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Development of Water Rights in Indonesia

— One objective of Indonesia’s 2004 Water Law is to establish a uniform system of water use rights.The law distinguishes between water usage for basic needs and noncommercial purposes, including domestic uses and small-scale “people’s” agriculture; and exploitation, including industrial, municipal, hydropower, and commercial agriculture. The former uses are entitlements requiring no formal permit, and the latter require formal licensing for specific uses of water. This chapter outlines the legal and conceptual framework for water use rights in Indonesia; describes key aspects of rights enacted in the new water law, including differences between usage and exploitation rights and prohibition of transfers of water use rights; presents an illustrative example of water allocation management in the Brantas Basin; and then looks at water use rights as property rights and human rights.