Getting the management of water resources right is critical for achieving economic growth, globally and in Indonesia, and must be underpinned by robust financing mechanisms. Investments in water management can both spur economic development and at the same time avoid economic losses. To illustrate this, in Indonesia water-related disasters still cause economic losses of 2-3 billion US dollars per year. Moreover, losses associated with water risks and their health impacts are estimated to account for two to three percent of national GDP.
It is therefore no surprise that water financing and flood disaster risk reduction emerged as key topics of the National Dialogue on Water in Indonesia. The Dialogue welcomed stakeholders from Indonesia’s water sector and beyond, representing all levels of government, state-owned enterprises, the private sector, and development partners. The Dialogue showcased state-of-the-art technologies to combat floods, such as artificial intelligence-based flood forecasting and Information Communication Technology (ICT) for more accurate and efficient risk-prevention measures. The dialogue also provoked discussions on how to combine traditional sources of water financing, such as tariffs and taxes, with novel methods like Land Value Capture.
The Dialogue generated a number of concrete recommendations for policy reforms, financing instruments and technological solutions, inspired by case studies from across the world. They have been collated in this report.
The National Dialogue on Water in Indonesia benefitted from the strong engagement of and collaboration amongst the Indonesian Ministry of Public Works and Housing (PUPR), the Ministry of National Development Planning (BAPPENAS), the Asia Water Council (AWC), and the Organisation for Economic Cooperation and Development (OECD). It also benefitted from the active contribution of partners in Japan, Korea and Thailand. The financial support of the Ministry of Environment of Korea is gratefully acknowledged.
AWC and OECD hope that the Dialogue has sparked partnerships across different levels of government, sectors, and countries. This report aims to support Indonesian decision-makers and practitioners in their efforts to leverage water and water policies and deliver on Indonesia’s economic growth objectives. We trust it is valuable for other countries as well.
Yongdeok Cho
Secretary General
Asia Water Council
Ok-Joo Sohn
Assistant Minister
Ministry of Environment, Korea
Jo Tyndall
Director
Environment Directorate
OECD