The London Institute for Space Policy and Law completed its study on Earth Observation (EO), commissioned by the European Space Agency (ESA). The study, released this April, explored several scenarios where EO is used as an evidence in judicial proceedings. The study also anticipate how future water disputes may utilize EO as evidence. Mr. Al’Afghani is honoured to be cited. Download here.

"A memorandum of understanding had to be made because several regencies do not yet have RTRW", Hasan said. As of October 2012, there are only 205 regencies/cities, out of a total 498 regencies/cities, that have completed RTRW. Of the 33 provinces, only 14 provinces have finalised their RTRW.

Mohamad Mova Al 'Afghani, a doctoral candidate at the UNESCO Center for Water Law Policy at the University of Dundee, Scotland, says that it is more appropriate for RTRW to follow "water planning". "Thus, we bring people, bring farmers to the water, instead of water to the people", he said.

 

 

Source: Indonesia Infrastructure Initiative (Indii) website

KOMPAS, 23 November, 2012, Page 35, Section: Fokus Ketahanan Pangan
By Haryo Damardono

 

"I have a message even to workers, so that workers would contribute their energy to the fullest for the implementation of this project. Remember, this project does not belong to a single capitalist, but this is a project of the state, a project for the people, a project for all of us", said Ir Soekarno, when visiting Jatiluhur Dam Project, 19 September, 1965.

From his speech, the strong desire of Ir Soekarno - the proclaimer [of Indonesian independence] - could be felt, that Jatiluhur Dam should be quickly completed. This is because Jatiluhur was key to increasing agricultural productivity, in addition to controlling floods and meeting the needs of raw water.

Initiated by irrigation expert WJ van Blommestein in 1930, Jatiluhur was originally designed to irrigate an area of 517,240ha. However, when President Soeharto inaugurated it on 26 August, 1967 the remaining area was only 240,000ha. Much reduced, but still it was categorically large in size and the condition continued to be excellent.

Not surprisingly, Mohammad Hasan, Director General of Water Resources of the Ministry of Public Works, expressed disappointment when he witnessed the conversion of land [that had taken place] in Bekasi, especially when he observed the land use conversion in the West Tarum Parent Channel. Its inspection road has even been transformed into Kalimalang public road.

Due to its strategic location, the Bekasi - Cikarang corridor has become a magnet for industrial estate and housing developments. Businessmen have long telescoped potential profits there. From the centre of Jakarta, Cikarang is only 24km away, while from the Port of Tanjung Priok it is 35km away.

The glittering gold in Cikarang is demonstrated by publicly listed company PT Bekasi Fajar Industrial Estate, Tbk (BEST), which recorded revenue of Rp 661.97 billion as of the third quarter of 2012, up 88.50 percent compared to revenue in the third quarter of 2011.

Meanwhile PT Lippo Cikarang, Tbk, has also armed itself with a new toll gate at KM 34 + 700 in Jakarta - Cikampek Toll Road. Lippo will soon transform 3,000ha of land into industrial estate and residential area.

Chairman of Indonesian Water Resources Network (SDA), Sudar D Atmanto, noted the importance of a strong will to stem land conversion. "The fact shows that population growth in Citarum River region has been recorded at 1.7 percent, while the entire West Java has registered growth of 1.2 percent. This is an example of how attractive the river banks are as places of domicile, so that the land will increasingly be annexed", he said.

Another fact is that, each year, there are 110,000ha of agricultural lands being converted. The modus may be illegal or legal, in line with spatial planning revisions. In the context of Jatiluhur’s presence, is food agriculture in the Citarum region, and Java, still the focus?

Is there really a future for agriculture in Java, which has recorded a planting index (IP) of 1.9, with productivity of 5.5 tonnes per ha? These numbers glaringly show imbalance, given that the national IP is 1.4 and the average productivity is 4.6 tonnes per ha.

In his book titled Infrastructure Management and Regional Development (2012), Bambang Susantono, said that the economic corridor of Java is focused more on the food and beverage, textile, machinery, and spare parts industries. So, where is the location of food agriculture of the future? The Government's vision turns to the Sulawesi corridor and the Papua - Maluku corridor, with its Merauke Integrated Food and Energy Estate (MIFEE). Some 1.2 million ha of land is allocated for MIFEE, although it is not monopolised for rice, but it may include sugarcane and palm oil.

Spatial Layout
With regard to the conversion of agricultural land, Hasan chooses to speak of the future. "The commanders are indeed the spatial layout plans (RTRW). Without them, Public Works will no longer build any water infrastructures," he said.

On 7 November, for example, Public Works gave its agreement to build Batang Asai Irrigation Area, which covers 6,210ha in Sarolangun Regency, Jambi. The development [process] begins after regional leaders and local communities sign an agreement on sustainable development of agricultural area.

"A memorandum of understanding had to be made because several regencies do not yet have RTRW", Hasan said. As of October 2012, there are only 205 regencies/cities, out of a total 498 regencies/cities, that have completed RTRW. Of the 33 provinces, only 14 provinces have finalised their RTRW.

Mohamad Mova Al 'Afghani, a doctoral candidate at the UNESCO Center for Water Law Policy at the University of Dundee, Scotland, says that it is more appropriate for RTRW to follow "water planning". "Thus, we bring people, bring farmers to the water, instead of water to the people", he said.

In the midst of the many problems on the sustainability of agricultural land, Director General of Infrastructure and Facilities of the Ministry of Agriculture, Sumardjo Gatot Irianto, remains optimistic. The ministry’s main weapon is Law no. 41/2009 on Protection of Sustainable Food Agricultural Land.

"We are also currently conducting an audit of agricultural fields with a target completion in December 2012", said Gatot. He also urged local governments to not allocate lands for purposes of just meeting their food needs.

Rehabilitation
Ministry of Agriculture deals with [sizes of] land areas, while Ministry of Public Works ensures continuous construction of infrastructure. Of the 7.23 million ha of irrigated rice/agricultural fields in Indonesia, only 11 percent have guaranteed supply of water from reservoirs or dams. Hasan gave an indication that, in 2013, some 13 dams will be built, from an inventory of 100 units of potential dams.

The best solution to minimise land conversion needs to be quickly found, then determination of RTRW should be encouraged, at least making sure that the land area for food production remains preserved. It should not happen that the reservoirs and dams will be mere monuments. Understandably, they cost trillions of rupiah to build. Even, the construction cost of irrigation per ha already reaches Rp 30–40 million.

Then, what is no less important is rehabilitation of the irrigation networks. Especially because, based on a technical audit (rapid assessment) of the irrigation system in 2010, in fact 55 percent of the irrigation facilities are in damaged conditions. Most of these are under the local governments’ authority.

The problem is, about 4.8 million ha of rice/agricultural fields are under the authority of the local governments, with special allocation fund (DAK) of "only" Rp 1.4 trillion. Those under the central government’s authority involve 2.4 million ha of land, with funding of Rp 2 trillion.

"The money for the regions may be used up on personnel expenditure. They have no money", said Hasan.

Sudar has a different view. When calculated from the state budget (APBN) allocation worth Rp 1,300–1,400 trillion per year, funding needs for irrigation at the local level account for only 1.8 percent of the total development budget allocation of the regions.

"That’s peanuts (small), nothing. Regional/local governments should compensate it from their respective personnel expenditure. It has to be. If not, no matter how big the DAK is, it would never be enough", he said.

The land has been maintained, the dams are built, while the irrigation networks are rehabilitated. All for the sake of food security. But what if in the end land conversion has continued to take place?

"Well, it is difficult. The stages are indeed from agrarian to industrial, it cannot jump directly to services", said Mova.

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Dear Mohamad Mova Al'Afghani:

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Search the SSRN eLibrary | Browse SSRN | Top Papers

 

Mohamad Mova Al'Afghani

University of Dundee - Centre for Water Law, Policy and Science
November 14, 2012

Abstract:
Attempt to regulate community-based watsan services in the legal framework faces considerable challenges. The first is the problem of defining and delienating the boundaries between “community-based” versus the so called “institution-based” (corporate water services). Second is the ambiguity of the concept of “community” and the lack of acknowledgement on community’s rights and previleges under national legal framework. Third, also related to the first challenge, is the potential of overlap between the regimes of corporate water utilities and that of the community based, where inevitably, one might be sacrificed at the expense of another. Fourth is the problem of sanction attached to the by-laws, such as in criminalizing open defecation. The Fifth is the problem of assets types and ownership. There appears to be unclarity on community assets ownership and this could mean that such assets are ownerless which renders it vulnerable to taking or confiscation from third parties. Finally, there is a problem with the national legal requirement to determine a “minimum service standard”.

 

Number of Pages in PDF File: 18

Keywords: water, governance, sanitation, law, legal, infrastructure, environment, public health, policy

working papers series

 

Download Link at SSRN Page.

 

 

(Img credit: The Jakarta Globe)

 

Mohamad Mova Al’Afghani

 

The Jakarta Post, Paper Edition | Page: 7 Opinion | Sat, October 20 2012

 

During the recent Jakarta gubernatorial election, observers and opponents argued that the scale and complexities of the capital city’s urban problems were in no way equivalent to small cities such as Surakarta, where newly installed Governor Joko “Jokowi” Widodo used to serve as a mayor. When Jokowi later has to deal with Jakarta’s drinking water situation, he will realize that there is a grain of truth in this argument.

 

While his predecessor Fauzi Bowo seemed to be focused more on technocratic “grand strategies” to solve the overall water problem, to my knowledge, Jokowi does not have any sophisticated plan. From media interviews we can tell that Jokowi’s emphasis on Jakarta’s drinking water problem will be on quality and affordability i.e. a pro-poor approach. One of Jokowi’s promises during his campaign was to provide access to water for low-income citizens of North Jakarta, either at an affordable rate, or even for free.

But, how can he deliver on such a promise? I shall explain the complexities below.
First, water provision is a natural-legal-monopoly. What this means is that people cannot just extend pipes to a community outside the existing network because the cost of duplicating networks is high. As a result, there are usually only one or two companies serving a particular region. The monopoly is not only in terms of economics, but also a legal one. Every new entrant or operation may have to gain permission from incumbent companies.

Second, there is a trade-off between service levels and network expansion. Suppose that the companies agree to expand the network, with constraints on bulkwater sources, pressure and continuity of supply other areas might be affected. Thus, a part of Jakarta that is currently well-served might become compromised unless the government finds a new bulkwater source.

Third, there are significant costs associated with network expansion to the poor. In addition to capital expenditure on long-term assets, collection rates will become a major issue. Expanding services to low-income citizens means risking either non-payment or increased debt for suppliers. Various researches indicate that the poor have both the willingness and capacity to pay for water services. However, low-income consumers require flexibility in the form of payment-in-arrears or in installments.

Aside from the above points, unless appropriately addressed, the current governance structure of Jakarta’s water services could impede Jokowi’s pro-poor water plan. As we are aware, there are at least three main regulatory actors in Jakarta’s drinking water services: the city-owned waterworks company PAM Jaya, the concessionaires (Palyja and Aetra) and the governor.

The concession works in such a way that PAM Jaya must purchase the volume of water sold by the concessionaire to the consumer. Thus, from the concessionaire’s point of view, aside from constraints on bulkwater sources, they have no objection at all to serving the poor since they will be paid no matter what.
However, PAM Jaya may have objections to expanding the network to the poor, because if the revenue from tariff collection is not enough to cover the cost, then PAM Jaya will have to borrow money to pay the concessionaire. This means that if the poor cannot pay or can only pay in arrears, PAM Jaya will be in debt to the private sector. It is worth noting that at the moment, PAM Jaya already has huge debts with the private sector.

Another consequence of the above system is that PAM Jaya’s debt would reflect upon the concessionaire’s balance sheet and affect its overall financial health. Put simply: connecting to the poor may affect the collection rates, low collection rates means that PAM Jaya would be in debt to the concessionaire and in turn PAM Jaya’s debt to the concessionaire means higher account receivables in the concessionaire balance sheet. If the concessionaires only have high account receivables but lack cash, how can they have enough funds to invest in further network expansion and finance the existing operations and maintenance?

What the above shows is that there are structural disincentives in connecting to the poor. The concessionaire might be able to resort to outside financing for cash that would support a pro-poor program but for PAM Jaya this could be perceived as a liability that put strains on its balance sheet. A direct interventionist approach will also not work in Jakarta because it is legally impossible. Jokowi will soon find out that the governance of Jakarta water services is a complex web of various actors and interests, not only local and national, but also international. The nature of private sector participation with foreign investment means that the corporations investing in water services are backed by international treaties.

Any disputes could provoke intervention not only from the central government, but could also take place through diplomatic channels. This has already occurred in the past.

All of these challenges should not discourage Jokowi from his initial plan to provide services to the poor. There are several things that Jokowi could do to advance his water-for-the-poor program.

He should first address the lack of incentives from regulatory actors in connecting to the poor. Next, he should consult the poor on how they want to be connected to the network. The poor, together with companies and other actors should sit together to discuss the issue. Finally, Jokowi should try to reform the existing legislation which penalizes the poor for late payments.

As I have said, low-income citizens require flexibility in payments but the current legislation restricts this. In order to achieve all this, of course, he needs sufficient support from the Jakarta City Council.

A paper titled “Perjanjian Badan Publik Dengan Pihak Ketiga: Anotasi Pasal 11 ayat (1) (e) Undang Undang Nomor 14 Tahun 2008” is available for download (only in Bahasa Indonesia). The paper annotates Article 11 (1) (e) of the Indonesian Freedom of Information Law which mandates the transparency of contract. Nevertheless, the paper conclude that Article 11 (1) e does not clearly mandates “active disclosure”. The article also discusses the problem of breach of contract which may arise due to a Public Body’s compliance with a disclosure request made under the FoI Law.

 

English version of the article will be available soon.

 

See also a related working paper:

“Does Regulation by Contract Decreases Transparency? - Evidence from Jakarta's Water Services Sector”.