1. Institutional StrengtheningInstitutional Strengthening
for the Water Resourcesfor the Water Resources
Sector in IndonesiaSector in Indonesia
International Experience andInternational Experience and
Application in Indonesia.Application in Indonesia.
Clive Lyle
July 2013

2. IWRM- Water for people, economyIWRM- Water for people, economy
and riversand rivers
i. Share surface and ground water between
users and uses.
ii. Protect water quality both from pollutants
which arise from point and non point sources
iii. Protect the water environment: Fish are a key
indicator
iv. Mitigate water related disasters
v. Maximise outcomes:social, economic and
environmental

3. Framework for AssessmentFramework for Assessment
Five Attributes For Effective
Water Resources Management
1.Institutions, Policies, Laws:
2.Information and Knowledge:
3.Water Resource Management:
4.Participation:
5.Financing:
6.
SIM
PLE
A
N
D
FIT
FO
R
PU
R
PO
SE

4. InstitutionsInstitutions
• All water resource management in one
Ministry
– Combines management of surface water,
groundwater, water quality, pollution control,
aquatic environment, land use and zoning
– Controls and regulates water using and water
impacting sectors
• Primary industry Ministries
– Agriculture, forestry, fisheries, energy, mining
– Promote sectoral economic development
– Encourages sectoral sustainability
– Operational licences from resource manager
– One Ministry?

5. Institutions, Policies and LawsInstitutions, Policies and Laws
Robust Framework-Singular Roles:
- Avoid duplication, overlap, difficult coordination, impossible
data sharing, little accountability
i. Water managed as one resource:
– catchments, rivers, aquifers
– water quality, water quantity
i. Water resource manager/regulator
separated from industry guardian/
regulator
– Department of Water and Environment
– Department of Primary Industries
– Local delivery of services

6. Institutions, Policies and LawsInstitutions, Policies and Laws
Separation of roles :
i. Resource manager
ii.Regulator
iii.Service provider/operator
i. Wholesale water supply services
• river operator and manager
i. Retail water supply services
• Urban and rural water supply and waste
management (incl. irrigation)
• Delivery by local (Provincial, District) government

7. Water Resources Regulatory FrameworkWater Resources Regulatory Framework
Guiding Principles: Separation of Roles, Accountability, Remove Conflicts of InterestGuiding Principles: Separation of Roles, Accountability, Remove Conflicts of Interest
(Victorian State/Province Government)(Victorian State/Province Government)
REGULATORSREGULATORS
Environmental Protection Authority
Sets environmental standards,
Regulates environmental performance
Environmental Protection Authority
Sets environmental standards,
Regulates environmental performance
Essential Services Commission
Regulates Prices and Service Quality
Essential Services Commission
Regulates Prices and Service Quality
Department of Human Services
Regulates drinking water quality
Department of Human Services
Regulates drinking water quality
Ombudsman
Consumer Utilities Advocacy Centre
Addresses consumer complaints/advocacy
Ombudsman
Consumer Utilities Advocacy Centre
Addresses consumer complaints/advocacy
Ministers, Secretaries and Departments
Plan and Allocate
Resources
Set Authority
Obligations
Owns & Monitors Authority
Financial Performance
Local Authorities
Rural Water
Supply
Catchment
Management
Urban Water Supply
and Sanitation

8. Water Allocation SystemWater Allocation System
Source: Victorian Department of Water

9. Integrated Modelling for EvidenceIntegrated Modelling for Evidence
based Policy and Planningbased Policy and Planning
Catchment & RiversCatchment & Rivers UrbanUrban
IrrigationIrrigation EcologyEcology

10. Financing (and Asset Management)Financing (and Asset Management)
DEVELOPING
POOR
Infrastructure
Investment
GDP
DEVELOPED
*
Indonesia?

11. Sources of FinanceSources of Financei. Government recurrent budget and one off grants
ii. Water user charges for asset operation,
maintenance, replacement
iii. Water polluter charges for cost of water
treatment, dilution
iv. Water developer royalties (eg. hydropower
companies, plantation owners) for use of a public
resource
v. Environmental protection fee collected from
water users to protect the catchment and water
supply
vi. Private sector via PPP [risk vs return]

12. PRELIMINARY FINDINGSPRELIMINARY FINDINGS
AND DIRECTIONSAND DIRECTIONS

13. Laws and RegulationsLaws and Regulations
(para 39- 54)(para 39- 54)
• UU 7/2004, broad framework law
• 108 supporting regulations planned- 23 (21%)
developed (para 42-45)
– Some key regulations (eg. water allocation and
licensing) not agreed yet
– Risks of overlap, inconsistencies and contradiction
– A more inclusive drafting approach (Teeuwin)
• Basin Councils (para 46-47)
– Large membership
– Effectiveness?
– Separate decision making from consultation?

14. Laws and RegulationsLaws and Regulations
• Roles and responsibilities (para 48-49)
– Non exclusive functions between National,
Provincial and District levels
– Leads to confusion about roles,
– Avoidance of key responsibilities
– Some ‘innovative’, upwards delegation MOUs
• Unofficial cross subsidy between levels of government
– More specific separation of roles

15. Laws and RegulationsLaws and Regulations
Water rights and allocation (para 50)
– Agreement of the regulation a high priority
– Unable to review but regulation (42, 2008) is not
comprehensive
• Entitlement, licence, annual allocation, drought
management
– Must measure (and someone pay) to manage

16. Laws and RegulationsLaws and Regulations
River basin planning (para 51-53)
– Guidelines seem mostly appropriate
• More guidance could be given in some areas (eg. analytical
methods for consistency, better assess drought and floods,
and targeting of national investment)
• Need to re-consider Plan M&E mechanism
– Improve agreement mechanism: agreement of
national, provincial and district governments
– Is balance between infrastructure investment, O&M
and non structural measures in plans appropriate?

17. Whole of Government ApproachWhole of Government Approach
(para 55- 60)(para 55- 60)
At least 4 separate Ministries with primary
water resource management responsibilities.
•Proper and integrated management very difficult
– Management of resource is almost impossible
– Consistent and exchangeable approaches difficult
(eg. data, licensing/allocation, water function zones)
– Requires considerable coordination (costly in time,
limited effectiveness)
– Duplication
– Poor use of budget
– Sectoral and resource management objectives are in
conflict (eg. forestry, mining)

18. Streamlining River Basin ManagementStreamlining River Basin Management
• Whole territory or where needed?
• Better separation/strengthening of roles
– RB Governance (national- local office?)
– Wholesale water services (PJT vs local)
– Retail water services (local agencies)
• Manageable span of control
– 6 to 10 reports manageable (supervision,
reporting, monitoring, QA)
– 47 national level Balai

19. Management area:
Streamlining River Basin ManagementStreamlining River Basin Management
River Basin Management Units Area (km2)
International
China River Basins 300,000 -
2,000,000
China Provincial 40,000 – 1,000,000
Murray Darling Basin, Aust 1,000,000
Catchment Management Authorities, Vic. 20,000-40,000
Indonesia
Ciujung-Cidanau-Cidurian 3,000
Jratunseluna 9,500
Pemali Comal 4,400
Mahakam 77,000

20. ENDEND

21. Some Food for Thought?Some Food for Thought?
1= Very high
2= High
3=Moderate
4= Low
Need Impact Ease Feasibility
Reduced number of Balais 1 2 2
Rationalising roles of national-regional 1 2 2
Staff Training 3 1 1
One Water Department 1 3 2-3
Fast track amendment of regulations 2 3 2
Amended Water Law 2 3 2
Completion of regulations 2 3 3