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Action-learning to develop and test upstream-downstream transactions for watershed protection services: a diagnostic report from Segara River basin, Indonesia

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Developing markets for watershed protection services and improved livelihoods.
Water resources in Indonesia face increasingly complex management problems, associated with deterioration in water availability, quantity and quality. Policy to date has emphasized utilization of water. At the same time landslides, soil erosion and floods
have increased in numbers, areas and losses. People who live in watershed areas are usually expected to bear the cost and risks of watershed management. Meanwhile water users tend to have little understanding of the need for, or means of, watershed
protection. In general there are no direct links between the water charges paid by downstream users and investment in watersheds upstream. Inadequate payment mechanisms for watershed protection services and weak law compliance can threaten hydrological functions of watersheds. Moreover, rising demand for water and
increasingly complex management problems will lead to deterioration of food security and public health, and constrain Indonesia's economic development.
The goal of this action-learning activity is to promote maintenance of water services that support local livelihoods. The purpose is to increase understanding of the potential role
of market-based approaches in promoting the provision of watershed services for improving livelihoods in Indonesia. In order to provide a basis for further implementation of the project, the objectives of this inception phase are to selec t a site for the study, obtain baseline data, produce a diagnostic, and set local action in motion.
Primary data were collected through interviews, participatory rural appraisal, and a regional workshop. Interviews on issues related to the action-learning focus were conduced with various people in both villages and concerned regional offices.

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