The cost and value of participation in water governance A case study of Indonesia

Climate-related floods are on the rise globally and are frequently addressed through quick technical solutions. However, floods are not only technical issues; they are socio-environmental challenges that require inclusive governance. This dissertation examines how the costs and value of stakeholder participation shape decision-making in different problem structures within multi-level flood risk governance in Indonesia.
While participation is generally favoured in policy and academic discourses, three gaps remain: how participation costs are understood and accounted for; limited consideration of the relationship between participation costs and value; and little understanding of how participation funding may reproduce existing power inequalities. To address these gaps, this study combines a systematic literature review, policy document analysis, 95 interviews across governance levels, and a survey of 105 respondents in Surakarta. The Split Ladder of Participation (SLP) model is used to analyse participation in structured and moderately structured water-related problems.
The findings indicate that participation costs—both tangible and intangible—are rarely institutionalised in governance frameworks. Governments often adopt cost-minimisation approaches, covering their own direct costs while overlooking stakeholders’ direct and indirect burdens. At the local level, more intensive participation in moderately structured problems entails higher costs but can also yield greater perceived value, particularly when communities take ownership of the process. The study concludes that failure to recognise and budget participation costs undermines inclusive development and calls for clearer funding mechanisms, cost-sharing arrangements, and monitoring indicators to support equitable participation in water governance.