CONSEQUENCES OF POLICY CHANGES ON INDONESIAN IRRIGATION SYSTEM MANAGEMENT Effendi Pasandaran Indonesian Agency for Agricultural Research and Development Secretariat, Jalan Ragunan No. 29, Pasarminggu, Jakarta Selatan 12540 ABSTRACT This paper highlights the policy changes and consequences on irrigation system management in Indonesia. The scope of policy changes include management responsibility, investment and institutional development. As a consequence of colonial government investment in public irrigation system, the management of irrigation dichotomized into community and government based approaches. Further investment intervention into institutional domain of local communities occurred in 1970s and 1980s in responding to Green Revolution technology and the policy to meet self-sufficiency in rice production. Such policy intervention, however, has weakened the internal dynamics of local communities and increased the burden of the government in operation and maintenance of irrigation system. Within the framework of decentralization and new water law, the key policy reform is the establishment of secure water rights. For this purpose, there is a need to empower the local communities and to redefine the acceptable roles between government and local communities in irrigation management by taking into account constraints to the shift in jurisdictional boundaries. Keywords: Irrigation systems, policies, Indonesia ABSTRAK Konsekuensi perubahan kebijakan pada pengelolaan irigasi di Indonesia Tulisan ini menyoroti perubahan-perubahan kebijakan dan akibatnya pada pengelolaan irigasi di Indonesia. Ruang lingkup kebijakan yang dibahas mencakup tanggung jawab pengelolaan, investasi, dan pengembangan kelembagaan. Sebagai akibat dari investasi pemerintah kolonial terhadap pembangunan irigasi terjadi dikotomi pengelolaan, yaitu pengelolaan irigasi yang berbasis pemerintah dan yang berbasis masyarakat setempat. Investasi selanjutnya yang terjadi pada tahun 1970-an dan 1980-an telah memperlemah dinamika internal yang ada pada masyarakat setempat dan meningkatkan beban operasional dan pemeliharaan irigasi oleh pemerintah. Sebagai tindak lanjut desentralisasi dan undang-undang sumber daya air, reformasi kebijakan yang diperlukan adalah reformasi tentang hak atas air. Untuk pelaksanaan reformasi tersebut diperlukan peningkatan kemampuan masyarakat dan redefinisi peran dan tanggung jawab antara masyarakat petani dan pemerintah dengan memperhatikan kendala-kendala dalam pergeseran batas kewenangan. Kata kunci: Sistem irigasi, kebijakan, Indonesia I rrigation in Indonesia was originally developed by local communities throughout the country particularly in the fertile Islands of Java and Bali. The process of capacity building evolved over centuries through trial and error. It began with the development of rainfed rice fields in the valley or flood plain of the river basin. It took about two and a half millennia from the time of the development of rainfed rice fields, which occurred as early as 1600 BC, to the invention of the small scale irrigation systems which most likely happened at the end of the first millennium (Van Setten 82 Van der Meer 1979; Ward 1985). Although the early technology to divert water from a river may be very simple with temporary structures, which used to be repaired seasonally, this innovation was considered as a major revolution in rice culture, which then gave rise to important social changes such as division of labor and accumulation of wealth. Despite the importance of irrigation from a development perspective, the rainfed rice field is still the prime component of the rice production system. It was developed first and then irrigation was added to the already established blocks of rice fields to form an irrigated rice production system. As accumulation of knowledge increased, other commodities such as corn and soybean were added to form irrigated rice-based cropping systems. Further development included the emergence of a complex ricebased farming system as other elements were added such as inland fishery and livestock. The development of irrigation as a public policy instrument was launched by Dutch colonial ruler at the end of the 19th century. There were several reasons for the colonial ruler to introduce irrigation Jurnal Litbang Pertanian, 23(3), 2004 as one of the basic policy instruments. First, irrigation was considered effective in alleviating the problems of prolonged drought that caused famine as a result of crop failure in some part of Central Java. The process of large-scale irrigation development, apparently, had taken place as early as 1848, in the delta of Sidoarjo, the downstream part of the Brantas River basin, and then was adopted to Central Java in northern coastal area of Demak and of Grobogan in 1870, which successfully overcame the chronic problem of drought (Booth 1977). Second, because of its policy on trade liberalization, the foreign estate companies began leasing lands for cultivation of export commodities such as sugarcane, indigo, and tobacco. Smallscale community irrigation systems were considered not appropriate for large-scale estate systems. At the same time, the progress in hydraulic engineering induced the development of large-scale systems particularly at the alluvial plain of the northern coastal area of Java. In spite of a huge profit being made by the foreign estate companies as result of trade liberalization, the native Indonesian remained poor. This is the third and probably the most important reason from the political economic point of view for the colonial ruler to address the welfare of the natives. In addressing the parliament of the Netherlands at the beginning of the 20th century, Queen Wilhelmina launched a so called “ethical policy” for Netherlands Indie (Indonesia), which contained three major policy instruments namely irrigation, education, and migration of the people. This was also to earmark the era of large-scale public irrigation systems in Indonesia after about 50 years of trial and error. As a consequence of this political commitment, an irrigation based public agency was set up in response to the implementation of big irrigation schemes of a total irrigated area of about 400,000 ha in Java. This was considered the first milestone in the history of the public irrigation development in Indonesia with the main objective to reduce the poverty of the native Indonesian. As it will be discussed in this paper that even though this objective might not necessarily be achieved, the development of irrigation during the colonial period provided a Jurnal Litbang Pertanian, 23(3), 2004 basis for the large scale adoption of the Green Revolution after the extensive rehabilitation that took place in the early 1970s to 1980s. The second milestone therefore was when the Government of Indonesia determined to rehabilitate irrigation systems in the early 1970s in response to the Green Revolution technology. This was also the era of centralized management of irrigation development and of rice intensification. Despite the main purpose of this irrigation development and rice intensification program was to achieve self-sufficiency in rice productions which was reached in 1984, but during the same period the poverty significantly reduced. As was triggered by the economic crisis since 1997, the Government of Indonesia began the process to decentralize irrigation management since 1999, by the provision of the legal framework. This is considered the third milestone. The legal framework itself, although it is necessary to a successful implementation of the reformation process, is not sufficient. Understanding the process that took place in the past such as the principles used in irrigation management and the shift in the irrigation management policy will help the government to facilitate the program to empower local communities in irrigation management. For this reason, the principles of irrigation management in the era of public irrigation agency, the strengths and the weaknesses of the chosen principles in contrast with those used in community driven irrigation systems are discussed. It also discussed the consequences of the shift in investment policy such as the cooptation of management, and finally it provides insights on the ways to revitalize community driven irrigation systems following the provision of the legal framework to decentralized irrigation management. THE PRINCIPLES OF IRRIGATION MANAGEMENT The Principles Used in Community Driven Irrigation System As has been discussed previously, community driven irrigation systems were first added to the existing blocks of rice fields, and then after centuries of experience, public irrigation systems were added either to the existing community driven irrigation system or to the existing rainfed rice fields. Understanding the principles used in community driven irrigation systems may to a certain extent help clarify the decision making process that occurred at the tertiary unit of the public irrigation agency. This is particularly true for the first pattern, namely the village community irrigation system, dominantly located in hilly areas and partly in the coastal alluvial plain of Java. In this pattern, irrigation management is an integral part of the village administration. Although there are some variants in management as reflected by variation in cropping patterns, topographical characteristics of the region, and sources of water withdrawls, which may involve a certain right to water use, there are inherent principles of water allocation including proportional allocation to the size of the blocks and consistently down to the rice fields within a block. The management flexibility is consistently exercised depending on the water level in the canal, ranging from a very decentralized practice particularly when water supply is more than adequate to a centralized system at the level of village administration when water supply is relatively scarce. The management flexibility also allows the use of temporary structures to control water distribution within a block and intervillage water allocation. The second pattern is an autonomous community driven irrigation system. The well-known subak system in Bali is a good example of this pattern. According to Geertz (1980), subak is not only an irrigation organization but also a democratic agricultural planning unit. The dynamics of the subak system with its ritual technology are further discussed by Lansing (1991). The importance of the ritual technology is viewed within the context of harmonious relationships between people, natural resources, and God. The other characteristics of subak include a water control system, which is open to society and proportional division of water at each bifurcation point. This division of water itself is the reflection of justice and democracy desired by member of the subak. As a consequence of the 83 chosen division structures, the change of flow at the headwork will be transmitted equally to each bifurcation point within a subak system (Horst 1998). This equal transmission of change is also to reflect the Rawlsian principle of justice namely the principle of equality of opportunity (Rawls 1971). Developing the Public Irrigation Systems: Lessons learned and the principles used Despite significant progress made by the colonial ruler during the more than 50 years of trial and error in developing hydraulic structures for irrigation, there were lessons learned, which were important for further irrigation development (Van der Giessen 1946). Developing large-scale irrigation system was time consuming. In general, it required more than ten years to complete a single irrigation project from construction to operation although the projected irrigation systems were generally constructed on the already existing rice fields. In the early stage of the development of public irrigation, both community driven irrigation systems and rainfed rice fields were continually developed. Data on irrigation and other forms of land development between 1880 and 1915 indicate that in 1915 both irrigated land and rainfed rice fields were expanded by about 60% compared to those of 1880 (Table 1). In 1915, the area served by public irrigation systems was about 30% of 1.60 million ha total irrigated land in Java. In the early stage, the development of public irrigation systems was relatively slow. Between 1880 and 1910, for example, technical irrigated area completed was only 225,000 ha with an average completion rate of 7,500 ha/year. In the later stage as the stock of knowledge accumulated, the completion rate increased; between 1910 and 1930, the technical irrigated area completed was 375,000 ha with an average completion rate of 23,500 ha/year. The peak of development occurred during the period between 1930 and 1940 with the technical irrigated area completed of 470,000 ha or an average completion rate of 47,000 ha/ year. The total technical irrigated area completed during the 60-year period of development (1880−1940) was 1.07 million ha. It appeared that economic depression which occurred in 1930s and had a serious impact on sugarcane industry in Java did not diminish the commitment of colonial rulers to develop the public irrigation system in Indonesia. As an integral part of the assessment of the welfare of natives, Hasselman (1914) reported that a commission was established by the colonial rulers in 1904 to define the appropriate principle for irrigation management. There were two proposed options based on the practices that had been undertaken in the field. The first was based on the predetermined yearly cultural plan, which consisted of two major components, namely the cropping system plan and water distribution plan (Gruyter 1933; Graadt van Roggen 1935). The cropping system plan refers to the arrangement of the crops within an irrigation system in a given year or in a given planting season, and the water distribution plan refers to the Table 1. Land development in Java (ha), 1880− 1915. Year Irrigated land Rainfed land Tidal swamp Dry land 1880 1885 1890 1895 1900 1905 1910 1915 1,060 1,191 1,201 1,244 1,260 1,292 1,387 1,618 580 686 712 723 770 743 762 746 33 38 37 35 40 45 46 56 438 534 579 630 798 837 1,142 1,161 Total 2,111 2,449 2,529 2,632 2,868 2,918 3,336 4,074 Ratio of irrigated to total land 0.50 0.49 0.47 0.47 0.44 0.44 0.42 0.40 Source: Annuaire Statistique du Royaume des Pays-Bas: Les Colonies, 1888, 1895, 1914. in Booth (1977). 84 allocation and scheduling of water supply to meet crops demand for water of a given cropping system plan. The second was the recognition of the principle used in community driven irrigation systems, namely proportional water allocation to all the blocks of rice fields as a consequence of the principle of equality of opportunity. The first principle was determined by the colonial ruler to be implemented in a public irrigation system. A further consequence was the establishment of various rules in irrigation management such as the golongan sistem on the sequencing of irrigation delivery to various section of an irrigation system particularly during the beginning of a rainy season when irrigation water was not enough to be provided simultaneously and continuously to all sections. Another important rule by the name of pasten was related to water allocation among various crops in terms of criteria on relative irrigation requirements of the crops, and the amount and time of application during the crop season (Pasandaran 1976). All these rules were instituted by Algemeen water reglement or general water law in 1936 and further details were stipulated in provincial water regulation as a consequence of decentralization of public services, including irrigation to provincial governments in Java. While there were many studies undertaken to support the implementation of the first principle during the colonial period, only a few dealt with the community irrigation system. Such studies were reviewed for example by Booth (1977) and by Pasandaran (2001). The recognition of the performance of community-driven irrigation systems, however, was reported by van Witzenburg (1936) when in the mid of 1930s he observed that productivity of rice fields in the Balinese subak was about 50% higher compared to that of the public irrigation system in Java. The reason for such a high productivity was the better water management in the subak. A rather controversial issue raised by scholars was the management of the tertiary unit of a public irrigation system. In Java, irrigation is managed by a village bounded institution called ulu-ulu. This institution was considered not compatible with the management at the main system level which is organized around a Jurnal Litbang Pertanian, 23(3), 2004 hierarchical canal layout. As reported by Clason (1936), an attempt was made in Central Java since 1907 to establish a socalled distributor ulu-ulu, in managing water at the tertiary level instead of a village-bounded ulu-ulu system. It was considered that the farmers were well represented and from the interest of public irrigation bureaucracy, “one tertiary unit one management” was easier to handle. This effort, however, was not widely accepted simply because it was not supported by the village administration. Another controversial issue that appeared during the era of large-scale development of public irrigation systems was the role of this public irrigation development in improving the welfare of society. During the first three decades of the twentieth century, despite a huge investment for the government operated irrigation systems, the productivity of dry-stalk rice in irrigated area remain constant at a level slightly over 2 t/ha. This was the likely reason pointed out by Boeke (1966) to be skeptical about the role of public irrigation systems in improving the welfare of the people, while the enthusiasts felt that irrigation was considered the primary constraint of rice production (Booth 1977). Both the enthusiasts and skeptics, however, have a valid reason but viewed from different perspectives. The reason used by the skeptics was quite right because the public irrigation systems developed were mostly located at the already existing community driven irrigation systems and at the rainfed rice fields, and without additional production technology such as fertilizers and high-yielding varieties will hardly improve rice productivity. The public irrigation systems, however, have a good construction quality, particularly the so called “technical systems”. They are equipped with control structures and measuring devices down to the tertiary turnouts. These technical systems became very important assets several decades later during the Green Revolution when productivity of irrigated rice and area harvested were significantly improved enabling Indonesia to achieve self-sufficiency in rice production in 1984. Another reason for Boeke to be skeptical was the fact that the people in Java had fallen into the “Malthusian trap”. While the productivity of rice remain constant between 1880 and 1930, the Jurnal Litbang Pertanian, 23(3), 2004 population leapt from 19.50 million to 41.70 million (an increase of more than 200%), but this is not necessarily right since irrigated land also increased from 1.06 to 3.27 million ha (an increase of more than 300%) during the same period. During this period, the source of production increase was mainly from expansion of irrigated land. DETERMINANT OF INVESTMENT AND COOPTATION OF IRRIGATION MANAGEMENT During the first two decades after the Revolution for Independence (1950− 1970), the Government of Indonesia adopted to a large extent the irrigation development plan inherited from the welfare policies of the colonial government. This period was marked by investment on big multipurpose dams such as the Jatiluhur reservoir in West Java and initiation of swamp reclamation through the polder system in Kalimantan. Many of the run-of-the river type irrigation systems gradually deteriorated because of old age and insufficient repair and maintenance. The efforts to improve existing irrigation systems were probably triggered by the interest to achieve selfsufficiency in rice production and in response to the advent of the Green Revolution which since 1964 through “a mass intensification program” began to demonstrate a significant progress in terms of yield increase. In the early period of the five-year plan (Repelita) which was launched since 1969, irrigation investment played important role in the economic development both in terms of production and public expenditures. By the 1980s, irrigation investments account for more than a half of the public expenditure for the agriculture and water resource sector, with publicly-funded irrigation accounting for 85% of irrigated area and 75% of the country’s rice production (Rosegrant et al. 1987). The investment policies during the five-year plans were translated into four categories, namely 1) new irrigation construction, which included investment in new reservoir and diversion irrigation systems, 2) rehabilitation of irrigation systems, 3) tidal swamp water manage- ment, which is relatively small systems with few water control structures that rely on tidal movement of water, and 4) river and flood control. The priority was given to the rehabilitation of irrigation systems during the first two five-year plans and then new construction during the following five-year plans. During the first plan (1969−1974), for example, more than 40% of the total irrigation development expenditures were used for rehabilitation (Table 2) . Although declining in relative importance, rehabilitation expenditures increased substantially in absolute terms through the third plan. Over the course of the first three plans, expenditure on construction of new irrigation systems increased rapidly and received the largest aggregate share of expenditure, averaging 38% of expenditures during the first three plans. Real expenditure on new irrigation construction, however, increased nearly ten-fold between the first and the third plan. Investment on tidal swamps, which received about 30% of expenditures in the first plan, has declined in relative importance, but has received a nearly constant level of expenditures in real terms. Important determinants of investments on new construction seemed to be profitability or cost effectiveness of new irrigation systems, and the availability of government resources and foreign exchange. The price of oil and the level of real GDP, therefore, have a highly significant impact on new irrigation investment (Pasandaran and Rosegrant 1995). The increased price of oil during the 1970s and early 1980s not only triggered the government to rehabilitate the mandated portion of irrigation systems (head-works, primary and secondary canals and related structures), but also improvement of the tertiary systems, particularly the World Bank IDA assisted irrigation projects. In a new irrigation construction project, the increased government revenue also triggered the heavy involvement of government in rice field development after construction of new irrigation structures, which is against the historical sequences of irrigated land development. The difficulties with this approach appeared for the first time in 1974 in the province of Lampung, at the southern tip of Sumatra, when after the completion of the project, as indicated by 85 Table 2. Total irrigation development expenditure by type of development during Five-Year Development Plan (Repelita) I-IV. Five-year development plan/ type of development Current cost (Rp billion) Real cost1 (Rp billion) Percent distribution Repelita I (1969−1973) Rehabilitation New construction Swamp/tidal River and flood control 114.50 50 25 33.10 6.40 171.90 73.70 38.30 50 9.90 100 42.87 22.28 29.09 5.76 Repelita II (1974−1978) Rehabilitation New construction Swamp/tidal River and flood control 717.10 147.60 197.30 152.30 219.90 582.40 138.80 185.70 50.10 207.80 100 23.83 31.89 8.60 35.68 Repelita III (1979−1983) Rehabilitation New construction Swamp/tidal River and flood control 1,908.20 556.30 759.80 109.70 482.40 913.20 263.40 358 54.60 237.20 100 28.84 39.20 5.99 25.97 Repelita IV (1984−1988) Rehabilitation New construction Swamp/tidal River and flood control 2,294.60 550.50 967.60 115.20 661.30 748.20 179.50 315.50 37.60 215.60 100 23.99 42.17 5.03 28.81 Note: 1Constant 1975/1976 rupiah. Source: Ministry of Public Works in Pasandaran and Rosegrant (1995). the availability of water at the tertiary level, the migrant farmers community did not respond properly in terms of development of rice fields. Provision of credit scheme was then launched to accelerate the progress of land development in nearly all of the newly constructed irrigation systems. Included in the scheme was the assistance by the government to lay out the farm level irrigation ditches and design of rice fields. Despite a substantial effort made to expand irrigated area particularly outside Java, the contribution of harvested area was relatively low. Since 1970, the share of harvested area to production increase is less than the share of productivity except during the period of 1995−2000 when productivity tended to decline (Table 3). The most likely reason for such a low contribution of area expansion was the long time required from the onset of irrigation construction and on farm development works. Furthermore, in the early stage of production of the new irrigated area, it took several years for the farmers to adjust to the new production environment, consequently the productivity at this stage was generally low. The increase of production capacity is therefore mainly realized through gradual increase of productivity of the overall irrigated area. A further consequence of public investment in irrigation is the development of water users' associations in almost all public irrigation systems. This government assisted water users association is characterized by uniformity in administration and organizational base, namely a tertiary unit-based organization. The expansion of this approach has, to a certain extent, changed the role of a traditional institution namely village based irrigation management. In some cases, the role of the traditional ulu-ulu system was shifted down to the quaternary level and in a rather extreme case the existence of the traditional systems totally disappeared. In areas with strong support of village administrations, however, water users associations are maintained as the villagebased organization. The development of the bureaucratic version of water users’ association was also enhanced by improvement of community driven irrigation systems by the public irrigation agency in the early 1990s .The consequence of this policy is the adoption of standard design and implementation procedures including the water users’ association. The total irrigated area of the community driven irrigation system reached 1.40 million ha in 1940, an increase of about 16% from the irrigated area of 1880 (Figure 1). The conversion into technical systems that happened in Java Table 3. Change of harvested area, production and productivity of wetland and dryland rice (%). Java Year 1970−1975 1975−1980 1980−1985 1985−1990 1990−1995 1995−2000 Outside Java Indonesia Harvested area Production Productivity Harvested area Production Productivity Harvested area Production Productivity 1.58 0.53 2.10 0.44 0.22 0.96 3.42 6.06 5.63 2.33 0.71 0.70 1.81 5.50 3.45 1.88 0.49 -0.26 1.33 1.93 1.71 2.02 3.23 -0.34 3.96 5.45 5.68 3.98 3.70 0.67 2.60 3.45 3.91 1.93 0.46 1.01 1.47 1.17 1.92 1.18 1.72 0.29 3.63 5.80 5.65 2.97 1.94 0.69 2.13 4.60 3.66 1.76 0.22 0.27 Source: Central Bureau of Statistics in Pasandaran (2001). 86 Jurnal Litbang Pertanian, 23(3), 2004 Million ha Total irrigated area Community driven irrigated area 3 2 1 0 1880 1910 1940 Year Figure 1. Total irrigated and community driven irrigated area, 1880−1940 (processed from Booth 1977 and Burger 1975). between 1970 and 1990 reduced the area managed by the local community but increased the area served by the public agency (Figure 2). Consequently, the burden on operation and maintenance of the government was increased, and participation of the water users’ associations in operation and maintenance was not as expected. REVITALIZATION OF COMMUNITY DRIVEN IRRIGATION The fact that direct public intervention in community driven irrigation systems exacerbates dependency on the government and weakens the internal dynamics of the local community was recognized later when many of community driven irrigation systems were converted into the bureaucratic system. The trial of irrigation management transfer was done in the early 1990s and then followed by the Million ha Total irrigated area Community driven irrigated area 6 4 2 0 1970 1980 1990 2000 Year Figure 2. Total irrigated and community driven irrigated area, 1970−2000. Jurnal Litbang Pertanian, 23(3), 2004 transfer of the government operated small scale systems to the water users’ association. According to a Presidential Decree of 1999, the transfer of irrigation management should be done gradually, selectively, and in democratic manner to water users’ associations. Lessons have been learned from the one century of irrigation development during colonial period and then 50 years after independence. First, as it has been discussed in this paper, public irrigation development by colonial ruler and to certain extent by the Government of Indonesia was based on the work that had been pioneered by local communities. The summary of the policy changes and their consequences is presented in Table 4. During the colonial period, despite direct cooptation by the government, the opportunity to do the pioneering work such as small scale irrigation and rice field development was still available and feasible to be done by the local communities. The internal dynamics of these local communities were at least maintained to open up new frontier and to operate and maintain their own irrigation systems. Included in the internal dynamics are the internal rules that regulate people's relationships within the local communities and with their external stakeholders (Guerra 2004). These internal dynamics, however, have weakened since the last three decades when the intervention of the public agency penetrated deeper to the domain of the local communities in terms of improvement of tertiary units and rehabilitation of community driven irrigation systems. This is also true for the newly constructed irrigation system, as the approach used to rice field development has created or even increased dependency of the local communities on the government. The declining capacity to open new area has also been affected by the increase cost in new construction of irrigation system and in new irrigated land development . Second, as a further consequence of the declining capacity to open new irrigated area, both on the part of the government and the local communities, the growth of irrigated area during the last four decades has been declining. Irrigated area increased about 50% from 3.50 million ha in the year1955 to 5 million ha in the year 2000. During the same period, the global irrigated area increased more than 300% from 80 million ha in 1955 to 270 million ha in 1995 (FAO 2000). The cropping intensity of rice in irrigated area had increased from 110% in 1955 to 170% in 1995. With the increased productivity of more than double as a result of the Green Revolution, Indonesia could afford to produce sufficient rice until the early 1990s. Third, in recent years, however, especially in Java both productivity and area harvested tended to decline. In such a situation, it would be difficult to expect a production leap in coming decades because of the weakened capacity to open up new irrigated area and to improve productivity. The policy to decentralize the government tasks to the district level and the government political will to allow the water users’ associations to have a greater role in managing irrigation systems is necessary but not sufficient to strengthen the internal dynamics of the water users' associations. Investment in both human and technological capital is needed in irrigation systems formerly initiated by the local communities and in irrigation systems developed by the government through the direct investment approach. Government regulation no. 77 of the year 2001 provided the legal framework for the local community to take larger responsibility in irrigation management. This regulation however is considered "over decentralized" by irrigation bureaucracy, and the new government regulation is being proposed to provide a new framework for management responsibility in response to the newly emerging water law of 2004. This water law reconfirmed the jurisdictional role of government in irrigation management and provided the basis for integrated approach to water resource management within the river basin. Despite the rules in water law tend to undermine the important role of local communities in irrigation management and to a certain extent recentralized the managerial decision making (Pasandaran 2003), this water law provided broader scope for integrated approach in water resource management. The challenge a head is how to implement this water law effectively, so that good governance can be created. One of the priorities is the establishment of strong water rights by taking into 87 Table 4. Policy changes and consequences on irrigation management by stage of development in Indonesia. Stage of development Objective and rationale Implementation Colonial era (1848−1949) Objective: development of public irrigation system Rationale: improvement of the welfare of the natives Construction of new irrigation system in the area served by community irrigation systems and in rainfed area Consequence Change in principle of irrigation management: adoption of cultural plan Division of management responsibility between government and local community Maintaining capacity of local community to manage irrigation system and to open up new irrigated area 1950−1969 Objective: continuous development of public irrigation system Rationale: continuous improvement of the welfare of the farmers Construction of reservoirs and irrigation system in limited area Maintain the same management responsibility with that during colonial era Centralized government and Green Revolution era (1970−1999) Objective: rehabilitation of existing systems and expansion of irrigated area Rationale: achieving and maintaining rice self-sufficiency Direct intervention by public agency in rehabilitation of tertiary and community irrigation system, and development of rice fields in new irrigated area uniformed water user(s) association Weakened capacity of local community in irrigation management and land development Decentralized government and empowerment of local community (1999−2004) Objective: transfer of responsibility in irrigation management to local community Rationale: to reduce the burden of the government Provision of legal framework development of program to empower local community (Government regulation no. 77/ 2001) Expected consequence: revitalized capacity of local community Integrated approach to river basin management (2004− ) Objective: development of legal framework Rationale: cross sector management of water resources Water law no. 7/2004 Development of river basin organization Redefinition of multistakeholder roles in water management Development of water rights account the cultural and institutional endowment in water resource management (Rosegrant et al. 2002). This water right problem is particularly relevant for Indonesia because of the fast increase of demand for water from other sectors. The question is not whether water will move from agriculture to other sectors, but whether the rights of the farmers in terms of secured amount of water and farm incomes are protected (Rosegrant and Ringler 2004). It is also important because of the frequent occurrence and expansion of the area under water scarcity (Katumi et al. 2002; Molden 2002). 88 Within this water right framework, the capacity of the local communities in the process of negotiation with other stakeholders need to be developed. Increased capacity is also needed for the local communities to take greater responsibility in management of irrigation systems. For this purpose, in the short run there is a need to develop a historical profile of the irrigation systems in terms of the shared role of both local communities and the government in the whole process of both land and irrigation system development. It has also to be further identified the development trend of managerial capacities of the local communities and their water users’ associations and possible constraints for the existing associations to take greater responsibilities in managing irrigation systems. The expected role of the government and other stakeholders is to facilitate the development of the agenda of the local communities and more specifically water users' associations as equal partner in management of irrigation systems. Included in the role of the government is the facilitation of the change in the principle of water allocation if it is desired by farmer communities and probably to facilitate the management of Jurnal Litbang Pertanian, 23(3), 2004 conflict, which emerged as a further consequence of the decentralization of public irrigation management to the district government. This historical profile is expected to be used as a benchmark in setting priorities for the long term development of the local communities in irrigation management. The local communities with high performance in management are ready to take greater responsibility in irrigation management and ready to negotiate the water rights with other stakeholders in the river basin. A more specific program has to be developed for the local communities with less performance in irrigation management, by taking into account their present position in the whole range of process in irrigation management and constraints to further development. The local communities with slow progress in managerial performance need a program to accelerate the development progress of their managerial capacities. It includes incentive to improve performance of the water association and the capacity to negotiate water rights. The local communities with declining progress need a program to consolidate their social capital and to further strengthen their managerial capacities. Included in the long run development framework is a need to empower the local communities particularly outside Java to do pioneering work in land development in the areas which are considered feasible for new irrigation systems. If the capacity of the local communities improved, the investment funds for irrigation development could be channeled through water users' association. CONCLUSIONS In 1999, the Government of Indonesia decided to reform the management of irrigation system by providing a legal framework to enable the local communities to share a greater responsibility in the management of public irrigation. In implementing this policy reform, however, the lessons learned from the past experience have to be taken into account. The experience can be traced back to the colonial period when the large scale public irrigation systems were developed and the principles used in irrigation management were determined. When the Government of Indonesia decide to meet self-sufficiency in rice production in the early 1970s, a large amount of investment was made to rehabilitate the existing irrigation systems and to develop new irrigated areas in outside Java. In accelerating the process, the community driven irrigation systems and the tertiary units of the service area of the public irrigation agency were also rehabilitated. The development of a uniformed water users' associations was enhanced and the adoption of the standard design and procedures was used by ignoring the principles practiced by the local communities. Consequently, the burden of operation and maintenance of irrigation system by the Government was increased and the participation of the local communities was weakened. To cope with these problems, key policy reform particularly in response to the new water law is the establishment of the secure water rights as a further consequence of fast increase in demand for water from nonagricultural sectors and the frequent occurrence of water scarcity. In the short run, there is a need to define the acceptable role of both local communities and the government in the whole process of both land and irrigation system development. 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