Sigi – Land acquisition for the construction of the PASIGALA Regional Raw Water System in Sigi Regency has played an important role in restoring clean water infrastructure after the 2018 Central Sulawesi disaster. However, while the project serves the broader public interest, it has also created significant economic challenges for many affected residents. This finding was reported by Fredi Elroi Sudiarka, Muhtar Lutfi, and Rita Yunus from the Graduate Program in Rural Regional Development at Tadulako University in a study published in 2026 in the East Asian Journal of Multidisciplinary Research (EAJMR). The research concludes that although the land acquisition process complied with legal procedures, many households experienced declining economic security after losing ownership of their productive land.
The PASIGALA Regional Raw Water System was initiated as part of Indonesia's post-disaster recovery program following the devastating earthquake, tsunami, and liquefaction that struck Central Sulawesi in 2018. Supported by the Asian Development Bank (ADB), the project aims to provide sustainable access to clean water for residents of Palu City, Sigi Regency, and Donggala Regency through the construction of dams, transmission pipelines, and water distribution facilities. To build this infrastructure, the government acquired land in several villages, with Pakuli Village in Gumbasa District experiencing the largest impact.
Pakuli Village is an agricultural community where most families depend on farming for their livelihoods. Before the acquisition, agricultural land represented far more than a source of income. It served as a long-term family asset, collateral for agricultural loans, and an inheritance passed from one generation to the next. Losing legal ownership of productive land therefore meant losing one of the community's most important foundations of economic security.
The researchers adopted a qualitative phenomenological approach to understand how residents experienced the land acquisition process and its economic consequences. The study involved 15 informants, including 12 affected landowners, two village officials, and one representative from the Sulawesi III River Basin Organization. Data were collected through in-depth interviews, field observations, and reviews of official project documents before being analyzed using thematic analysis. The research also applied the Sustainable Livelihoods Framework, Cernea's Impoverishment Risks and Reconstruction (IRR) Model, and Alfred Schutz's social phenomenology to interpret the residents' lived experiences.
The findings reveal that community responses to the land acquisition varied considerably. Most residents accepted cash compensation because of urgent financial needs, while a small number requested replacement land or challenged the compensation through court consignment procedures. For many participants, accepting compensation did not necessarily mean they believed it was fair. Instead, the decision reflected severe economic pressure following the disaster and limited opportunities to negotiate compensation values.
The study found that the economic impacts developed gradually and reinforced one another. Losing legal ownership of farmland eliminated its role as a long-term asset, loan collateral, and family inheritance. Although some residents were still allowed to cultivate land located above the underground pipeline, formal ownership had transferred to the government, reducing their sense of economic security and future stability.
Most compensation funds were used to address immediate household needs, including repaying debts, repairing homes damaged by the 2018 disaster, financing children's education, and covering daily living expenses. Very few households invested the money in productive economic activities. Only one participant successfully transformed the compensation into a workshop and transportation business that generated a more stable income. This finding suggests that financial compensation alone is insufficient to ensure long-term economic recovery without proper financial planning and livelihood support programs.
Residents also experienced significant changes in their livelihood strategies. While many continued farming, they faced new limitations because underground pipelines restricted the types of crops that could be planted. Long-term crops such as coconut and cacao could no longer be cultivated in some locations, forcing farmers to shift toward lower-value seasonal crops. Others sought alternative employment as construction laborers or started small informal businesses to supplement their household income.
According to Fredi Elroi Sudiarka and colleagues from Tadulako University, the greatest challenge after land acquisition was not simply the physical loss of land but the weakening of residents' economic security. Many participants described losing confidence in their future because land that had once functioned as their livelihood, financial guarantee, and family inheritance had been converted into cash that was quickly spent on urgent needs. The researchers argue that the success of public infrastructure projects should therefore be measured not only by the completion of construction but also by their ability to sustain the long-term economic wellbeing of affected communities.
The study recommends that future land acquisition programs include financial management assistance, livelihood restoration initiatives, stronger legal certainty regarding cultivation rights along pipeline corridors, and compensation valuation methods that better reflect increases in land prices caused by infrastructure development itself. Such measures would help ensure a more balanced outcome between public infrastructure needs and the welfare of communities directly affected by development projects.
Overall, the research highlights that while public infrastructure is essential for post-disaster recovery, successful development cannot be measured solely by completed construction projects. It must also ensure that families who sacrifice their land are given meaningful opportunities to rebuild sustainable livelihoods and maintain long-term economic resilience.
Author Profile
Fredi Elroi Sudiarka – Graduate Program in Rural Regional Development, Tadulako University, Palu, Indonesia.
Muhtar Lutfi – Graduate Program in Rural Regional Development, Tadulako University, Palu, Indonesia.
Rita Yunus – Graduate Program in Rural Regional Development, Tadulako University, Palu, Indonesia.
Research Source
Article Title: Economic Impacts of Land Acquisition for the Development of the PASIGALA Raw Water System in Sigi Regency.
Journal: East Asian Journal of Multidisciplinary Research (EAJMR), Vol. 5, No. 7, 2026.
DOI: https://doi.org/10.55927/eajmr.v5i7.248
Journal Website: https://journaleajmr.my.id/index.php/eajmr
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