Indonesia Country Water Assessment

Water is a major determinant of the well-being of the people in Indonesia. As Indonesia grows, enjoying an average annual economic growth of 5.7% in 2005–2010, which accelerated to 6.5% in 2011, water challenges intensify and jeopardize sustained development. To guide its economic development, Indonesia prepared the Masterplan for the Acceleration and Expansion of Indonesia Economic Development, 2011–2025 (MP3EI), which is based on the following three pillars: (i) developing the economic potential of six regional corridors; (ii) strengthening national connectivity locally and internationally; and (iii) strengthening human resource capacity, science, and technology. The MP3EI put forth food security and improved water and energy policies as prerequisites for its implementation. In 2014, Indonesia updated its National Medium-Term Development Plan (RPJMN), 2015–2019, which guides planning within and across sectors. The RPJMN follows the priorities set by the newly elected government Nawa Cita (a Sanskrit term for nine priorities). Together, the RPJMN and the new government policy provide an economic and development planning framework for Indonesia, within which the government has to prioritize water concerns to sustain economic growth. The Asian Development Bank formulated a technical assistance project (TA-8432 INO: Improving Water Sector Planning, Management and Development) to assist the Government of Indonesia in analyzing the water concerns and priorities nationwide. This assistance includes support for a country water assessment (CWA) that will help provide the analytical foundation for water planning, management, and development, including investment to further economic development. The government policy guides the priorities to be addressed under the CWA, and detailed water sector plans can support the economic development agendas of the different regions in Indonesia. The CWA intends to provide a platform for dialogue to advance water reform across Indonesia while providing guidance for planning, management, policy, and investment with a focus on three of the main economic regions (Figure 1.1): Java, Sumatera, and Sulawesi. The CWA supported the development of RPJMN and ensured synergy with the government policy. The CWA also provides guidance to help address the many challenges facing effective water resources management and reliable water service delivery in Indonesia. This is the concise version of the CWA. The full report is published separately