Economics Development Analysis Journal 10 (1) (2021) Economics Development Analysis Journal http://journal.unnes.ac.id/sju/index.php/edaj Large Dams and Welfare : Empirical Study in Indonesia Gunawan Aribowo 1 , Muhammad Halley Yudhistira 2 Master’s Degree Program in Development Planning and Policy Studies, Faculty of Economics and Business, University of Indonesia Article Info ________________ History of Article Received October 2020 Accepted December 2020 Pusblished February 2021 ________________ Keywords: Large dam, household expenditure, agricultural productivity, work activity __________________ Abstract ____________________________________________________________ In addition to solving the problem of water shortage for irrigation, energy and consumption, the policy of building large dam is also expected to improve population-welfare. However, previous studies suggest that people living near dams have less benefit from the existence of large dam. This study aims to provide empirical evidence the effect of large dam development on welfare to household living in sub-districts around large dam placement using National Socio-Economic Survey (SUSENAS) data in 2013-2018 from Central Bureau of Statistics and spatial large dam data in Indonesia. Estimated results indicate that addition large dam tend to be negatively correlated by 2.4-3.1 % with household consumption implying a tendency of decreasing welfare in local households. Estimated findings using Indonesia Family Life Survey (IFLS) in 2007 and 2014 show negative correlation likely to be caused by lower agricultural productivity and work activity. This result show there are economic agents who suffer from large water - infrastructure especially households living in sub-districts close to the dam. © 2021 Universitas Negeri Semarang  Corresponding author : Address: Jl. Salemba Raya IV No.4, RW.4, Kenari, Kec. Senen, Kota Jakarta Pusat, Daerah Khusus Ibukota Jakarta (10430) E-mail: gunawanaribowo27@gmail.com ISSN 2252-6560