Upstream and Downstream Institutional Partnerships in Cidanau Watershed for Domestic and Industrial Water Supply

Abstract

Upstream and downstream institutional partnerships in Cidanau watershed has been built in 2005 using payment for environmental services (PES) approach. Among stakeholders, partners involved in the mechanism are Krakatau Tirta Industri (KTI) Company as a water beneficiary for commercial use and up-stream farmer groups as a service provider, and facilitated by a multi-stakeholder watershed forum namely Forum Komunikasi DAS Cidanau (FKDC). The farmers were paid for their role in conserving land and maintainance of tree stand in accordance with number of trees and contract period which is agreed by both parties. The study aims to formulate partnership institution which is intended by both parties for the sustainability of Cidanau water supply. This is a qualitative research with a case study approach. Data analysis in general was referred to Institutional Analysis Development (IAD) developed by Ostrom (2008). This research applied purposive sampling and snowball sampling. The result of the research shows that majority of land ownership of the involved farmer are private property which is cultivated to meet their daily need. In the first period of contract (2005-2009) there were 4 farmer groups involved but 2 groups cease to be a member of PES, and in the second period (2010-2014) there were PES groups signed the contract including extended groups. Improvement is necessary in order to achieve optimum benefit of Cidanau water supply and involving parties in PES. Apart from the mechanism rule, institutionalization of FKDC needs to be improved and strengthened in manifesting partnership institution of Cidanau water supply. The necessary approach to prevent contract discountinuation in other village as has been experienced in Cibojong and Kadu Agung Village are a) individual approach for heterogenous types of farmer communities, b) establishment of village alternative financial institutions, c) due to thinning on number and certain diameter of trees, d) assessment of the incentive to farmer groups as environmental service providers.