Pilot and Demonstration Activity: Indonesia
Using Compensation Mechanism for Watershed Protection Services in Citarum
This PDA will help develop a compensation mechanism to protect the Citarum watershed.
| Project site | Citarum River Basin, Indonesia |
|---|---|
| Cost | US$ 49,985 |
| Status | Ongoing |
| Approval date | November 2008 |
| Completion date | - |
| Category | Basin Management |
| ADB officer |
Chris Morris |
| Partner | Center for Water and Land Resources and the Institute for Social and Economic Research, Education and Information |
The Citarum river provides drinking water, hydropower, irrigation water, municipal water supply, and aquaculture opportunities to Jakarta and other urban centers in West Java. But these multiple users do not “pay” the watershed for the services it provides. Collected water tax is not earmarked, and the effects of deforestation and catchment area degradation are becoming very evident with the increasing cases of flooding, land slide, siltation, and other forms of disasters resulting from deteriorating watersheds.
This PDA will help develop and demonstrate the use of a compensation mechanism for watershed protection services in Citarum. One of its expected outcomes is the formulation of a policy on payment for environmental services. Recommendations to emerge from this PDA will be considered in the on-going preparation of ADB’s Integrated Citarum Water Resources Management Project.
- Developed compensation mechanism for watershed protection services at Citarum river basin area
- Disseminated publication on compensation for watershed services
- Mid-Term Progress Report* (June 2009)
- Inception Report* (January 2008)
- Proposal (February 2008) [ PDF ]
*This link takes you outside the ADB website. Please use the back button to return to ADB.org.
- Know more about PDA principles.
- Read about the Application Process.
- Know the PDA Proposal Guidelines.
- Download the Application Form.

