Compensation Schemes for Resettlers in Indonesian Dam Construction Projects

Abstract

The performance of previous involuntary resettlement schemes for dam construction projects leaves much to be desired. The question to be asked is whether the present policy of development aid agencies is appropriate for countries where more dams will be built. This study examines the applicability of Japanese “soft technologies” to determine whether the existing policy is really instrumental in mitigating impacts. The study was carried out through analysis on Saguling and Cirata dam construction projects on the island of Java, Indonesia, in which 3,038 and 6,300 families were resettled, respectively. The emphasis of resettlement plans for these dams was on transmigration and aquaculture. The following findings were made: land-for-land policy was not fully met; transmigration schemes did not work as planned; resettlers failed to enjoy the benefits from aquaculture development fully due to the high capital needed; employment by dam construction projects was limited; and insufficient capital and training prevented resettlers from enjoying profits from secondary development. Lessons learned included: some mechanism should have been established for those who changed jobs from agriculture to other sectors; provision of urban land rather than farmland, as has been practised in Japan, should have been considered; and establishment of funds, as practised in Japan, should have been pursued. Such funds may be used for enhancing the infrastructure of the project area to promote secondary development for the purpose of creating new jobs for resettlers. It may also meet unexpected expenditures incurred after completion of a dam. Funds could also be utilized to give construction firms monetary incentives to employ resettlers. The creation of funds may be instrumental in safeguarding job security of resettlers.

Keywords:

• Cirata dam
• Indonesia
• Japan
• Java Island
• resettlement
• Saguling dam