The increased demands for water and land in Indonesia as a consequence of the population growth and economic development has reportedly have been accelerated from the year to year. The spatial and temporal variability of human induced hydrological changes in a river basin could affect quality and quantity of water. The challenge is that integrated water resources management (IWRM) should cope with complex issues of water in order to maximize the resultant economic and social
welfare in an equitable manner, without compromising the sustainability of vital ecosystems. Even though the government of Indonesia has adopted new paradigm for water resources management by the enactment of Law No. 7/2004 on water resources, the implementation of IWRM
may face the technical and managerial challenges. This paper briefly reviews the implementation of IWRM and related principles and provides an overview of potential water-related issues and progress towards implementation of IWRM in Indonesia. The availability of water and a broader range of water-related issues are identified.
The recommended actions for improving the future IWRM are suggested. Challenges to improve the capacity buildings of IWRM related to enabling environment, institutional frameworks and management instruments are verified to contribute to the future directions for efficient problem-solving ability.