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Jakarta Post

Reviewing the controversial coastal water concession plan

Law No

I Made Andi Arsana (The Jakarta Post)
Jakarta
Fri, November 21, 2008

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Reviewing the controversial coastal water concession plan

Law No. 27/2007 concerning the management of coastal areas and small islands is now more than one year old. When enacted last year, it was revealed that 21 regulation packages were required for its implementation: Four government regulations, six presidential decrees, and 11 ministerial decrees. As might have been guessed, some of these deadlines have now passed. However, the mission has not yet been accomplished.

Apart from its complex arrangement and the need for many supporting regulations, the issue of coastal water concessions Hak Pengusahaan Perairan Pesisir (HP3), governed by the law does spark controversy.

HP3 is a policy that enables certain parties (individuals, legal entities and customary communities) to obtain rights to utilize coastal waters for specific purposes (Articles 16-18 of Law No. 27/2007), which are normally commercial. The idea is basically positive since it is intended to bring balance between rights and obligations in the utilization of coastal areas. However, the consequences do not seem to be as simple as it was seen at the beginning.

It is very easy for the layman to relate HP3 to the infamous forestry concession Hak Pengusahaan Hutan (HPH). Many questions have been asked by laymen and experts. Will HP3 meet with the same failure that HPH has so far? Can HP3 really protect traditional fishermen in competition with large, money-rich enterprises or businesspeople? How will HP3 acknowledge and conserve the customary practices that have existed for generations? This list of questions may indeed be endless.

Prior to giving a concession to relevant parties, four critical tasks must be done: A strategic plan and a coastal area zoning plan must be established, as well as a development plan and a plan of action. These four critical steps are required to define zones in coastal areas for different suitable activities.

These four steps are needed in order to define locations in coastal areas suitable for fisheries, tourism and conservation, for example. Different zones will be created in coastal areas for different utilization purposes. Interestingly, the four critical tasks have also been assigned to local governments (provinces and regencies/cities). Meanwhile, the central government (ministry) will take care of other areas beyond the local government's jurisdiction.

The very first critical question to answer is whether local governments have the adequate capacity and capability to carry out these four tasks? While some local governments might have good resources, undoubtedly most of them will face difficulties with regard to the availability of adequate human resources.

The question is not the way the law is drafted but the feasibility of its implementation. How can a province or regency come up with a good coastal water utilization plan without adequate human resources to conduct serious studies, experiments and examinations?

HP3 is not something that we can easily find in many places in the world. Consequently, there are not many worldwide benchmark examples we can research. Simple speaking, such a proposal is not yet well proven. It is not easy to find such an arrangement as HP3 in other coastal countries.

Therefore, should Indonesia propose such an arrangement, intensive research and studies must be conducted. In addition, a small-scale, closely monitored prototype should be implemented prior to nationwide implementation. Areas such as economic feasibility, social impacts and environmental consequences need to be critically assessed prior to making decisions.

The possibility of resource competition between traditional people and monied enterprises is also a concern. The law, indeed, mentions that HP3 will be implemented with strict requirements and in consultation with local communities so that rights are guaranteed.

However, the unfamiliar complex procedure is prone to misconduct, since traditional people, in particular, might not be aware of all the processes. In addition, the commitment and integrity of the people in charge of the process are also, frankly speaking, questionable. Are we ready to monitor the complicated process and ensure everything is in order?

Considering that the authority to grant HP3 is also with local governments (provinces and regencies/cities), it is critical to resolve issues of maritime areas between jurisdictions prior to implementing HP3. According to Law no. 32/2004 concerning local government, a province is entitled to a 12-nautical-mile maritime area measured from its coastline (baseline) and one third of it is for districts/cities in that particular province.

Without clear spatial authority on maritime areas, how can provinces or regencies/cities provide concessions to other parties? It seems there is a very long way to go.

The writer is a lecturer in the Department of Geodesy and Geomatics, Gadjah Mada University, Yogyakarta. He is currently an Australian Leadership Award Scholar (PhD candidate) at the University of Wollongong. This is his personal opinion. He can be reached at madeandi@ugm.ac.id

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