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