PJT I was established before decentralization reforms took place, under a different set of interests than local autonomy. That its assets have not been transferred has not been challenged. On the other hand Provincial Government may not wish to exercise ownership over the assets because of financial needs for the upkeep of the infrastructure. PJT I’s long-term master plan (1999-2020), prepared with JICA’s assistance, indicates that PJT I would like to expand its responsibilities. One recommendation is to discontinue the Brantas Project Office and take on its role. It would also like to assume the role of the Volcanic Project Office, which is another central government line agency. PJT I has the legal basis for taking these responsibilities on, but implementation is dependent upon financing and viability to receive sub-loans. The question would remain if PJTI can be an effective water manager while taking on the role of implementing major water and volcanic debris control infrastructure as recommended by the JICA study. Also, MPW has had a longstanding role in water resources infrastructure development and has not been interested in devolving this function.

Expanding its core responsibilities in a realistic manner gives PJT I greater influence as an official basin management entity, using its expertise to assist the Central Government in managing other strategic basins. Through a Presidential Decree in 2002 the PJT I has been given the additional responsibility to manage the Solo River Basin that straddles East Java and Central Java provinces, which may later be spun off as a BUMN Corporation. PJT I staff conduct their activities with the understanding that PJT I is a pilot whose model will be proliferated if successful. This perspective justifies central government authority of PJT I, as they see the central government jurisdiction as better for transferring knowledge from the PJT I pilot to other basin projects.

# **_8.3 The Province_**

Provincial agencies are interested in increasing their budget and authority in water resources management. Their interests are larger in scope as they coordinate and regulate many operational tasks. As such, they are currently financially limited to deal with basin management. However, according to the new Water Law, river basins that lie inside a province and are not nationally strategic should be managed by the Province, and Provinces throughout the country are interested in eventually being able to manage their basins and generate water service revenue through regional basin management corporations (BUMD). They are wary of central government interests to dominate river basin development in areas of greater revenue raising potential, which circumvents their opportunity to receive funds. However, the Provincial Governments do not currently have the capital to fund the BUMDs. As such, while the central government has plans to create four more PJTs (Bengawan Solo, Serayu-Bogowonto, Jratuseluna, and Jeneberang) it must do so with an ear to Provincial-level support and legitimacy. It is more politically viable at this time to have branches of PJT I operate in these river basins for short periods, given its financially prudent track record, than to create new organizations, such as a PJT III. Provinces should be given time to decide on making these into BUMD PJTs or permit central government to upgrade these PJTI branches to become independent BUMN PJTs.

Though decentralization reforms have transferred operational-level authority to regional governments, the central government maintains a large degree of control over policies to guide operations. The Ministry of Public Works has been long involved in 40