Title of session Country Case Study on Water Sector Knowledge and Capacity Development

1. Title of session • Country Case Study on Water Sector • Knowledge and Capacity Development • INDONESIA • By: A. Hafied A. Gany, Ph.D., P.Eng. • 30th May 2013

2. Presentation Outline • Introduction • Core actors in the water sector • Factors of the ‘Enabling Environment‘ • Struggles and problems the water sector faces • The transfer of knowledge and capacity development • Who is taking the lead in the water sector? • Lessons learned from Indonesia • Propositions

3. INDONESIA Indonesia The archipelago has a total of 17,508 islands and isles, of which about 6,000 are inhibited. The area is 5,193,150km2 – of which 2,027,087km2 of land territory & sea territory at 3,166,163km2. Climate: The climate is generally characterized by equatorial tropical monsoon climate.

4. Introduction • Republic of Indonesia: August 17th 1945 • Decentralization to 508 districts/municipalities and 33 Provinces • Population: About 248,645,008 people (1.5% growth annually) • Ethnicity: 356 ethnic & tribal groups • Language: 583 local languages • Religion: 87% Muslim, 9% Christian, 2% Hindu & Buddhist • Climate: The dry season (Jun-Sep); rainy season (Dec-Mar) • Rainfall: Annual average is about 2,500 mm • DGP: US$ 846.832 Billion (2011) • Income per capita: US$1,206.99 (2011).

5. Challenges of IWRM Other Critical Issues Main Goals Main Triggers Population Conservation Spatial Development Population Water Supply Utilization Flood Good Governance Institutional Development Public Participation Data & Information Institution Technology Budget Regulation HRC

6. Top Challenges on IWRM • Institutional strengthening at all levels • Recruitment of staff with higher qualification • Completing laws and policies • Improve communication, coordination, collaboration • Integrating Plan and Budget in IWRM • Proper balance of HRC – Institution – technology – Budget; Regulatory Instrument and its Enforcement.

7. The core actors in the water sector • Ministry of Public Works : authorizes the D.G.W.R. • Water related Ministries: Ministry of Environment, Ministry of Mining and Energy, Ministry of Home Affairs, Ministry of Forestry, Ministry of Agriculture. • The National Water Resources Council: newly established with 50% Government and 50% Private. • BAPPENAS and the Ministry of Finance: determines the financial support given to the water sector. • River Basin Organizations: 3 categories. • Role of NGOs: marginal in WRM. • Private Sector: freelancers who do the outsourced works. • Development agencies: role as brokers. • CkNet-Ina: connects universities to the water sector.

8. Factors of the ‘Enabling Environment‘ • Formal rules: • Law 22/1999 on Regional Governments & Law 25/1999 on Fiscal balance decentralization • Law 7/2004:New management paradigm • Regulations: Un-clarities as to “who is responsible for what” • Informal rules: • Power distance in the organization (is decreasing), collectivist characteristics • Strong, hierarchy, the boss is always right, passive inactive, egocentricity • Learning at the university: • Few water related-majors offered at the university • Professors/teachers: inadequate practical experience; • Strong focus on structural aspects • Learning mentality: lack oflife long learning approach

9. Struggles and problems the water sector faces • Lack of actor’s common vision and coordination “Ego-ministerial mentality; • Lack of commitment of local government to manage water management • Free rider behavior • "The water sector is not that attractive"

10. The transfer of knowledge & capacity development • Job rotation • Zero-growth policy and outsourcing • Training focuses on technical skill, not managerial. • Practical knowledge is missing in the university curriculum • Strong reliance on knowledge from abroad • The importance of water can be transferred through civil society • KCD on an ad-hoc basis

11. Who is taking the lead in the water sector? (1 of 2) • Enabling Environment • MPW (DGWR) • BAPPENAS • Organizational level: • MENPAN, it requires to think for other sectors • DGWR, but lower level of capacity development to convincing the parliament; • Resolving the impact of zero-growth policy • More emphasis on management skills and good leadership, as well as inter-sector coordination.

12. Who is taking the lead in the water sector? (2 of 2) • Individual level: • Universities • Cooperation between PUSDIKLAT and the Universities • PUSDIKLAT • Raising Awareness to address the importance of water • Ministry of Education: for primary school education • NGOs

13. Lessons learned from Indonesia • Overnight decentralization leads to loss of the capacity in the water sector. • A culture in which the boss is always right and little room for learning from mistakes refrains employees from taking initiative and thinking innovatively. • Cooperation among the various ministries responsible for water is missing (too much tunnel vision). • Knowledge is still perceived as static instead of constantly evolving. • It is not the financial aspect which constrains further capacity development, but more the organizing skills to initiate capacity development project.

14. Propositions • In the process of decentralization, there should be a gradual transition of tasks and responsibilities in order for old and new staff to adjust and adapt their necessary capacity to uptake these responsibilities. • Both organisations and (inter)national capacity builders should put more emphasis on the inclusion of local knowledge and experiences of stakeholders to assure their effectiveness. • Incentives should be created to stimulate internal innovation and service delivery, and hence lead to better cooperation and performance among water-related actors. • There should be a continuous and coherent HR Policy because it is a determinant factor assuring capacity development of the water sector.

15. Purpose of 5th Symposium Thank you for your attention A. Hafied A. Gany, Ph.D.,P.Eng. Training Institute on Water Resources Development and Management, Ministry of Public Works, Indonesia gany@hafied.org