Institutional Institutional Strengthening for the Strengthening for the
Water Resources Sector in Water Resources Sector in IndonesiaIndonesia
International Experience International Experience and Application in Indonesia.and Application in Indonesia.
Clive Lyle July 2013
IWRM- Water for people, IWRM- Water for people, economy and riverseconomy and 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
Framework for Framework for AssessmentAssessment
Five Attributes For Effective Water Resources Management
1.Institutions, Policies, Laws:
2.Information and Knowledge:
3.Water Resource Management:
4.Participation:
5.Financing:
6. S
IMPLE A
ND FIT
FOR
PURPOSE
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?
Institutions, Policies and Institutions, Policies and LawsLaws
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
ii.Water resource manager/regulator separated from industry guardian/ regulator– Department of Water and Environment– Department of Primary Industries– Local delivery of services
Institutions, Policies and Institutions, Policies and LawsLaws
Separation of roles :
i. Resource manager
ii.Regulator
iii.Service provider/operator
i. Wholesale water supply services • river operator and manager
ii. Retail water supply services• Urban and rural water supply and waste
management (incl. irrigation)• Delivery by local (Provincial, District)
government
Water Resources Regulatory FrameworkWater Resources Regulatory FrameworkGuiding 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 AuthoritySets environmental standards,
Regulates environmental performance
Environmental Protection AuthoritySets environmental standards,
Regulates environmental performance
Essential Services CommissionRegulates Prices and Service QualityEssential Services CommissionRegulates Prices and Service Quality
Department of Human ServicesRegulates drinking water quality
Department of Human ServicesRegulates drinking water quality
OmbudsmanConsumer Utilities Advocacy Centre
Addresses consumer complaints/advocacy
OmbudsmanConsumer 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
Water Allocation Water Allocation SystemSystem
Source: Victorian Department of Water
Integrated Modelling for Integrated Modelling for Evidence based Policy and Evidence based Policy and
PlanningPlanning
Catchment & RiversCatchment & Rivers UrbanUrban
IrrigationIrrigation EcologyEcology
Financing (and Asset Financing (and Asset Management)Management)
DEVELOPING
POOR
Infrastructure Investment
GDP
DEVELOPED
*Indonesia?
Sources of Sources of FinanceFinancei. 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]
PRELIMINARY FINDINGS PRELIMINARY FINDINGS AND DIRECTIONSAND DIRECTIONS
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?
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
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
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?
Whole of Government Whole of Government Approach 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)
Streamlining River Basin Streamlining River Basin ManagementManagement
• 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
Management area:
Streamlining River Basin Streamlining River Basin ManagementManagement
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
ENDEND
Some Food for Thought?Some Food for Thought?
1= Very high2= High3=Moderate4= 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