Application of the Analytic Hierarchy Process (AHP) in the Selection of River Basin Organizations Models in Toba Asahan River Basin - Indonesia

Abstract

Toba Asahan River Basin development started in 1976, based on ??the Master Agreement between the Government of the Republic of Indonesia with Japanese investors who signed on June 7th 1975 in Tokyo for development of Asahan Hydro Power Electric and aluminum smelting factory belonging to the project Asahan under the supervision of the Asahan Authority. Government policy declared that the Master Agreement between the Government of Indonesia and Japan investors will not be extended. So, after the end of Master Agreement, it should be formed management organizations of  Toba Asahan River Basin.

After the expiration of the Master Agreement, Toba Asahan River Basin as a national strategic river basin has grown and has a huge potential resources should be managed by the water resources management organizations that has experienced and professional. In this paper, Regional Owned Company, Regional Public Utility River Basin Organization, Central Public Utility River Basin Organization, Independent Corporate River Basin Organization, Part of Existing Corporate River Basin Organization were used as organizations model.

The method used for analyzing of organizations model is the Analytic Hierarchy Process. Analysis result were found that  Part of Existing Corporate River Basin Organization is the most appropriate organizations model to manage Toba Asahan River Basin. Because of water has economic value and also has a social function, so that organization should be State Owned Company shaped Public Corporation.

Keywords: Stakeholders, Organizational Development, Internal Business Processes, Finance, Analytic Hierarchy Process and River Basin Organizations