An input-output approach to estimate the sectoral water footprint in Indonesia

Examining a country's water footprint and underlying factors is essential to understand water resource problems and challenges. In Indonesia, along with the rapid economic development and population growth, the water crisis problem is suspected of gradually increasing. Limited information and statistics regarding water use result in minimal water monitoring in the country. It is also still unclear which sectors need to be prioritised and what efforts can be taken to anticipate a further water crisis. This study attempts to estimate in more detail the amount of water used during the production process in Indonesia. Using the concept of water intensity and water footprint and using information on economic structure for a decade, this study detects which sectors have the highest level of inefficiency in water use and then explores which aspects cause this high inefficiency. From 2005 to 2016, the estimated total water intensity value decreased, indicating an increase in water use efficiency. To see whether the increase in efficiency is followed by more efficient water use, sectoral water consumption is estimated using the water footprint approach. After estimating the water footprint, it is found that in some sectors, the increase in efficiency was followed by an increase in the amount of water used, better known as the Jevons paradox. The three sectors that experience the most serious Jevons Paradox are the plantation, horticulture, and livestock sectors, as these sectors have a high level of gross water and virtual water footprint. It is anticipated that if no action is taken to increase efficiency, it will result in a waste of resources and a drain on the national budget, as the government may need to spend additional funds for the 'water budget' when producing commodities.