WATER RESOURCES AND IRRIGATION SECTOR MANAGEMENT PROJECTSUPERVISION MISSION
(LOAN 4711-IND, CREDIT 3807-IND, GRANT TF052124)
(LOAN 4711-IND, CREDIT 3807-IND, GRANT TF052124)
SEPTEMBER-OCTOBER 2006MISSION AIDE MEMOIRE
PART A - WATER RESOURCES AND RIVER BASIN MANAGEMENT
1. INSTITUTIONAL FRAMEWORK FOR WATER SECTOR COORDINATION
1. Issue 1: The Water Law (UU 7/04) requires that National and Regional Water Councils
be established for water sector coordination which have representation from government agencies
and non-government stakeholders in a balanced way. These Councils are to be supported by a
Secretariat. WISMP provides funding for developing and supporting the Secretariat for the
National Water Council (NWC), capacity development of Provincial Water Resources Council
(Dewan SDA) and SWS-level Water Resources Management Councils (Dewan Wilayah
Sungai/Tim Koordinasi PSDA1 or Tim Koordinasi SDA) and their Secretariats.
2. The establishment of the NWC is still under discussion in the national TKPSDA
(Coordinating Team of Ministers for Water Resources) and it is not clear when the Presidential
Decree for its eventual form as NWC will be issued. The establishment of provincial and SWS
level water resources Councils to replace the existing provincial PTPA and basin PPTPA (Water
Resources Management Coordination Committees) is also awaiting the issuance of the
Presidential Regulation (PerPres) and Ministerial Regulation (PerMen) guideline.
3. The Mission strongly recommends that the NSCWR and MPW/DGWR take action to
expedite issuance of the enabling regulations for the national, provincial and river basin
Councils. The delay in establishing the provincial and basin Councils beyond December 31, 2006
means also that GoI will not meet Clause 6, Schedule 4 of the DCA as well as related Part A
Performance Indicators in Schedule 5. Hence, the Mission agrees to support the existing
PTPA/PPTPA and their Secretariat from WISMP Proceeds under the 2007 AWP as a transition
measure only until the provincial Councils and SWS TKPSDA institutions are established.
4. Action 1: The next Bank Mission in May 2007 should be informed about the status of
issuance of enabling regulations and establishment of the national, provincial and basin water
Councils so that the Bank and GoI can determine what steps to take with respect to the delay in
meeting DCA covenants.
2. INSTITUTIONAL FRAMEWORK FOR BASIN PLANNING
5. Issue 2.1: Both the December 2005 and April 2006 Aides memoire raised the issue of
establishing a Central Planning Unit in Directorate Bina Program, and Provincial Planning Units
in the Dinas PUP. The Central Basin Planning Unit is to support /guide preparation of SWS
1 The Mission understands that the forthcoming PP on Basin Water Resources Management may
downgrade the Dewan Wilayah Sungai to a “Management Coordination Team” as it is felt that “Council”
status is not appropriate (“Council” being reserved for higher-level institutions).
strategic plans (Pola) and basin water resources management plans (BWRMP). The Provincial
Planning units are to undertake the development and operation of the provincial “Management
Information System” (SIM or WRIS) and to participate in the preparation of Pola/Plan Work.
The Mission’s review indicates that DGWR has not taken steps to reinstate the Central Planning
Unit that existed before the reorganization of DGWR mid-2005. Beside Central Java and East
Java no other provinces has established provincial planning units. The DCA specifically states
that, by December 31, 2006, MPW is to staff and fund a Central Basin Planning Unit, and at least
4 provincial planning units in the Dinas PUP also to be properly staffed and funded. Use of
WISMP Proceeds for basin planning is conditional to setting up the planning unit through an SK
DGWR for the Central Planning Unit, and SKs Dinas PUP for the Provincial Planning Units.
6. Action 2.1: The Mission recommends that DGWR clarify to the Bank its position on
establishing the Central Planning Unit by December 31, 2006, and that no funds be allocated for
national basin planning Activities until such Central Planning Unit with core staff is established.
7. Issue 2.2: Many of the Dinas PUP organizations (except Central Java and East Java) are
not in favor of developing in-house capacity to undertake SWS “Pola/Plan” type activity. This
view has also been influenced by the fact that in the more strategic basins, the “Pola/Plan”
activity will be the responsibility of the proposed centrally managed UPT institutions. These
Dinas PUPs prefer to develop limited capacity in their Sub-Directorate of planning primarily to
undertake (a) planning for programming, (b) planning/design of small water resources structures,
and (c) manage the database/SIM (Sistim Informasi Manajemen). They would participate in the
“Pola/Plan” activity as it relates to data collection and possibly manage development of
“Pola/Plan” using consultants. However, these Dinas PUP have included funding for
“Pola/Plan” activity in 2007 based on advice from Sub-Dinas SWS Planning in the Directorate
Bina Program. The Mission recommends that under the 2007 AWP: (i) only Central Java and
East Java be permitted to use WISMP Proceeds for basin planning Activities; and (ii) only
training in basin planning be supported for provinces that have not established a Planning Unit.
8. Action 2.2: The Mission recommends that (i) Sub-Directorate of SWS Planning—after
discussion with Dinas PUP Management—identify provinces that wish to have “core” Planning
Units and inform Bank by December 15, 2006; and (ii) those provinces where “core” Planning
Units are not established, revise their 2007 AWP to include funding for planning training only.
3. ORGANIZATIONAL FRAMEWORK FOR BWRM ACTIVITIES
9. Issue 3: Based on UU 7/04, GoI/MPW is in the process of setting up a Government
Regulation (PP) and Presidential Decree (PerPres) to revise boundaries and designation of the
nation’s river territories (SWS) and the national, regional and SWS coordinating institutions
(Dewan/TKPSDA). These regulations are expected to be issued in 2007, based on which future
SWS management will be undertaken. Since the existing centrally managed regional “Project
Organizations” are no longer authorized as of January 2007, MPW has issued a Ministerial
Decree to replace these organizations by centrally managed structural technical units, Unit
Pelaksana Teknis (UPT). The UPTs would be responsible to manage all aspects of water
resources in SWS that are designated as nationally strategic basins under national government
jurisdiction and responsibility. To make the UPTs possible, the MPW has issued:
a) Permen 11A/06 that revises the old SWS Kepmen 39/69 by which the 90 existing River
Basin Territories (SWS) have been regrouped into 133 SWS (68 SWS under central
jurisdiction, 49 SWS under provincial jurisdiction and 16 SWS under Kabupaten
b) Permen 12/06 and Permen 13/06 that authorize setting up of 6 large UPTs (Balai Besar SWS)
and 24 smaller UPTs (Balai SWS) to manage the SWS that are under national jurisdiction.
The MPW is now in the process of setting up these new organizations to undertake all aspects
of BWRM in the selected SWS from 2007.
10. The new UPT organizations are expected to start functioning in 2007 and will cover
many of the current provincially-managed SWS having their Provincial Basin Water Resources
Management Units (Balai PSDA) that were established from 1998 to 2005 (with IBRD and GoN
support under JIWMP and IWIRIP). Many of the BWRM roles and functions of UPTs and Balai
PSDAs are going to be similar with different funding sources and mechanisms. The Mission is
concerned that the successful provincial Balai PSDA (UPTD) developed over a period of 6-7
years may become either redundant or ineffective (also due to transfer of key staff to the UPTs),
while the capacity to develop BWRM functions in the new UPTs would take time, and is not
assured at all. There needs to be a clear mandate for these two BWRM operating organizations if
they have to effectively co-exist in the same river basin/SWS.
11. While setting up of the UPT to replace centrally managed “Proyek” is necessary, there is
an urgent need detail the BWRM role-sharing between the national UPTs and provincial UPTDs
that is based on human resource needs and availability, effectiveness in implementing many of
the regulation/operational functions, cost effectiveness and financing system. The new
arrangement also lacks clarity as to the “participatory governance” framework of a national SWS
by a Basin Council. All existing PPTPA within provincial boundaries (including those that
already have stakeholder representation in anticipation of the Dewan Wilayah Sungai) are set up
according to the existing SWS boundaries and are chaired by a Deputy Governor with Balai
Chief as Secretary. Both are familiar with local issues and stakeholder concerns. The mode of
governance (such as, chairmanship) and coordination of National SWS (with a much larger area
coverage) within a Province has not been specified yet for its Dewan; neither has the future of the
numerous existing PPTPA institutions been determined.
• DGWR has advised the Mission of its need for capacity building of the new UPTs and
inquired about possible UPT development support under WISMP. The DCA specifically
identifies only support to provincially-managed structural institutions (UPTDs/Balai PSDAs)
for Part A BWRM Activities. As a consequence, the DCA needs to be amended if WISMP
support is to be extended to UPTs. Nevertheless, the DCA allows support for Governance
Activities to promote policy/strategy and public awareness work leading to institutional
reforms. The Mission proposes the following steps:
• Support in 2007 for holding a national-level workshop/seminar for national and regional
agency decision makers, academic experts, resource persons and NGOs, to review and
develop a coherent long-term approach to (i) Integrated BWRM and SWS governance issues,
(ii) the related institutional setting, and (iii) the institutional roles that best fit national goals
• Support in 2007 for holding provincial-level workshops/seminars in 2 provinces (one in
Java and one outside Java) for the various provincial agencies, NGOs and resource
persons to prepare a pilot arrangement with coordinated or integrated UPT and Balai
PSDA functions in 2 national SWS; and
• Support in 2007 and 2008 for undertaking pilot work in 2 SWS that would include
studies to (i) delineate national SWS management, administration and financing
arrangements between the 3 levels of Government, and its implementation through
national and provincial decrees.
12. With the exception of the above proposed national UPT-related Activity for 2007 and
2008, the Mission agrees to the use of WISMP Proceeds only for BWRM Activities undertaken
by provincially-managed Balai PSDAs and PPTPA/Dewan until otherwise agreed..
13. Action 3.1: Include in AWP 2007 funding for national level workshop/seminar to discuss
policy and strategy input for the basin management institutional setting and follow up decrees. A
proposal for these seminars/workshops should be prepared by the NPIU and given to Bank for
information by January 31, 2007.
14. Action 3.2: Include in AWP 2007 funding for two provincial-level workshops/seminars
for provincial agencies and others to discuss the proposed basin management institutional setting
and follow up Perdas. Proposals from the selected provinces should be prepared by the
respective PPIU, and the Bank be notified by January 31, 2007.
15. Action 3.3: Include provision in AWP 2007 for pilot work in two SWS including a study
for role-sharing between UPT and UPTDs. A proposal and TOR for this study should be
prepared by NPIU and sent to Bank by February 15, 2007 for clearance.
16. Action 3.4: The Mission seeks an assurance from DGWR/NSCWR by November 1,
2006—when the AWP 2007 is to be formally given to the Bank for comment—-that in 2007, the
Part A AWPR will be implemented as planned and, that any shift of Balai PSDA functions to a
national UPT will be deferred until such time as the necessary legal instruments (PP/Perpres)
are in place and the WISMP DCA has been amended. Such assurance will be a condition for
approval of Sub-Component A.2 of the AWP by the Bank.
4. NATIONAL HYDROLOGY MANAGEMENT
17. Issue 4.1: The December 2005 and April 2006 Aide memoires have stressed the need to
re-instate Hydrology Management as a structural unit at the national level in DGWR. Evidence
indicates that such dedicated unit is essential to guide and supervise hydrology activities in the
provinces and river basin organizations. Its current absence is now resulting in a gradual
deterioration of the quality of the hydrology management at the basin level. The Mission once
again strongly recommends that DGWR review the institutional setting for hydrology
management at the national level. In the absence of a structural unit for hydrology in DGWR, the
mission recommends that no WISMP expenditure be incurred by DGWR for hydrology
management activities in 2007.
18. Action 4.1: The Mission urges DGWR to inform Bank by December 31, 2006 as to the
steps taken to improve national hydrology management and what support is required from the
WISMP project in 2007.
19. Issue 4.2: Review of the Balai PSDA AWP for 2007 indicates that the hydrology
component has the largest budget. It is essential that work on issuing the SK Dinas PUP for role
sharing and hydromet rationalization study be undertaken before large scale improvement of the
hydromet network is implemented. The Mission also notes that the 2007 AWP is not supported
by either a work plan or rolling plan.
20. Action 4.2: The Mission recommends:
(i) All Balai PSDAs prepare a “Hydrology Rolling Plan”, and the PPIU in Dinas PUPs
prepare a consolidated report on hydromet procurement for 2007 under the guidance
of Provincial Tim Teknis and send it to NPIU by January 31, 2007 for approval. The
Bank review mission in May 2007 will review this report.
(ii) The provinces where SK Dinas PUP for “role sharing” has not been issued should
do so by March 31, 2007; and
(iii) Balai PSDA ensure that 2007 AWP includes funding for hydromet rationalization
5. DAM SAFETY (BRIDGING PROGRAM)
21. Issue 5: A Central Dam Monitoring Unit (CDMU) was established in DGWR under the
Dam Safety Project nearly ten years ago to monitor the condition of all large dams in DGWR’s
portfolio. Provincial Dam Monitoring Units (PDMUs) were established to guide and monitor the
Dam Monitoring Units (DMUs) in the Balai PSDA. The CDMU is separate from the Dam Safety
Unit, the executive national regulatory arm of the Dam Safety Commission. The CDMU was
abolished when in 2005 DGWR reorganized along functional lines. It is understood that the
Directorate of Rivers, Lakes and Dams (Sundawa) is now responsible only for major remedial
works for DGWR dams while other aspects of dam O&M and safety monitoring are with
Directorate PSDA. If so, implementation of Sub-Component A.5 for dam safety, including
preparation of DOISP, requires coordination and input of the DSU, Sundawa and Dit. PSDA.
22. The preparation of the AWP 2007’s A.5 Activities lacks central oversight and
coordination. Until questioned by the Mission, Sundawa was apparently unaware of the content
of requests for dam safety equipment being made by Balai PSDA DMUs: for example, some of
the requests could potentially include requests for replacement of piezometers, a task that requires
specialized technical review and knowledge. Had there been a CDMU, this screening function
could have been performed effectively as they were to receive regular monitoring reports and data
for each DGWR dam. A key source of technical advice and pilot work in dam safety assurance is
the IWRR of Puslitbang in Bandung, yet the framework for utilization of its expertise is still
unclear for a project such as WISMP or the proposed DOISP.
23. The Mission is advised that a new national Balai Besar for dams may eventually be
established to cope with DGWR’s responsibilities as owner of over 130 large dams. This will
most likely include responsibilities for both remedial works, O&M and dam safety monitoring. It
is not clear whether the Balai Besar for Dams will have jurisdiction outside national SWS and
what will be the status of the PDMUs and its Balai PSDA DMUs. Furthermore, it would seem
that there is an intention to include the DGWR’s own DSU within the Balai Besar for Dams
under DGWR: this would present a conflict of interest.
24. Action 5: The Mission requests that DGWR clarify by the next May 2007 Mission, how
dam safety monitoring is expected to be implemented and coordinated within DGWR, and what
framework would be used for dam safety monitoring outside the SWS under national authority.
6. WATER QUALITY (WQ) PROGRAM
25. Issue 6: WISMP provides support to the State Ministry of Environment (KLH) and to
Dinas Bapedalda (Local Govt Environmental Department) in selected provinces to strengthen
water quality management in river basins and to develop a national water quality network. The
total budget for WQ is of the order of Rp12 billion of which Rp2.6 billion is for technical
assistance. The 2006 program includes no activity under this component. The 2007 AWP
includes Rp464 million for KLH and Rp167 million for Bapedalda in North Sumatra.
26. The Mission’s discussion with KLH indicates that the WISMP support has not yet been
considered as part of a national WQ program for setting up a National Water Quality Network as
intended under the WATSAL sector adjustment agenda, but is treated as a “project” to support
activities that are not part of a defined KLH program. There is a need to (i) either prepare an
appropriate program for developing a national water quality network, or (ii) identify a program in
KLH that WISMP can support to improve basin WQ management. KLH indicated that they
would first set up a framework program with the assistance of an individual consultant in early
2007 and develop an appropriate action plan. However, both KLH and Bapedalda North Sumatra
requested support for training, database, preparing guidelines and for developing role sharing
agreements among agencies involved in water quality monitoring. The Mission agrees to the
capacity building activities proposed in the 2007 AWP but not yet to the WQ field monitoring as
proposed by Bapedalda in North Sumatra.
27. Action 6: The Mission recommends that KLH develop a framework program and action
plan for basin WQ management under WISMP by setting up a national WQ network and later
implement it as part of KLH’s Water Quality Program. The Action plan for implementing the
KLH WQ Program under WISMP should be made available to the next Bank Mission in May
2007 for review. If required, the KLH may recruit consultant(s) in 2007 to assist in the
preparation of the above.
7. WATER RESOURCES MANAGEMENT INFORMATION SYSTEM
28. Issue 7: The Sub-Directorate of Data-Information in the Directorate of Bina Program has
prepared a five–year program to develop a Water Resources Management Information System or
“Sistem Informasi Manajemen” (SIM). Based on this program, the Dinas PUP and Balai PSDA
have been instructed to prepare their SIM Program, which partly will be supported from WISMP
funds. The Mission’s review of the preliminary AWP for 2007 indicates that there is a need to
disseminate the SIM program in greater detail and depth to the concerned staff in Dinas PUP and
Balai PSDA. Their current capacity to plan this activity is very limited and the budget requests
are not supported by a out plan to develop their database/SIM system both from a technical and
institutional point of view.
29. Action 7: The Mission strongly recommends that:
(i) the staff of Sub-Dit Data dan Informasi work with the Provincial Tim Teknis
to prepare an work plan that takes into account the institutional setting, technical
and managerial capacity and APBD funding for operation, before implementation of
this Activity is taken up in 2007 with support from the Part A TA Team;
(ii) the Sub-Dit Data dan Informasi should clear the Provincial SIM plan of the
Dinas PUP by February 28, 2007; and
(iii) A socialization and training program be implemented under the leadership of
the Sub-Dit Data dan Informasi prior to implementing the SIM program in 2007.
8. PUBLIC AWARENESS CAMPAIGN
30. Issue 8: Support to Public Awareness Campaign (PAC) is included under Part A for
National government, Dinas PU and Balai PSDA. The Mission understands that DGWR, under
APBN funding, is finalizing the PAC process and modules in 2006. The program preferably
should be implemented under the guidance of the Sub-Directorate of Pemberdayaan Masyarakat
(Community Empowerment) in Directorate PSDA. While funds for PAC activities are included
in the 2007 AWP for Dinas PUP and Balai PSDA, a log frame for its implementation has not
been prepared. This could lead to both distortion in PAC implementation or wastage. Currently
the provinces have not prepared a detailed program of PAC Implementation.
31. Action 8: The Mission recommends that (i) NPIU with assistance from a bridging
consultant prepare a preliminary PAC program; (ii) Sub-Directorate Pemberdayaan Masyarakat
prepare a Master Program based on module/PAC implementation process developed in 2006 and
(iii) assist Provincial Tim Teknis to implement it as soon as possible.
9. ESTABLISHMENT OF NEW BALAI PSDA
32. Issue 9: Both North Sumatera and Banten have established new Balai PSDA based on a
Perda. Central Sulawesi and West Sulawesi are in the process of establishing Balai PSDA. NTT
continues to use Satgas-type Balai PSDA as the province has not yet resolved the reorganization
of the Dinas PUP structure. Only one Balai PSDA in NAD (Aceh) is included in WISMP,
however, it wishes to include all its five Balai PSDAs in the training program in 2007.
33. Action 9. The Mission recommends that in 2007:
(a) In North Sumatera, the four new Balai PSDA be included in the capacity building
activities under WISMP, bringing the total under WISMP of Balai PSDAs to ten;
(b) In Banten, one new Balai PSDA be included in the WISMP program bringing the
total of Balai PSDA under WISMP to two;
(c) In Central Sulawesi support should be limited to the Dinas PUP in 2007 as the
establishment of the Balai PSDA is still under discussion;
(d) Include the Balai PSDA Kalukku Karama for WISMP funding in West Sulawesi
(this Balai was originally in South Sulawesi and is being transferred to the newly
created province of West Sulawesi);
(e) In NTT, support to the two Satgas-type Balai PSDA in 2007 be made conditional
to the issuance of a letter from Sekwilda/Bappeda that in 2007 the Satgas PSDA will
be elevated by Perda to a structural unit under the Dinas PUP.
10. RIVER INFRASTRUCTURE MAINTENANCE WORKS
34. Issue 10: The total requested budget for RIM infrastructure work in 2007 is of the order
of Rp15.5 billion (21% of the total Provincial and Balai BWRM budget). The primary goal of
Sub-Component A.3 is to develop capacity in prioritizing works, planning/designing and
implementing small river works, either through contracting for RIM A type work or by swakelola
for RIM B type work. These works should be managed and implemented by Balai PSDAs and
not by Dinas PUP. The Mission notes RIM A works have been budgeted under Dinas PUP
Budget rather than under Balai PSDA budget. Furthermore, a Balai PSDA must ensure that
implementation of RIM works follow the covenants and procedures specified in the DCA/PMM.
35. Action 10: The Mission recommends the 2007 AWP be revised prior to its formal
presentation to the Bank to include (i) RIM A and RIM B budgets under the Balai PSDA program,
and (ii) that the expenditures be managed by the Balai PSDA.
36. Issue 11: A number of training programs are funded for Part A activity both in national
government in Bappenas (overseas training) and NPIU, and in the province in Dinas PUP and
Balai PSDA. A consolidated program of training (i) at the central level, and (ii) at the provincial
level is required before the training program can be implemented. It is necessary that the Master
Training Program based on training experience under JIWMP and IWIRIP be prepared by NPIU
with the assistance of a “bridging” consultant. This Master Training Program can later be
modified, if necessary, after the TA Team for BWRM is mobilized. Also, there is an urgent need
to undertake in 2006 the Management Training for the new Balai PSDA Management so that they
can implement the 2007 program more effectively. The BWRM manuals prepared under
previous programs and approved by DGWR need to be duplicated and distributed to the Dinas
PUP and Balai PSDA as soon as possible. The training plans should be updated later by the TA
Action 11: The Mission recommends that by December 15, 2006: (i) Each NPIU with assistance
from bridging consultants prepare a tentative Master Training Program and NPMU should
include it in the WISMP 2006 program report; (ii) NPIU conduct during November/December
2006 management training courses for all the Balai PSDA Management staff using the budget in
NPMU; and (iii) reproduce BWRM manuals prepared earlier from budget available with NPIU
or NPMU and distribute copies to all concerned agencies/units involved in Part A-BWRM