Attachment 3:
INACOLD POSITION PAPER ON DECISION MAKING PROCEDURE
FOR NEW DAMS DEVELOPMENT IN INDONESIA
October , 2003
I.
GENERAL OVERVIEW
Dams development in Indonesia has been progressing significantly in recent
years. Due to domestic and global issues pertaining to benefits as well as
concerns of dam development, the need to review the national policy and
strategy in this regard becomes unavoidable.
Indonesia is an archipelago comprising more than 17,000 islands spread along
the equator. The country is blessed with annual precipitation ranging from 700
to 7,000 mm, with 2,800 mm annual mean. This abundant rain places
Indonesia as the ninth rank for fresh water the country has.
Seasons are differentiated into two; rainy season and dry season. In most
places they last six month each, especially in large islands in the west part of
the country; Sumatera, Java, Kalimantan (Borneo), and Sulawesi (Celebes).
However, it is different from one place to another. In the east, where the island
is small except Papua, the weather is dryer. Rainy seasons with high intensive
of rain may last only three months. The rest is dry season. In such long dry
season, serious drought may frequently occur.
The population of the country is 203 million (census 2000), the fourth in the
world, mostly agrarian. It is close to double compared to previous thirty years,
which was 119 million (census 1971), Separated in so many islands, there are
hundreds of ethnics with various languages and cultures. Different approach
shall be applied to associate with local people, due to different customs and
values.
The tremendous increase of population entails the inadequacy of natural
resources. Degradation of watershed has resulted serious draught and flood.
Around 200 large and small dams have been built. There is 9 million hectares
of technically irrigated rice field in the country, however, the available dams
only serve 700 thousand hectares. Only 8% of technical irrigation area in
Indonesia in which the irrigation supply is better warranted through dams.
Electrification ratio of the country is 52%. Only a little more than a half of the
population has access to use electric energy. Although hydropower potential in
the country is around 78,000 MW, only 4% of the potential is currently
utilized.
Exploitation of resources through mining activities shall consider sustainable
environment. Tailing dams are frequently required, in order to avoid mining
waste polluting land and water resources that may endanger livelihood.
The large population, the need for food and energy, the drought and flood, and
other problems that still need to be solved urge the country to build more
dams.
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In achieving the objectives of all parties concerned, various studies have been
conducted by using other references including those from Water Resources
National Policy (Decree of Coordinating Minister for Economic, 2001) and
World Commission on Dams (WCD) Report, November 2000. Ultimately, the
outcome is then incorporated in the policy and strategy on dams development
in Indonesia.
II.
LESSONS LEARNED
Notwithstanding the fact that existing dams in Indonesia have been built in
compliance to the present standards and regulations, numerous lessons could
be learned from previous experiences for further improvement in the future.
The following examples illustrate how gaining public acceptance were
performed in the past : 1) a number of project affected people in Kedungombo
Dam assumed that they have not been consulted during the earlier stage of the
Project. The problem continued until the project completion and the
impounding the reservoir although project benefits and expected result are
achieved undoubtedly; 2) there was an indication that the planning stage of
Nipah Dam, lack of initial information and public consultation resulted delay
of the project; 3) it should be noted, however, that public consultation for
Jipang Dam finally resulted a rejection by the stakeholders to proceed with the
project.
On the other hand, positive results are recorded from the following dam
projects in Indonesia : 1) in Wonogiri Dam, Central Java, intensive effort
during public consultation meetings led the project acceptance by the affected
people who agreed to participate in the transmigration program to SitiungWest Sumatera; 2) similarly, public acceptance appeared in Wonorejo Dam,
East Java, where affected people also joined the transmigration program to
Sitiung; 3) resettlement of project affected people in Pengga Dam, West Nusa
Tenggara, was successfully organized by providing them with a much better
location for their living.
From the above mentioned examples, it is clear that many dams have been
successfully built, but some dams failed to be developed due to resistance of
inhabitants, and some dams were built with some remaining social problems.
The security approach was applied forcing some people to sacrifice for
welfare of larger society. Nowadays, after reformation of 1997, this kind of
approach will be very difficult to apply. Resistance of people will create so
many obstacles in the dam and any kind of development.
The reformation also reforms the procedure of development. Public
consultation in the form of information, socialization, as well as negotiation
shall be systematically applied to recognize and solve social problems
concerning development. Public participation in every stage of development
shall be encouraged to meet the success of the development for the welfare of
the people themselves.
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III.
NATIONAL POLICY AND STRATEGY
The water resources as well as dams development are based on the seven
values originated from Indonesian context consists of harmony, public benefit,
integrality and sustainability, eternity, equity, independency, transparency and
accountability. The WCD also stated five core values consists of equity,
efficiency, participatory decision making, sustainability and accountability.
In the course of reformation of water resources sector currently going on in
Indonesia , shifting of paradigms on which among others enhancement of
public involvement is widely emphasized. INACOLD strongly encourage that
the dams development shall employ this new paradigm into national policy
and strategy.
The dams development policy include : 1) it must be the best option which is
suitable to the climate for distribution water around the year; 2) it must
continue in fulfilling needs of water, energy, flood control and tailing; 3) it
must continue for economic growth, property alleviation, protection against to
sustainable under development; 4) it must be on holistic and integrated river
basin master plan, covering the whole aspects of technical, economical,
financial, social, cultural, environmental and institutional; 5) it must be a part
of water resources master plan on the river basin, integrated to regional spatial
planning, based on sustaining river and its ecosystem; 6) it must be based on
public acceptance and stakeholder involvement.
Those considerations are important in achieving the best benefit for people
welfare. In addition, the policies are also aimed at securing the stakeholder in
fulfilling their right and their obligation.
The following strategy describe how dams development should be done : 1)
by distribution alternative on water availability; 2) for fulfilling needs of
water, energy, flood control, tailing and other purposes; 3) based on water
resources master plan on the river basin, by the principle of one river, one plan
and one integrated management; 4) by considering all aspects of technical,
economical, financial, social, cultural, environmental and institutional; 5) by
the participation of public society; 6) by following the decision making
procedure including dams safety procedure.
The national policy and strategy are quite comprehensive and integrated
framework in decision making procedure as they also cover the good
governance based on democracy and human rights.
IV.
DECISION MAKING PROCEDURE
The concerned institution on the decision making procedure of dams
development consist of government agencies, boards, Commission on Dam
Safety and stakeholder forum. Having considered that, this position paper
focuses on the introduction of a new perspective in the decision making
procedure involving the stakeholders at every single stage of the dams
development.
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Ministry of Settlement and Regional Infrastructure (MSRI) is the national
government agency in charge of water resources development, while Ministry
of Environment (MOEnv) deals with environmental protection.
The local government is the provincial, regency or municipal government led
by the Governor, Regent or Mayor.
National Board of Water Resources and the local ones will take a role for
advising to the government relating to water resources development. The
Local Board of Environment will deal with environment protection at the
province and district level.
The Commission on Dam Safety will recommend to MSRI concerning the
dam design, impounding and operation licensing and inspection on dam
abandonment proposal.
The project proponent will be either Directorate General of Water Resources
or one of the following : Provincial Services, National Electricity State
Enterprise and private institution. Subsequently the dam operation and
maintenance body follow similar pattern. The stakeholder forum covers the
project proponent or the dam operation and maintenance body, local
government or the concerned agencies, and public society.
The sequence of Dams Development consist of seven stages. This covers the
role of concerned institutions include the environmental management and
public involvement. The public consultation meeting among stakeholder
forum is applied in all stages, to gain public acceptance, involvement and
participation.
The seven stages consists of : the 1st stage, Need Assessment; the 2nd stage,
Selecting Alternatives; the 3rd stage, Project Preparation; the 4th stage, Project
Implementation; the 5th stage, Establishment of Dam Operation and
Maintenance Body; the 6th stage, Operation and Maintenance; the 7th stage,
Abandonment of Dams.
The Flow Chart of Decision Making Procedure for New Dams Development
in Indonesia through seven stages above, is illustrated in the Annexure.
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