Model for Optimal Investment for Irrigation Projects in Bengkulu Province, Indonesia

Abstract

ABSTRACT An integer goal programming model is developed for the selection, scheduling and budgeting of irrigation projects in Indonesia. The model is a multi-objective approach which takes into consideration not only economic efficiency objectives but also objectives related to Indonesian agricultural development policies. The non-economic objectives include: maintaining self-sufficiency in rice production by both intensification of existing production through upgrading of existing rice fields and by extension through development of new rice field areas; stimulating regional development, and; supporting the transmigration program. The criteria by which each of these primary objectives are assessed incorporate socioeconomic measures, such as the readiness of farmers to utilize newly developed agricultural areas fully, the experience and ability of farmers to exploit new technology such as technical irrigation schemes, and the extent of existing rice fields in the new development zones. Since the budget available for these development projects has become increasingly limited in recent years the model also examines which of the projects currently under construction should be continued under a priority system which includes these factors together with the amount of funding already expended. The model is demonstrated by application to a planning problem in Bengkulu province in Indonesia.