Transitioning from Land- to Water-based Economy: Lessons from Waduk Jatigede  

Pamela L. Booth*
 
Environment and Natural Resource Economics Department
University of Rhode Island
Kingston, RI 02882 USA
PamelaBooth@uri.edu

Waduk Jatigede is an estimated 41,2 km2 man-made lake displacing 4000 to 8000 households across 58 villages in five districts. While the benefit of the lake may outweigh the cost on a national scale with water from the lake irrigating 900 km2 agricultural land downstream increasing rice production several times over, the cost of the lake is felt more locally by those displaced households with loss of income, property, and community. This unequal distribution of costs and benefits is not unique to the Waduk Jatigede project, but many lessons can be learned from it for transitioning impact communities from land- to water-based economy.

Stakeholder meetings at different levels of the project revealed a range of expectations for future uses of the lake from floating cage aquaculture to ecotourism. While some groups had strong preferences, and expectations, of future uses others had strong oppositions to various uses. A common thread through these meetings was the desire to use the project as a catalyst to improve the economic wellbeing of the communities in the inundated area. However, these desires are constrained by human and financial capital limitations and by environmental factors (i.e. aquaculture carrying capacity).