Water Tenure Security for Palm Oil, Hydropower, and Geothermal

Abstract

Oil palm plantation, hydropower and geothermal depend on water to sustain their operations. This paper will analyze two factors affecting its water tenure security: how water is allocated in the legal framework and the relative strength of a particular tenure against other tenures. The case study areas are the Kahayan Catchment (Central Kalimantan) and the Citarum Catchment (West Java). This paper applies FAO's analytical framework: elaborate tenure typology, map water uses and weigh the security of the particular tenure with some modification. We find that the water tenure security for oil palm is weak since it sits at the bottom rung of the allocation framework. We posited that environmental water use, especially for the prevention of forest fires - as well as water, uses for daily basic needs would be prioritized over commercial water use for smallholder oil palm farmers or corporate oil palm. Furthermore, customary water tenure, although weak in the legal sense (de jure), can be strong in terms of practice (de facto); this could diminish oil palm water tenure security should there be an overlap or intersections among them. Water tenure security for hydropower is "weak to medium"- but this depends on whether they are related to investment schemes that could strengthen their tenure legally. In the legal framework, the allocation for hydropower is prioritized below daily basic needs, drinking water utilities, and smallholder crops. Following a legal analysis, we find that the strength of water tenure for geothermal in conservation area is weak.