Indonesia: Irrigation Sector Project

Sovereign Project | 43220-012 Status: Active

Summary

1. The proposed Project will result in increased agricultural productivity through improved management of irrigated agriculture in selected provinces and districts in Indonesia. The Project will address the following government priorities (i) increased rice production to achieve food security; (ii) diversified and higher value cropping to improve rural livelihoods, and (iii) more productive irrigation infrastructure and its sustainable management. The Project will deliver an integrated package of infrastructure, institutional reforms, and capacity development to catalyze sector advances. The Project builds from the Asian Development Bank (ADBs) previous Loans 2064/65 INO: The Participatory Irrigation Sector Project (PISP) that closed 31 December 2012.

Latest Project Documents

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Procurement Documents

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Project Name Irrigation Sector Project
Project Number 43220-012
Country Indonesia
Project Status Active
Project Type / Modality of Assistance Technical Assistance
Source of Funding / Amount
TA 8460-INO: Irrigation Sector Project
Netherlands Fund (with LoA) US$ 1.50 million
Strategic Agendas Inclusive economic growth
Drivers of Change Governance and capacity development
Sector / Subsector

Agriculture, natural resources and rural development - Irrigation

Gender Equity and Mainstreaming
Description
Project Rationale and Linkage to Country/Regional Strategy

1. The proposed Project will result in increased agricultural productivity through improved management of irrigated agriculture in selected provinces and districts in Indonesia. The Project will address the following government priorities (i) increased rice production to achieve food security; (ii) diversified and higher value cropping to improve rural livelihoods, and (iii) more productive irrigation infrastructure and its sustainable management. The Project will deliver an integrated package of infrastructure, institutional reforms, and capacity development to catalyze sector advances. The Project builds from the Asian Development Bank (ADBs) previous Loans 2064/65 INO: The Participatory Irrigation Sector Project (PISP) that closed 31 December 2012.

2. Food security has been a significant government concern starting from the world price shocks of 2008. Presidential Decree 5 (2011) calls for increased surplus rice production of 10 million tons (about 15%) by 2015 to address food security through a policy of rice self-sufficiency. In 2011, Indonesia produced 65 million tons of rice of which, 95% came from irrigated lands. Overall, production has been growing slowly (about 1% annually) over the last ten years mainly from increases in irrigated area and cropping intensity. However, yields have been generally stagnant for the last 20 years, and productivity gains are slowing and inadequate to meet growing demand and government objectives. Deteriorating infrastructure further compromises productivity mainly due to inadequate O&M and its financing. Since 2005, the area of irrigated area with infrastructure in good condition has declined from 78% to less than 50% today. Additional challenges constrain productivity and include (i) weak and fragmented management among district, provincial and national governments with limited farmer participation ; (ii) underdeveloped planning and management capacity; (iii) ineffective agricultural services and commercialization of agriculture; and (iv) weak water management (irrigation uses 80% of developed water supply). The National Development Planning Ministry (BAPPENAS) and Directorate General of Water Resources (DGWR) support (i) increased investment for irrigated agriculture, and (ii) expanding, deepening and institutionalizing reforms initiated under PISP.

3. The Project is consistent with (i) strategic priorities for the Midterm Review of Strategy 2020 of the ADB; and (ii) the ADB Interim Country Partnership Strategy (CPS) 2015 for Indonesia. Agriculture and natural resources (including irrigated agriculture) is a CPS sector focus. The Project is consistent with the governments National Medium Term Development Plan 2015 to 2019, which prioritizes development of infrastructure (including irrigation) and food security. The Project will provide policy reforms and investment to realize these goals across Indonesia.

Impact tbd

Project Outcome

Description of Outcome tbd
Progress Toward Outcome
Implementation Progress
Description of Project Outputs tbd
Status of Implementation Progress (Outputs, Activities, and Issues)
Geographical Location Java, Sumatra, Sulawesi and Eastern Indonesia

Summary of Environmental and Social Aspects

Environmental Aspects
Involuntary Resettlement
Indigenous Peoples
Stakeholder Communication, Participation, and Consultation
During Project Design Stakeholder consultations are being conducted during project preparation and will continue throughout implementation. Continuous consultations will be conducted during implementation and effective measures of stakeholder engagement will be established to ensure ownership of the project.
During Project Implementation Farmers will be organized into Water User Associations and will participate in project implementation.

Business Opportunities

Consulting Services The consulting services have been recruited

Responsible Staff

Responsible ADB Officer Eric Quincieu
Responsible ADB Department Southeast Asia Department
Responsible ADB Division Environment, Natural Resources & Agriculture Division, SERD
Executing Agencies
Directorate General of Water Resources
Min.of Settlement & Regional Infrastrctr
Jl Pattimura, #20, Kebayoran Baru
Jakarta Selatan, Republic of Indonesia

Timetable

Concept Clearance -
Fact Finding -
MRM -
Approval 12 Sep 2013
Last Review Mission -
Last PDS Update 31 Mar 2016

TA 8460-INO

Milestones
Approval Signing Date Effectivity Date Closing
Original Revised Actual
12 Sep 2013 20 Feb 2014 20 Feb 2014 31 Oct 2014 30 Sep 2015 -
Financing Plan/TA Utilization Cumulative Disbursements
ADB Cofinancing Counterpart Total Date Amount
Gov Beneficiaries Project Sponsor Others
0.00 1,500,000.00 100,000.00 0.00 0.00 0.00 1,600,000.00 12 Sep 2013 1,246,316.66

Safeguard Documents See also: Safeguards

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Evaluation Documents See also: Independent Evaluation

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Related Publications

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