The Netherlands’ activities in the water sector in Indonesia are directed to supporting the ongoing water sector reform in the country and contribute to reaching the Millenium Development Goals (MDG’s). Dutch activities focus on two sub-sectors: Water Resources & Irrigation (WRI) and Water Supply & Sanitation (WSS). Total disbursement amounts to EUR 15 million per year.

In support of the recontruction process in Aceh and Nias after the tsunami of 26 December 2004, the Netherlands is actively involved in several water sector programs in the affected areas. For more information on these programs please consult our Tsunami File.

Water Resources and Irrigation

In 1999 the decentralisation laws were adopted by the Indonesian Parliament, delegating many responsibilities of central government to the districts and (to a lesser extent) to the provinces. This decentralization reform led to the acceptance of new policies in Water Resources management and Irrigation, which were put on paper in the 'Letter of Sector Policy' (LoSP) by the head of the National Development Planning Agency (Bappenas) in April 1999. Subsequent cabinets have expressed continued support to the water sector reform. The LoSP laid down in writing many policy concepts regarding water resources management that were developed but not implemented in the 1990’s. Implementation of the sector reform has started in 2002 and has resulted in the formulation of many policy and legal documents, including Government Regulations (PP) and the new Law 7/2004 on Water Resources. Currently 10 Government Regulations on subjects such as rivers, ground­water, water resources management and irrigation are being drafted.

From 2001-2005 the Netherlands funded the Indonesia Water Resources and Irrigation Reform Implementation Programme (IWIRIP). IWIRIP increased involvement of farmers and other stakeholders in water management, leading to better quality maintenance at lower cost. As farmers participate in setting priorities and implementation of operation and maintenance of irrigation infrastructure, the quality of the infrastructure improves due to closer scrutiny of maintenance works. Partnerships between local (district) government and water users have been established. IWIRIP also has initiated the establishment of River Basin Management Authorities in six provinces outside Java.

The experiences from IWIRIP have been used in the joint formulation of two sectoral programmes implemented by the Indonesian government. These programmes are co-financed by the Netherlands and the Asian Development Bank (ADB) and the World Bank (WB) respectively and started in 2004.

The Participatory Irrigation Sector Project (PISP, co-financed by ADB and the Netherlands)  and the Water resources and Irrigation Sector Management Programme (WISMP, co-financed by WB and the Netherlands) support the implementation of participative irrigation management by strengthening local government and Water Users Associations. The goal is to increase farmers’ income and promote their empowerment through higher return on investments and fair and efficient distribution of water.

Both programmes support capacity building of water user associations, of district (kabupaten) government agencies and in the provinces and assist in developing joint decision making processes on priorities in maintenance through district irrigation commissions in which all stakeholders participate. Eventually PISP and WISMP will implement participative irrigation and rehabilitate existing irrigation infrastructure covering 725,000 ha in 60 kabupaten in 20 provinces.

The WISMP project also has a major component focusing on the improvement of river basin management. This touches on more aspects and sectors than agriculture, since river basins also comprise upland (forested) areas and lowland regions where often settlements are found along the river banks. The new law on water resources (UU7/2004) stipulates that water resources management in Indonesia should be implemented on the basis of river basins, using the principles of integrated water resources management (one basin, one plan, one integrated management). WISMP supports the establishment of river basin authorities (balai sumber daya air) and river basin councils (dewan sumber daya air).

The Netherlands, Indonesia and the FAO are currently discussing support to the establishment of the National Water Council. This is a policy council that will be established as a result of the new law on water resources, in which non-government stakeholders will participate.

Water Supply & Sanitation

In 2004 the Netherlands and Indonesia agreed to extend development cooperation activities the field of Water Supply and Sanitation. Main vehicle for the Dutch Embassy is WASAP (Indonesia Water and Sanitation Program for water sector capacity building and sanitation sector development), which is set up through a trust fund at the World Bank Office in Jakarta. WASAP (budget EUR 18.6 million, 2005-2009) is an umbrella trust fund that supports activities in the water sector related to policy development and capacity building. The activities are executed as sub-programmes. Currently the following sub-programmes are active:

1. Advisory services;
2. Water Supply Capacity Building. Capacity building and institutional development of the water supply utilities. Implemented with the Indonesian Drinking Water Association Perpamsi and the World Bank;
3. Indonesia Sanitation Sector Development Project (ISSDP). Sectoral approach to the development of a national policy and strategy for sanitation, eventually leading to a National Sanitation Action Plan. Implemented through the Water and Sanitation Program WSP;
4. Sanitation city pilots. Pilot projects on sanitation in urban areas; provide input to ISSDP;
5. Aceh-Nias Water and Sanitation Facility;
6. Water resources management: Aligning the water resources sector with national development goals water resources management.

More details regarding WASAP can be found on the WASAP website (currently under development) and on the website of the WB.

The Embassy is also supporting the establishment of a Private Sector Participation Development Facility for Urban Infrastructure (PSPDF). This facility is set up under the responsibility of Bappenas and is co-financed by ADB, government of Indonesia and the Netherlands. Total Dutch contribution will be USD 7.5 million.

The Dutch government is support Public-Private partnerships (PPP's). In the water sector support is given to PPP’s in Pekanbaru (Riau) and in Eastern Indonesia (N-Sulawesi, Maluku, N-Maluku and Papua).