Indonesia: Participatory Irrigation Sector Project

Agriculture, natural resources and rural development / Agricultural production - Irrigation - Rural water policy, institutional and capacity development - Water-based natural resources management

Irrigated agriculture is a major economic activity and source of income for the rural poor. About 80 percent of water usage in the country is devoted to irrigation. Increasing demand and competition for water fromo other sectors such as industries and urban and rural water supply requires rational sectoral policies and a holistic approach in water resources development. While substantial sectoral policy reform has begun in recent years, the reforms' successful implementation requires (i) stronger national and regional institutions, (ii) an investment program to improve existing irrigation systems, and (iii) selective development of new irrigation systems. Small- and medium-scale irrigation systems that can be operated and managed by farmer institutions without much Operation & Maintenance (O&M) support by the Government should be rehabilitated and developed.

The proposed project aims to (i) strenghten national and regional institutional capacity for sustainable development of water resources, (ii) improve water-use efficiencies in irrigated agriculture, and (iii) increase agricultural production and productivity. The project inputs will include technical and advisory support to national and regional agencies, and rehabilitation and development of small- and medium-scale irrigation systems with direct participatoin of farmers in planning, implementation, and O&M.

The Project supports the framework of water sector reforms as defined in the recent Water Law No 7/2004 and improvements to sustainable use of water resources in line with the ADB "water for all" policy. The Project's emphasis on strengthening local government agencies are key elements of ADB's operational partnership with Indonesia.

- Increased economic growth in 25 districts of rural Indonesia

- Reduced rural poverty

- Sustained decentralized management of irrigation systems;

- Increased yields of irrigated crops

Relevant district and provincial staff and WUAs' understanding and involvement in participatory irrigation management have been substantially enhanced in the Project's 27 districts.

Based on interviews with farmers during review missions, the Project has resulted in better management and physical upgrading of irrigation systems and improving access to irrigation water. This has resulted in expanded areas with reliable irrigation, and increased yields from 5 to 15%.

- District capacity for management of devolved irrigation responsibilities upgraded

- Irrigation performance at scheme level improved

- District agricultural services rationalized and developed, WUAs strengthened and empowered, farmer access to agricultural services and inputs improved

- Water resources management information system improved

27 districts (including Pesawaran District, a new district split from Lampung Selatan District, and Toraja Utara District split from Tanah Toraja District in South Sulawesi), and 6 provincial governments strengthened to effectively discharge their responsibility for irrigation management in accordance with the Water Law 7/2004 and PP 20/2006 on participative irrigation management.

A total of 4,337 district and province staff (3,475 staff and 862 as TOT) trained in participative design, construction, and O&M for farmers. 59 central and regional government staff attended overseas training on water management in Sep-Oct 2009.

BAPPENAS endorsed the format of the district irrigation management plan (DIMP/RP2I) in November 2008. 16 RP2Is with management of existing irrigation systems have been endorsed by district heads (Bupati). 26 districts have started incorporating development program in their RP2Is.

About 5,076 WUAs established and/or strengthened. A total of 643 WUA federations have been established. Partnership agreements in the form of MOU have been implemented between the Dinas Water Resources Services and FWUA or WUA in accordance with PP20/2006.

1,300 farmers received training in access to credit, marketing, agribusiness development, and agriculture technology.

4,509 farmers trained through 112 Agriculture training and demonstration plot (ATDs) established under the project.

10,900 WUA/WUAF members received training in intensification and diversification of enterprises and water management system.

WRDU operational since 2005 and was reorganized in 2008. The PPMS and FMS completed in 2008 and operational since then. System design completed in 2008. TOT for the six project provinces completed in 2009. TOT for additional 20 provinces completed in 2010.