Appendix 1 Indonesia's draft National Resources Policy Action Plan 1994 - 2020

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DRAFT NATIONAL RESOURCES POLICY ACTION PLAN (INDONESIA, 1994- 2020)

POLICY WATER RESOURCES MANAGEMENT SOCIO-ECONOMICS & FINANCE ENVIRONMENTAL MANAGEMENT LEGISLATION & ADMINISTRATION
I. WATER UTILIZATION
1. TO PROVIDE ALLOCATION AND UTILIZATION CONDUCIVE TO ECONOMIC AND SOCIAL DEVELOPMENT AND ENVIRONMENTAL SUSTAINABILITY. Objective: Objective: Objective:  
To make efficient and equitable allocation and utilization of surface and groundwater among sectors considering long-term impacts To link the water sector with and respond to demographic shifts and changes in the social and economic sectors: To adapt water allocation to eco-system management approach:  
1. To base water allocation on water balance in River Basin Plans. 1. To use cross-sectoral analysis, planning and development to evaluate and implement present water utilizations and in particular:
- compile River Basin baseline descriptions on linkages between water utilization and interactions between the water sub-sectors and (a) macro- (fiscal, monetary and trade) and economic policy instruments and (b) intersectoral, intrasectoral, distributional and environmental impacts
- identify and address related trade-offs and ways of accommodating them in and between the River Basins		 1. To establish water resources accounting systems for sustainable utilization at national and River Basin levels. 1. Issue and enforce Guidelines for implementation of water licensing regulations.
2. To administer, implement and enforce an integrated national licensing mechanism of surface and groundwater abstraction and use based on River Basin Plans 2. To identify and formulate the role of water security within the context of national economic security 2. To identify and study the linkages between water utilization, public health and environmental protection. 2. To issue a joint decree of the Ministers respectively responsible for water and for mining and energy delegating to the Minister responsible for water resources the allocation of surface and groundwater through a unified licensing mechanism.
3. To review and assess options for and develop allocation mechanisms for inter-River Basin. transfers and water exports 3. To assess and optimize influence of water policy (a) between economic sectors (b) between national and regional levels and (c) among households and firms 3. To design and implement programmes for the enhancement of public awareness of water availability and utilization economy, and related rights and responsibilities  
  4. To identify options for water policy as rational strategy for economic and regional development    
  5. To adopt water resources management policy to fiscal austerity, reduced producer subsidy and reduced public share of public water resources investment and other structural adjustment measures and capital instruments for effective utilization    
2. TO IMPROVE THE EFFECTIVENESS AND EFFICIENCY IN THE UTILIZATION OF WATER. Objective: 1. Improve technical efficiency by introduction of appropriate technology for reduction: re-use and recycling 1. Identify and address environmental trade-offs of efficient water utilization 1. To incorporate in existing water licensing regulations provisions to the effect that water saved through effi cient use of licence holder's entitlement is for Govern ment to dispose of under River Basin Plans
To reconcile efficiency and equity
1. To institute a system of water service contributions from the users to improve water use
2. To encourage conjunctive use of surface and groundwater through licensing system and water service pricing 2. Improve economic efficiency by developing (a) reduced water production costs (b) higher production per unit of water (c) cross-subsidies within the River Basin (d) cross- subsidies between River Basins efficiency 2. To respond to requirements for effective integrated natural, human and man- made resources management in the River Basin Plan 2. To include in the Guidelines for the implementation of water abstraction licensing regulations:
a. provisions for water and water resources use-based service charges
b. provisions for the routine inclusion in water abstraction licenses of clauses for technical and economic efficiency of water use.
3. To classify water resources for optimal utilization based on availability, quality, amenity and other values 3. Establish and enforce use based water service charges to achieve allocation and cost-recovery objectives for water management in the River Basin. Water service charges will be based on actual long term marginal water costs 3. To design and implement programmes for the evaluation and management of long-term cumulative impacts of water resources development 3. Limited to Provinces which have not yet done so, draft Provincial Government Regulations for the implementation of the wastewater charging provisions of Government Regulation 20/1990 on water pollution control
4. To establish a system of bulk allocations of surface water by efficiency considerations through consolidated licenses   4. To establish independent screening procedures for EIA 4. To review legislation on EIA and incorporate independent screening procedures and ensure proper timing of EIA in the project cycle
    5. To ensure proper timing of EIA in the project cycle  
    6. To ensure inform and alert end consumers of product- related effects on water through environmental labelling  
II. WATER QUALITY
3. TO PROVIDE LEVELS OF QUALITY IN INDONESIA'S WATER RESOURCES WHICH ARE CONDUCIVE TO ECONOMIC AND SOCIAL DEVELOPMENT AND ENVIRONMENTAL SUSTAINABILITY 1. To administer and enforce a combined national licensing system for water abstraction and waste water discharge based on River Basin Plans. 1. To establish mechanisms for cross-sectoral policy analysis, planning and development 1. To inventory and assess flora and fauna threatened by water pollution and ensure their protection 1. To institute and enforce a combined licensing system for water abstraction and wastewater disposal based on River Basin Plans by mutually reconciling Min PW Decree 45/1990 on water pollution, Min PW Decree 49/1990 on water abstraction licensing, Government Regulation 22/1982 on Water Resources Management and Government Regulation 20/1990 on Water Pollution Control.
2. To establish priorities for water quality control based on population density. 2. To review policies on agricultural inputs and their effect on water quality. 2. To design and implement programmes for water quality management in coordination with existing on-going activities 2. To include in the standard forest logging concession agreement payment of a water resources conservation charge on land uses in the catchments with an impact on water resources.
3. To strengthen national and regional capacity for R&D in water quality management by: - improving water quality information - developing appropriate technology for waste water treatment - identifying needs, activities and resource requirements for water pollution control - coordinating with urban and rural sanitation strategies 3. To establish and enforce water service effluent charges for efficient water management and recovery of water pollution control service costs within the River Basin 3. To review economic and policy measures to increase compliance with pollution control measures 3. To draft legislation restricting social and economic activities in and around water bodies, catchment and recharge areas, consistent with Spatial Land-use Plans, to protect water sources
4. To identify and declare water resources protection areas 4. Establish and enforce a water resources conservation charge on (and uses in the catchment with an impact on water quality    
5. To control sedimentation through adequate watershed management 5. To review and assess the effectiveness and efficiency of the current and proposed water quality standards for water resources management    
III. WATER RESOURCES DEVELOPMENT
4. TO DEVELOP WATER RESOURCES UNDER THE NATIONAL WATER RESOURCES DEVELOPMENT PLAN (NWRDP) BASED ON RIVER BASIN PLANNING Objective:      
To move to a planned programme approach for water resources development      
1. To develop end establish a participatory, interactive and consensus seeking process for River Basin Planning for national and provincial River Basins. 1. To establish a River Basin Planning process interactive with mainstream planning for preparation of NWRDP 1. To establish and implement a participatory and interactive process for EIA of River Basin Plans and of Spatial Plans 1. To draft and implement Basin Planning consistent with Spatial Land-use Planning
2. To integrate river basin planning processes and instruments with spatial planning processes and instruments. 2. To prepare regional development strategies based on River Basin Planning in regions with water scarcity and in particular regions with: (a) critical water availability and/or subject to flooding (b) upstream - downstream interdependence for water availability and/or flood divided by administrative boundaries 2. To protect aquatic habitats including lakes, wetlands and coastal waters through regulation, incentives and in River Basin Plans 2. To incorporate in existing EIA regulations and implementing mechanisms a requirement for EIA of River Basin Plans and Spatial Plans
3. To identify priorities for the formulation of River Basin Planning based on (a) water balance (b) water pollution (c) River Basins as Special Development Areas 3. To give recognition to and reflect changes in macroeconomic policies in development of River Basin Planning 3. To design and implement conservation programmes with increased public participation 3. To enact and implement legislation water resources related disaster preparedness
4. To complement existing flood control programmes with zoning of floodplains and disaster preparedness in coordination with Spatial Land-use Plans 4. To address and accommodate trade-offs between development objectives in the development of River Basin Planning 4. To manage soil conservation and water-shed management in the formation of River Basin Plans 4. To investigate water related customary law and practices and assess their relevance and impact on River Basin Planning
5. To create capacity for River Basin Planning; secure collection and processing of data for River Basin Planning 5. To establish the interactions between water producers and users in the River Basin Plan 5. To reflect and give recognition to traditional and cultural values in the formation of River Basin Plans.  
  6. To introduce efficient flood plain management under River Basin Plans    
5. TO ENHANCE PRIVATE SECTOR AND COMMUNITY PARTICIPATION IN FINANCING OF WATER RESOURCES DEVELOPMENT 1. To establish, under the control of the Government:
(a) New River Basin branches of PERUM Jasa Tirta, and Provincial State Companies (PERUMDA), as organizations for water resources development
(b) Formal Water Users' Groups		 1. To identify viable financial schemes and instruments to attract financial resources from private interests and the public, in accordance with deregulation policy and, in particular,
- review, under River Basin Planning, the potential for acquisition of private financial resources for water resources management and development		 1. Delegate financial responsibilities and benefits to the immediate beneficiaries 1. To draft legislation to give User's groups legal status before the law and to enable them to function in a corporate capacity
2. To identify and prepare viable programmes for private participation in water resources development through joint ventures with the Government 2. To review water service charges for compatibility with private sector participation   2. To draft legislation to enforce the beneficiaries' responsibility for O&M of main water works
3. To establish schemes to encourage controlled self- development of surface and groundwater     3. To draft legislation enabling and motivating the public, including financing institutions to participate in financing water resources management and development and establishing relevant procedures and requirements
6. TO ESTABLISH A SUSTAINABLE BUDGET SYSTEM FOR WATER RESOURCES MANAGEMENT 1. To establish independent annual and multi-annual capital budget components, based on River Basin Plans for Water Resources:
(a) Water management administration
(b) Water Resources Planning
(c) River Improvement		 1. To make balanced appropriation of budgetary resources between management including improved services to the public, development and O&M 1. To secure budgetary resources for water conservation and environmental protection measures 1. To adjust legislation on national budget structure so as to accommodate a sustainable budget for water resources management
    2. To institute a system of water abstraction and wastewater discharge contributions. 2. To provide budget for environmental management and monitoring plans at the River Basin level, out of project funds  
    3. To secure specific Government budgetary appropriations for water resources enhancement for all purposes.    
IV. WATER RESOURCES MANAGEMENT STRUCTURE
7. CREATE A WATER RESOURCES MANAGEMENT STRUCTURE CONSISTENT WITH INTEGRATED MANAGEMENT OBJECTIVES 1. To coordinate water resources management activities. 1. Subsidize the implementation of River Basin Plans as required 1. To develop institutional to integrate water resources management within the frame of natural resources management 1. To consider:
(a) structuring the National Water Resources Council as a Committee of Ministers at policy making level, and a Technical Committee of Directors-General;
(b) coordinating the Council with the National Spatial Planning Committee through the Council chairman becoming an ex officio member of the said National Committee.
2. To establish a structure and capacity for water policy. development and for monitoring of water resources planning, management and development. 2. To identify and confirm the financial viability of river basin management areas based on economy to support and populations served by water resources management    
3. To establish central government water resources management capacity including River Basin Planning and allocation for water abstractions, waste water discharges and other water uses of surface and groundwater resources (National River Basins) making use of existing structure and manpower.      
4. To entrust operational water management functions at basin level in National River Basins to branches of Perum Jasa Tirta in (a) River Basins or groups of basins that are financially viable; (b) non-viable basins or groups of basins to be supported by inter-basin cross subsidies.      
5. As an intermediate arrangement in river basins that are not financially viable, to entrust operational water management with non-structural Technical Units (UPTs)      
6. At the Provincial level, to structure Technical Units (UPTs) along River basin lines for River Basin Planning and the integrated quantity and quality management of surface and groundwater resources of Provincial River Basins      

FAO LAND AND WATER BULLETINS

1. Land and water integration and river basin management, 1995 (E)
2. Planning for sustainable use of land resources - Towards a new approach, 1995 (E)
3. Water sector policy review and strategy formulation - A general framework, 1995 (E)

Availability: August 1995

Ar - Arabic Multil - Multilingual

C - Chinese • Out of print
E - English ** In preparation
F - French
P - Portuguese
S - Spanish

The FAO Technical Papers are available through the authorized
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FAO, Viale delle Terme di Caracalla, 00100 Rome, Italy.


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