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Seminar sured2






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    Seminar sured2 Seminar sured2 Presentation Transcript

    • Anticipating Water Trade Mohamad Mova Al Afghani [email_address]
      • Introduction
      As we speak, millions of liters of water are being transported through inter-state transmission pipes or through water tankers.
      • 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7 Year 2004 on “Water Resources” Enacted : March 18, 2004 Enforced : At the date of enactment Number of Articles: 100 Repealed : Law No. 11 Year 1974 on “Irrigation” Judicial Review : 058-059-060-063/PUU-II/2004, 13th of July 2005 (Conditionally Constitutional)
      • “ 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)
      • Catchments, river basins, beaches
      • Object of regulation
      • 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
      • 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
      • Water Rights
      *More than 2 litres per second/family for people’s farming and more than 100 m3 per family for Groundwater
      • 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
      • 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
      • Social Costs
      • Environmental Costs
      • How can externalities be identified, defined and incorporated into transactions?
      • Market and externalities
      • 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
      • Goals:
      • Human rights
      • Efficiency
      • Environment
      • Requires interdisciplinary approach
      • Closing the gap
      • Thank You