NATIONAL FRAMEWORK FOR ACCELERATING THE UPTAKE OF NATURED-BASED SOLUTIONS

Abdul Malik Sadat IdrisDirector of Water Resources and Irrigation

Jakarta, April 4th 2018

Indonesia Ministry of National Development Planning

2

Outline

Water Resources Potency and Problems

Policy Direction

Water Finance : CWRMS Scheme

Conclusion

3

GENERAL OVERVIEW

REPUBLIC OF INDONESIA

Consists of about 17,508 islands

Total land areas are about 2 million km2

Estimated population: 254,9 million (growth rate: 1,75%)

Rainfall distribution: 800-4.000 mm/year

Divided into 34 provinces, 416 regencies, and 98 cities

Note:

D : Domestic (Household)

M : Municipal (Cities)

I : Industrial

Source:

Water Resources Research Center, 2012

Roadmap CC Water Sector, 2011

4

WATER RESOURCES POTENCY AND PROBLEMS

1. WATER RESOURCES POTENCY

INDONESIA 3.906.500

SUMATERA 840.700

JAVA 164.000

KALIMANTAN 1.314.000

SULAWESI 299.200

BALI + NUSATENGGARA

49.600

MALUKU 176.700

PAPUA 1.062.100

DISTRIBUTION

Domestic & Municipal(106 m3/yr)

6.400 (3,7%)

INDUSTRIAL(106 m3/yr)

27.700 (15,8%)

DMI (106 m3/yr)

34.100 (19,5%)

IRRIGATION (106 m3/yr)

141.000 (80,5 %)

UNUTILIZED (106 m3/yr)

516.200 (74,7%)

UTILIZED (106 m3/yr)

175.100 (25,3%)

WATER AVAILABILITY (106 m3/yr)

POTENTIAL ACTUAL

3.906.500 691.300

WATER UTILIZATION

INCREASE IN WATER DEMAND DUE TO POPULATION GROWTH

2010 = 175.179,29 million m3 2015 = 250.369,24 million m3 2020* = 362.367,61 million m3

* Projection

5

EXISTING CONDITION

1. About 45% of irrigation areas in Indonesia arein poor condition and about 84% of them areunder provincial and district authorities.

2. High frequency of flood events in several bigcities are caused by:

Changes in rainfall patterns and climate. Climatevariability could has an impact on droughtevents. In 2003-2008, drought affected 17% ofthe 12 million ha of rice field.

The number of exploitation groundwater due tolimited capacity of water supply, leading to landsubsidence.

Watershed degradation due to land conversion Inconsistency in regional policy (such as: spatial

planning and land use policy) Limited funding for flood protection program

WATER RESOURCES POTENCY AND PROBLEMS

3. Raw water capacity is 51,44 m3/sec (in 2014),it only covers + 66,35% of populations.Integration of water supply provisionsystem from upstream until the householdconnection and the technology about waterconveyance are still not enough.

4. Hydropower potential is 75 GW, but therealization of installed capacity of HydroPower is only 4,4 GW or 8% of the totalinstalled capacity of 54,5 GW (RUPTL 2018-2027).

6

2. WATER RESOURCES PROBLEMS (1)

SITUATION 2010WATER BALANCE ASSESMENTand Water Balance of June-OctoberIn Low Flows Condition with Reservoirs and Inter Basin Transfers

Water Balance Assesment

Limited Scarcity

Water Stress

Shortage

Java Island

ZONING OF EROSION AND SEDIMENTATION RATE

Low Impact

Medium Impact

High Impact

Hotspot Too Sedimenteddue to Erosion

Average sedimentation in Java:

70 million m3/year

WATER SCARCITY

SEDIMENTATION AND EROSION RATE

WATER RESOURCES POTENCY AND PROBLEMS

Almost all area in Java are in water scarce condition. Around 35% of cities in Java are in water shortage condition

(in 2010)

Source : MOPW, 2018

Source : MOPW, 2018

7

CRITICAL LAKES

WATER RESOURCES POTENCY AND PROBLEMS

2. WATER RESOURCES PROBLEMS (2)

Critical Lakes

Swamp PeningLake Limboto

15 Critical Lakes1. Lake Toba2. Lake Maninjau3. Lake Singkarak4. Lake Kerinci5. Swamp Pening6. Lake Tondano7. Lake Limboto8. Lake Sentarum9. Lake Semayang-Melintang-Jempang

8. Lake Sentani11. Swamp Danau12. Lake Batur13. Lake Tempe14. Lake Matano15. Lake Poso

FOREST & AGRICULTURE CONVERSION INTO URBAN AREA DUE TO ECONOMIC GROWTH

Increasing urban areas will also increase water use and

exploitation.

Source : MOPW, 2018

Urban Areas 2010 Urban Areas 2030

CASE STUDY: JAVA ISLANDCASE STUDY: JAVA ISLAND

8

DECREASE IN WATER QUALITY (ON SOURCE) DUE TO WATER POLLUTION

Status of River’s Water Quality

Fulfill Standard

Lightly Polluted

Polluted

Heavy Polluted

No Data

WATER RESOURCES POTENCY AND PROBLEMS

2. WATER RESOURCES PROBLEMS (3)

Java Island

Source : MOPW, 2018

River in Java has been polluted and around 62% of rivers in Java are in heavy

polluted condition.

9

WATER RESOURCES POTENCY AND PROBLEMS

Decrease Water Quality : Case Study Citarum River

Water Quality

Observation Post Tunggak JatiStatus baku mutu air : Kelas 4

(cemar berat)

Bendung WalaharStatus baku mutu air : Kelas 4

(cemar berat)

Outlet JatiluhurStatus baku mutu air : Kelas 4

(cemar berat)

NanjungStatus baku mutu air : Kelas 4

(cemar berat)

IPAL CisirungStatus baku mutu air : Kelas 4

(cemar berat)

Jembatan KoyodStatus baku mutu air : Kelas 4

(cemar berat)

Bendung WangisagaraStatus baku mutu air : Kelas 4

(cemar berat)

Sumber : SLHD, Tahun 2014

Parameter SatuanKelas

I II III IV

pH 6-9 6-9 6-9 6-9

BOD Mg/L 2 3 6 12

COD Mg/L 10 25 50 100

DO Mg/L 6 4 3 0

Total fosfat Mg/L 0,2 0,2 1 5

NO3 Mg/L 10 10 20 20

Total coli Jml/100ml 1000 5.000 10.000 10.000

Detergen ug/L 200 200 200 (-)

Fenol ug/L 1 1 1 (-)

No Pos PengamatanParameter

Ket.pH BOD COD DO

1Bendung

Wangisagara7 10 45 5,5 BM kelas 4

2 Jembatan Koyod 6 40 100 3,5 BM kelas 4

3 IPAL Cisirung 6 45 90 2,7 BM kelas 4

4 Nanjung 6 25 50 1,5 BM kelas 4

5 Outlet Jatiluhur 7 10 35 3,5 BM kelas 4

6 Bendung Walahar 6 10 35 4 BM kelas 4

7 Tunggak Jati 6 8 30 3,5 BM kelas 4

Water Quality Class

Water Quality Observation Results

Citarum river has been contaminated. Based on BBSWC (2018), there ara

organic and anorganic waste around 20.462 ton/day in Citarum river and 71% not transported.

About 3.236 textile industries around Citarum and 90% do not have IPAL (BPLHD Prov. Jabar, 2018)

REPUBLIK INDONESIA

10

How to address the Issues – Policy Direction 2015-2019

Water Security

Conservation, Maintenance

and Recovery of Water Sources and Ecosystem

Fulfillment of the supply of

water for basic daily use

Managing the supply of water

for economic productivity

Increasing resilience to

water related disasters and adaptation to

climate change

Institutional Improvement

• Increase bulk water supply to 118,6 m3/s• Provide bulk water supply in small islands and

remote areas.

• Increase supply for irrigation from reservoir to 20%• Develop 1 million ha irrigation system • Rehabilitate 3 million ha irrigation• Develop 1,3 GW Hydropower from potential 75 GW.

• Increase flood design capacity to Q100• Develop 663,4 km coastal protection• Flood forecasting system in 33 Balais• Integrated management of coastal areas• Improve flood mitigation

• Improve Hydrology and Climatology Data Acquisition in 8 River Basins

• Community Development• Inter-agency Coordination on WRM• Adequate O&M capacity in 33 WS

• Conserve/protect water sources in 15 priority basins• Improve water quality • Reducing sedimentation in strategic Lakes and Reservoir• Increase water storage capacity to 19 billion m3• Revitalize river condition in 5 strategic river basins.

1111

15 Catchment Area Priority in 2015-2019

Source : RPJMN 2015-2019

Integrated catchment area management which one increased

nuber of springs and restoration of 15 catchment area priorities.

1212

Non-Structural Activities to Mantain Water Security

There are many non-structural activities to support water security (based on RPJMN 2015-2019) :

• Increased community involvement in forest based on catchment area management;• Improving the quality of regional spatial plans (RTRW) on catchment area based;• Structuring community activities, agriculture, industry based on the spatial plan of the region of

catchment area• Strengthening dam operational and management units • Improvement of hydrological monitoring system and water quality in 15 priority lakes / critical

lakes• Integrated river restoration in Citarum and Ciliwung Cisadane River• Mitigation of river pollution through structural and non structural efforts such as the

acceleration of sanitation development and sewage treatment in river banks

REPUBLIK INDONESIA

13

Implementation of User Pays Principle through the Cost of Water Resource Management Services (CWRMS)

Problem:Limited government funds for natural resource management

Needs:Mantain the reliability of water quality and quantity

CWRMS

The exploitation and maintenance fees for irrigation buildings are charged to

users as license holders of water resources.

The exploitation and maintenance fees in water buildings hereinafter referred to

as the Cost of Water Resources Management Services (CWRMS) is used

to finance the management of water resources.

Include:

1. Information system fee;

2. Planning fee;

3. Construction fee;

4. Operation and maintenance fee; and

5. Monitoring, evaluation, and community empowerment fee.

Regulation of MOPW NO.18/M/PRT/2015, Article 3

CWRMS is not a payment for water prices, but rather a replacement of some from the costs required for water resources management.

REPUBLIK INDONESIA

14

CWRMS CALCULATION

Calculating the cost of managing water resources

Calculates the economic benefit value for each user group

Calculate the unit value cost of water resources management services

Conducting the calculation of CWRMS acceptance rate to stakeholders

Discussing the simulation results with the stakeholders by considering the implementation impact of the CWRMS to the products economic level of the water resource users

Propose the amount of CWRMS unit value to the Minister, Governor or Regent / Mayor.

shall be conducted by The Tariff Evaluation Team determined by Minister

𝐶𝑊𝑅𝑀𝑆 𝐹𝑎𝑟𝑒 =𝐶𝑊𝑅𝑀 𝑥 𝐸𝐵𝑉 (%)

𝑉𝑜𝑙𝑢𝑚𝑒 𝑚3 𝑜𝑟 𝐾𝑤𝐻

CWRMS : Rp/m3, Rp/KwhCWRM : Cost of Water Resource Management (Rp)EBV : Economic Benefit Value (%)Volume : Volume water that used by user group (m3)Electricity : Electricity generated by Hydro Power

Permen Substansi

MOPW Regulation No.08/PRT/M/2014

MOPW Decision No.438/KPTS/M/2014

• The CWRMS tariff for hydropower (> 10 MW) uses theapproach per River Region and marginal cost. Forexisting hydropower using BJPSDA tariff that alreadyvalid.

• The CWRMS tariff for hydropower (<10 MW) based onzoning following zoning on feed in tariff from Ministryof ESDM. There is a grace period of 8 years.

1515

Conclusion

The conclusion from this topic :

1. Indonesia has very large potential of water and still little use. Water availability potential is 3.906.500 (106 m3/yr) with actual water availability is 691.300 (106 m3/yr).

2. Water recources problems are water scarcity, high sedimentation and erosion rate, critical lakes, decrease in water quality, and land conversion to urban areas.

3. Policy direction to maintain water security :a. Conservation, Maintenance and Recovery of Water Sources and Ecosystemb. Fulfillment of the supply of water for basic daily usec. Managing the supply of water for economic productivityd. Increasing resilience to water related disasters and adaptation to climate changee. Institutional Improvement

4. CWRMS is financing scheme for exploitation and maintenance in water buildings.

1616

THANK YOU