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Generally, System of Rice intensification (SRI) well known as paddy cultivation which are environmentally friendly and water-saving method. Its application has many advantages beside some obstacles. The choice of paddy cultivation method depends on risk factor and farmer. Incentives and compensation for farmer groups will support farmer interest to apply SRI method. Incentive for environment service, in relation with benefit transfer between the user of water resources in rural and urban area, can be the solutions of self finance alternative. The result of dynamics analysis explains that incentives for environmental services gives immediate effect againt the interest of farmer in applying SRI method than incentive from goverment and incentive for SRI grain price. One of the effort to reduce the problem of SRI application through incentives mechanismis developing institutional arrangement in macro ad micro level. The incentives scheme involves farmer group and agriculture stakeholdesr in micro level and the Ministry of State Enterprises and PAM Jaya in macro level. Keyword: water resources, incentive, system of rice intensification

Developing for Water Resources Incentives to Support System of Rice Intensification (SRI) in Jatiluhur Irrigation Area