Appendix 1 - Indonesia's draft National Resources Policy Action Plan 1994-2020

DRAFT NATIONAL RESOURCES POLICY ACTION PLAN (INDONESIA, 1994-2020)

POLICY

WATER RESOURCES MANAGEMENT

SOCIO-ECONOMICS & FINANCE

ENVIRONMENTAL MANAGEMENT

LEGISLATION & ADMINISTRATION

I. WATER UTILIZATION

Objective;

Objective:

Objective:

1. TO PROVIDE ALLOCATION AND UTILIZATION CONDUCIVE TO ECONOMIC AND SOCIAL DEVELOPMENT AND ENVIRONMENTAL SUSTAINABILITY

To make efficient and equitable allocation and utilization of surface and groundwater among sectors considering long-term impacts:
1. To base water allocation on water balance in River Basin Plans.
2. To administer, implement and enforce an integrated national licensing mechanism of surface and groundwater abstraction and use based on River Basin Plans.
3. To review and assess options for and develop allocation mechanisms for inter-River Basin transfers and water exports

To link the water sector with and respond to demographic shifts and changes in the social and economic sectors:
1. To use cross-sectoral analysis, planning and development to evaluate and implement present water utilisations and in particular:
- compile River Basin baseline descriptions on linkages between water utilization and interactions between the water sub-sectors and (a) macro- (fiscal, monetary and trade) and economic policy instruments and (b) inter-sectorial, intrasectoral, distributional and environmental impacts
- identify and address related trade-offs and ways of accommodating them in and between the River Basins
2. To identify and formulate the role of water security within the context of national economic security
3. To assess and optimise influence of water policy (a) between economic sectors (b) between national and regional levels and (c) among households and firms
4. To identify options for water policy as rational strategy for economic and regional development
5. To adopt water resources management policy to fiscal austerity, reduced producer subsidy and reduced public share of public water resources investment and other structural adjustment measures as and capital instruments for effective utilization

To adapt water allocation to ecosystem management approach:
1. To establish water resources accounting systems for sustainable utilization at national and River Basin levels.
2. To identify and study the linkages between water utilization, public health and environmental protection.
3. To design and implement programmes for the enhancement of public awareness of water availability and utilization economy, and related rights and responsibilities

1. Issue and enforce Guidelines for implementation of water licencing regulations.
2. To issue a joint decree of the Ministers respectively responsible for water resources and for mining and energy delegating to the Minister responsible for water resources the allocation of surface and groundwater through a unified licensing mechanism.
3. To sub-delegate responsibility for combined water abstraction and wastewater discharge licensing to PERUMs

Objective:

2. TO IMPROVE THE EFFECTIVENESS AND EFFICIENCY IN THE UTILIZATION OF WATER.

To reconcile efficiency and equity
1. To institute a system of water service contributions from the users to improve water use efficiency
2. To encourage conjunctive use of surface and ground water through licencing system and water service pricing
3. To classify water resources for optimal utilization based on availability, quality, amenity and other values
4. To establish a system of bulk allocations of surface water by efficiency considerations through consolidated licenses

1. Improve technical efficiency by introduction of appropriate technology for reduction, re-use and recycling
2. Improve economic efficiency by developing (a) reduced water production costs (b) higher production per unit of water (c) cross-subsidies within the River Basin (d) cross-subsidies between River Basins
3. Establish and enforce use-based water service charges to achieve allocative and cost-recovery objectives for water management in the River Basin. Water service charges will be based on actual long-term marginal water costs

1. Identify and address environmental trade-offs of efficient water utilization
2. To respond to requirements for effective integrated natural, human and man-made resources management in the River Basin Plan
3. To design and implement programmes for the evaluation and management of long-term cumulative impacts of water resources development
4. To establish independent screening procedures for EIA
5. To ensure proper timing of EIA in the project cycle
6. To ensure informed and alert end-consumers of product-related effects on water through environmental labelling

1. To incorporate in existing water licencing regulations provisions to the effect that water saved through efficient use of license holder's entitlement is for Government to dispose of under River Basin Plans
2. To include in the Guidelines for the implementation of water abstraction licensing regulations:
a. provisions for water and water resources use-based service charges
b. provisions for the routine inclusion in water abstraction licences of clauses for technical and economic efficiency of water use.
3. Limited to Provinces which have not yet done so, draft Provincial Government Regulations for the implementation of the wastewater charging provisions of Government Regulation 20/1990 on water pollution control
4. To review legislation on EIA and incorporate independent screening procedures and ensure proper timing of EIA in the project cycle

II. WATER QUALITY

3. TO PROVIDE LEVELS OF QUALITY IN INDONESIA'S WATER RESOURCES WHICH ARE CONDUCIVE TO ECONOMIC AND SOCIAL DEVELOPMENT AND ENVIRONMENTAL SUSTAINABILITY

1. To administer and enforce a combined national licensing system for water abstraction and waste water discharge based on River Basin Plans.
2. To establish priorities for water quality control based on population density.
3. To strengthen national and regional capacity for R&D in water quality management by:
- improving water quality information
- developing appropriate technology for wastewater treatment
- identifying needs, activities and resource requirements for water pollution control
- coordinating with urban and rural sanitation strategies
4. To identify and declare water resources protection areas
5. To control sedimentation through adequate watershed management

1. To establish mechanisms for cross-sectorial policy analysis, planning and development
2. To review policies on agricultural inputs and their effect on water quality
3. To establish and enforce water service effluent charges for efficient water management and recovery of water pollution control service costs within the River Basin
4. Establish and enforce a water resources conservation charge on land uses in the catchment with an impact on water quality
5. To review and assess the effectiveness and efficiency of the current and proposed water quality standards for water resources management

1. To inventory and assess flora and fauna threatened by water pollution and ensure their protection
2. To design and implement programmes for water quality management in coordination with existing and on-going activities
3. To review economic and policy measures to increase compliance with pollution control measures

1. To institute and enforce a combined licensing system for water abstraction and wastewater disposal based on River Basin Plans by mutually reconciling Min PW Decree 45/1 990 on water pollution, Min PW Decree 49/1990 on water abstraction licencing, Government Regulation 22/1982 on Water Resources Management and Government Regulation 20/1990 on Water Pollution Control.
2. To include in the standard forest logging concession agreement payment of a water resources conservation charge on land uses in the catchments with an impact on water resources.
3. To draft legislation restricting social and economic activities in and around water bodies, catchment and recharge areas, consistent with Spatial Land-use Plans, to protect water sources

III WATER RESOURCES DEVELOPMENT

Objective

4 TO DEVELOP WATER RESOURCES UNDER THE NATIONAL WATER RESOURCES DEVELOPMENT PLAN (NWRDP) BASED ON RIVER BASIN PLANNING

To move to a planned programme approach for water resources development
1 To develop end establish a participatory, interactive and consensus seeking process for River Basin Planning for national and provincial River Basins
2 To integrate river basin planning processes and instruments with spatial planning processes and instruments
3 To identify priorities for the formulation of River Basin Planning based on (a) water balance (b) water pollution (c) River Basins as Special Development Areas
4 To complement existing flood control programmes with zoning of floodplains and disaster preparedness in coordination with Spatial Land-use Plans
5 To create capacity for River Basin Planning, secure collection and processing of data for River Basin Planning

1 To establish a River Basin Planning process interactive with mainstream planning for preparation of NWRDP
2 To prepare regional development strategies based on River Basin Planning in regions with water scarcity and in particular regions with
(a) critical water availability and/or subject to flooding
(b) upstream downstream interdependence for water availability and/or flood divided by administrative boundaries
3 To give recognition to and reflect changes in macroeconomic policies in development of River Basin Planning
4 To address and accommodate trade-offs between development objectives in the development of River Basin Planning
5 To establish the interactions between water producers and users in the River Basin Plan
6 To introduce efficient flood plain management under River Basin Plans

1 To establish and implement a participatory and interactive process for EIA of River Basin Plans and of Spatial Plans
2 To protect aquatic habitats including lakes, wetlands and coastal waters through regulation, incentives and in River Basin Plans
3 To design and implement conservation programmes with increased public participation
4 To manage soil conservation and water-shed management in the formation of River Basin Plans
5 To reflect and give recognition to traditional and cultural values in the formation of River Basin Plans

1 To draft and implement legislation regulating River Basin Planning consistent with Spatial Land use Planning
2 To incorporate in existing EIA regulations and implementing mechanisms a requirement for EIA of River Basin Plans and Spatial Plans
3 To enact and implement legislation water resources related disaster preparedness
4 To investigate water related customary law and practices and assess their relevance and impact on River Basin Planning

5. TO ENHANCE PRIVATE SECTOR AND COMMUNITY PARTICIPATION IN FINANCING OF WATER RESOURCES DEVELOPMENT

1. To establish, under the control of the Government:
(a) New River Basin branches of PERUM Jasa Tirta, and Provincial State Companies (PERUMDA), as organizations for water resources development
(b) Formal Water Users' Groups
2. To identify and prepare viable programmes for private participation in water resources development through joint ventures with the Government
3. To establish schemes to encourage controlled self-development of surface and groundwater

1. To identify viable financial schemes and instruments to attract financial resources from private interests and the public, in accordance with deregulation policy and, in particular,
- review, under River Basin Planning, the potential for acquisition of private financial resources for water resources management and development
2. To review water service charges for compatibility with private sector participation

1. Delegate financial responsibilities and benefits to the immediate beneficiaries

1. To draft legislation to give User's groups legal status before the law and to enable them to function in a corporate capacity
2. To draft legislation to enforce the beneficiaries' responsibility for O&M of main water works
3. To draft legislation enabling and motivating the public, including financing institutions to participate in financing water resources management and development and establishing relevant procedures and requirements

6. TO ESTABLISH A SUSTAINABLE BUDGET SYSTEM FOR WATER RESOURCES MANAGEMENT.

1. To establish independent annual and multi-annual capital budget components, based on River Basin Plans for Water Resources:
(a) Water management administration
(b) Water Resources Planning
(c) River Improvement

1. To make balanced appropriation of budgetary resources between management including improved services to the public, development and O&M
2. To institute a system of water abstraction and wastewater discharge contributions.
3. To secure specific Government budgetary appropriations for water resources enhancement for all purposes.

1. To secure budgetary resources for water conservation and environmental protection measures
2. To provide budget for environmental management and monitoring plans at the River Basin level, out of project funds

1. To adjust legislation on national budget structure so as to accommodate a sustainable budget for water resources management

IV. WATER RESOURCES MANAGEMENT STRUCTURE

7. CREATE A WATER RESOURCES MANAGEMENT STRUCTURE CONSISTENT WITH INTEGRATED MANAGEMENT OBJECTIVES

1. To coordinate water resources management activities,
2. To establish a structure and capacity for water policy development and for monitoring of water resources planning, management and development.
3. To establish central government water resources management capacity including River Basin Planning and allocation for water abstractions, waste water discharges and other water uses of surface and ground water resources (National River Basins) making use of existing structure and manpower.
4. To entrust operational water management functions at basin level in National River Basins to branches of Perum Jasa Tirta in (a) River Basins or groups of basins that are financially viable; (b) non-viable basins or groups of basins to be supported by inter-basin cross-subsidies.
5. As an intermediate arrangement in river basins that are not financially viable, to entrust operational water management with non-structural Technical Units (UPTs)
6. At the Provincial level, to structure Technical Units (UPTs) along River basin lines for River Basin Planning and the integrated quantity and quality management of surface and ground water resources of Provincial River Basins

1. Subsidize the implementation of River Basin Plans as required
2. To identify and confirm the financial viability of river basin management areas based on economy to support and populations served by water resources management

1. To develop institutional to integrate water resources management within the frame of natural resources management

1. To consider:
(a) structuring the National Water Resources Council as a Committee of Ministers at policy making level, and a Technical Committee of Directors-General:
(b) coordinating the Council with the National Spatial Planning Committee through the Council chairman becoming an ex officio member of the said National Committee.

FAO TECHNICAL PAPERS

FAO IRRIGATION AND DRAINAGE PAPERS

1 Irrigation practice and water management, 1972 (Ar* E* F* S*)

1 Rev.1 Irrigation practice and water management, 1984 (E)

2 Irrigation canal lining, 1971 (New edition, 1977, available in E, F and S in the FAO Land and Water Development Series, No. 1)

3 Design criteria for basin irrigation systems, 1971 (E*)

4 Village irrigation programmes - a new approach in water economy, 1971 (E* F)

5 Automated irrigation, 1971 (E* F* S*)

6 Drainage of heavy soils, 1971 (E* F S*)

7 Salinity seminar, Baghdad, 1971 (E* F)

8 Water and the environment, 1971 (E* F* S*)

9 Drainage materials, 1972 (E* F* S*)

10 Integrated farm water management, 1971 (E* F* S*)

11 Planning methodology seminar, Bucharest, 1972 (E* F*)

12 Farm water management seminar, Manila, 1972 (E*)

13 Water use seminar, Damascus, 1972 (E* F*)

14 Trickle irrigation, 1973 (E* F* S*)

15 Drainage machinery, 1973 (E* F*)

16 Drainage of salty soils, 1973 (C* E* F* S*)

17 Man's influence on the hydrological cycle, 1973 (E* F* S*)

18 Groundwater seminar, Granada, 1973 (E* F S)

19 Mathematical models in hydrology, 1973 (E)

20/1 Water laws in Moslem countries - Vol. 1, 1973 (E* F)

20/2 Water laws in Moslem countries - Vol. 2, 1978 (E F)

21 Groundwater models, 1973 (E)

22 Water for agriculture - index, 1973 (E/F/S*)

23 Simulation methods in water development, 1974 (E F* S*)

24 Crop water requirements, (rev.) 1977 (C* E F S)

25 Effective rainfall, 1974 (C* E* F* S*)

26/1 Small hydraulic structures - Vol. 1, 1975 (E F S)

26/2 Small hydraulic structures - Vol. 2, 1975 (E F S)

27 Agro-meteorological field stations, 1976 (E F* S*)

28 Drainage testing, 1976 (E F S)

29 Water quality for agriculture, 1976 (E* F* S*)

29 Rev.1 Water quality for agriculture, 1985 (C** E F S)

30 Self-help wells, 1977 (E)

31 Groundwater pollution, 1979 (C* E S)

32 Deterministic models in hydrology, 1979 (E)

33 Yield response to water, 1979 (C* E F S)

34 Corrosion and encrustation in water wells, 1980 (E)

35 Mechanized sprinkler irrigation, 1982 (C E F S)

36 Localized irrigation, 1980 (Ar C E F S)

37 Arid zone hydrology, 1981 (C** E*)

38 Drainage design factors, 1980 (Ar C E F S)

39 Lysimeters, 1982 (C E F S)

40 Organization, operation and maintenance of irrigation schemes, 1982 (C** E F S"*)

41 Environmental management for vector control in rice fields, 1984 (E F S)

42 Consultation on irrigation in Africa, 1987 (E F)

43 Water lifting devices, 1986 (E)

44 Design and optimization of irrigation distribution networks, 1988 (E F**)

45 Guidelines for designing and evaluating surface ' irrigation systems, 1989 (E)

46 CROPWAT - a computer program for irrigation planning and management, 1992 (E F S)

47 Wastewater treatment and use in agriculture, 1992 (E)

48 The use of saline waters for crop production, 1993 (E)

49 CLIMWAT for CROPWAT, 1993 (E)

50 Le pompage éolien, 1994 (F)

51 Prospects for the drainage of clay soils, 1995 (E)

52 Reforming water resources policy - A guide to methods, processes and practices, 1995 (E)

Availability: June 1995

Ar - Arabic
C - Chinese
E - English
F - French
P - Portuguese
S - Spanish
Multil - Multilingual
* Out of print
** In preparation

The FAO Technical Papers are available through the authorized FAO Sales Agents or directly from Distribution and Sales Section, FAO, Viale delle Terme di Caracalla, 00100 Rome, Italy.

With the purpose of promoting and supporting national policy, legislative reform, planning and institutional development in the water sector, this guide introduces methods, processes and approaches for organization of water sector policy reviews at the country level. The range and ramifications of water management and the relationship between the water sector and other parts of the economy are elucidated, and the related principles and criteria are set out.

The publication discusses the processes and reforms of recent water sector reviews in developing and industrialized countries, focusing on a number of principal water sector policy issues.

POLICY	WATER RESOURCES MANAGEMENT	SOCIO-ECONOMICS & FINANCE	ENVIRONMENTAL MANAGEMENT	LEGISLATION & ADMINISTRATION
I. WATER UTILIZATION
	Objective;	Objective:	Objective:
1. TO PROVIDE ALLOCATION AND UTILIZATION CONDUCIVE TO ECONOMIC AND SOCIAL DEVELOPMENT AND ENVIRONMENTAL SUSTAINABILITY	To make efficient and equitable allocation and utilization of surface and groundwater among sectors considering long-term impacts: 1. To base water allocation on water balance in River Basin Plans. 2. To administer, implement and enforce an integrated national licensing mechanism of surface and groundwater abstraction and use based on River Basin Plans. 3. To review and assess options for and develop allocation mechanisms for inter-River Basin transfers and water exports	To link the water sector with and respond to demographic shifts and changes in the social and economic sectors: 1. To use cross-sectoral analysis, planning and development to evaluate and implement present water utilisations and in particular: - compile River Basin baseline descriptions on linkages between water utilization and interactions between the water sub-sectors and (a) macro- (fiscal, monetary and trade) and economic policy instruments and (b) inter-sectorial, intrasectoral, distributional and environmental impacts - identify and address related trade-offs and ways of accommodating them in and between the River Basins 2. To identify and formulate the role of water security within the context of national economic security 3. To assess and optimise influence of water policy (a) between economic sectors (b) between national and regional levels and (c) among households and firms 4. To identify options for water policy as rational strategy for economic and regional development 5. To adopt water resources management policy to fiscal austerity, reduced producer subsidy and reduced public share of public water resources investment and other structural adjustment measures as and capital instruments for effective utilization	To adapt water allocation to ecosystem management approach: 1. To establish water resources accounting systems for sustainable utilization at national and River Basin levels. 2. To identify and study the linkages between water utilization, public health and environmental protection. 3. To design and implement programmes for the enhancement of public awareness of water availability and utilization economy, and related rights and responsibilities	1. Issue and enforce Guidelines for implementation of water licencing regulations. 2. To issue a joint decree of the Ministers respectively responsible for water resources and for mining and energy delegating to the Minister responsible for water resources the allocation of surface and groundwater through a unified licensing mechanism. 3. To sub-delegate responsibility for combined water abstraction and wastewater discharge licensing to PERUMs
	Objective:
2. TO IMPROVE THE EFFECTIVENESS AND EFFICIENCY IN THE UTILIZATION OF WATER.	To reconcile efficiency and equity 1. To institute a system of water service contributions from the users to improve water use efficiency 2. To encourage conjunctive use of surface and ground water through licencing system and water service pricing 3. To classify water resources for optimal utilization based on availability, quality, amenity and other values 4. To establish a system of bulk allocations of surface water by efficiency considerations through consolidated licenses	1. Improve technical efficiency by introduction of appropriate technology for reduction, re-use and recycling 2. Improve economic efficiency by developing (a) reduced water production costs (b) higher production per unit of water (c) cross-subsidies within the River Basin (d) cross-subsidies between River Basins 3. Establish and enforce use-based water service charges to achieve allocative and cost-recovery objectives for water management in the River Basin. Water service charges will be based on actual long-term marginal water costs	1. Identify and address environmental trade-offs of efficient water utilization 2. To respond to requirements for effective integrated natural, human and man-made resources management in the River Basin Plan 3. To design and implement programmes for the evaluation and management of long-term cumulative impacts of water resources development 4. To establish independent screening procedures for EIA 5. To ensure proper timing of EIA in the project cycle 6. To ensure informed and alert end-consumers of product-related effects on water through environmental labelling	1. To incorporate in existing water licencing regulations provisions to the effect that water saved through efficient use of license holder's entitlement is for Government to dispose of under River Basin Plans 2. To include in the Guidelines for the implementation of water abstraction licensing regulations: a. provisions for water and water resources use-based service charges b. provisions for the routine inclusion in water abstraction licences of clauses for technical and economic efficiency of water use. 3. Limited to Provinces which have not yet done so, draft Provincial Government Regulations for the implementation of the wastewater charging provisions of Government Regulation 20/1990 on water pollution control 4. To review legislation on EIA and incorporate independent screening procedures and ensure proper timing of EIA in the project cycle
II. WATER QUALITY
3. TO PROVIDE LEVELS OF QUALITY IN INDONESIA'S WATER RESOURCES WHICH ARE CONDUCIVE TO ECONOMIC AND SOCIAL DEVELOPMENT AND ENVIRONMENTAL SUSTAINABILITY	1. To administer and enforce a combined national licensing system for water abstraction and waste water discharge based on River Basin Plans. 2. To establish priorities for water quality control based on population density. 3. To strengthen national and regional capacity for R&D in water quality management by: - improving water quality information - developing appropriate technology for wastewater treatment - identifying needs, activities and resource requirements for water pollution control - coordinating with urban and rural sanitation strategies 4. To identify and declare water resources protection areas 5. To control sedimentation through adequate watershed management	1. To establish mechanisms for cross-sectorial policy analysis, planning and development 2. To review policies on agricultural inputs and their effect on water quality 3. To establish and enforce water service effluent charges for efficient water management and recovery of water pollution control service costs within the River Basin 4. Establish and enforce a water resources conservation charge on land uses in the catchment with an impact on water quality 5. To review and assess the effectiveness and efficiency of the current and proposed water quality standards for water resources management	1. To inventory and assess flora and fauna threatened by water pollution and ensure their protection 2. To design and implement programmes for water quality management in coordination with existing and on-going activities 3. To review economic and policy measures to increase compliance with pollution control measures	1. To institute and enforce a combined licensing system for water abstraction and wastewater disposal based on River Basin Plans by mutually reconciling Min PW Decree 45/1 990 on water pollution, Min PW Decree 49/1990 on water abstraction licencing, Government Regulation 22/1982 on Water Resources Management and Government Regulation 20/1990 on Water Pollution Control. 2. To include in the standard forest logging concession agreement payment of a water resources conservation charge on land uses in the catchments with an impact on water resources. 3. To draft legislation restricting social and economic activities in and around water bodies, catchment and recharge areas, consistent with Spatial Land-use Plans, to protect water sources
III WATER RESOURCES DEVELOPMENT
	Objective
4 TO DEVELOP WATER RESOURCES UNDER THE NATIONAL WATER RESOURCES DEVELOPMENT PLAN (NWRDP) BASED ON RIVER BASIN PLANNING	To move to a planned programme approach for water resources development 1 To develop end establish a participatory, interactive and consensus seeking process for River Basin Planning for national and provincial River Basins 2 To integrate river basin planning processes and instruments with spatial planning processes and instruments 3 To identify priorities for the formulation of River Basin Planning based on (a) water balance (b) water pollution (c) River Basins as Special Development Areas 4 To complement existing flood control programmes with zoning of floodplains and disaster preparedness in coordination with Spatial Land-use Plans 5 To create capacity for River Basin Planning, secure collection and processing of data for River Basin Planning	1 To establish a River Basin Planning process interactive with mainstream planning for preparation of NWRDP 2 To prepare regional development strategies based on River Basin Planning in regions with water scarcity and in particular regions with (a) critical water availability and/or subject to flooding (b) upstream downstream interdependence for water availability and/or flood divided by administrative boundaries 3 To give recognition to and reflect changes in macroeconomic policies in development of River Basin Planning 4 To address and accommodate trade-offs between development objectives in the development of River Basin Planning 5 To establish the interactions between water producers and users in the River Basin Plan 6 To introduce efficient flood plain management under River Basin Plans	1 To establish and implement a participatory and interactive process for EIA of River Basin Plans and of Spatial Plans 2 To protect aquatic habitats including lakes, wetlands and coastal waters through regulation, incentives and in River Basin Plans 3 To design and implement conservation programmes with increased public participation 4 To manage soil conservation and water-shed management in the formation of River Basin Plans 5 To reflect and give recognition to traditional and cultural values in the formation of River Basin Plans	1 To draft and implement legislation regulating River Basin Planning consistent with Spatial Land use Planning 2 To incorporate in existing EIA regulations and implementing mechanisms a requirement for EIA of River Basin Plans and Spatial Plans 3 To enact and implement legislation water resources related disaster preparedness 4 To investigate water related customary law and practices and assess their relevance and impact on River Basin Planning
5. TO ENHANCE PRIVATE SECTOR AND COMMUNITY PARTICIPATION IN FINANCING OF WATER RESOURCES DEVELOPMENT	1. To establish, under the control of the Government: (a) New River Basin branches of PERUM Jasa Tirta, and Provincial State Companies (PERUMDA), as organizations for water resources development (b) Formal Water Users' Groups 2. To identify and prepare viable programmes for private participation in water resources development through joint ventures with the Government 3. To establish schemes to encourage controlled self-development of surface and groundwater	1. To identify viable financial schemes and instruments to attract financial resources from private interests and the public, in accordance with deregulation policy and, in particular, - review, under River Basin Planning, the potential for acquisition of private financial resources for water resources management and development 2. To review water service charges for compatibility with private sector participation	1. Delegate financial responsibilities and benefits to the immediate beneficiaries	1. To draft legislation to give User's groups legal status before the law and to enable them to function in a corporate capacity 2. To draft legislation to enforce the beneficiaries' responsibility for O&M of main water works 3. To draft legislation enabling and motivating the public, including financing institutions to participate in financing water resources management and development and establishing relevant procedures and requirements
6. TO ESTABLISH A SUSTAINABLE BUDGET SYSTEM FOR WATER RESOURCES MANAGEMENT.	1. To establish independent annual and multi-annual capital budget components, based on River Basin Plans for Water Resources: (a) Water management administration (b) Water Resources Planning (c) River Improvement	1. To make balanced appropriation of budgetary resources between management including improved services to the public, development and O&M 2. To institute a system of water abstraction and wastewater discharge contributions. 3. To secure specific Government budgetary appropriations for water resources enhancement for all purposes.	1. To secure budgetary resources for water conservation and environmental protection measures 2. To provide budget for environmental management and monitoring plans at the River Basin level, out of project funds	1. To adjust legislation on national budget structure so as to accommodate a sustainable budget for water resources management
IV. WATER RESOURCES MANAGEMENT STRUCTURE
7. CREATE A WATER RESOURCES MANAGEMENT STRUCTURE CONSISTENT WITH INTEGRATED MANAGEMENT OBJECTIVES	1. To coordinate water resources management activities, 2. To establish a structure and capacity for water policy development and for monitoring of water resources planning, management and development. 3. To establish central government water resources management capacity including River Basin Planning and allocation for water abstractions, waste water discharges and other water uses of surface and ground water resources (National River Basins) making use of existing structure and manpower. 4. To entrust operational water management functions at basin level in National River Basins to branches of Perum Jasa Tirta in (a) River Basins or groups of basins that are financially viable; (b) non-viable basins or groups of basins to be supported by inter-basin cross-subsidies. 5. As an intermediate arrangement in river basins that are not financially viable, to entrust operational water management with non-structural Technical Units (UPTs) 6. At the Provincial level, to structure Technical Units (UPTs) along River basin lines for River Basin Planning and the integrated quantity and quality management of surface and ground water resources of Provincial River Basins	1. Subsidize the implementation of River Basin Plans as required 2. To identify and confirm the financial viability of river basin management areas based on economy to support and populations served by water resources management	1. To develop institutional to integrate water resources management within the frame of natural resources management	1. To consider: (a) structuring the National Water Resources Council as a Committee of Ministers at policy making level, and a Technical Committee of Directors-General: (b) coordinating the Council with the National Spatial Planning Committee through the Council chairman becoming an ex officio member of the said National Committee.