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IRRIGATION MANAGEMENT REFORM IN INDONESIA

Ir. A.R. van Nes1, Ir. Parma Hasibuan2, Ir. Moh. Hasan Dipl. HE3
1. APPROACH
The first initiatives to reform irrigation management in Indonesia were taken in the mid 1980-s.
A formal Irrigation O&M Policy was formulated in 1987, which was the basis of several large
projects funded by World Bank, ADB and other donors. Besides that, a lot of research was done
by universities and NGO-s on how irrigation management could be more effective and efficient.
Since the severe crisis of 1997 it became clear that extensive institutional reforms were
necessary. Main focus was on increasing the role of the beneficiaries, and changing the role of
the government agencies from provider of goods and infrastructure to enabler of the
community to mobilize its own resources and capacity for solving problems. A new Policy for
Irrigation Management Reform
(PIMR) was formulated, based on extensive public
consultations, and officially endorsed by the president (April 1999). This was followed by
formulation of a manual for Irrigation Management Transfer (IMT) by all related government
agencies (August 1999).
This new PIMR was first tried out in a limited number of districts, acting as field laboratories.
Seven districts were selected, each with one scheme of some 1000 ha, where the method of the
IMT was tried out, intensively monitored by local universities, and shown to interested persons,
institutions and agencies. After one year the manual was updated based on these experiences, and
the laboratories expanded the number of schemes where IMT was tried out. At present, two years
after the activities in the field laboratories started, the principles are applied in all provinces with
high irrigated rice production, in 86 districts, 225 schemes with command areas of up to 5,500
ha,, covering a total area of 355,000 ha.
Moreover, a number of tools have been prepared for enhancing PIMR. This is mainly laid down
in manuals, which have been formulated while implementing the activities in the field
laboratories. Initial versions have been applied on a trial basis, and were adapted based on the
experiences. The initial approach is described in a manual for Participatory Rural Assessment
(PRA), comprising a joint walkthrough of the irrigation system, and discussion of the functioning
and shortcomings, concluding in agreements on what action is needed, and who is responsible for
that. Another manual describes formation or re-activation of Water Users Associations (WUA)
as well as WUA federations at secondary or primary level. Manuals for Participatory Design and
Construction indicates where decisions from farmers are needed before the next step in the
design or construction process can be taken. The manual for IMT is empowering the WUA as
decision makers (since 2000), while arranging responsibility for Irrigation Management through
Service Agreements between the district support agency and the WUAF (since 2001). Temporary
assignment of Community Organizers to willing WUAFs as catalyzing agents for reform,
recruited and supervised through local universities and Non Governmental Organizations (NGOs) is envisaged to catalyze the reform process among the government agencies and the WUAF,
and stimulate them to cooperate effectively, and gradually leave the process to themselves.
Innovative financing of O&M is envisioned through creation of demand based, matching funds at
1

Team Leader Irrigation Development and TurnOver Component in Java Irrigation and Water Resources
Management Project, of Ministry of Settlement and Regional Infrastructure, working with DHV
Consultants
2
Head of Sub-directortae West Java, Jakarta and Banten, Directorate Water Resources Management of
Central Region in Ministry of Settlement and Regional Infrastructure.
3
Head of Sub-directorate Technical Design, in the same directorate.

district level, with transparent allocation rules (Kabupaten Irrigation Improvement Fund or KIIF,
since 2001).
As such this approach provided significant contributions to a wide application of reforms for
more efficient and effective irrigation management. The multi-years, step by step process, started
with formulation of principles, followed by testing out and if necessary revising policies, and
using the sites and persons involved in the tests for disseminating the results. In this process the
implementing agencies and private organizations could gradually gain confidence with reform,
they could learn from each other, and later embarked on much wider and thorough application,
within a limited period of three years.

2. POLICY FOR IRRIGATION MANAGEMENT REFORM (PIMR)


Based on extensive discussions with participants from various government agencies, NGOs,
universities and private experts, which was enhanced by public consultations at National,
provincial and scheme level, the new policy was formalised as Presidential Instruction (INPRES)
3/99, comprising five principles:
1. redefinition of tasks and responsibilities of irrigation management institutions to ensure a
larger role for the farmer communities in decision taking;
2. empowerment of farmers through autonomous, self reliant Water User Associations
(WUAs), rooted in society, including formation of WUA Federations at Scheme level, as
well as representation of WUAF in Basin Water Resources Committees and Irrigation
Committees, and formal regulation of water rights to scheme level WUAFs;
3. transfer of authority over irrigation management to the Water User Associations, with the
principle of one system, one management;
4. finances to pay for operation and maintenance, rehabilitation and development of irrigation
systems will be collected and managed by the Water User Association of that system;
5. sustainability of irrigation systems through a general policy of water resources conservation
and controlled conversion of irrigated land.
These principles were worked out more in detail in the related Declaration on Irrigation
Management. These details are given in the next chapter.

3. BRIEF DESCRIPTION OF THE ELEMENTS OF PIMR


3.1 Redefinition of Tasks and Responsibilities
This comprises reorganization of functions and responsibilities of all irrigation institutions, both
private and government organizations, to give a larger role to farmers as the primary decision
makers for irrigation management. Re-structuring of the Provincial Irrigation Services and
related organizations will change the mandate from direct implementation of O&M to providing
regulatory and support services according to the preferences of the farmers. Proper functioning of
the irrigation system would be enhanced through annual technical audits, indicating where such
support is still needed. A change in mission, creation of new consultative bodies with farmer
representation, staff re-deployment plans and related training, as well as reorganization of
financial arrangements are key issues requiring issuance of new decrees and guidelines.

3.2 Empowerment of Farmers


Water users will be empowered to take control over irrigation management through. Water Users
Associations (WUAs) and/or larger WUA Federations (WUAF) with legal and political
autonomy. These organizations will be self-reliant and be based on local socio-cultural
conditions (as opposed to be driven by top-down administrative edicts). Farmers and WUAs will
also have the right to develop agri-business enterprises as legal entities. It was also clarified that
the WUAF may federate up to the level of an entire irrigation scheme (one system, one
management) and have the legal powers to require water users to pay irrigation fees, to enter into
binding contracts, to sue in court of law, and to own assets.

3.3 Irrigation Management Transfer


Responsibility and authority for management and financing of all irrigation systems in Indonesia,
without restriction in size, will be transferred in a phased and democratic manner to WUAs. The
key concept is: one system, one management. As long as WUAs (or the WUA Federations,
WUAFs, but WUA is used here generic), are not yet capable or willing to take over management
and financing of O&M for an entire irrigation system, the system could be managed jointly by
Irrigation Services and WUA. At present WUAs are already fully responsible in the tertiary
systems. They are taking over authority in the secondary systems and smaller primary systems up
to 5,500 ha, while responsibility for service delivery is still under joint management. Transfer of
larger systems is presently not considered, and may become the responsibility of Water
Resources Authorities, such as the ones existing for river basins Brantas and Citarum, and in
preparation for many other river basins in Indonesia.

3.4 Restructuring of Finances to pay for Irrigation Management


Collection, management and use of funds for irrigation management, including Operation and
Maintenance as well as Rehabilitation and Upgrading, has become the responsibility and right of
WUAs. The Irrigation Service Fee (ISF) will be implemented for all systems throughout
Indonesia, but funds are collected, managed and used by the WUA, not anymore transferred to
the governments revenue department. It is clearly stated that the WUA will have the right to set
their own fee level, and keep and use the funds at their own preference.
The policy that WUAs would be primarily responsible for financing rehabilitation and upgrading
was a major change, and it remains to be seen what financing mechanisms will develop to
implement this policy. Generally, the fee level set by the WUA and the needs of the irrigation
system for sustainable use show a huge discrepancy, and most officials assume that this entails
some matching assistance from the government. The reform groups and consultants are analyzing
options for creating new financing mechanisms. Aim is to replace the former approach of
periodic, externally financed, rehabilitation projects, which appears to be less effective and
efficient, by a system with incremental improvement, whereby the WUAs could implement
smaller, modular improvements on a year-to-year basis, with partial assistance from a districtlevel revolving fund. Other financing arrangements are considered, particularly those in the
private sector.
The reform program requires establishment of periodic technical, financial and organizational
audits, for sustainable use of the irrigation system, also linked to WUA eligibility for future
assistance from the government. It is envisioned that the audits would evaluate the functioning of
the irrigation systems, the performance of the WUAs, and the provided and required government

assistance and support services. This is being arranged through explicit irrigation management
service agreements between the WUA and local government support services.

3.5 Sustainability of Irrigation Systems


Policies and laws will be issued to conserve water resources, and to protect against unregulated
conversion of irrigated land to other uses. Conservation of water resources is especially required
in the upper catchment areas, where water holding capacity in soil and vegetation is seriously
threatened. Socio-technical measures are taken to enhance a conducive environment through
limiting new settlements, promotion of social forestry and planting of tree crops, limiting erosion
through gully plugging and bank protection etc.
Conversion of irrigated land is estimated to be between 10,000 and 20,000 ha in Java each year
in the period 1987 - 1997. This trend poses a major threat to Indonesias self reliance in food
production and the integrity of WUAs. Water rights to WUAs may limit these conversions.
Studies are done within the POKJA-WATSAP and JIWMP to have more data available, and to
develop a new water law granting clear water rights to WUAs.

4. FIELD ACTIVITIES AND FINDINGS


In order to gain more experience with the new approach four provinces initiated field
laboratories in selected districts, to create sites for a realistic and visual learning process. These
field laboratories should not be viewed as pilot areas, since the process of transfer to WUAs
will not be stopped anymore. It facilitates learning by doing, not only for water users, but also
for government staff in the system as well as in the local government, and helps in visualizing the
problems and disseminate the lessons learned. The Java Irrigation and Water Resources
Management Project (JIWMP) funded by the World Bank provided support for these activities.
In the field laboratories various support agencies started to work together with the water users
in managing the irrigation systems, and handing over the authority over the irrigation
management to the WUA. This started first with an intensive exercise to find out the capacities,
preferences and priorities of the water users. Next step was to empower the existing organization
of Water Users and assist them to form bigger federation, more capable to handle all matters
concerning the whole system. Next was a considerable rise in contributions for operation cost, to
employ the gate keepers and contribute to maintenance. This has been implemented for one year
now, with promising results. Three local universities have done intensive monitoring and
evaluation, and their finding have been discussed in workshops with the officers and WUA
representatives, while also the above mentioned Water Resources Reform Group (WATSAPPOKJA) including interested NGO-s participated.
The results in the field laboratories are as follows:
First official transfer of authority over Irrigation O&M in scheme > 500 ha in Pehngaron
scheme, in Mojokerto, East Java, followed by ten other schemes in the field laboratories of
Java in period July - August 2000. In these schemes joint operation started, based on service
agreements, where WUA decides on priorities and preferences (including cropping plans)
and the Irrigation Services still provides support in water allocation and maintenance based
on the decisions of the WUA.
Conflicts between farmers cultivating land in the upstream sectors and those in the
downstream sectors have been solved by mutual agreements. As such areas planted under

rice during the third dry season in upstream parts of schemes have been reduced, in order to
have more water available for secondary crops in the downstream parts;
In one scheme the golongan system (staggering of planting dates) has been changed from one
starting at the upstream end to one starting at the downstream end, in order to allow the
downstream farmers to have a more mature crop on the field when annual flooding starts;
Empowerment of the WUA (especially through the WUAF) materialized: in Magelang the
WUAs organized themselves and deliberated with the Pulp Industry polluting the canals to
construct treatment ponds for the polluted water discharged from the factory and this was
implemented by the factory recently; in Kulon Progo the WUAF took over personnel from
the Irrigation Service to operate the system, after public funds for daily labourers had been
curtailed.
in some districts part of O&M funds have been transferred to WUAF..

5. FURTHER DEVELOPMENT OF TOOLS


5.1 General
Further development of tools for PKPI is done using the approach sketched above, through
learning by doing, gaining experience and creating demonstration sites, enhancing the five
principles of INPRES 3/99. This is done for the following activities:
a) Needs Assessment for WUA with Participative Rural Appraisal (PRA) approach, aiming
at efficient planning of project activities according to identified demand and incremental
approach, as well as to formation of WUA Federations at secondary and primary level
(since 1999, see also 1);
b) Formal legalization of scheme level WUAF, empowering them to collect and manage
irrigation fees from their members and engage in contracts with government agencies;
c) Strengthening the capacity of WUAF in water management, planning and budgeting
O&M, accountability to members and financiers, handling conflicts etc., enabling them
to improve efficiency of the irrigation system, and take up a bigger role if necessary;
d) Participatory Design (since 1999) and Construction (since 2000), enhancing the role of
farmers as decision makers, their sense of belonging, and creating possibilities for
farmers to do (part of) the work themselves;
e) Transfer of Authority over Irrigation Management in medium sized irrigation systems
from the district to the WUAF, empowering the WUAF as decision makers (since 2000),
while arranging responsibility for Irrigation Management through Service Agreements
between the district support agency and the WUAF (since 2001);
f) Temporary assignment of Community Organizers (CO) to willing WUAFs as agents for
reform, recruited and supervised through local universities and Non Governmental
Organizations (NGO-s). The CO is envisaged to catalyze the reform process among the
government agencies and the WUAF, and stimulate them to cooperate effectively, and
gradually leave the process to themselves.
g) Innovative financing of O&M as well as investments and human resources development
in irrigation management through creation of demand based, matching funds at district
level, with transparent allocation rules (Kabupaten Irrigation Improvement Fund, KIIF,
in process since 2001).
Initial concepts have been formulated in 11 manuals and are now further developed. Some more
details for part of these activities are given in the next sections.

5.2 Participatory Design and Construction


Participatory design has been implemented since 1999. It comprises at least three consultations
with farmers, as indicated in the graph. The first discusses preferences and priorities of the
farmers, the second the proposed system planning and the third the proposed detailed design and
tender packages. An incremental approach to irrigation improvement is preferred, comprising a
multi-year program for gradual improvement, because this can better be controlled by the
farmers, they can contribute more through own labour and participate through direct contracts,
works with different priorities can be implemented in different years, and good performance can
be awarded.
Participatory construction has been implemented since 2000. Procedures include the preconstruction meetings to inform the farmers concerning the planned construction, allow revisions
to a certain degree, and to introduce the contractor to the farmers, so that they can communicate
more directly with each other, and farmers feel more encouraged to involve in supervision.
Commitment of the farmers for O&M of the tertiary systems is documented. For 2001 a precondition is that the authority over O&M has been transferred to the farmers before construction
starts. This has not yet been implemented everywhere (see annex A.7). In principle also service
agreements between the irrigation service and the WUA will be arranged, which spells out
clearly the responsibilities and obligations of each party in the coming years.

5.3 Community Organizers (CO)


In order to catalyze the Irrigation Reform process, especially the empowerment of the WUAF,
the programme for Community Organizers (CO) has been developed. In principle the CO will
assist WUA and WUAF to start empowerment, implementation of PIMR, and have better
communication with the various support organizations. A Training of Trainers for CO
coordinators was held during two weeks in Yogyakarta in November / December 2000.
In the permanent situation the COs tasks are done by the village support group (KPL),
comprising an irrigation officer, agricultural extension officer and a development officer from
local government. The CO only helps to enhance introduction and implementation of reform,
which is different from the approach applied in the Philippines. The CO is a temporary feature to
provide advice and information, and to mediate between the different parties involved, and after
some time the KPL will take over. As such it is important that the KPL is trained also under the
CO programme.
Procurement is through local universities and NGOs, who will provide technical supervision, and
continuity for the COs. Assignment of the COs is in principle to one or two WUAF, and on a
temporary basis only. In North and West Sumatra the recruitment starts by asking the WUA to
propose suitable candidates for COs from amongst themselves. In West and East Java this was
done by asking eligible candidates (candidates with B.Sc, from the neighborhood) to react to
advertisements (1500 applicants vied for 60 - 80 positions). In both cases the selection of the
suitable candidates is with the district reform group (POKJA), also comprising non-government
representatives.
In general the COs should assist the WUA at their request, and they should be well trained to
provide support as needed by WUA. Guidance of COs, bringing lessons for general attention and
general quality control on the CO programme is difficult because their working area is so
dispersed. Since Province and Local Universities / NGOs are contractual parties, it may be
advisable to make the district services the monitoring party, against agreed monitoring indicators.

5.4 Kabupaten Irrigation Improvement Fund (KIIF)


The ideas concerning KIIF evolved from new ideas concerning financing O&M (incl.
rehabilitation), incremental improvement and empowerment of WUA during a workshop in
Yogyakarta (March 2000). Principles were that funds should be allocated based on demands
from the users, through transparent procedures, recognizing past performance and contributions
by the users, and preferably available throughout the year (not based on project funds, which
become normally only available in the middle of the financial year). The procedures for the
Kecamatan Development Project (World Bank assistance) are a good example for such a fund.
General guidelines for participatory O&M were formalized in August 2000. A draft manual for
further development of KIIF has been prepared by a small working group and discussed during
several workshops, and Dr. D. Vermillion also contributed to this. These guidelines state that in
principle the WUA/F provides all the funds for O&M. The government may still provide
financial assistance as a stimulant, but only on demand of the WUAs, and funds should be
allocated in a transparent way, based on a dialogue with all stakeholders. Official endorsement
has not yet been done. However, under the existing decentralization laws the districts may
implement (parts of) these ideas without permission from higher levels for their own funds.
The principles are:
1. WUAF collects its own resources (1) and makes a joint assessment of the needs of the
irrigation system (2) together with the irrigation service. If available resources match the
needs the WUAF can arrange its own O&M. If not, first negotiation is needed: (3a) is it
possible to reduce the needs (postpone to next year, use lower standards) or (3b) is it possible
to increase contribution of water users? Only if after both these steps resources and budgets
do not meet (on acceptable grounds), the WUAF may approach the district authorities for
assistance (3c).
2. WUAFs submit requests for funds (4) in three categories: a) Human Resources Development
(SDM, training etc.), b) small expenditures for urgently required repairs (stimulan), and c)
irrigation improvements (perbaikan, usually larger sums).
3. Only WUAFs which have taken up authority over irrigation management are eligible for
requests, and only when they have not been misusing funds in the past.
4. The requests are assessed on their necessity and viability before submission to the awarding
committee. The requests for SDM and stimulan may be assessed quickly, but the perbaikan
needs a more thorough technical and economical assessment e.g. through participatory
design.
5. The awarding committee will meet probably four times a year. They will allocate the funds
partly based on the necessity and viability assessment, and partly on the past performance
and contributions of the WUA. Based on these considerations a priority ranking is done for
allocation of available funds. For perbaikan approval may be in two steps, the first to provide
funds for participatory design, the second for physical implementation.
6. The review committee will comprise the POKJA-PKPI, comprising not only government
staff, but also representatives from the farmers.
7. The funds will become available from several sources. This may come from the National,
Provincial or District funds, or from contributions by private organizations and persons. In
principle the present funds for all activities in irrigation management and improvement will
be channeled through this fund. However, the cost of the water resources management
organization at central, provincial and district level will be allocated with first priority.
8. The funds will be available throughout the year. The government agencies will disburse the
funds on annual basis into the fund, but disbursement from the fund to the water users may

be done at a different time. The result should be that the funds are not depending on annual
budgets.
6. CHALLENGES FOR THE NEAR FUTURE
The challenges for the near future is to create general consensus that PIMR is necessary and
provides benefits for all. The experience from the field laboratories proved that Cropping
Intensity and yields can be raised by adapting the cropping pattern and sharing the water
resources better. Other points of challenge are to define objective indicators for successful
reform, and define benchmarks for measuring benefits.
The first focus should be on the supporting agencies, who have to change from providers to
enablers. Workshops are held in each district to explain the principles of the irrigation reform,
why it is necessary, and what are the potential benefits. A visit to a nearby field laboratory is part
of this workshop. Several persons receive training on how to implement more service oriented
support, and to motivate peers on implementation of reform. After irrigation management
transfer the irrigation service will provide services to the WUAF, who has the authority to
indicate preferences and priorities. For this they will prepare a service agreement with the
WUAF. At the other hand the irrigation service will implement annual technical, institutional and
financial audits, to monitor how the irrigation system is functioning and where assistance is
needed.
The second focus is the WUAF. This organization is to be empowered to become the main agent
for irrigation management. They will employ technical personnel, formerly employed by the
government on a daily basis. They may collect fees from water users, and spend it as they want.
But they have to be accountable to their members, and if they use public funds they have to
provide evidence that the money has been used according to the intentions. As such the board
members receive training in how to present their reports to the members and the local
government. A good indicator for the trust of the water users towards the WUAF is how much
irrigation service fee has been collected. If this is very low, usually the WUAF has not much
rapport with the members. The annual audits also provide clear indicators concerning the
prospects for sustainability of the irrigation system.
The third focus is the transfer of authority. This is the main instrument to make the arrangements
concerning roles and responsibilities clear. The irrigation service is not anymore in charge, but
providing service to the WUAF. The WUAF has the authority to indicate preferences and
priorities, but they have be accountable to their members, and have to comply with the
requirements of the annual audits. The service agreements prepared and results of annual audits
to become available next year will show how successful these arrangements are.
The fourth focus is the finances to operate the system, and to maintain this in good condition. At
this moment the WUA is generally responsible for O&M of the tertiary system, while the
government is responsible for the secondary and main system. But water users are frequently
assisting in small repairs, cutting of grass and de-siltation by mutual self help (gotong royong),
because the funds from the government are generally insufficient. Larger repairs are
implemented through projects, which mainly comprise deferred maintenance. This implies a
perverse incentive, because projects usually provide extra benefits and hence stimulate
negligence of routine maintenance.
The Kabupaten Irrigation Improvement Fund (KIIF) tries to amend this. All funds in the district
available for O&M should be channeled through this fund. All eligible WUAF may apply for
assistance, based on proposals which clearly describe purpose, costs and expected benefits, as

well as own contributions of the WUAF. Eligible WUAFs are those with the proper legal status,
with authority over irrigation management and with good performance according to the annual
audits. As such this arrangement stimulates proper maintenance and own contributions from the
beneficiaries.
The difficulty with the KIIF is how to allocate annual funds for each district. Should this be
based on the experience of the past, based on actually irrigated area, based on funds available in
each district or with the WUAFs? Another problem exists when the system crosses district
boundaries. Difficulties exist also where transfer of authority over irrigation management has not
been handed over yet in all schemes. Therefore it was suggested to postpone application of the
KIIF until this has been effectuated in all schemes of this district. Some initial application on
experimental basis could be allowed where clear rules are available. The manual for KIIF should
also incorporate participatory design and participatory construction, especially for the larger
expenditures involved for perbaikan. The ideas concerning incremental improvement have been
incorporated in participatory design and construction, which emphasize a multi-years plan for
gradual improvement of the system according to the priorities of the stakeholders and available
means. It will also provide tools for rewarding those organizations which make the best use of
the provided funds, and sanctions against poor performance..

Graph 2
Bagan Alir Kegiatan SID Dan Pelaksanaan
K tJaringan
ki
Perbaikan
Irigasi Dengan Pendekatan
P ti i ti

CONSULTANT

TIME

WATER USERS TRAINING PROJECT

START

January
2000

TRAINING SUPPORT STAFF

TIME

PRA

April

Start field activities

May

Joint Walk Through & Discussion

June

Draft Layout

June

Discussion & Trade off

July

Draft System Planning

July

Discussion & Trade Off

Aug
Sept

Institutional Profile

(Re) Formation of WUA


Formation of WUAF

March

Articles & Rules

April
May

Legalization

June
July
August

Training WUA/WUAF

Final System Planning


- Draft Design
- Draft O&M Plan

September

Discussion & Trade Off

Oct
Nov

Dec

Socio-technical profile

February

October

- Final Design
- Final O&M Plan

Work Program WUA/


WUAF

Planning/prioritization of work
to be done

November

Joint Walk Through


Discussion actual status and
proposed packages + adaptation

TIME

Tender Process

March - May
2000

Appointment of
Construction Supervision

Strengthening of WUA/WUAF
+ Training

Training Construction Supervision

Training in Construction
Supervision

Supervision

Supervision

Pre-Construction meeting

Supervision

Supervision

Construction Implementation

Supervision

Contribution from farmers

Trial Run

Supervision/
joint walk through

Joint walk through

Joint evaluation of
system and works
implemented

Training in O&M

June
2000

Appointment of Construction
June
2000

July
2000
October
2000
NovemberDecember
2000

Commissioning

Joint Management O&M


CONTRACTOR

Management by WUA

Sustainable system

Proposed of Packages still


to be implemented
Sequence of
A tivities
Coordinati
on

Graph 3.

Funding Mechanism for O&M


On demand and transparant accountable
WUA ORGANIZATION

DISTRICT GOVERNMENT
KIIF
Kabupaten Irrigation Improvement Fund

Iuran P3A/
Gab. P3A
+ IPAIR

Gotong
Royong

HRM
Fund

Routine
O&M
Fund

Irrigation
Improvement
Fund

(1)
Local
Bank

Need based
budget

Management
Gab. P3A

(2)
(4)
(3)

3a No (negotiate NBB)

Funds
Sufficient ?

3b No (increase constribution P3A)

Ya

3c No
(request to
Kabupaten)

Deliberation
at Kabupaten
committe
(5)
(6)

Yes
(Founds from P3A + subsidy Kab = 100 %)

Agreed ?
6b No

O&M
100 %

O&M
< 100 %

6a No
Increase
Contribution
P3A

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