govemment water mastenr were

    replaced by WUAF's water rnastcrs.

    A4-20

  • Comparison of Two Basins IssuesCommon 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 ofc.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, occupationalfWesti WUAF. coordinating with offices. associations, village representatives etc.implement public awareness and lawenforcement. WUAF buy seeds for forestation.

    Social & Demographic contextEl Perception: "Javanese" values are

    different from "Western logic" of2. Social & rights/demand managementDemographic 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 villageof rights/demand, how canOFamrintdtoalrvlagwe convts/dertncustom right irrigation schemes also wantwe convert customary rights clear WURs.into recognized and certifiedwater use rights? LI During water short period,

    . Refer to hydrology and farmers consider both licenseinstitution discussions holders and rights holders should

    accept proportionate reduction.

    A4-21

  • Social & Demographic context

    El If (a) traditional customary rightsare converted into recognized 3. Hydrological Contextand registered WURs, and, (b)responsibility and authority formanagement of physicalinfrastructure at thecorresponding levels (secondary,tertiary) is also transferred,reallocation of water withcompensation will likelyincrease without externalintervention.

    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 methodavailable)

    Water Use Rights Pattern for PehngaronWater Use Rights Pattern for Wangisagara

    District Irrigation (A=978ha) District Irri ation (A=1.718 ha)

    Or.qflll

    1 < r ~~~~~~~~- I-. h

    I MII-DTINj 13.05,CM,YMMonth

    A4-22

  • Water Allocationl Reallocation

    * Municipalities and industries4. Economic Context need more water: How do we

    allocate / re-allocate water?

    * Legal, institutional,hydrological, social andeconomic considerations

    Economic Factors for Water Allocation TDa-I Reallocation Water_ E

    Causes Drivinga Factors Issyes Allocation I IIrtLong-term -Rural-Urban Migration -Rights with Land or Reallocation ionsmscStructural -Growth in Income Farmers?

    -=

    Trends -Conversion of Savali (or revert to Gov't?) |

    -Environmental Concerns Land price S nOTemporary -Dry Season, Drought -Compensation for Structural Trend JScarcity -Basic Needs take priority affected rights- In Two Basins 2S0 T. _ l

    -Permits, Licenses, holders?honored -Water Banking? -|-riftT6io

    Economic *Declining profitability of -OpportunisticOpportunity farming exploitation of rights Rushing

    (Rent-Seeking) by wLrn >tcFarmers? u == _Against Food Self- se usSufficiency? 2 BW2-------_________j____I_______-________ _____________n W_ow Dorrand Pro.)Cttin (PJT-2 20

    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 moretransferring water more than growing paddy (s.t. Water than growing paddy (s.t. Water charge and Rice producercharge and Off-farm wage) price)

    a' - _ = I s-'----f ; i; S C-1

    oo~ ~ ~~. Ch, 1. RPOWO * 0520 25 X0 15 4 45 ro *5 50 oS 00 75 50 r r3 ooSIas 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

    " -'A 4-- 23

    A4-23

  • Issues for Water Allocation IReallocation

    * Water reallocation with compensation isindeed being practiced between industry 5. Institutional & Legaland farmers in Bandung: Is such aLeapractice fair? Context

    * If farmers reduce paddy cultivation toobtain compensation for water transfers,is it not contradictory with national foodpolicy?

    * If farmers conserved water by improvingefficiency and as a result returned WURs(to Government), should they becompensated, if so how?

    Legal Context: Uncertainty in 2004 Act Institutional issues

    1. Administration of highest priority use isnot clear: human needs vs. farming 1. There is poor coordination betweencommunity vs. PDAM institutions.

    2. Where permanent transfer of WURs is 2. Overlap in functions results from a lacknot possible (tidak dapat disewakan atau of clear delineation between servicedipindahtangankan) (Article 7(2)): are delivery and regulatory functions.there any circumstances in which water 3. Uncertainty is created by budgetcan 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" tofarming communities?

    WUR framework6. PUTTING IT ALL TOGETHER

    1. Revenue considerations appear todrive water use licensing policiesand priorities.

    2. There is little consideration ofenvironmental requirements in KEY ISSUES FOR WATERlicensing. ALLOCATION IN INDONESIA

    3. There is no formal provision forpublic participation in water uselicensing.

    A4-24

  • SCATTERED WATER ADMINISTRATION WA TER RE-ALLOCATIONBoundaries + decentralisation have tended to - effects of water scarci#y

    spread administration non-uniformly * Some heavily-allocated riversSSurface Ground Water * Some over-allocated groundwater basinsNationl water water qualitv * Poor water quality in many rivers andNational MSRI MME EPA aquifers

    Prov'Bafa, ? ? * No specific allocation of water flows forDistnict ? ? the aquatic environment ('healthy rivers')

    l__ __ __ __ RESULT:

    - and this doesn't show the layer of PJTs... * Sustainability goals and restoration ofRESULT: 'balance' will lead to a potential decreaseCoordination 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 rights.economic 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 becauseexpense of farmers. quantification of impacts is not easy.

    IRRIGATION FARMERS FEEL SQUEEZED IRRIGATION FARMING SLOWLY CHANGING

    Avg farmer age increasing. * Original irrigation schemes were genuinelyOver-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 someGrowth in water prices failing. scheme costs capitalised into land values.demand by I input costs * Increasing off-farm work and sharehigher value uses rising, cropping.

    * Pressures to grow more commercial crops.Demands for Maintenance of t Generational changes.

    environmental and irrigation assets RESULT:flushing flows deferred. Service

    levels falling. * Blurred subsistence & commercial mixes.

    A4-25

  • INDUSTRIES, TOWNS & GOVT 'UMBRELLA' CONCLUSIONSCORPORATIONS ALSO HAVE ISSUES concerning WATER ALLOCATION

    * Many towns have exhausted locallyavailable water sources. * Due to combined economic, social

    * Water supply operations worldwide are and environmental pressures, adominated by capital costs and renewals - more holistic and internallybut 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 suggestspriority 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 theEXISTING WATER RIGHTS SYSTEM EXISTING WATER RIGHTS SYSTEM

    If codified rights equivalent to otherwater 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 isunworkable)

    ISSUES in EXPANDING the COVERAGE ofthe EXISTING WATER RIGHTS SYSTEM

    __ _

    The big issue that shows up in thisstudy is the growing need for an - -orderly way of re-allocating water tomeet 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 Jaw a FPR (Faktor Polowtijo Relatip) shos daharge water tak