Successfully reported this slideshow.
We use your LinkedIn profile and activity data to personalize ads and to show you more relevant ads. You can change your ad preferences anytime.

Seminar Sured German Alumni Water Network, Jakarta


Published on

  • Be the first to comment

  • Be the first to like this

Seminar Sured German Alumni Water Network, Jakarta

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7 Year 2004 on “Water Resources” Enacted : March 18, 2004 Enforced : At the date of enactment Number of Articles: 100 Repealed : Law No. 11 Year 1974 on “Irrigation” Judicial Review : 058-059-060-063/PUU-II/2004, 13th of July 2005 (Conditionally Constitutional)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