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Seminar Sured German Alumni Water Network, Jakarta
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Seminar Sured German Alumni Water Network, Jakarta

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Transcript

  • 1. Anticipating Water Trade Mohamad Mova Al Afghani [email_address]
  • 2.
    • Introduction
    As we speak, millions of liters of water are being transported through inter-state transmission pipes or through water tankers.
  • 3.
    • Introduction
    Law No. 7 Year 2004 on “Water Resources” Enacted : March 18, 2004 Enforced : At the date of enactment Number of Articles: 100 Repealed : Law No. 11 Year 1974 on “Irrigation” Judicial Review : 058-059-060-063/PUU-II/2004, 13th of July 2005 (Conditionally Constitutional)
  • 4.
    • “ Water” covers basically all freshwater in any forms including sea water on land.
    • Thus, the Water Law regulates:
    • Groundwater (well, underground rivers)
    • Surface Water (rivers, lakes, wetlands)
    • Clouds (Article 38)
    • Water supporting areas: catchments, river basins, beaches
    • Object of regulation
  • 5.
    • Water Rights Systems in the World:
    • Agency Based vs Market Based
    • Agency based: allocation and reallocation is done through the agency of the state
    • Market based: allocation and reallocation is done through market mechanism (supply/demand)
    • Water Rights
  • 6.
    • Water Utilization Rights (Hak Guna Pakai Air): for daily needs and people’s farming.
    • Water Commercialization Right (Hak Guna Usaha Air): for hydropower, tourism, industry, etc. Valid for 3 years and extendable
    • Both rights cannot be leased or assigned partially or entirely (Art 7.2 of the Water Law). Hence: agency based
    • Water Rights
  • 7.
    • Water Rights
    *More than 2 litres per second/family for people’s farming and more than 100 m3 per family for Groundwater
  • 8.
    • The current agency-based system will be reformed to allow market mechanism to work in the water sector. Some pilot projects on has been conducted in Brantas river Basin in East Java.
    • Water Market
  • 9.
    • Public good vs private good
    • Mobility
    • Variability
    • Transport/storage cost
    • Not scarcity but physical supply cost
    • Essentiality
    • Heterogenity, depending on time, location, quality
    • Specifities of the water sector
  • 10.
    • Social Costs
    • Environmental Costs
    • How can externalities be identified, defined and incorporated into transactions?
    • Market and externalities
  • 11.
    • Existing laws on international trade may not be adequate in protecting water
    • Institutional setting in national law still problematic (i.e. enforcement cost expensive, rights not clearly defined)
    • Insufficient legal regime
  • 12.
    • Goals:
    • Human rights
    • Efficiency
    • Environment
    • Requires interdisciplinary approach
    • Closing the gap
  • 13.
    • Thank You

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