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REDUCING POVERTY THROUGH ECONOMIC GROWTH
GREEN PROSPERITY PROJECT ENVIRONMENTAL AND SOCIAL
MANAGEMENT SYSTEM (GP Project ESMS)
September 2014 VERSION 1.1
Millennium Challenge Account - Indonesia (MCA-Indonesia) MR21 Building, 11th Floor
Jalan Menteng Raya no. 21, Jakarta 10340, Indonesia T: +62 21 3983 1971 (central) | F: +62 21 3983 197
www.mca-indonesia.go.id
ii
Table of Contents
List of Tables v
List of Figures vi
Abbreviations vii
1 Introduction ............................................................................................................................. 1
2 Background .............................................................................................................................. 1
2.1 Overview of theMCA-IndonesiaESMSPolicy Statement................................................ 2
2.2 Environmental and Social Safeguards and the ESMS .................................................... 3
2.2.1 MCA-IndonesiaESMS Framework .................................................................... 3
2.2.2 IFC Performance Standards ............................................................................. 5
2.2.3 ESMS Framework ............................................................................................. 5
3 The Green Prosperity Project ESMS ......................................................................................... 6
3.1 Overview of the GP Project ........................................................................................... 6
3.2 Tier-2 GP Project ESMS ................................................................................................. 7
3.3 Tier-3 GP Investment ESMS .......................................................................................... 8
4 Participatory Land Use Planning .............................................................................................. 9
4.1 Implementation of the PLUP Activity .......................................................................... 10
4.2 Environmental and Social Assessment in PLUP .......................................................... 10
4.3 Environmental and Social Action Plan in PLUP ........................................................... 11
4.4 Grievance Mechanism in PLUP Activity ...................................................................... 11
4.5 PLUP Environmental and Social Reporting ................................................................. 11
5 Technical Assistance and Oversight ....................................................................................... 12
6 The Green Prosperity Facility ................................................................................................. 12
6.1 Call for Proposals/Expression of Interests .................................................................. 13
6.2 Potential Risks and Impacts of the GPF Windows ...................................................... 14
7 Green Knowledge ................................................................................................................... 18
8 GP Geographic Focus ............................................................................................................. 18
8.1 GP Landscape Approach .............................................................................................. 19
9 GP Stakeholders ..................................................................................................................... 19
9.1 Key Stakeholders ......................................................................................................... 19
9.2 Stakeholder and Community Engagement ................................................................. 20
10 GP Environmental and Social Legal Framework .................................................................... 20
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11 Other Environmental and Social Measures for the GP Project .............................................. 21
11.1 Affected People and Project Beneficiaries .................................................................. 21
11.2 Strategic Environmental and Social Assessment (SEA) ............................................... 22
11.3 Green House Gas Emission and Climate Change ........................................................ 23
11.4 Public Consultation and Disclosure ............................................................................. 24
11.5 Grievance Mechanism ................................................................................................. 24
11.6 Occupational Health and Safety .................................................................................. 25
11.7 Land Acquisition and Resettlement ............................................................................ 26
11.8 Indigenous People ....................................................................................................... 27
11.9 Cultural Heritage and Chance Find Procedure ............................................................ 27
11.10 Social and Gender Integration Plan (SGIP) .................................................................. 27
11.11 Lifescape analysis in GP ............................................................................................... 28
12 Environmental and Social Management oftheGP Project ..................................................... 28
12.1 Environmental, Social Impact Assessment (ESIA) ....................................................... 28
12.2 Environmental and Social Management Plan ............................................................. 30
12.3 Environmental Permit ................................................................................................. 31
12.4 Environmental Reporting, Monitoring and Evaluation ............................................... 31
13 Institutionalization of the GP Project ESMS ........................................................................... 32
13.1 Implementation and Management of the GP Project ESMS ...................................... 33
13.2 Roles and Responsibilities ........................................................................................... 34
13.3 Resources for Effective GP Project ESMS Implementation ......................................... 35
13.4 Budget Requirements ................................................................................................. 36
13.5 GP Internal Capacity Assurance .................................................................................. 36
13.6 Capacity Development and ESMS Roll-Out ................................................................. 37
13.7 Compliance and Environmental Audit ........................................................................ 38
13.8 Reporting of Environmental and Social Performance ................................................. 38
13.9 Review and Revision of the GP Project ESMS ............................................................. 39
iv
List of Appendices
Appendix 1. GP Project ESMS Process Flows ................................................................................. 40
Appendix2. Project Screening and Scoping Checklist ................................................................... 41
Appendix 3. GP Project Tier 2 ESMS Screening Flow and Instruments .......................................... 45
Appendix4.GP Project Tier 2 ESMS Instruments/Tools .................................................................. 46
Appendix5. GP Project Tier 3 ESMS Screening Flow and Instruments ........................................... 47
Appendix6. GP Project Tier 3 ESMS Instruments/Tools ................................................................. 48
Appendix7. Environmental and Social Performance Datasheet .................................................... 65
Appendix 8. Environmental and Social Performance Guidelines for Indicative Green Prosperity
TypologyProjects. ...................................................................................................... 68
Appendix 9. Environmental Impact Assessment Requirements based on Minister of
Environment Decree No. 5 year 2012 in combination with IFC PS Measures: ......... 65
Appendix 10. Public Consultation and Disclosure Guidance .......................................................... 66
Appendix11a. Land Acquisition and Resettlement Policy Framework (LARPF) ............................. 70
Appendix 11b. Outline of Land Acquisition and Resettlement Action Plan-(LARAP) ..................... 78
Appendix 11c. Outline of Action Plan for Access Restriction ......................................................... 79
Appendix 11d. Example of Statement Letter of Land Donation .................................................... 80
Appendix 12. Indigenous Peoples Planning Framework (IPPF) ...................................................... 81
Appendix 13. Physical Cultural Chance Find Procedures ............................................................... 87
v
List of Tables
Table 1 The Eight GP Typpology Projects ................................................................................... 13
Table 2 Environmental and Social Requirement in Proposals .................................................... 14
Table 3 Potential Environmental and Social Risks and Impacts associated with the GP facility 15
Table 4 GP Project Districts ........................................................................................................ 18
Table 5 Indonesian regulations that apply to GP activities. ....................................................... 20
Table 6 Division of Responsibilities between GP Project ESMS and Specific-projects ESMS ..... 34
vi
List of Figures
Figure 1 The Tier Approach ESMS in the GP Project ...................................................................... 3
Figure 2: The six elements of ESMS.................................................................................................. 4
Figure 3: Typical ESMS Components ................................................................................................ 6
Figure 4: Components of GP Project ESMS and GP sub/Specific-project (GP Investments).......... 17
Figure 5: Organizational Structure for MCA-Indonesia and its Green Prosperity Project Unit ..... 33
vii
Abbreviations
AMDAL : Analisa Mengenai Dampak Lingkungan/Environmental Impact Assessment
CDC : Cocoa Development Centres
CSO : Civil Society Organization
DRA : District Readiness Assessment
EOI : Expression of Interest
ERR : Economic Rate Return
ESAP : Environmental and Social Action Plan
ESIA : Environmental and Social Impact Assessment
ESMP : Environmental and Social Management Plan
FFS : Farmer Field School
FGD : Focus Group Discussion
FPIC : Free, Prior, Informed and Consent
GHG : Green House Gases
GIS : Geographical Information System
GK : Green Knowledge
GoI : Government of Indonesia
GP : Green Prosperity
GPF : GP Facility
IFC : International Finance Corporation
IFC PS : International Finace Corporation Performance Standard
IP : Indigenous Peoples
IPP : Indigenous Peoples Plan
IPP : Initial Project Proposal
IPPF : Indigenous Peoples Planning Framework
LARPF : Land Acquisition and Resettlement Policy Framework
LARAP : Land Acquisition and Resettlement Action Plan
M&E : Monitoring & Evaluation
MCA : Millennium Challenge Account
MCC : Millennium Challenge Corporation
MoU : Memorandum of Understanding
MW : Megawatt
NGO : Non Government Organization
NRM : Natural Resources Management
O&M : Operation & Maintenance
PCDP : Public Consultation and Disclosure Plan
PIU : Project Implementation Unit
PLN : Perusahaan Listrik Negara (State Owned Electricity Company)
PLUP : Participatory Land-Use Planning
PM : Procurement Modernization
POME : Palm Oil Mill Effluent
PPF : Project Preparation Facility
PV : Photovoltaic
QDR : Quarterly Disburshment Request
viii
RAP : Resettlement Action Plan
RE : Renewable Energy
RKL/RPL : Rencana Pengelolaan Lilngkungan/Rencana Pemantauan Lingkungan
(Environmental Management and Monitoring Plans)
RPJM : Rencana Pembangunan Jangka Menengah (Medium-term Development Plan)
RPJMD : Rencana Pembangunan Jangka Menengah Daerah
(Regional Medium-term Development Plan)
RTRW : Rencana Tata Ruang Wilayah (Regional Spatial Plan)
SEA : Strategic Environmental Assessment
SEP : Stakeholder Engagement Plan
SGA : Social & Gender Assessment
SGIP : Social & Gender Integration Plan
SNRM : Sustainable Natural Resources Management
SPPL : Surat Pernyataan Pengelolaan Lingkungan Hidup
(Commitment Letter for Environmental Management)
SRAP : Supplemental Resettlement Action Plan
TBD : To be defined
UKL/UPL : Upaya Pengelolaan Lingkungan dan Upaya Pemantauan Lingkungan
(Environmental Management and Monitoring Efforts)
UU : Undang-Undang (Act)
VBS : Village Boundary Setting
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1 Introduction
As one of the three main projects under the Indonesia Compact, the Green Prosperity (GP) Project
is subject to comply with environmental and social safeguards described in the MCC Environmental
Guidelines. To achieve this, MCA-Indonesia has developed the MCA-Indonesia Environmental and
Social Management System (ESMS) Framework as the main reference for environmental and social
management in MCA-Indonesia and to act as the Tier-1 main policy and implementation framework
for the tiered approach ESMS in the Indonesia Compact. At the GP Project level, MCA-Indonesia also
developed the Tier-2 GP Project Environmental and Social Management System (GP Project ESMS)
as a framework to guide environmental and social performance for the GP Project and to inform
the following in particular:
The four main Activities under GP, namely Participatory Land-Use Planning, Technical Assistance
and Oversight, GP Facility, and Green Knowledge;
The institutions appointed to manage the GP Facility;
Contractors assigned to provide technical assistance and management support for all or
portions of the GP activities; and
All partners, organizations and projects receiving funding and/or grants from the GP Facility.
For those interested in the GP Facility, this GP Project ESMS is the main reference for developing
expressions of interest, concept notes, project proposals, and ultimately the main reference for
developing the Tier-3 GP Investment or GP Specific-project ESMS for projects selected for GP
funding.
Where applicable, the GP Project ESMS document shall be supplemented by a series of guidelines,
manuals and tools to provide clear operational guidance for all parties. This document may be
modified from time to time with the mutual agreement of the MCC and MCA-Indonesia. Parties
should therefore check MCA-Indonesia website (www.mca-indonesia.go.id) and the GP Portal
(http://gp.mca-indonesia.go.id) for updates.
2 Background
The Millennium Challenge Corporation (MCC) has entered into a Compact with the Government of
Indonesia (GoI) to support the Government’s development objectives in three important areas:
Green Prosperity (GP), Community-Based Health and Nutrition (CHN), and Procurement
Modernization (PM). The Compact is managed in three separate main Projects, the Green Prosperity
Project (GP Project), the Community-based Health and Nutrition Project (CHN Project) and the
Procurement Modernization Project (PM Project). GoI established a trust institution – the
Millennium Challenge Account Indonesia (MCA-Indonesia) – to manage and implement the
Compact and its three projects on behalf of the GoI. The Compact entered into force on April 2,
2013 and its five-year timeline will conclude on April 1, 2018.
2
2.1 Overview of the MCA-Indonesia ESMS Policy Statement
As part of the requirements of the Compact and as stated in the MCA-Indonesia Environmental and
Social Management System (ESMS) Policy Statement, MCA-Indonesia is responsible for
methodologically integrating environmental and social safeguards across Compact activities. In
order to achieve this, MCA-Indonesia must ensure that ESMSs are developed across Compact
projects and activities and at all levels of Compact operations in order to achieve effective
management of environmental and social safeguards.
In general, the objectives of the ESMS are as follows: 1. To ensure all activities and actors anticipate and take action to avoid adverse impacts or risks
to communities and the environment;
2. To identify and evaluate environmental and social risks and impacts of projects/specific-
projects;
3. To adopt a mitigation hierarchy to anticipate and avoid, or where avoidance is not possible,
minimize, and, where residual impacts remain, compensate/offset for risks and impacts to
workers, affected communities, and the environment;
4. To promote improved environmental and social performance of all actors and activities through
the effective use of management systems;
5. To ensure that grievances from affected communities and external communications from other
stakeholders are responded to and managed appropriately;
6. To promote and provide means for adequate engagement with affected communities
throughout the project cycle on issues that could potentially affect them and to ensure that
relevant environmental and social information is disclosed and disseminated;
7. To ensure all activities and actors consciously foster positive environmental and social impacts
and benefits through proactive planning and project design.
To reach the above objectives, MCA-Indonesia introduced a tiered approach to the ESMS at the
MCA- Indonesia institution level, at the main project levels (for each of the GP, CHN and PM
Projects) and, specific to the GP Project, at the GP investment level or GP-specific project level. This
tiered approach enables more comprehensive management of environmental and social safeguards
in the Indonesia Compact as it differentiates the different levels of environmental and social
safeguard measures required and the different roles and responsibilities that stakeholders play in
managing these measures in different levels of MCA-Indonesia operations.
In relation to the GP Project, the Tier-1 MCA-Indonesia ESMS Framework is referred to as the main
ESMS framework for the Indonesia Compact. The Tier-2 GP Project ESMS is based an assessment of
the GP Project and will guide all operations of the GP Project in managing environmental and social
safeguard in the GP Project. The responsibility for implementing the GP Project lies with the GP
Director or relevant GP Assistant Directors.
The development and implementation of the Tier-3 ESMS for selected GP investments or GP specific
projects (under GP Facility financing mechanism as referred to in the GP Facility Operations Manual)
is the full responsibility of each project partner or specific project proponent.
3
Figure 1 below shows the tiered-approach ESMS in the GP Project.
TIER 1 Compact Level
TIER 2 Main Project Level
TIER 3Investment/Specific-Project
Level
MCA-INDONESIA ESMS FRAMEWORK
GREEN PROSPERITY PROJECT ESMS (GP ESMS)
GP SPECIFIC PROJECT ESMS(referred to as GP-project ESMS)
MCA-INDONESIA ENVIRONMENTAL AND SOCIAL POLICY STATEMENT
GOI Laws & Regulations on Environment and SocialMillennium Challenge COMPACT: GOI – USA (through MCC)
MCC Environmental Guidelines & MCC Gender Policy
IFC Performance Standards
Figure 1 The Tier Approach ESMS in the GP Project
To ensure that ESMSs are well established and integrated into MCA-Indonesia operations, MCA-
Indonesia has tasked the Environmental and Social Performance (ESP) unit in MCA-Indonesia (led
by the ESP Director) to provide overall oversight and support to MCA-Indonesia and each of the
three main Projects. The ESP Unit will also review and provide technical inputs to project activities,
provide cross-cutting expertise on ESP management and act as representative and primary point of
contact with regard to environmental and social safeguards of the Compact.
The MCA-Indonesia ESP Director will be responsible for ensuring that all investments and operations
comply with the ESMS Framework, while the MCA-Indonesia Executive Director (Chief Executive
Officer) is ultimately held accountable for upholding this environmental and social policy.
2.2 Environmental and Social Safeguards and the ESMS
2.2.1 MCA-Indonesia ESMS Framework
The first tier ESMS developed for the overall compact is called the MCA-Indonesia ESMS Framework
and acts as the framework to guide environmental and social performance for MCA-Indonesia. The
MCA-Indonesia ESMS Framework is in its own a policy statement from MCA-Indonesia on
environmental and social safeguarding and sets the tone and spirit for environmental and social
management in MCA-Indonesia projects and activities. Specifically, the MCA-Indonesia ESMS
Framework is intended to ensure that all operations and investments of MCA-Indonesia comply
4
with the relevant laws and regulations of the Government of Indonesia, MCC Environmental
Guidelines and MCC Gender Policy, and are consistent with the International Finance Corporation
Performance Standards (IFC Performance Standards).1
MCA-Indonesia ESMS Framework Policy Statement
MCA-Indonesia investments and operations aim to maximize environmental and social benefits for the people of Indonesia (including women and marginalized groups), and minimize the adverse impacts to the environment and society. As such, all MCA-Indonesia investments and operations shall comply with the ESMS Framework, which is based on safeguard laws and regulations of the Government of Indonesia, MCC Environmental Guidelines and Gender Policy, and the IFC Performance Standards on Environmental and Social Sustainability.
The Tier 1 MCA-Indonesia ESMS Framework has established six elements required of all MCA-
Indonesia investments, projects and operations. All six apply to GP, particularly for the GP Facility.
The six incorporate key elements of the IFC-Performance Standards. The six Environmental and
Social Safeguard elements in the MCA-Indonesia ESMS are shown in Figure 2 below.
Figure 2. Environmental and Social Safeguard Elements
Figure 2: The six elements of ESMS
These principle elements also apply to the Tier-2 GP Project ESMS, to Tier-3 GP Specific-project
ESMSs, and will also be an integral part of the Environmental and Social Management Plans (ESMP)
created for each GP investment.
1As described in the Millennium Challenge Compact between the United States of America, acting through the Millennium Challenge Corporation, and the Republic of Indonesia.
Environmentally and Socially Sensitive Project Design
Understanding of Risks and Benefits
Disclosing Information and Engaging Stakeholders
Designing and Implementing Environmental and Social Action Plans
Developing and Instituting Grievance Mechanisms
Compliance Monitoring, Reporting and Evaluation
5
2.2.2 IFC Performance Standards
The IFC Performance Standards are based on the IFC Sustainability Framework effective 1 January,
2012 and consist of the following:
Performance Standard 1: Assessment and Management of Environmental and Social Risks
and Impacts
Performance Standard 2: Labor and Working Conditions
Performance Standard 3: Resource Efficiency and Pollution Prevention
Performance Standard 4: Community Health, Safety, and Security
Performance Standard 5: Land Acquisition and Involuntary Resettlement
Performance Standard 6: Biodiversity Conservation and Sustainable Management of
Living Natural Resources
Performance Standard 7: Indigenous Peoples
Performance Standard 8: Cultural Heritage
The IFC Performance Standards (IFC PS) is the main framework guiding the development of the
ESMS in all MCA-Indonesia operations. Compliance with GoI laws and regulations is part of IFC PS
and is also imbedded into the ESMS. A detailed reference to the IFC PS Sustainability Framework,
guidance notes, and handbooks can be obtained through the IFC website at
http://www.ifc.org/wps/wcm/connect/Topics_Ext_Content/IFC_External_Corporate_Site/IFC+Sus
tainability/Our+Approach/Risk+Management/Performance+Standards/.
2.2.3 ESMS Framework
A typical ESMS will generally consist of the following components: 1) Policy Statement and
Framework; 2) Environmental and Social Analysis and Assessment; and 3) Environmental and Social
Management Plan as shown on Figure 3 below.
Policy
Assessment & Analysis
Management Plan
6
Figure 3: Typical ESMS Components
Policy: The policy, or policy statement, will state the environmental and social safeguard policies,
standards, framework, and/or guidelines that the project adheres to. The policy must outline
policies and guidelines that are on par with or are more stringent than that stipulated in the MCA-
Indonesia ESMS Framework and outlined in previous sections above.
Assessments and Analysis: Initial or primary due diligence, environmental audits, gap analysis,
screening and/or scoping shall be conducted where applicable to identify and recommend any
required environmental and social assessments, analysis or studies based on identified risks and
impacts, or triggered performance standards. These assessments, analyses and studies may include
the need for a full or partial Environmental (and potentially Social) Impact Assessments (EIA/ESIA)
or a supplementary EIA/ESIA, and, if needed, specific studies/supplementary studies (e.g. studies
on Indigenous Peoples (IP), Cultural Heritage (CH), land acquisition and resettlement, audit, etc.).
The above assessments, analysis and studies combined will lead to the development of a set of
environmental and social action plans (ESAP) to mitigate any potential environmental risks or
impacts. Ultimately all the above will also contribute and/or lead to the requirement to fulfill
environmental permits (Ijin Lingkungan). Under Indonesian law, an environmental permit is
prerequisite for applying for other technical permits.
Management Plan: Each level ESMS that results in a set of action plans should be followed through
with the development of an Environmental and Social Management Plan (ESMP). The ESMP will
consist of the comprehensive management of the implementation and monitoring of all
environmental and social risk and impact mitigation measures, derived from all assessment and
study efforts conducted on the project. This must also include the budgeting of costs to cover
mitigation measures, which will then input into the project costing or feasibility study. The ESMP
may also include coordination or co-management with other GP specific project ESMPs or non GP
ESMPs that it may be associated with.
3 The Green Prosperity Project ESMS
3.1 Overview of the GP Project
The majority of Indonesia’s poor live in rural areas that are rich in natural resources, but high-impact
and illegal logging, land conversion for agriculture and mining and other unsustainable land use
practices threaten the country’s ability to sustain economic growth and reduce poverty. Lack of
clarity about land and natural resource use licensing and the jurisdictional boundaries of villages
deter investment and impede GoI’s ability to effectively manage critical natural resources.
Despite GoI’s efforts to address the problem, Indonesia remains among the world’s top emitters of
greenhouse gases. The majority of greenhouse gas emissions result from deforestation, loss of peat
7
land and other land use changes, though emissions from energy and industrial sources are growing
rapidly. Many Indonesians, especially in remote rural areas, suffer from a lack of reliable electricity
or depend on expensive and unreliable diesel generation.
The GP Project seeks to address these critical constraints to economic growth while supporting GoI’s
commitment to a more sustainable, less carbon-intensive future. A primary goal of the GP Project
is to establish a new and lasting model for developing, financing, and implementing green growth
projects at the local level. In doing so, the GP Project aims to catalyze greater private sector
investment in low-carbon growth strategies for Indonesia, spur local entrepreneurship and
financing through emerging opportunities in renewable energy and innovative land use practices
and build greater capacity and commitment among government, civil society and the private sector
to the principles of sustainable development.
As detailed in the Compact, the GP Project has two specific objectives:
To increase productivity and reduce reliance on fossil fuels by expanding renewable energy,
and;
To increase productivity and reduce land-based greenhouse gas emissions by improving
land use practices and management of natural resources.
To achieve the above objectives, a total of US$ 332.5 million has been allocated for the GP Project
to implement four activities:
1) The Participatory Land Use Planning (PLUP) Activity
2) The Technical Assistance and Oversight Activity
3) The GP Facility (GPF) Activity
4) The Green Knowledge Activity
3.2 Tier-2 GP Project ESMS
This document (The GP Project ESMS) is a Tier-2 ESMS developed specifically for the GP Project and
addresses the environmental and social management of GP Projects. As part of the GP Project ESMS
development process, the GP Project ESMS shall align with the GP Operations Manual(s) (GP OM)
and the Social and Gender Integration Plan (SGIP).2
The GP Project ESMS identifies potential risks and impacts for overall GP operations and outlines
any necessary mitigation measures. The GP Project ESMS covers two aspects of the GP Project
described below:
1) Main GP operations: for GP activities (i.e. PLUP, Technical Assistance and Oversight, GPF
and Green Knowledge); and other GP processes with environmental and/or social relevance
directly under GP Project responsibility.
2 The Social and Gender Integration Plan (SGIP) was consulted in preparing this ESMS, and relevant elements of the SGIP were included in this ESMS. See further discussion in Section 11.9.
8
This aspect includes the need to conduct proper stakeholder identification, development of
a Stakeholder Engagement Plan (SEP), development of a Public Consultation and Disclosure
Plan (PCDP) for GP processes or events with the community such as the Multi Stakeholders
Forum (MSF) or investment forums, and the development of the GP Grievance Mechanism.
2) GPF Operations: for GP Investments or specific-projects under the responsibility of
partnership programs, project sponsors/proponents or grant managers and community led
projects under the GPF activity.
Even though set as a Tier-2 ESMS document, the GP Project ESMS document will also
include framework, guidelines, and where applicable, tools intended as reference for
further development of a separate Tier-3 ESMS under each GP sub/specific-project (further
referred to as GP investments), which may include project environmental and social impact
assessments, environmental and social management plans, and environmental and social
monitoring, evaluation and reporting. Appendix 3 shows the screening flow for the Tier-2
GP Project ESMSGP Project ESMS, while Appendix 4 the GP Project ESMS tools and
instruments.
3.3 Tier-3 GP Investment ESMS
Each GP investment is required to have a specific ESMS with a scope that addresses the complexity
of activities undertaken by these specific projects and the environmental and social risks or impacts
associated with these projects. This GP Project ESMS document outlines all of the environmental
and social safeguards that may be triggered under the GP Project and by GP Investments. Each one
of the safeguards discussed in this document may not necessarily apply to the Tier-3 ESMS for GP
investments. Rather, the safeguards that apply will largely depend on the type of the project, project
location, project stakeholders and affected people/communities, project activities, project
duration, and the nature of the risks and impacts associated with them.
GP investments should maximize the potential positive social impacts of the projects, address cross-
cutting social and gender issues such as human trafficking, child and forced labor, and HIV/AIDS,
and to ensure compliance with the MCC Gender Policy. GP Investments should also comply with the
MCA-Indonesia Social and Gender Integration Plan (SGIP), which identifies approaches for regular,
meaningful and inclusive consultations with women and other vulnerable/under-represented
groups, and approaches for providing equal access to project information, development,
implementation and benefits for women and vulnerable groups. Appendix 5 shows a typical
screening flow for the Tier-3 GP Project ESMS, while Appendix 6 includes the GP Project ESMS tools
and instruments. The breadth and depth of the GP Project ESMS will depend significantly on the
nature of the project and the scope of the impacts and risks associated to the project.
9
Prohibited Activities for GP Project
In line with the MCA-Indonesia Tier-1 ESMS and the GP OM, MCA-Indonesia may not provide funds
or assistance for any project that is likely to cause a significant environmental, health and safety
hazard. An illustrative list of sensitive sectors and sensitive location and non-eligible project for GP
are in Appendix 3 of this GP Project ESMS.
GP Project Screening and Scoping
All GP project proposals will go through the screening and scoping checklist (please refer to
Appendix 2, 3 and 15) in order to recognize potential environmental risks of planned
activities/specific-projects\, the presence of Indigenous People, any potential land acquisition issues
and any access restrictions to natural resources. This screening and scoping also will determine
eligibility for the GP Project; the type of ESMP needed and the type of mitigation and monitoring
that may be required. The screening process shall be carried out by the project proponent; including
district and provincial governments, and other implementing units (such as community groups,
NGO, private sectors, and others).
4 Participatory Land Use Planning
The GP Participatory Land Use Planning (PLUP) activity is a GP investment in administrative
boundary setting, the updating and integration of land use inventories, and enhancing spatial plans
at the district and provincial levels. The purpose of PLUP is to ensure that projects funded by the GP
Facility Activity are designed and approved on the basis of accurate and appropriate spatial and land
use data and adhere to and reinforce existing national laws, regulations, and the GoI’s medium-to
long-term development plans, the National Green House Gas Emission Reduction Action Plan, and
regional spatial plans. MCA-I funding for PLUP will support:
(i) administrative boundary setting;
(ii) the updating and integration of land and other natural resources uses including
inventories of existing and pending licenses and technical assistance to relevant
government agencies to help integrate and administer spatial data; and
(iii) the enhancement of district and provincial spatial plans.
PLUP is also tasked to develop and maintain a Geographical Information System (GIS) for managing
a database of geo-spatial data about GP that is readily accessible to all divisions of GP and other
relevant entities and units. It includes a set of baseline data for identifying potential GP landscapes,
tracking GP implementation and impacts, and other environmental and social information and data
layers that should assist the GP Project implement the GP Project ESMS effectively.
This data set would include information on existing environmental and social information available
in GP locations, including environmental permits, Strategic Environmental Assessments (SEA),
AMDAL or UKL/UPL (the Indonesian terms for Environmental and Social Impact Assessment)
documents, and other relevant environmental and social studies or databases. The data set would
10
also assist the GP Project, potential project proponents as well as relevant GoI environmental offices
in identifying potential environmental and social risks and impacts related to the GP Project or GP
investments, and will assist in developing ESMSs for GP investments.
The GIS will also be a platform for overall MCA-Indonesia operations and hence will also provide
similar data and information for other MCA-Indonesia projects and needs.
4.1 Implementation of the PLUP Activity
PLUP activities will be conducted by consultant teams assigned by MCA-Indonesia. The activities are
not expected to involve any construction of physical facilities. Rather, the PLUP activities will largely
consist of deliberations, consultations and production of new or revised maps.
As such, the PLUP component of GP does not formally require an environmental assessment or
permit from the Government of Indonesia. However, social concerns may arise from village
boundary setting and demarcation of resource-use patterns.
The entire PLUP component shall be designed to maximize positive social benefits and minimize
conflicts regarding land-use and access to natural resources. The design of the activities shall
consider all the elements under this ESMS, and a PLUP-wide environmental and social assessment
shall be conducted to ensure that all potential risks and impacts are identified and mitigated. The
design and assessment shall include gender-differentiated perceptions, customs and needs
regarding land and resource use, and as well as that of marginalized groups and/or indigenous
peoples.
The activities shall engage stakeholders down to the village level. The design shall also consider
methods to ensure that women are appropriately engaged in deliberations and consultations
related to land and resource use. Consultation meetings should aim to include a minimum of 30
percent representation of women and other marginalized groups. Where women’s participation in
large consultation meetings is not feasible or effective, MCA-Indonesia (and PLUP consultants) shall
conduct separate FGDs with women’s and marginalized groups. MCA-Indonesia has prepared draft
technical guidelines for Village Boundary Setting adopting a participatory approach (see
http://gp.mca-indonesia.go.id/wp-content/uploads/2014/06/General-VBS-CM-Technical-
Guidelines.pdf). Lessons from implementation of these guidelines in the field will be incorporated
into any subsequent revisions and applied as necessary to strengthen the ESMS.
4.2 Environmental and Social Assessment in PLUP
Issues to be considered in the environmental and social assessment of PLUP include, but are not
limited to:
Differences in perception regarding village boundaries, land-rights and access to natural
resources;
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Impact of village boundary and resource use demarcation on economic activities and
incomes of affected communities;
Potential for economic or physical displacement as a result of change or clarification in
village boundaries or loss of access to land or natural resources3;
Potential for marginalization of certain groups as a result of change in village boundaries or
access to resources.
Clear and timely information disclosure is necessary to ensure stakeholder engagement reaches the
intended actors and meets disclosure objectives. Methods or approaches for information disclosure
shall be tailor-made to the target communities or groups in terms of language, use of visual aids,
and occasions for information delivery.
4.3 Environmental and Social Action Plan in PLUP
PLUP implementing contractors shall also prepare action plans to address any environmental and
social safeguards triggered by the activity as well as any residual social impacts. The action plan may
be incorporated into PLUP activity implementation planning and work plans or in a separate
document when necessary and should include a mechanism to monitor and evaluate any possible
social issues that may emerge in connection with the implementation of PLUP activities. The action
plan shall include culturally appropriate conflict resolution approaches.
4.4 Grievance Mechanism in PLUP Activity
PLUP implementing contractors shall develop and institute a grievance mechanism that operates
until the end of PLUP activities. This mechanism shall refer to the MCA-Indonesia Grievance
Mechanism Guidelines, and shall provide an accessible method for community members,
representatives of NGOs and community-based organizations to express their concern or
dissatisfaction with: a) how the PLUP activities are progressing or being managed; b) emergence of
undesired impacts not predicted in advance; c) emergence of secondary or tertiary impacts that
may affect the positive benefits expected from PLUP.
4.5 PLUP Environmental and Social Reporting
The PLUP implementing contractors shall periodically report on environmental and social
performance of PLUP activities to MCA-Indonesia. MCA-Indonesia shall be responsible for ensuring
that PLUP social objectives are being met. Any possible deviation from the social objectives shall be
identified.
3 Land acquisitioning projects, or in PLUP’s case land certainty, do not always result in land loss and/or resettlement (physical displacement), but may result in loss or decrease in economic benefits due to loss of access to livelihood attached to the loss of land (or boundaries), whether it be loss of employment or direct loss to natural resources and environmental services.
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5 Technical Assistance and Oversight
Provision of technical assistance and project oversight is intended to help eligible districts and
project sponsors and community groups identify and develop potential investments in sustainable,
low-carbon economic growth and prepare funding applications to be submitted to the Green
Prosperity Facility.
Technical Assistance, should include, when necessary and in accordance to the GPF OM, the
development of environmental and social studies and documents, such as preparation of SEAs,
ESMSs, EIAs/ESIAs, performance standard related studies, data and information systems and low
carbon development studies and plans, provided to GP Partners, GP Grant Managers, district
governments, potential project sponsors, community groups, financial institutions and other parties
according to project need.
GP assistance for project preparation (i.e. feasibility studies and ESIA) can come in the form of direct
technical assistance from consultants procured by MCA-Indonesia, and/or financial assistance in the
form of a grant provided to project sponsor to fund or cost-share a feasibility study prepared by the
project sponsor’s own consultants as long as the study is done according to GP requirements.
Therefore, it is not accurate to refer to a stand-alone “preparation facility” per se.
Technical assistance includes, inter alia, assistance with landscape study and analysis, project
preparation studies, and advice on compliance with GP Investment Criteria. This activity will be
undertaken by separate contractors through the GP Facility Manager.
6 The Green Prosperity Facility
The investment facility, known as the Green Prosperity Facility (GPF), is the project’s centerpiece
activity that will provide grant financing for low-carbon development projects to support
investments in the two thematic areas outlined below:
Renewable energy (RE), including small operation (less than 10 megawatts) hydropower and
bio-waste (agricultural waste) to energy, biogas, and solar.
Sustainable land use and natural resource management (SNRM), including sustainable
agriculture, forestry, fisheries, and watershed management.
All projects funded by the Green Prosperity Facility must meet the investment criteria outlined in
the Indonesia Compact, including MCC’s principal requirement that projects increase the income of
Indonesians in targeted areas and demonstrate an economic rate of return (ERR) of at least 10
percent, as well as ensure equal access for women and vulnerable groups to project benefits.
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Environmental and Social Performance Datasheet
For all proposed projects under GP Project/Investment, the proponent must prepare the
Environmental and Social Performance Datasheet (ESPD) that will identify the potential
environmental and social issues, and provide relevant information related with the alternatives
mitigation to avoid or minimize the impact. The ESPD is prepared as a part of a proposal when the
proponent responds to the Expression of Interest or Call for Proposal, and will be updated and
further detailed when the proposed project is approved for grant award (during appraisal stage).
The template of ESPD can be found in appendix 7.
The Eight Indicative GP Typology Projects
Early on GP has identified eight typology projects for GP investments as shown on Table 1 below.
Examples of environmental and social safeguard guidelines potentially triggered by these projects
are found in Appendix 8 to this document.
Table 1. The Eight GP Typology Projects
GP Typology Project Emphasis
Off-grid Micro hydropower Micro-hydropower, with protection of forested catchment area
Aggregated Micro-Hydropower
Transaction/implementation cost reduction through aggregation of small projects
Methane Capture for Power Generation
Power production from methane captured from palm oil mill effluent
Grid-tied Mini-hydropower
Assessment of a larger mini hydropower project
Integrated Landscape Management
Forest protection and restoration, with off-grid solar photovoltaic power production
On-grid Connection for Island Communities
Solar photovoltaic power for a specific landscape (e.g. Island landscape), with project options to include connection to the mainland grid
Cacao Intensification
Training to improve cacao yields, as an example of agricultural intensification
Community Agroforestry
Forest boundary protection through community-based peripheral Agroforestry
6.1 Call for Proposals/Expression of Interests
MCA-Indonesia will periodically announce calls for Expression of Interest (EOI) or Call for Proposals
(CFP) for potential partners and organizations wishing to or interested in partnering with MCA-
Indonesia or proposing specific projects for GPF funding in renewable energy and natural resources
management initiatives as guided by the GPF OM.
As referred to in the GPF OM document, the proposal or EOI shall include an outline of ESMS criteria
as required by the General Project Criteria of the GPF OM document. The proposals and EOIs should
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also include reference to MCC Environmental Guidelines, GoI regulations, and this GP Project ESMS.
The proposals or EOIs submitted by the potential sponsor shall have clear information of project
description and self-assessed preliminary identification of project beneficiaries, potential specific-
project-triggered impacts, etc. Each project proposal is expected to document that they have
conducted or plan to conduct the specific environmental and social requirements as shown on Table
2 below.
As such, GP projects shall be designed to ensure positive benefits for local communities and the
environment, in support of MCA-Indonesia's environmental and social performance goals.
Table 2. Environmental and Social Requirement in Proposals
Requirement Complies with
IFC-PS GoI requirements 1 Stakeholder engagement plan IFC-PS 1
2 Environmental documents and permits IFC-PS 1 (IFC-PS 2
through 4 as triggered)
Depending on scale and location of project:
Environmental permit (Ijin Lingkungan), and necessary assessment (AMDAL or UKL/UPL), OR
Letter of Commitment for Environmental Management (SPPL)
3 Free Prior Informed Consent (FPIC) if triggered4 IFC-PS 7
4 Compensation plan if land acquisition, economic displacement are unavoidable.
IFC-PS 5 Only applicable if Land Acquisition and resettlement is needed
5 Cultural heritage protection plan, in applicable geographic areas
IFC-PS 8 Act No. 11, 2010 on Cultural Heritage
6.2 Potential Risks and Impacts of the GPF Windows
Referring to the GP Facility OM, the potential environmental risk and impacts associated with the GP Project Windows are shown on Table 3 below.
4 IFC-PS 7 calls for FPIC if the project may result in “a) adverse impacts on traditionally owned land or land under customary use; b) the relocation of Indigenous Peoples from communally held lands and natural resources subject to traditional ownership or under customary use; or c) significant impacts to critical cultural heritage or priority ecosystems.
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Table 3: Potential Environmental and Social Risks and Impacts associated with the GP facility
GP Project Windows
Activities Description Potential Environmental
& Social Risk and Impact Mitigation Measures
1. Partnership grants Integrated landscape project and catchments protection
Protection of river basin area related to hydropower installation, peat-land conservation or restoration, sustainable forest management, ecotourism development, and other efforts reducing deforestation and improving land-use practices.
The potential direct environmental impact from this activity is not significant, limited in scale, time and finding. The activities are limited to promoting sustainable natural resources management, and improved land-use practices in either targeted landscapes or targeted value chains.
Ensure proper environmental permitting and proper SEP and PCDP as well as Grievance Mechanism.
Sustainable agriculture, single or multi-commodity value chain development
Public-private partnerships to increase productivity and access to markets for targeted value chains in order to improve income and reduce pressure on forests and the environment, including as appropriate interventions across the value chain such as improved access to inputs and credit, post-harvest enterprise development and certification.
2. Community-based NRM grants Integrated landscape project and catchments protection
Protection of river basin area related to hydropower installation, peat-land conservation or restoration, sustainable forest management, ecotourism development, and other efforts reducing deforestation and improving land-use practices.
The environmental and social impacts of this activity are expected to be positive. Because this activity is designed to protect natural resources, they do not create any significance negative environmental impacts. Most of the activities have positive impacts on the improvement of environmental quality. The project is designed to ensure the participation and inclusion of various group of community (include indigenous peoples) in local level.
Public consultation shall be conducted at the sub-district and village levels, with participants selected based on the socio-economic-cultural characteristics of the areas of influence, and proposed selection of project facilities or activities.
Community-based and collaborative natural resources management
Agroforestry and community forestry, coastal management, mangrove and land rehabilitation, and collaborative management of protected areas.
3. Renewable Energy grants Commercial scale (up to 10 MW)
New or expanded electricity generation from hydropower (mini-hydro); methane capture (e.g. Palm Oil Mill Effluent/POME); solar power (thermal, photovoltaic and concentrated); energy
All construction activities will have some impact on the environment, although the significance is largely proportional to the scale. The following impacts are potential during the implementation of this
The ESMP will contains standard mitigation and monitoring plans to cover typical impact from expanded or new installing equipment, including community/worker health and safety, earthworks
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GP Project Windows Activities
Description Potential Environmental & Social Risk and Impact
Mitigation Measures
from biomass (combustion, anaerobic digestion and gasification), and wind energy.
project, such as: increase level of dust and noise, solid waste during construction, oil leaks, community/worker health and safety, etc. Other issues for equipment expanded and addition that have been identified include managing potential legacy soil contamination and storing and disposing of old equipment. For new electricity generation activities, in addition to the above impacts, the issues include the management of vegetation clearance and sedimentation and erosion. Land acquisition process, including public consultation and compensation for the population residing in the project area is the main social issue under this project.
and solid waste management. The ESMP also contains standard of monitoring and reporting.
Community-based (up to 10 MW)
New or expanded electricity generation from community-based facility; e.g. mini-grid or off-grid hydropower (single or aggregate micro hydro); solar power (thermal, photovoltaic and concentrated); bio-energy or biomass (e.g. biogas), and wind energy systems
Identified and selected projects will undergo a Feasibility Study, which includes a study of economic,
social and environmental costs and benefits that comprise a proposed GP investment project
specifying location, institutional and organizational responsibility for the project.
If a GP investment is based on, is a part of, or is an associated facility, of an existing or future project,
then the GP investment shall conduct a review of the combined project’s environmental and social
factors, and may require measures such as Environmental and Social Due Diligence, Audit, and/or
Gap Analysis. The undertaking of these measures will be through a desktop document review, and
a site validation visit if necessary.
Associated Facilities
Under IFC PS 1, associated facilitiesare facilities that are not funded as part of the project and that would not have been constructed or expanded if the project did not exist and without which the project would not be viable.Associated projects are defined as separate projects dependent upon GP funded projects for their successful implementation.
The result of the existing project’s ESMS review will determine whether or not supplementary
environmental and social studies are needed, or whether or not the existing Environmental Impact
Assessment documents relevant to the existing project would require supplemental EIA documents
or permits, and/or whether or not the new project would require additional stand-alone EIAs. Any
additional EIA conducted will go forward in accordance with GoI regulations (see 8) and will
17
incorporate any results of the existing project ESMS review, if applicable, and will also incorporate
the required environmental and social action plan for the specific project. All the above will
ultimately form the ESIA. The ESIA will in turn assist the project proponent/sponsor to develop an
ESMP that will guide the project in implementing a now project-specific environmental and social
performance management system.
Figure 4 below illustrates the generic environmental and social measures that must be incorporated
into the process of identifying, reviewing, approving, and monitoring any grant funded by the GP
Facility. To ensure that all GPP Facility financed projects adhere to the strict environmental and
social safeguards of the Compact, all projects will undergo the overall process regardless of theme,
model or typology of project, size of project or funding allocated for the project. The difference will
lie on identifying and implementing the specific measures needed for any specific project, in which
location, type of project, type of activities and the determination of affected people as well as
environmental and social project boundaries will be the parameters influencing which measures
may apply.
District/Landscape Selection and/or
Preparation
Call for EOIs/EOIs, CFP/Proposal, investment
identification/Selection
Investment / Specific-project Preparation
Initial Screening: Preliminary Self
Assessment of Project Risks & Impacts
Review of Strategic Environment Assessment (SEA) Document/Analysis
Spcific-project Implementation
Review of Regional Spatial Layout Plans (RTRW)
Review of Regional Medium-Term
Development Plan(RPJMD)
Identifying Applicable 8 GP Indicative Model Projects
Environmental & Social Safeguards in Call for EOIs
Proposal - Full Project Description: project.
Activate, location, affected people, beneficiaries, etc.
ESAP/ ESMP(including specific safeguard and performance plans (if applicable):
SEP, PCDP, GM, CHP, IPP, etc.)
Monitoring & Evaluation
District/Landscape Sustainability
Construction Phase
(if applicable)
Operation /Commissioning
Phase
Operation Closure / Post
Closure
Environmental Reporting
Feasibility Study (FS)
Detailed Engineering
Design (DED)
And/or
Environmental & Social Impact Assessment
(ESIA)/Environmental & Social & Health Impact
Assessment (ESHIA)
Environmental & Social Management Plan
(ESMP)
GP Project ESMS GP Investment/Specific-project ESMS
Reference to SEA Document/Analysis
Stakeholders Identification, Engagement/consultation
Environmental & Social Action
Plan (ESAP)
Additional or Supplementary Studies
Stakeholders Engagement Plan (SEP)And/or
Public Consultation & Disclosure Plan (PCDP)
And/orCultural Heritage Plan (CHP)
And/orIndigenous People Plan (IPP)
And/orGrievance Mechanism (GM)
And/orHealth & Safety
And/orLand Acquisition &
Resettlement Action Plan (LARAP/SRAP)
And/or
And/or
Environmental and Social; Due Diligence
Social Gender Integration Plan (SGIP)
Environmental & Social Audit
And/or
Environmental & Social Gap Analysis
For On-going Projects and Activities
Screening and Scoping
Figure 4: Components of GP Project ESMS and GP sub/Specific-project (GP Investments)
Using the eight GP typology projects as a basis, a set of environmental and social performance
guidelines has been developed for each typology project (see Appendix 8). The guidelines are
intended to provide to prospective project sponsors an idea of key environmental and social issues
that must be addressed in environmental permits/assessments or in the project’s internal
management (where official government permits are minimum requirements or not required).
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7 Green Knowledge
Green Knowledge (GK) is the provision of technical assistance and support for strengthening local,
provincial and national capacity to drive forward Indonesia’s nation-wide low-carbon development
strategy within the context of the GP Project. GK would include assistance to develop and improve
related centers of excellence in science and technology in Indonesia.
The Green Knowledge (GK) activities will be conducted by consultant teams assigned by MCA-
Indonesia. The activities are not expected to involve any construction of physical facilities. Rather,
GK activities will largely consist of capacity building, and preparation and institutionalization of new
tools for environmental management. GK may be targeted to district, provincial and/or national-
level stakeholders.
As such, the GK activity does not formally require an environmental assessment or permit from the
Government of Indonesia. Nonetheless, MCA-Indonesia shall ensure that the spirit of this ESMS5 be
considered in designing the GK activities, including subject matter of capacity building, and selection
of target groups and gender representation (based on the Social and Gender Integration Plan).
Particular care shall be paid to the adequate inclusion, collection, application and dissemination of
local and indigenous knowledge of relevance to the success of GP.
8 GP Geographic Focus
At present, the GP Project is working in, or considering working in, 24 districts across the 10
provinces shown in Table 4 below:
Table 4. GP Project Districts
Province District
1. Jambi (1) Merangin, (2) Muaro Jambi, (3) Kerinci, (4) Tanjung Jabung Timur
2. West Sulawesi (5) Mamuju, (6) Mamasa
3. West Nusa Tenggara (7) Lombok Tengah, (8) Lombok Timur, (9) Lombok Utara
4. East Nusa Tenggara (10) Sumba Timur, (11) Sumba Barat, (12) Sumba Tengah, (13), Sumba Barat Daya
5. West Sumatra (14) Solok Selatan*, (15) Pesisir Selatan*
6. South Sulawesi (16) Luwuk Utara*, (17) Luwuk Timur*
7. Southeast Sulawesi (18) Kolaka Utara*, (19) Kolaka*
8. West Kalimantan (20) Kapuas Hulu*, (21) Sintang*
9. North Kalimantan (22) Malinau*
10. East Kalimantan (23) Mahakam Ulu*, (24) Berau*,
* MoU’s and further assessment in-process
Each of these respective provinces and districts has its own provincial and local level environmental
institutions (agencies or offices, depending on capacity level). These institutions, whichever is
relevant to a GP investment project, will play an important role in guiding and approving
5 And the IFC-Performance Standards that serve as one of the references for this ESMS.
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environmental and social impact assessments (AMDAL, UKL/UPL or SPPLs), issuance of
environmental permits and the overall oversight of the implementation of GP investments ESMPs.
This GP Project ESMS shall also apply should the GP Project broaden its targeted area of investment
to districts beyond those considered in the District Readiness Assessment (DRA)..
8.1 GP Landscape Approach
The GP Project supports the use of landscape approach for project design and implementation.
Landscape approach in various GP geographic areas seek to support tools, concepts and activities
for allocating and managing land to achieve inclusive social, economic and environmental objectives
in areas where agriculture, forestry, energy sector and other productive land uses compete with
environmental and biodiversity goals. This landscape approach shall be integrated into further
environmental and social screening, scoping, assessment and studies for a GP investment.
9 GP Stakeholders
9.1 Key Stakeholders
Key implementing partners and potential project sponsors are expected to include local
governments; private enterprises in the renewable energy, agriculture, forestry, water and energy
sectors; financial institutions; smallholder farmers; and local and international non-governmental
organizations (including those representing women and vulnerable groups).
As the hosts to the GP investments in the GP Project districts, local governments will play vital roles
on a Coordination Teams (“Tim Koordinasi”). As described in detail in the MoU between MCA
Indonesia and the local governments, a Coordination Team will be established in each GP-eligible
province following the signing of the MoU to provide input and support to MCA-Indonesia regarding
implementation of the GP Project and to help disseminate information regarding the progress of GP
activities (such as PLUP) and individual projects funded by the GP Facility. Each provincial
Coordination Team will consist of representatives from provincial and district governments. The
Coordination Team will work with the Multi Stakeholder Forums (MSF) conducted for the districts.
The MSF and other similar discussion forums both at the GP Project or the GP investment levels
should refer to the Stakeholder Engagement Plan currently being developed at the MCA-Indonesia
level, and to applicable public consultation and information guidelines, such as that shown in
Appendix 10 of this document.
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9.2 Stakeholder and Community Engagement
The GP Project shall ensure that all stakeholders at the national, provincial, district and local levels
are clearly identified and mapped for the purpose of proper engagement and maintenance. A
Stakeholder Engagement Plan (SEP) may be developed at both the GP Project and Specific-project
levels to ensure that a systematic and proper management plan of stakeholder engagement is
applied to all levels of the GP Project by all parties involved, including GP consultants, implementing
entities, grantees and borrowers. Proper SEPs at the GP Project level will also assist in conducting
MSFs, Investment Forums, or any such national or local level public consultation that is organized
by the GP Project. GP Specific-projects may also develop project specific SEPs to apply to respective
projects and in alignment to its respective Tier 3 ESMS and ESMPs as needed.
MCA-Indonesia will include one (1) or more stakeholders groups (each a “Stakeholders Group”and
together the “Stakeholders Groups”) to provide advice and input to MCA-Indonesia and to
disseminate information concerning Compact implementation to the public. Each such Stakeholders
Group shall represent the constituencies of the various Projects. The GP Project will ensure that the
Stakeholder Group has full access to GP stakeholders and all GP activities, including the
implementation of the GP Project ESMS.
10 GP Environmental and Social Legal Framework
The nature of the GP Project and its subsequent GP investments are such that a wide range of
government policies and regulations apply. In terms of the IFC Performance Standards, most, if not
all standards, will be triggered under the overall GP Project but will vary amongst specific projects
depending on the specific nature and condition of each one. This is particularly true for the natural
resource and renewable energy investments and grants to be disbursed under the GP Facility. An
example of GoI laws and regulations that may apply to the GP Project is shown on Table 5.
Table 5: Indonesian regulations that apply to GP activities.
GoI Laws & Regulations
GP as a whole
Act No. 6, 2014 on Village
Act No. 2, 2012 on Land Acquisition for Development of Public Interest
Act No. 32, 2009 on Environmental Protection & Management
Act No. 32, 2004 on Regional Autonomy
Act No.7, 2004 on Water Resources
Act No. 14, 2008 on Public Information Disclosure
Act No.39, 1999 on Human Rights
Act No.41, 1999 Forestry
Act No.18, 2004 Plantation
Act No. 5, 1990 on Conservation of Biological Resources & Ecosystems
Ministry of Forestry 5-year Strategic Plan (RENSTRA) 2009 – 2014 with a program focus on Community-based Watershed Management
Ministry of Forestry Decree, P.7/Menhut-II/2011 re Public Information Service of Forestry Sector, 02 February 2011
Ministry of Forestry Decree on Information Transparency, 27 February 2006
Government Regulation 6 of 2007 on Forestry
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GoI Laws & Regulations
Ministry of Forestry (2000), General Framework and Criteria & Standards for Forest and Land Rehabilitation. Directorate for Land Rehabilitation and Soil Conservation, Directorate General for Land Rehabilitation and Social Forestry, Jakarta, 2000
Presidential Instruction (INPRES) No.1 of 2000 on Gender Mainstreaming
Law 26 of 2007 on Spatial Planning, specifically Article 48, (1), (a), on Empowerment of Local People through Spatial Planning
Participatory land-use planning – GP Facility
Ministry of Home Affairs Guidelines 27 and 28 of 2006 on village boundary-setting
Act 27 of 2007 for Coastal Regions and Small Islands
Government Regulation 15 of 2010 on Spatial Planning Implementation
Act No.30 Year 2009 on Electricity
Ministerial Regulation of Agrarian Minister/ Head of National Land Agency No. 2, 1993 on Procedures to Obtain Location Permit and Land Use Rights for Investing Corporations
Ministerial Regulation of Agrarian Minister/ Head of National Land Agency No. 2, 1999 on Location Permit
Presidential Regulation No. 5 Year 2006 on National Energy Policy
Presidential Regulation No. 61 Year 2011 on National Action Plan on Green House Gas Emission Reduction
Environmental and Social Performance
Ministry of Environment Decree No. 9, 2011 on General Guidelines of Strategic Environmental Assessment (SEA)
Government Decree No. 27, 2012 on Environmental Permits
Ministry of Environment Decree No. 8, 2013 on Guidelines for the Review and Checks of Environmental Permits
Ministry of Environment Decree No. 5, 2012 on Types of Businesses and/or Activities that requires Environmental Impact Assessments (AMDAL)
Ministry of Environment Decree No. 16, 2012 on the Development of Environmental Documents
Ministry of Forestry Regulation No. P38/Menhut-II, 2012 on Forest Lend-Used Guidelines
Social Ministry Decree No. 06/PEGHUK/2002 on Implementation Guidelines of Isolated Traditional Community Empowerment
Social Empowerment Director General Decree No. 020.A/PS/KPTS/2002 on Implementation Guidelines of Isolated Traditional Community
Presidential Decree No. 111, 1999 on Development of Isolated Traditional Community (KAT)
11 Other Environmental and Social Measures for the GP Project
11.1 Affected People and Project Beneficiaries
An upfront challenge of the GP specific projects is ensuring that the right beneficiaries are reached.
In defining the beneficiaries of the RE/SNRM activities, projects shall also consult and apply the
SGIP6. This includes consideration of differentiated needs, concerns and patterns of resource use by
the different genders in the community. Female-headed households and female-led enterprises
should also be considered in process of defining project beneficiaries. Where indigenous peoples or
other marginalized or marginalized groups exist in or near the project locations, they should also be
considered in identifying project beneficiaries.
If GP investment related impacts to community held lands and community livelihoods are
anticipated, GP projects shall also identify project affected people (PAPs) present in communities
that are directly and indirectly affected by the project in both in positive and negative terms.
Communities around the project location are not necessarily project beneficiaries, but they may
6 At the time this ESMS is prepared, the Gender Integration Plan for MCA-Indonesia is not yet available.
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experience direct and indirect impacts of a project that could affect their life and livelihoods. In
determining PAP status, the SGA Unit and the SGIP should also be referred to in order to best ensure
the most comprehensive PAP identification possible.
11.2 Strategic Environmental and Social Assessment (SEA)
Environmental and social concerns may arise that go beyond a single RE/NRM project (funded by
the GP Facility). Some environmental or social risks and impacts may affect a wider geographic area,
and a broader community than those addressed in project-specific environmental assessments or
monitoring efforts.
MCA-Indonesia shall initiate environmental assessments to address potential trans-boundary
and/or cumulative impacts that may arise from multiple projects or investments in one landscape7,
district, sub-district or sub-watershed. The assessments shall utilize the most appropriate
methodology for the purposes intended8, and may include, but not be limited to, strategic
environmental assessments (SEA).9
For the four starter districts, input for the initial environmental assessments shall be gained from
the findings of the SEAs conducted as a part of the DRA, which identified critical environmental and
social issues in each district (see box below). For any new districts, the methodology, approach and
expected level of effort for conducting the initial baseline assessment must be approved by the
MCA-Indonesia ESP Director.
MCA-Indonesia shall conduct an assessment of potential cumulative impacts as early as possible.
Results of the assessment shall be communicated to prospective Project Sponsors to inform
preparation of their project design and any related project-specific environmental assessments.
Utilization of SEA Analysis SEAs conducted for the District Readiness Assessment have identified critical issues for each district. Findings from the Jambi and West Sulawesi starter districts have shown that critical issues identified can be utilized for the following:
Influence the design of projects by prospective Project Sponsors;
Influence project selection by the Project Financing Facility or Investment Committee;
Provide input on follow-up strategic assessments that should be done as a preventive measure;
Provide input to environmental assessments (screening or scoping in AMDAL, or for UKL/UPL);
Provide input in development of M&E indicators for the projects.
A Strategic Environmental (and Social) Assessment (SEA) is a participative assessment of strategic
environmental and social issues for a District or landscape and is used primarily for decision making
process in planning stages. SEA analysis shall inform landscape definition and may be used also to
7 Defined as an area larger than a district that may host a range of interconnected projects. 8 The purpose of the strategic assessment should be very clear and, as much as possible, to be linked to a discrete decision or decision-making process. Such clarity will allow for better definition of the scope of the assessment, and thus well-formulated results. 9 This ESMS does not specify the need to conduct Strategic Environmental Assessment (SEA), because Indonesian regulations related to SEA may be too restrictive in terms of methodology and approach. The intent here is that MCA-Indonesia should select the most appropriate assessment methodology and approach for the issue at hand.
23
inform development and spatial planning, e.g., the Rencana Pembangunan Jangka Menengah
(RPJM), or the Medium Term Development Plan); Rencana Pembangunan Jangka Menengah
Daerah (RPJMD), or the Local-level Medium Term Development Plan, the Rencana Tata Ruang
Wilayah (RTRW), or Regional Land Use Plan, and the Rencana Tata Ruang Daerah (RTRD), or Local
Land Use Plan, etc.
In the GP Project ESMS, the SEA information requirement should be derived from the review and
analysis of existing SEA documents and/or SEA analysis incorporated in such documents as
RPJM/RPMJD, RTRW, etc. If no such information is available or is insufficient to provide the correct
level of SEA information of GP planning needs, then a SEA study must be conducted.
If MCA-Indonesia or its contractors have conducted a programmatic or strategic environmental
assessment (or other baseline assessments) in the district or sub-districts, MCA-Indonesia (or
assigned contractors) is responsible for informing the prospective Project Sponsors of the findings
of the assessments (through file sharing or other appropriate means as identified by the ESP
Director), especially those findings which may affect the design or location of the project. These
include, but are not limited to: a) socio-cultural characteristics, including presence of marginalized
groups and/or indigenous peoples, and gender-differentiated decision making and resource
management; b) critical environmental issues; c) key stakeholders to be consulted in the design
process; d) socio-economic features, such as income generating activities, health and educational
opportunities, other demographic features.
Under the GP Project ESMS, SEA information will also be utilized for the measurement of
regional/district/landscape sustainability of the GP Project.
11.3 Greenhouse Gas Emissions and Climate Change
One of the GP Project main objectives is to reduce greenhouse gas (GHG) emissions through better
management of natural resources. This is in line with IFC PS 3 objectives, which is to reduce project-
related GHG emissions during design and operation of a project. Furthermore, the GP Project should
also look at reduction of GHG emissions as part of potential impact of climate change to community
health and safety. Climate change is a cross cutting topic which is also addressed in multiple IFC
performance standards.
Therefore, the GP Project should identify the risks and potential impacts in GP investment areas,
landscapes and ecosystems that consider GHG emissions, as well as relevant risk associated with a
changing climate and the adaptation opportunities. In doing so, the GP Project should also refer to
Indonesian law and regulations, including the National Action Plan for Green House Gas Reduction
(RAN GRK), or any local action plans as a derivative of the national action plan.
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11.4 Public Consultation and Disclosure
As also mentioned above, the GP Project shall plan a proper mechanism for conducting public
consultation, disclosure or socialization, or other discussions organized by the GP Project unit (such
as the MSFs, the Investment Forums, etc.). A Public Consultation and Disclosure Plan (PCDP) shall
be developed by the GP Project to ensure proper organizing and documentation of such events.
Further consultations shall be conducted at the sub-district and village levels, with participants
selected based on the socio-economic-cultural characteristics of the areas of influence, and
proposed selection of project facilities or activities. Such consultation complies with another
element of the ESMS, namely “Disclosing Information and Engaging Stakeholders (E3)”.
At the GP Specific-project or project-level, consultation of stakeholders shall begin at the earliest
possible moment in the project design phase, so as to avoid and minimize undesired impacts or risks
to communities and other stakeholders, and to maximize positive benefits and the solicitation of
stakeholder input. From as early as the Initial Project Proposal (IPP) preparation, consultations with
key stakeholders are to commence. Consultations are expected to continue into the Project
Implementation and Post-Compact Monitoring stages, particularly with respect to monitoring and
evaluation of positive benefits and negative consequences due to the presence of the projects.
Consultations at any stage in the project cycle shall comply with the SGIP. All large consultation
meetings shall target a minimum of 30 percent representation of women and other marginalized
groups. Where women’s participation in large consultation meetings is not feasible or effective,
separate FGDs with women’s and marginalized groups shall be conducted. Consultations with
women and marginalized groups shall utilize appropriate communication techniques and
approaches. Such consultations shall be conducted with or supported by local CSOs, universities or
other organizations accustomed to convening and managing consultations with women and
marginalized groups in the project areas. A framework for Public Consultation and Information
Disclosure is found on Appendix 10 attached.
11.5 Grievance Mechanism
A formal mechanism will be established for efficiently and effectively recording and resolving
disputes or grievances related to GP project design, implementation and impacts. The mechanism
is based upon agreement between GoI and MCA about how best to share responsibilities for
managing it.
To support compliance monitoring, MCA-Indonesia shall create and manage a Compact-level
grievance mechanism in close consultation with the MCA-Indonesia Communications Outreach
Unit, consistent with the ESMS requirement on Developing and Instituting Grievance Mechanisms
(E5), which will also be integrated into the Compact-level stakeholder engagement plan. This
mechanism shall provide an accessible method for community members, representatives of NGOs
and community-based organizations to express, in addition to any other project related concern,
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their concern or dissatisfaction relating to the GP Project and Specific-projects (project specific
projects – Tier 3 ESMS).
The grievance mechanism shall be widely communicated to the communities in the districts
participating in GP, and shall utilize the most widely used methods or technologies in these areas.
For example, text messaging from mobile phones, or, for areas where mobile phone use is low, and
post-office service is not available, MCA-Indonesia shall ensure creation of village-level hubs for
information relay to GP Program staff at the district level. Care shall be taken to ensure that the
methods or technologies used are sensitive to the needs and customs of women and marginalized
groups, including indigenous peoples.
The grievance mechanism shall contain a clear path for grievances to be relayed and responded to.
The MCA-Indonesia (or contractors or consultants) shall assign a person(s) to manage the grievance
process, including:
Relaying grievances to the appropriate organization or unit in MCA-Indonesia;
Where the content of the grievance is unclear, seeking more information;
Assigning a timeframe for responding to the grievance, and reminding the responsible unit
when the deadline is near;
Following-up on grievance response, especially for issues that cannot be resolved
immediately (e.g. requiring changes in project activity or coordination with other
stakeholders);
Responding to the source of the grievance. This response is best done in writing or, at least,
recorded in writing. Where necessary and/or appropriate, the response shall be officially
raised with or witnessed by the community or village leader;
Managing documentation of grievances and grievance responses, as required by the MCA-
Indonesia document management system.
Prior to Compact closure, grievance management shall be handed-over to appropriate institutions,
based on an assessment of capacity and sustainability. Such hand-over shall be planned from Year
4 of Compact implementation.
11.6 Occupational Health and Safety
The people and staff engaged in the GP Project and its activities and specific projects may be
exposed to health and safety risks throughout the life cycle of the MCA-Indonesia GP Project, and
each of the specific projects. The risks may derive from travel activities, remoteness of project areas,
high-risk project activities and environment, project construction, and other occupational hazards.
To ensure safe and healthy working conditions work, all GP activities and projects will be required
to follow health and safety guidelines acceptable to MCA-Indonesia standards as reflected in the
MCA-Indonesia Health and Safety Guidelines. Consultants, implementing-entities, grantees, and
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borrowers may need to show proof of successful operationalization of acceptable guidelines, or
guidelines more stringent than those applied by MCA-Indonesia.
11.7 Land Acquisition and Resettlement
As much as possible, projects that require involuntary resettlement10 (economic and physical
displacement) shall be avoided. Where there is early indication (e.g. at the IPP stage) that physical
displacement of local communities is necessary to proceed with the project, MCA-Indonesia shall
encourage the Project Sponsors to consider an alternative project design or location, as to avoid
physical displacement altogether. Where economic or physical displacement is anticipated, MCA-
Indonesia shall require the Project Sponsor to develop a Resettlement Action Plan (RAP), in addition
to the environmental assessments required by the Government. The IFC-PS5 on Land Acquisition
and Involuntary Resettlement is triggered for such projects.
If land acquisition is required to support any GP Specific-projects, or is required as or for an
associated facility (e.g. land made available for locations of hydropower turbines, transmission line,
water ways, community forestry, etc.) the Land Acquisition and Resettlement Policy Framework in
Appendix 11 must be followed. This framework was developed based on World Bank OP 4.12, IFC
Performance Standard 5 and MCC Guidelines for Environmental and Social Assessment, and governs
all activities related to involuntary resettlement and land acquisition. Most land acquisition issues
will be project specific and detailed in GP Specific-project ESMS (Tier 3 GP Project ESMS). A Land
Acquisition and Resettlement Action Plan (LARAP) shall be developed
In cases where the government will be required to provide land for any GP Specific-projects, GP and
the GP Specific-project proponent shall work with any government lead Land Acquisition
Committees and local units. Project partners and/or proponents shall ensure that a LARAP or a RAP
or a Supplemental Resettlement Action Plan (SRAP) or other documents are made available to
comply with GOI laws and regulations and to fill any gaps to adhere to IFC PS and the World Bank
OP 4.12 as stated above.
In such cases, the proponent is responsible for assisting local government in preparing a Land
Acquisition and Resettlement Policy Framework (LARPF) prior to any land acquisition and
involuntary resettlement activities, and/or other necessary land acquisition documents, e.g. a
LARAP document for implementation of land acquisition, or a SRAP for cases where land acquisition
is complete, but resulted in residual impacts. This applies for both projects undertaken by the
private sector and also projects implemented by communities through the GP Grant Managers. If
the LARAP preparation requires specific study or assessment, then MCA-Indonesia may support the
effort through the Technical Assistance and Oversight activity under the GP Project.
Cost implications that may arise from a LARAP should be adjusted depending the site-specific
conditions of each project. If land is privately owned by the proponent or other private entities
10 IFC-PS 5 defines involuntary resettlement as: affected persons do not have the right to refuse land acquisition or and restrictions that result in physical or economic displacement.
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then the cost of LARAP/SRAP implementation should entirely be the responsibility of the owner or
proponent. If the land is acquired and owned by government/public then any costs for a
LARAP/SRAP should come from the government. In such a case, costs for a LARP/SRAP, as well as
for any residual impacts and additional mitigation not covered by the government should also be
supported also by the project partner/proponent. For small scale projects undertaken by the
community, the respectful local government is responsible for the cost for implementation of a
LARAP/SRAP, but the project can also encourage donations from the community as long as it meets
the informed consent and power of choice principles (see appendix 10a about Land Acquisition and
Resettlement Policy Framework-LARAP).
11.8 Indigenous People
Where GP selected districts are home to indigenous peoples, MCA-Indonesia shall anticipate issues
related to indigenous peoples and prepare guidelines for prospective Project Sponsors in
connection with project design (IPP and Full Project Proposals) and project implementation (impact
mitigation and monitoring). The guidelines may include issues such as customary forest rights,
informed consultation and participation, and FPIC (free, prior and informed consent) when it is
triggered under IFC-PS 711. In projects where indigenous peoples reside within the area of influence,
project environmental assessments (AMDAL or UKL/UPL) and environmental and social action plans
shall specifically address any potential impacts, treatment and monitoring of impacts concerning
indigenous peoples. A framework to guide the formulation of an Indigenous People’s Plan can be
seen in appendix 12.
11.9 Cultural Heritage and Chance Find Procedure
Consistent with IFC PS 8, GP projects should be sensitive to both tangible (cultural sites, graves and
gravesite, religious structures, etc.) and intangible (traditional folklore, songs, etc.) cultural heritage
settings of their project locations. If triggered and applicable, projects shall conduct a Cultural
Heritage study of the project site and any affected surrounding communities and develop a Cultural
Heritage Plan. At a minimum the project should apply a Chance Find Procedure (as described in
Appendix 13) that will ensure that any cultural heritage findings during project implementation can
be dealt with in accordance to GoI regulations and IFC Performance Standards.
11.10 Social and Gender Integration Plan (SGIP)
MCA-I has developed a Social and Gender Integration Plan (SGIP) to ensure compliance with MCC
Gender Policy and to achieve social inclusion and gender equality outcomes in each of the three
projects, including GP. The SGIP aims to maximize project benefits for all, and especially to provide
11 IFC-PS 7 calls for FPIC if the project may result in “a) adverse impacts on traditionally owned land or land under customary use; b) the relocation of Indigenous Peoples from communally held lands and natural resources subject to traditional ownership or under customary use; or c) significant impacts to critical cultural heritage or priority ecosystems.
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equal access and benefits to women and potentially marginalized groups. It also aims to minimize
social and gender based risks, particularly exclusion of marginalized groups and the capture of
benefits by elites, in order to reduce poverty and improve household welfare. The GP SGIP will
require that lifescape analysis is carried out for developing each investment proposal, and that key
social inclusion and gender equality objectives are integrated in the investment design,
implementation and impact evaluation stages by those responsible for each stage. Furthermore,
SGIP includes guidance for addressing specific social and gender issues such as human trafficking,
child and forced labor, and HIV/AIDS,
In addition, relevant to the ESMS principle elements, the SGIP also ensures, through monitoring and
coordination during implementation, that final activity designs, construction tender documents and
implementation plans are consistent with and incorporate the outcomes of the social and gender
analyses and social and gender integration plan.
To address gender concerns that impact women’s ability to participate across Projects, MCA-
Indonesia has adopted an SGIP with a detailed workplan for gender work to be undertaken at the
policy, institutional capacity building and community levels (the “Targeted Gender Activities”). As
part of the GP Project ESMS, the SGIP and its work plans shall be incorporated into both the GP
Project and specific project level ESMSs and ESMPs.
11.11 Lifescape analysis in GP
Lifescape analysis is a participatory assessment of the people (women, men and different social
groups), institutions (formal and informal) and relationships within, and with, the landscape. This
analysis helps to ensure a socially inclusive project that can mitigate risks of jealousy and potential
conflict, and ensures that the majority of benefits are not captured by elites either within or outside
of the landscape. A Lifescape assessment will be used for each GP investment proposal in order to
ensure mutually-reinforcing and equitable benefits for the people, especially the women and
potentially marginalized groups, and the potential for both social and environmental sustainability.
A Lifescape analysis methodology is being developed by MCC and MCA-I and will be included in the
GP operational manual, and shall be incorporated and integrated with applicable environmental
and social impact assessments.
12 Environmental and Social Management of the GP Project
12.1 Environmental, Social Impact Assessment (ESIA)
The Project Sponsor12is responsible for commissioning the environmental assessment, which
comprises of either an AMDAL or UKL/UPL or an SPPL, following the Indonesian regulations that
12 The Project Sponsor shall be the main institution or corporation that takes the lead in developing the project, and likely to serve as operator of the project. The Government regulations on AMDAL and Environmental Permit refer to a Project Sponsor as “project proponent”.
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govern determination of an appropriate level of study13 (see also Appendix 9). The scope of the
AMDAL or UKL/UPL shall follow Indonesian government guidelines, but be complemented or
strengthened in several areas to ensure compliance with this ESMS (and thus the IFC Performance
Standards). Areas that need to be strengthened in the AMDAL or UKL/UPL may include (but are not
limited) to the following:
Assessment of social impacts (issues related to women and marginalized groups,
indigenous peoples, cultural heritage, human trafficking, discrimination in the workplace);
Assessment of impacts related to land acquisition and resettlement, if such actions are
required;
Public participation in the AMDAL process (particularly to ensure that women,
marginalized groups and indigenous peoples are adequately consulted).
Environmental and social impacts and risks will be identified in the context of the project’s area of
influence.14 This area of influence shall be defined in the AMDAL (or UKL/UPL) as the ‘study area’.
During implementation of the environmental assessment, the Project Sponsors shall conduct
appropriate consultations with affected communities and key stakeholders. For the AMDAL process,
the consultations shall follow Government of Indonesia guidelines, and results shall be formally
acknowledged and incorporated in the AMDAL study and reports. For UKL/UPL, consultations shall
be conducted to ensure that the affected communities’ perception of potential impacts (even
insignificant ones) is considered in the preparation of environmental and social management and
monitoring plans. In both instances, appropriate dissemination of information and IFC Performance
Standards regarding informed consultation shall be conducted to ensure that target groups are
prepared to provide comments, inputs and express aspirations in a manner that is consistent with
the requirements of the IFC Performance Standard triggered.
Guidelines to Determine Appropriate Type of Environmental Assessment
The Government of Indonesia acknowledges three types of environmental documentation, each intended for types of projects with different levels of environmental impacts. The AMDAL is a full environmental assessment, required for project types that are considered to potentially cause significant impacts and requires substantial environmental management. The Regulation of the Minister for Environment No. 5 Year 2012 on Types of Projects and/or Activities that Require an AMDAL should be consulted. Care shall be taken with regard to projects located in “conservation areas”,
13Regulation of the Minister for Environment No. 5 Year 2012 on Types of Projects and/or Activities that Require an AMDAL. Projects that do not require an AMDAL are either required to prepare and submit a UKL/UPL (Environmental Management and Monitoring Plan) or a SPPL (Letter of Commitment for Environmental Management). 14 IFC-PS 1 defines “area of influence” to encompass, as appropriate: a) The area likely to be affection by the project’s activities and facilities that are directly owned, operated or managed (including by contractors) and that are a component of the project; or impacts from unplanned but predictable developments caused by the project that may occur later or at a different location; or indirect project impacts on biodiversity or on ecosystem services upon which affected communities’ livelihoods are dependent; b) Associated facilities, which are facilities that are not funded as part of the project and that would not have been constructed or expanded if the project did not exist and without which the project would not be viable; c) Cumulative impacts that result from the incremental impact, on areas or resources used or directly impacted by the project, from other existing, planned or reasonably defined developments at the time the risks and impacts identification process is conducted.
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as listed in Attachment III of the Regulation. The list includes riverbanks, coastlines, protection forests, peat lands, lakes and reservoirs, national parks, nature reserves, and many other categories.
For combined RE/SNRM projects, the above Regulation shall be reviewed for each component of the proposed project. If one component of the project requires an AMDAL, then the entire project requires an AMDAL. For example, a proposed project involves the following components: a) biomass power generation ≥10 MW (AMDAL required), b) Agroforestry intensification (no AMDAL required); c) transmission line < 150 kV (UKL/UPL required). Since one component requires AMDAL, then the project sponsor shall prepare an AMDAL study that covers all components and the entire area of influence of the all components. Approval of the AMDAL document by the Government will be followed by issuance of an Environmental Permit.
Projects that do not require a full AMDAL shall prepare a UKL/UPL document. The threshold scale of projects is determined by the technical ministries, and has been compiled by the Ministry of Environment. Approval of the UKL/UPL document by the Government will be followed by issuance of an Environmental Permit.
Most small-scale activities only require a SPPL (essentially a letter of commitment to manage the environment) issued by the Project Sponsor. All activities that are not listed under the UKL/UPL lists of the technical ministries would only require a SPPL. No Environmental Permit is issued. However, if one of the IFC-PS is triggered, then the proposed project should be supported by a UKL/UPL document (instead of a SPPL). This will allow Government supervision of the project, through the Environmental Permit mechanism.
Due to the potential for specific project-related requirements in different areas, Project Sponsors are encouraged to consult with the District- or Province-level Environmental Agencies in determining the type of environmental assessment and approvals needed prior to embarking on any environmental/social studies and/or preparing any documents.
MCA-Indonesia shall ensure that all AMDAL or UKL/UPL documents produced by Project Sponsors
are of good quality and follow accepted standards set, at minimum, by the Ministry of Environment.
MCA-Indonesia consultants or GP technical assistance teams shall provide support to Project
Sponsors should they require it, particularly regarding review of draft AMDAL or UKL/UPL
documents prior to submission to the Government for approvals.
As part of the environmental assessment, the Project Sponsors (or their consultants) shall gain an
understanding of how the environment (and changes therein) may affect the viability and
sustainability of MCA-Indonesia’s investments. If an assessment has been done by MCA-Indonesia15,
results shall be shared with Project Sponsors (and their consultants), and such findings shall be
incorporated into or influence project-specific designs and/or environmental assessments. A
strategic environmental assessment, or other method of baseline assessment agreed with the MCA-
Indonesia ESP Director, will address this issue.
12.2 Environmental and Social Management Plan
Part of the outcome of the AMDAL or UKL/UPL process is an environmental management plan (in
the form of RKL or UKL). In order to ensure proper Design and Implementation of Environmental
and Social Action Plans (E4), the project sponsor shall prepare the RKL or UKL in such a way that it
comprehensively addresses mitigation and management of (remaining16) environmental and social
impacts. Since the contents of the RKL or UKL will become the basis of Environmental Permit
conditions (see below), the action plan shall have the following characteristics: a) specific and
15As part of strategic environmental assessments or programmatic assessments to address broader issues. 16 If the design of the project is environmentally- and socially-sensitive, there should be minimal environmental and social impacts that remain to be mitigated.
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measurable actions, b) clear targets and location of actions; c) realistic frequency or duration of
actions; d) present mechanism to modify actions should monitoring show unexpected impacts.
Aspects or parameters that are not included in the Environmental Permit17, shall remain in the
Environmental and Social Action Plan, and shall be implemented with the same diligence as those
in the Environmental Permit.
The monitoring plans (RPL or UPL) shall follow or, at a minimum, utilize the structure of
environmental and social indicators in MCA-Indonesia’s Monitoring and Evaluation (M&E) system.
A GP Environmental and Social Management Plan (ESMP) will be developed based on this ESMS and
will elaborate further GP responsibilities, actions and management plan for the entire duration of
the Compact. This ESMP will also be the basis for planning and resourcing and procuring for the
successful implementation of the GP Project ESMS, and will form the basis for budgeting.
The above ESMP is separate to a GP specific project or GP project ESMP that will be developed under
the framework of a project specific ESMS as described in sub-sequent sections above.
12.3 Environmental Permit
Upon completion of the AMDAL or UKL/UPL, the project sponsor shall submit an application for an
Environmental Permit, as governed by the Government Regulation No. 27 Year 2012 on
Environmental Permit. The permit application shall be submitted to the appropriate level of
government; for RE and SNRM projects, likely the district-level government18.
The Environmental Permit shall establish environmental conditions that must be met by the Project
Sponsor. This Environmental Permit serves as the Government’s instrument to demonstrate
compliance instrument for the entire life-span of a RE or SNRM activity. As such, this Environmental
Permit and its compliance measures will continue beyond the duration of the MCA-Indonesia (five
years) operations. Responsibility of compliance and routine reporting to the Government lies with
the Project Sponsor or proponent.
12.4 Environmental Reporting, Monitoring and Evaluation
GP will be responsible to make available GP project and Specific-project level reports. This report
shall be aligned to the GP Project ESMS, the SGIP, the MCA-Indonesia Monitoring and Evaluation
Plan, and the MCA-Indonesia Audit principles.
17 The Environmental Permit is likely to mainly cover bio-geo-physical and chemical aspects, and excludes conditions for the less tangible mitigation of social risks and impacts. 18Dinas/Badan Lingkungan Hidup (or equivalent organization), or, one-stop permitting agency, in districts where it has been established.
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The Specific-project monitoring and evaluation requirements will be developed in the project
specific ESMS and ESMP, and will follow the requirement of the respective Environmental Impact
Assessment reporting, monitoring and evaluation requirements.
In addition to reporting on Environmental Permit implementation, the Project Sponsor is also
responsible for reporting on environmental and social performance to MCA-Indonesia or its
contractors (assigned to supervise M&E and/or environmental and social performance), consistent
with the ESMS requirement for Compliance Monitoring, Reporting and Evaluation (E6). MCA-
Indonesia shall prepare guidelines for reporting of Environmental and Social Performance by Project
Sponsors.
Compliance monitoring and evaluation are key factors in ensuring continuous improvement of
project operations. Where monitoring shows deterioration in environmental quality or social
welfare, Project Sponsors are required to address the negative impacts. Should such action require
revision of the Environmental and Social Action Plan, the RKL or UKL, and/or the Environmental
Permit, the Project Sponsor shall initiate such changes without delay in the most efficient and cost
effective manner. Violation of permit conditions and government regulations is not tolerated, and
all Project Sponsors and MCA-Indonesia shall utilize the monitoring and evaluation system to ensure
that projects are in compliance.
Monitoring and evaluation shall also extend to social risk management (not generally covered in
any permits). Social and economic indicators shall be developed, and synchronized with MCA-
Indonesia Monitoring and Evaluation System, which shall be utilized as the program’s main
mechanism for ensuring compliance across all MCA-Indonesia activities and tracking project
benefits. The indicators shall be developed with consideration of benefits and impacts to women
and marginalized groups.
13 Institutionalization of the GP Project ESMS
Previous sections have discussed at length the GP Project and the framework for the incorporation
of the Environmental and Social Management System (ESMS) into all stages/levels of the GP Project.
The ESMS is therefore a management system to guide GP investments in the preparation and
design, implementation and monitoring of GP projects, integrating environmental and social
performances articulated in the ESMS.
The ESMS is intended to maximize environmental benefits, mitigate and manage risks and impacts,
and minimize environmental and social management costs. An effective implementation of the
ESMS is therefore reliant on the institutionalization of the GP Project ESMS into the GP Project. The
main challenge of GP Project ESMS implementation is managing the many simultaneous
implementations of GP activities and Specific-projects in a relatively large area.
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13.1 Implementation and Management of the GP Project ESMS
MCA-Indonesia – led by the Executive Director – has two main divisions, i.e. the Operations Support
and the Programs divisions, both lead by respective Deputy Executive Directors. The GP Project
Director reports to the Deputy Executive Director for Programs.
Figure 5: Organizational Structure for MCA-Indonesia and its Green Prosperity Project Unit
The GP Project Director has the operational support of MCA-Indonesia’s Operations Support
Divisions (Legal, Finance, Procurement, Human Resources, Communication) as well as technical
support and oversight from cross-cutting units under the Program divisions (Environmental &Social
Performance, Social &Gender Assessment, and Monitoring &Evaluation).
In addition, technical support and oversight from an economic perspective is also provided to the
GP Project through the Chief Economist. Information technology (IT) support will be provided by
the Information Officer. Within the GP Project itself, Associate Directors (AD), Managers, Specialists,
Coordinators and Administrators directly support the GP Project Director.
Relevant GP staffs are directly responsible for any environmental and social safeguard measures
associated with the particular GP activity they oversee. As an example, the AD for PLUP would be
the person responsible for undertaking proper stakeholder/community engagement plan (SEP)
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combined with proper public consultation and disclosure plan (PCDP) for each (Village Boundary
Setting (VBS) focus group discussion.
Another example, the National Relationship Manger is responsible for the overall proper
implementation of the overall SEP and PCDP for all district MSFs. The GP Director, however, has the
ultimate responsibility for ESMS implementation under the GP Project, while, as mentioned above,
environmental and social oversight is still provided by the ESP Director and the ESP unit through
consolation, technical support and approval of condition precedence for initial funding
disbursement as outlined in the GP Operations Manual(s).
In its current form, the GP Project organization does not have an environmental and/or social
specialist to oversee the implementation and management of environmental and social
safeguarding under the GP Project. Additional GP staff or contractors may be hired or engaged in
the future to assist in the effective management of the GP Project ESMS with strict oversight from
the MCA-Indonesia ESP Director as detailed in the GP Operations Manual(s).
The implementation of GP Project-level environmental and social responsibilities, action and
management plans will be further discussed in the GP Environmental and Social Management Plan
(ESMP) to be developed following this GP Project ESMS. This is separate to the specific-project
environmental and social responsibilities that will be detailed in Specific-project level ESMP.
The government, through its provincial and local environmental institutions, has the general
responsibility of oversight on the implementation of the ESMP based AMDAL or UKL/UPL analysis,
or other ESIA studies required by MCA-Indonesia. Recognizing that not all provincial and/or local
government environmental institutions may have this capacity, MCA-Indonesia through the GP
Project can, where appropriate, provide funds within the Compact to help ensure proper oversight
and implementation of mitigation measures.
13.2 Roles and Responsibilities
As described in various sections above, environmental and social measures may apply in GP Project
ESMS, Specific-project ESMS or in both. Table 6 below shows the division of responsibilities between
the two ESMS levels.
Table 6. Division of Responsibilities between GP Project ESMS and Specific-projects ESMS
Environmental and Social
Measures GP Project ESMS
(Tier 2 ESMS) GP Specific-project ESMS
(GP Tier 3 ESMS) Environmental and Social Baseline Information
District/landscape environmental and social baseline data
Project Specific environmental and social baseline data
Strategic Environmental Assessment Analysis
To determine landscape boundaries, for project selection decision making
As reference to project implementation
Stakeholder Engagement/Stakeholders Engagement Plan (SEP)
GP Project led identification of national, provincial and local level stakeholders. Requires SEP.
Project lead identification, mapping of project stakeholders. Requires SEP.
Beneficiaries and Affected People N/A Project beneficiaries and Affected People
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Environmental and Social Measures
GP Project ESMS (Tier 2 ESMS)
GP Specific-project ESMS (GP Tier 3 ESMS)
Public Consultation and Disclosure GP Project led consultation and forums: MSFs, Investment Forums, workshops, etc.
Project socialization, project public consultation. Requires PCDP.
Occupational Health and Safety GP Project activities: office safety, work related travel health and safety, etc.
Project level health and safety including Occupational health and safety at project sites.
Grievance Mechanism Yes Yes
Social and Gender Assessment/SGIP For GP activities (MSSF, investment Forums, etc.), and for SGA lead gender targeted activities
Project integration of SGIP: access to information, project involvement and benefits for women and vulnerable groups
Economic Rate of Return (incl. environmental. & social)
Yes Yes
Environmental and Social section in Call for Proposals/EOIs
Yes N/A
Environmental and Social section in Project Proposals
N/A Yes
Environmental and Social Due Diligence, Audits and Gap Analysis (for revision of existing associated projects)
Review for project selection, feasibility study and investment committee
Project design, project EIA and ESIA.
Land Acquisition and Resettlement For PLUP Activity May requires Land Acquisition and Resettlement Plan (LARAP) or Land Acquisition Audit and Supplemental Resettlement Action Plan (SRAP) – if IFC PS 5 triggered.
Environmental Impact Assessment (AMDAL, ESIA, ESHIA), Environmental Action Plan
N/A Yes, depending on project and EIA requirement
Environmental Permits N/A Yes, depending on project and EIA requirement
Indigenous People (Study and Plan) N/A. However, PLUP ensures IP inclusion via use of VBS guideline implementation
Requires IP Study and IPP if IFC PS 7 triggered
Cultural Heritage (Study and Plan) N/A Requires CH Study and CHP if IFC PS 8 triggered
Environmental and Social Management Plan
Yes. For GP Level ESMS, determine resources, procurement and budget.
Yes. For Project level ESMP, resources and project level environmental and social management cost.
Environmental and Social Reporting Yes Yes
Environmental and Social Monitoring and Evaluation
Yes Yes
Green House Gas Emission In consultation with M&E Depending on project typology. Method to calculate project GHG emission savings.
Sustainability Sustainability of landscape. Relevance to District development plans
Project sustainability
13.3 Resources for Effective GP Project ESMS Implementation
Even though the proper implementation of Tier 3 specific projects is the responsibility of the project
proponent, the GP Director is ultimately responsible for upholding environmental and social
safeguards throughout the implementation of the GP Project ESMS in all GP activities and level of
projects. The GP Director and the GP Unit will have a coordination line and technical support from
the ESP Director and the ESP Unit. The ESP Director will maintain overall oversight responsibility for
implementation of the MCA-Indonesia ESMS and the GP Project ESMS.
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The GP Project will be assisted by consultants and contractors that shall have understanding of the
ESMS and the relevant expertise to implement it. The GP Unit, depending on the need, may have
designated staff to coordinate environmental and social activities, reporting and administration of
ESMS related work. The ESP Director shall provide technical support in the recruitment or
engagement of such individual. The institution of resources will refer to the GP Operations Manual
further to be detailed in the GP ESMP. All environmental and social work associated to the GP
Project would still be subject to oversight from the ESP Director and ESP unit staff.
Resources for Specific-project ESMS implementation will be outlined in the Specific-project ESMS
and detailed in the project ESMP, and will be the responsibility of the Specific-project
Proponent/Sponsors to develop.
13.4 Budget Requirements
MCA-I shall ensure that sufficient budget is allocated annually and throughout the entire Compact
period to implement and institutionalize this Tier 2 ESMS for GP, as well as to conduct evaluation
and revision of the requirements, as necessary.
Any necessary budget for GP Project related environmental and social performance activities based
on clear ESMP and GP work plan will be reflected and secured in the Quarterly Disbursement
Request (QDR), disbursement and procurement plans and made ready for use in each respective
quarter of GP Project ESMS implementation.
Budget needs for GP investments will be identified through each Specific-project ESMS and ESMP
and administered and secured accordingly. Securing such funds is the responsibility of the project
partners or proponents. In cases where the project partner or proponent have difficulties in
securing such funds, the GP Project may consider to bear all or partial funding of the required funds
with further reference to the GP Operations Manual(s) and the MCA-Indonesia financial procedures.
13.5 GP Internal Capacity Assurance
MCA-Indonesia shall ensure there is capacity within the MCA-Indonesia organization and all third-
party organizations19, as well as sufficient resources, to implement this ESMS. This includes
sufficient resources allocated in MCA-Indonesia budgets and in contracts with
contractors/consulting firms, in loan/grant agreements with Project Sponsors, as well as in contracts
with the selected intermediary organizations.
For intermediary organizations, MCA-Indonesia shall conduct an ESMS capacity assessment as part
of the due diligence process prior to selection and contracting of the prospective intermediary
organization. The capacity assessment shall determine the level of preparedness of the prospective
organization in implementing the ESMS as part of its role and responsibilities assigned by MCA-
Indonesia. Should a severe deficiency be identified, MCA-Indonesia shall obtain assurances that the
19 This includes contractors, consulting firms, project sponsors, and intermediary organizations.
37
prospective organization will enhance their capacity prior to signing or contract, and a functioning
ESMS is in place prior to disbursement of funds from MCA-Indonesia.
Where MCA-Indonesia delegates some of its authority to contractors or other entities (such as the
Project Management Consultant, Project Financing Facility or the Project Preparation Facility), the
agreements or contracts that govern their relationship shall incorporate the contractor’s
obligations, roles and responsibilities with regard to implementation of this ESMS. Where possible,
the contracts or agreements shall contain sanctions for failure in or inadequate performance of said
duties.
MCA-Indonesia, through the ESP Director and the GP team, shall also ensure that district and
provincial governments are prepared to execute their roles and responsibilities, which include:
Proper review and approval of AMDAL and UKL/UPL documents,
Issuance of Environmental Permits,
Monitoring of permit compliance,
Environmental data management,
Environmental/ social grievance management.
Where deficiencies are identified, MCA-Indonesia shall develop and implement capacity building
and provide technical assistance support for appropriate government agencies and stakeholders,
which include the Ministry of Environment. This includes support for the collaboration between
Ministry of Environment (MOE) and US-Environmental Protection Agency (USEPA), in areas relevant
to Green Prosperity. The detailed scope of the collaboration will be agreed upon by MOE, US-EPA
and MCA-Indonesia.20
Additional capacity assurance shall be addressed through the Green Knowledge, with inclusion of
cooperation with local universities, assignment of technical assistants (consultants) for on-the-job
training of government officials, development and delivery of training courses and workshops, and
so on.
13.6 Capacity Development and ESMS Roll-Out
The MCA-Indonesia ESP Director is responsible for ensuring that all relevant parties are aware of
and capable of implementing the ESMS and GP Project ESMS. The MCA-Indonesia ESP Director shall
develop a roll-out/ communications plan, which is integrated or dovetailed with the rolling out of
the Social and Gender Integration Plan. This plan shall include:
Development and delivery of workshops and training sessions for MCA-Indonesia officers
and staff;
20 Discussions and work plan preparation are ongoing.
38
Development and delivery of workshops and training sessions for contractors, consultants
or other entities assigned to implement portions of the GP activities and this ESMS on behalf
of MCA-Indonesia;
Preparation of guidelines, manuals, checklists and other tools to support implementation
of this ESMS21;
Strategy to disseminate the above tools to prospective Project Sponsors, CSOs, and other
relevant CSOs, which may include the use of MCA-Indonesia websites/ portals and MCA-
Indonesia events;
Assignment of responsibilities in the GP Management and ESP Management of MCA-
Indonesia to implement capacity development and roll-out;
Schedule for preparation of tools and commencement of workshops and training.
Any capacity development activity related to implementation of this ESMS shall also consider the
appropriateness of materials and/or delivery to women’s and marginalized target groups.
13.7 Compliance and Environmental Audit
MCA-Indonesia and the GP Project may be subject to a technical audit that may include
environmental (and social) audits as described in the Audit Guideline. Environmental audits will
therefore be based on GP Project and specific project ESMSs and ESMPs, and other environmental
compliance baselines, which may include any environmental permits issued for a specific GP
Specific-project.
Compliance shall be verified by means of regular project monitoring or audit. ESMS compliance shall
be a contractual obligation for GP Project Sponsors and any entity whose professional services are
retained for GP project preparation or implementation. Should MCA-Indonesia (or its contractors)
discover ESMS-related violations, including those related to permit conditions, or non-compliance
with the project-specific ESAP and/or these ESMS, MCA-Indonesia shall issue a warning to the
Project Sponsor and will direct the development of adequate mitigation plans. As is the case with
breaches of other contracts, sanctions or reprimands for ESMS non-compliance shall be enforced in
line with MCA-Indonesia policy in the grant/loan scheme and any contracts or agreements put into
force between MCA-Indonesia and external partners, sponsors or proponents.
13.8 Reporting of Environmental and Social Performance
The MCA-Indonesia ESP Director is responsible for reporting environmental and social performance
of the Green Prosperity Program to the MCA-Indonesia Chief Executive Officer on an annual basis.
Such a report shall be prepared jointly with the Social and Gender Director. The environmental and
social performance reports shall be compiled from reports prepared by all contractors, consultants,
project sponsors or other entities that abide by this ESMS.
21 See Appendix A for a preliminary list.
39
On a quarterly basis, the MCA-Indonesia ESP Director (with the Social and Gender Director) and the
MCA-Indonesia GP Director shall meet to evaluate GP’s environmental and social performance, and
identify issues regarding non-compliance, capacity development needs and progress, other factors
that hinder positive performance.
The MCA-Indonesia ESP Director shall develop and institutionalize standard reporting formats to be
utilized by all relevant parties. Such reports shall be synchronized with any social and gender
reporting requirements (see the SGIP).
Where possible, the contracts or agreements shall contain sanctions for failure to perform or for
inadequate performance of their contractual duties.
13.9 Review and Revision of the GP Project ESMS
Evaluation of GP’s environmental and social performance may lead to findings regarding weakness
of or inappropriate requirements or procedures in the Tier 2 ESMS for GP. This may include
problems with cumbersome procedures, inappropriate or ineffective division of roles and
responsibilities, and/or requirements that are too stringent for the scope or level of activities.
Should there be such findings, the MCA-Indonesia ESP Director shall decide whether this Tier 2 ESMS
for GP should be modified or revised. In making this decision, the ESP Director shall consult the
MCA-Indonesia Social and Gender Director and the MCA-Indonesia GP Director, and will seek
advice/ support from MCC.
Revision of the requirements or procedures of this Tier 2 ESMS for GP must still comply with the
Tier 1 ESMS and, particularly, must not violate the Policy Statement in Tier 1 or the laws and
regulations of the Government of Indonesia.
40
Appendix 1. GP Project ESMS Process Flows
MCA Indonesia Stakeholder/Partners
Supervision
Initiation stage:
Participatory Land Use Planning
(PLUP)
Appraisal stage:
Expression of interest/Call for proposal
Eligibility screening
Appraisal of full proposal and recommendation to
Investment Committee
Approval stage:
Investment Committee
Decision to Approve
Grant Award
Project Completion
Provide funds and take a lead for PLUP
activities: village boundary setting,
transparent licensing processes and enhance
spatial planning. Also conduct a multi forum
stakeholder (MSF). PCD Plan apply in this
stage.
Province and district government:
Established a coordination team, who will
work with MSF. The coordination team
consist of related Government Agency
(Dinas) at province and district level.
• MCA-I hired the Project Management Consultant (PMC) and Grant manager who will work for undertaking the management, implementation and monitoring and supervision for GP Facility and performance of individual grant/community based NRM grants.
• PMC will provides expertise to support technical screening and appraisal project proposal and monitoring.
• Technical Appraisal Panel (TAP) will screen all received concept notes against the project eligibility criteria and ESMS screening checklist. ESP unit will prepare input as needed.
• Based on input and recommendation from PMC and TAP, the Investment Committee will take a decision for grants award.
• MCA-Indonesia (supported by the PMC) shall promptly negotiate terms and conditions and conclude Grant Award Agreements with the successful applicants. The negotiation packages include any ESMS related covenants. The ESP unit will provide input as needed
The proponent will send a brief concept
notes (4-10 p) about type, scope and location
of investment/project. The concept notes
should also include the environmental and
social risk/potential impact information in
the proposed activities.
• The successful proponent will negotiate with MCA Indonesia about term and condition of the grand award.
• The successful proponent should start to prepare the environmental and social assessment. The proponent can used the environmental and social performance guideline in GP Project ESMS.
• M&E unit conduct a regular monitoring and evaluation
• ESP unit conduct a thematic review as necessary.
• GP unit inform ESP unit of any changes in project scope and if any new risk/issues arise.
The proponent monitor and manage the
environmental and social risk/issues; keeps
management and MCA-I informed of
potential risk.
The proponent incorporate the
environmental and social risk management
in the project completion report
MCA-I through ESP unit will review and
provide input/comments for the project
completion report on request.
41
Appendix2. Project Screening and Scoping Checklist
All projects go through the following steps:
Step 1. Is the project eligible for the GP Project, based on the Environmental Screening Criteria?
Step 2. What safeguards tools are required for each project? EIA, EMP for Upgrades or EMP for New
Sites, LARAP, IPP.
Step 3. Will the environmental and social issues of the project be covered by the standard mitigation
plan templates, or will further mitigation measures
Step 1: Eligibility Criteria
ELIGIBILITY SCREENING CRITERIA APPLIES, YES or NO Eligibility for GP Project
Natural Habitat
Natural habitats are defined as land and water areas where the ecosystems' biological
communities are formed largely by native plant and animal species, and human activity has not
essentially modified the area's primary ecological functions
Does the Specific-project involve removal
of existing non degraded natural forest to
make way for a plantation, orchard, or
farm?
If yes, project ineligible
Will the project result in significant
degradation or conversion of natural
habitats and/or forest areas, proposed
protected areas or areas that are
considered of species ecological
significance?
If yes, project ineligible
Is the project will related to trade in
endangered species of wildlife or wildlife
products regulated under CITES, or product
derived thereof
If yes, project ineligible
Is the project will work in sensitive sectors
and sensitive location (based on MCC
environmental and social assessment
guidelines)?
If yes, project ineligible
Is the project located within any National
or Provincial protected area?
If yes, then an full
Environmental Impact
Assessment must be
prepared in accordance
with GoI regulation and
MCC guidelines
42
ELIGIBILITY SCREENING CRITERIA APPLIES, YES or NO Eligibility for GP Project
Indigenous Peoples
The objective is to identify indigenous peoples, consult with them, ensure that they participate in,
and benefit from the projects in a culturally appropriate way and that adverse impacts on them are
avoided, or where not feasible, minimized or mitigated.
Are indigenous people present/reside in
the project area?
If yes, an indigenous
people plan will be
prepared in accordance
with IP framework
Is the project involving activities that
impinge on the lands owned, or claimed
under adjudication, by indigenous or
customary communities, without full
document consent of such peoples?
If yes, project ineligible.
Physical Cultural Resources
Physical cultural resources include movable or immovable objects, sites, structures, groups of
structures, natural features and landscapes that have archaeological, paleontological, historical,
architectural, religious, aesthetic or other cultural significance.
1. Will the project cause temporary or
permanent relocation or any other
type of impact on physical cultural
resources known to be of local,
regional or national significance
based on national or provincial
lists, proposed national or
provincial list and/or identified
during public consultation with
local affected people groups?
If yes, project is ineligible
2. Are there any significant affect to
physical cultural resources
considered especially important or
sensitive particularly to local
groups (e.g. grave sites)
If yes, project is ineligible
Involuntary Resettlement
Involuntary resettlement includes those situations involving involuntary taking of land and
involuntary restrictions of access to legally designated parks and protected areas. The policy aims
to avoid involuntary resettlement to the extent feasible, or to minimize and mitigate its adverse
social and economic impacts.
Is any land used by people/organization
likely to be acquired as a result of the
project?
If yes, a Land Acquisition
and Resettlement Action
Plan (LARAP) will be
43
ELIGIBILITY SCREENING CRITERIA APPLIES, YES or NO Eligibility for GP Project
Will any project activity involve restriction
of use on adjoining land?
prepared in accordance
with the Land Acquisition
and Resettlement Policy
Framework Is land ownership affected by the project?
Will there be a loss of housing or assets or
incomes local people/organizations?
Will any social or economic activities or
livelihood be affected by land use related
changes?
Forests
Forest is defined as an area of land not less than 1.0 hectare with tree crown cover of more than
10 percent that have trees with the potential to reach a minimum height of 2 meters at maturity in
situ and includes forests dedicated to production, protection, multiple uses or conservation
Will the project caused temporary or
permanent reduction or degradation to
ecosystem function of, or resources within,
a forest as defined above?
Step 2: Safeguards Screening Checklist
SAFEGUARDS SCREENING CRITERIA APPLIES, YES or NO Which EMP is required
Is the project an upgrading or extension
from the existing activity/project?
If yes, the project will
covered under an update
to EIA and/or EMP for
upgrades/extension
Is the project place in a new site? If yes, an EIA and/or EMP
for new site will be
prepared
Does the project require land acquisition,
involuntary resettlement and/or
compensation for lost assets?
If yes, a LARAP will be
prepared, under the
LARPF
Does the project involve the resettlement
of indigenous people?
If yes, an IP Plan will be
prepared under the IP
framework
Step 3: Environmental and Social Impact Scoping Checklist
Complete the following scoping checklist to confirm whether the standard template for mitigation
is suitable for each project, or whether additional mitigation measures are required.
44
ENVIRONMENTAL AND SOCIAL IMPACT
SCOPING
APPLIES, YES or NO Outcomes for EMP
Is the Specific-project will potentially of oil
contamination on the soil?
If the answer to any one
of the question is yes, the
standard mitigation plan
and monitoring plan will
apply to this project.
Does the project location have neighbors
within 50m of the construction site?
Is the project will make a vegetation
clearance?
Does the project involve earthworks?
Does the project have any predicted
environmental or social impact not listed
above?
If yes, then additional
mitigation and monitoring
measures will be
developed for the project
in the EMP
Does the project have additional activities
such as access road upgrade, new access
road, others associated infrastructure, etc.?
If yes, then the EMP must
include the mitigation and
monitoring of
environmental and social
impacts from the
additional works.
45
Appendix 3. GP Project Tier 2 ESMS Screening Flow and
Instruments
Screening flow ESMS Instruments/Tools
Environmental and social section in EOI/CFP
proposal
- Environmental and social baseline data and information
- PCDP - SEA Analysis - ERR - Environmental. And Social gap analysis
(upgrade/extension project)
Screening eligibility criteria
Expression of Interest (EOI) /
Call for Proposal (CFP)
Adjusted with GP Project
Activity Landscape,
Environmental and Social
boundaries data and analysis
Project eligibility criteria
Decision Result:
Proponent and activities
chosen
46
Appendix4.GP Project Tier 2 ESMS Instruments/Tools
Tier 2 ESMS Instruments/tools
Strategic Environmental
Assessment Analysis
Stakeholder Engagement Plan
Public Consultation and
Disclosure Plan (PCDP)
Grievance Mechanism
Economic Rate of Return
Environmental and Social
section in EOI/CFP
Environmental & Social Due
Diligence, Audit and Gap
Analysis (for revision of
existing associated project)
Environmental & Social
Management Plan
Environmental & Social
Reporting
Environmental & Social M&E
Occupational Health and
Safety
Environmental and social
baseline information (based
on district/landscape
GP Project Activities
District/landscape
environmental baseline data
Determine landscape
boundaries for project
selection decision making
GP Project led consultation
and forum: MSF, Investment
Forum, workshop, etc.
Review for project selection,
feasibility study and
investment committee
Determine resources,
procurement and budget
GP Project activities: office
safety, work related travel
and safety, etc.
GP 4 Core Activities
Participatory Land
Use Planning Activity
(PLUP)
Technical Assistance
and Oversight
Green Prosperity
Facility Activity
47
Appendix5. GP Project Tier 3 ESMS Screening Flow and Instruments
Screening Flow ESMS Instruments/tools
- Screen for ESMS instruments/tools (ESMP new/upgrading, LARAP, IPP, etc.) use screening checklist
- Scope for environmental & social impacts
- Prepare ESMP (AMDAL or UKL/UPL or SPPL) draft report
- Consultation and disclosure (PCDP)
- ESMP process - Environmental permit process - MCA Indonesia approval process
- ESMP implementation - Monitoring - Supervision - Review
Proposed Project
Screening and Scoping
Prepare ESMP docs
ESMP Appraisal and
Environmental Permit
Project Implementation
48
Appendix6. GP Project Tier 3 ESMS Instruments/Tools
GP Project Activities
Project specific environmental and
social baseline data
Project lead identification, mapping
of project stakeholders
Project beneficiaries and affected
peoples
Project Design, project EIA and
ESIA,
If any land acquisition needed for
GP Project
Project level health and safety
including occupational health and
safety project
Project socialization, project public
consultation.
Environmental and Social
Management Plan for GP project
If any cultural heritage sites
affected by GP Project activities
If any Indigenous Peoples/Isolated
Vulnerable Peoples in GP project
areas
Tier 3 ESMS Instruments/tools
Environmental and social baseline
information
Stakeholder Engagement Plan
Beneficiaries and Affected Peoples
Public Consultation and Disclosure
Plan (PCDP)
Grievance Mechanism
Economic Rate of Return
Environmental and Social section
in proposal
Environmental & Social Due Diligence,
Audit and Gap Analysis (for revision of
existing associated project)
Environmental (Social) Impact Assessment
Environmental & Social Reporting
Environmental & Social M&E
Indigenous People/Isolated
Vulnerable Peoples Plan
Environmental & Social Management Plan
Environmental permit
Land Acquisition and Resettlement
Plan (LARAP) and Supplement
Resettlement Action Plan (SRAP) –
IFC PS 5
Chance Finds Procedures
Occupational Health and Safety
procedures
GP 4 Core
Activities
Participatory
Land Use
Planning
Activity (PLUP)
Technical
Assistance
and Oversight
Green
Prosperity
Facility
Activity
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Appendix7. Environmental and Social Performance Datasheet
Environmental and Social Performance Datasheet
Concept Stage
1.Proponent Name
2. Brief overview of proponent
3. Name of project to be funded under GP Project
4. Location(s) 5. Estimated Project Duration
6. Estimated budget for project activity
7. Project objectives 8. Project activities
9. IFC Performance Standard Trigger
(Please refer to the ESMS Tier 1 & Tier 2 of GP Project and IFC Performance Standards)
(please tick the trigger – if yes, please provide short explanation) Yes No
PS1. Assessment and Management of Environmental and Social Risks and Impacts explanation :....................................................
X
PS2. Labor and Working Condition
PS3. Resources Efficiency and Pollution Prevention
PS4. Community Health, safety and Security
PS5. Land Acquisition and Involuntary Resettlement
PS6. Biodiversity Onservation and Sustainable Management of Living Natural Resources
PS7. Indigenous Peoples
PS8. Cultural Heritage
9. Proponent capacity of ESP
10. ESP Specialist 11. Environmental Category based on MCC Guidelines with short explanation.
65
Environmental and Social Performance Datasheet
Appraisal Stage
A. Basic Information
1.Proponent Name
2. Brief overview of proponent
3. Name of project to be funded under GP Project
4. Location(s)
5. Estimated Project Duration
6. Estimated budget for project activity
7. Project objectives
8. Project activities
9. IFC Performance Standard Trigger
(Please refer to the ESMS Tier 1 & Tier 2 of GP Project and IFC Performance Standards)
(please tick the trigger – if yes, please provide short explanation) Yes No
PS1. Assessment and Management of Environmental and Social Risks and Impacts explanation :....................................................
X
PS2. Labor and Working Condition
PS3. Resources Efficiency and Pollution Prevention
PS4. Community Health, safety and Security
PS5. Land Acquisition and Involuntary Resettlement
PS6. Biodiversity Onservation and Sustainable Management of Living Natural Resources
PS7. Indigenous Peoples
PS8. Cultural Heritage
9. Proponent capacity of ESP
10. ESP Specialist
11. Environmental Category based on MCC Guidelines with short explanation.
B. Environmental and Social Performance Issues and Management
12. Describe any direct and/or indirect ESP issues and impact associated with project funded by GP Project. Identify and describe any potential large scale, significant and/or irreversible impact.
13. Describe any potential long term impact from GP Project/Investment to the project area
66
14. Describe any project alternatives (if relevant) considered to help avoid or minimize adverse impacts:
15. Describe measures taken by the proponent to address environmental and social issues. Provide an assessment
of proponent capacity to plan and implement the measures described:
16. Identify the key stakeholders and describe the mechanisms for consultation and disclosure on safeguard
policies, with an emphasis on potentially affected people:
C. Disclosure Requirement
17. Please describe what document will disclosed, when (date) and where (website)
D. Approval Date
Prepared and submitted by:
Approved by:
ESP Director:
GP Director:
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Guidance of Environmental and Social Performance Datasheet Preparation
This note provide guidance to the GP Project/Investment proponent to understand how to
prepare the Environmental and Social Performance Datasheet.
The objectives of the ISDS are to:
Help the stakeholder/proponent and the GP team identify and address potential adverse environmental and social impacts of GP funded projects early in the project cycle
Help proponent plan for environmental and social performance measures to be integrated into project design
Serve as a media/document to inform the public on applicable ESP and mitigation measures in the project
A. Basic Information
1. Proponent Name is the name of proponent who submit the proposal 2. Brief overview of proponent is described the proponent basic information, expertise or
field of work and capacity. 3. Name of project to be funded under GP Project is name of the proposed project name. 4. Project Location, should describe in some detail the social and geographical context in
which the project will be implemented. Maps can be very useful and the task team is encouraged to have good maps developed (particularly at the appraisal-stage), showing socially and environmentally sensitive areas.
5. Estimated project duration is the estimation time of the project from planning until completion.
6. Estimated budget for project activity is total budget estimation for the proposed project. 7. Project Objectives are drawn from the objectives in proponent proposal. 8. Project activities are the proposed project activity. 9. IFC Performance Standard Trigger. The proponent should keep the whole set of IFC
Performance Standard policies in mind when filling out this section. In this section, the applicable policy should be checked. If sufficient details about the project are not known at the concept-stage, the proponent has the option to use the “to be determined (TBD)” check box. Describe a short explanation under each checked ESP policy.
10. Proponent capacity of ESP is describe on the basis of any past experiences with the proponent and any other available information.
11. ESP Specialist is the person in charge who will responsible the environmental and social aspect in the project proponent team.
12. Environmental category based on MCC environmental and social guidelines. Please refer to Tier1 and Tier 2 GP Project ESMS and IFC Performance Standard.
B. Environmental and Social Performance Issue and Management. This part will described more detailed the potential issues and impact from the project and the alternatives/mitigation to help avoid/minimize the adverse impact. Also describe what measure will be taken to address environmental and social issues and information of proponent capacity to plan and implement the measures described.
C. Disclosure Requirement. Describe the type of environmental and social documents will be
disclosed, such as EIA and EMP, LARAP and IP Plan, and when it will happen and where the documents will be uploaded.
D. Approval. The GP unit and ESP unit will check the accuracy of content and will approve when
all documents was appropriate.
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Appendix 8. Environmental and Social Performance Guidelines
for Indicative Green Prosperity Typology Projects. Content:
1 OFF-GRID MICROHYDRO
2 AGGREGATED MICROHYDRO
3 METHANE CAPTURE from PALM OIL MILL (POME)
4 GRID-TIED MINI HYDROPOWER
5 INTEGRATED LANDSCAPE MANAGEMENT
6 ON-GRID CONNECTION FOR ISLAND COMMUNITIES
7 CACAO INTENSIFICATION
8 COMMUNITY AGROFORESTRY
9 TRANSMISSION LINE - Associated with on-grid (commercial) renewable energy projects
List of Protected Areas (per Ministry of Environment Regulation No. 05 Year 2012 Regarding Planned Businesses/ Activities that Require an AMDAL)
69
SAFEGUARDS GUIDELINE FOR
OFF-GRID MICROHYDRO PROJECTS Run-of-river Applicable for projects with the following characteristics:
TYPICAL PROJECT COMPONENTS:
1. Diversion / storage structure /pipe and intake works. 2. Feeder channel. 3. De-silting tank. 4. Power channel (and/or tunnel or pipe). 5. Forebay or balancing reservoir/ surge tank. 6. Spill channel/ by-pass arrangement. 7. Penstock and supports. 8. Powerhouse building. 9. Tail race channel. 10. Civil works for switchyard.
ASSOCIATED FACILITIES: Transmission line. See separate safeguards guideline for transmission line.
SCALE/SIZE: < 10 MW
LOCATION: Protected area.
Non-protected area.
Settlement area.
Non-settlement area.
ELECTRICITY UTILIZATION: Household use.
Home-industry processing of agricultural products or non-timber forest products.
ENVIRONMENTAL & SOCIAL SAFEGUARDS
ENVIRONMENTAL PERMIT
Required Additional approvals from Min. Forestry and/or Min. Public Works may be needed
ENVIRONMENTAL ASSESSMENT
AMDAL, if in protected area See list of protected area (Permen 5, 2012), which includes river banks/riparian area, and protected forests.
UKL/UPL for < 10 MW
Key issues22: Potential effects:
PRE-CONSTRUCTION &CONSTRUCTION PHASE
1. Infrastructure
Access to site– i.e. construction or widening of road to site.
Establishment of a reservoir or diversion (if applicable)
Land acquisition/use for powerhouse
Chance-find of cultural heritage sites.
Source of construction materials.
Landslide, erosion around reservoir or diversion
Economic displacement
Disturbance of natural habitats, including aquatic life (fish)
Landslides/erosion in quarries, burrow-pits or other source of construction materials
22 The following Key Issues illustrate major issues to be addressed in environmental assessments or other supporting studies. The list of Key Issues should not be regarded as comprehensive. The issues to be addressed in any environment assessment must be tailor-made to the specific characteristics of the location and the planned project activities.
70
2. Environmental quality
Air quality
Dust particles and noise during construction
3. Health and safety of the public
Increased safety risks
OPERATION PHASE
1.Protection of watersheds
Increased deforestation can lead to increased water runoff during storms and flow variability.
2. Community water use
Downstream economic and household activities
Gender-specific impacts related to water use
Reduced flow
Change in access to water course
3.Social inclusion
Gender integration
Vulnerable groups
Indigenous people
Potential economic opportunities from availability of electricity to benefit women and vulnerable groups, indigenous people (if any at the site)
SUPPLEMENTARY MANAGEMENT PLANS
Catchment area management plan.
Stakeholder engagement plan
Micro-hydro management plan Community role and O&M strategy
71
SAFEGUARDS GUIDELINE FOR
AGGREGATED MICROHYDRO PROJECTS Applicable for projects with the following characteristics:
TYPICAL PROJECT COMPONENTS:
Multiple micro hydro power, each consisting of: 1. Diversion / storage structure /pipe and intake works. 2. Feeder channel. 3. De-silting tank. 4. Power channel (and/or tunnel or pipe). 5. Forebay or balancing reservoir/ surge tank. 6. Spill channel/ by-pass arrangement. 7. Penstock and supports. 8. Powerhouse building. 9. Tail race channel. 10. Civil works for switchyard.
ASSOCIATED FACILITIES& ACTIVITIES:
Transmission line. See separate safeguards guideline for transmission line. Catchment area protection
SCALE/SIZE: TBD (multiple sizes)
LOCATION: Protected area.
Non-protected area.
Settlement area.
Non-settlement area.
ELECTRICITY UTILIZATION: Household use.
Processing of agricultural products or non-timber forest products.
ENVIRONMENTAL & SOCIAL SAFEGUARDS
ENVIRONMENTAL PERMIT
Required Additional approvals from Min. Forestry and/or Min. Public Works may be needed
ENVIRONMENTAL ASSESSMENT
Recommend AMDAL for multiple micro hydro facilities. “Integrated AMDAL” can address potential cumulative impact on entire catchment area, as well as assess impact of other activities on the sustainability of the project.
Key issues23: Potential effects:
PRE-CONSTRUCTION &CONSTRUCTION PHASE
1. Infrastructure
Access to site– i.e. construction or widening of road to site.
Establishment of a reservoir or diversion (if applicable)
Land acquisition/use for powerhouse
Chance-find of cultural heritage sites.
Source of construction materials.
Landslide, erosion around reservoir or diversion
Economic displacement
Disturbance of natural habitats, including aquatic life (fish)
Landslides/erosion in quarries, burrow-pits or other source of construction materials
2. Environmental quality
Air quality
Dust particles and noise during construction
23 The following Key Issues illustrate major issues to be addressed in environmental assessments or other supporting studies. The list of Key Issues should not be regarded as comprehensive. The issues to be addressed in any environment assessment must be tailor-made to the specific characteristics of the location and the planned project activities.
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3. Health and safety of the public
Increased safety risks
OPERATION PHASE
1.Protection of watersheds
Increased deforestation can lead to increased water runoff during storms and flow variability.
Ensuring adequate flow particularly important for multiple micro hydro plants (cumulative impact).
2. Community water use
Downstream economic and household activities
Gender-specific impacts related to water use
Reduced flow
Change in access to water course
3.Social inclusion
Gender integration
Vulnerable groups
Indigenous people
Potential economic opportunities from availability of electricity to benefit women and vulnerable groups, indigenous people (if any at the site)
SUPPLEMENTARY MANAGEMENT PLANS
Catchment area management plan.
Stakeholder engagement plan
Micro-hydro management plan Community role and O&M strategy
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SAFEGUARDS GUIDELINE FOR
METHANE CAPTURE from PALM OIL MILL EFFLUENT (POME) On-grid power generation Applicable for projects with the following characteristics:
TYPICAL PROJECT COMPONENTS:
1. Anaerobic digester/ reactor 2. Scrubber/ Gas cleanup room 3. Generation unit (gas engine)/ power house.
ASSOCIATED FACILITIES: Transmission line (see separate safeguards guideline for transmission line environmental and social safeguards)
SCALE/SIZE: < 10 MW
LOCATION: Palm oil mill land
Settlement area
ELECTRICITY UTILIZATION: Sale to PLN grid.
Supply local communities with cheaper electricity.
ENVIRONMENTAL & SOCIAL SAFEGUARDS
ENVIRONMENTAL PERMIT
Required.
ENVIRONMENTAL ASSESSMENT
AMDAL, if larger than 10 MW
UKL/UPL, if equal to or less than 10 MW
Key issues24: Potential effects:
PRE-CONSTRUCTION &CONSTRUCTION PHASE
1. Infrastructure
Access to site– i.e. construction or widening of road to site.
Land use for additional facilities (if appropriate).
Chance-find of cultural heritage sites.
Source of construction materials.
Economic displacement
Landslides/erosion in quarries, burrow-pits or other source of construction materials
2. Environmental quality
Construction waste and domestic waste from workers
Air quality
Dust particles during construction and earth moving
Removal and disposal of construction waste
3.Temporary in-migration
People seeking work or other opportunities related to the project construction.
Worker’s camp
Land use
Pressure on natural resources and public facilities
Domestic liquid and solid waste
4. Health and safety of the public and construction workers.
Increased safety risks
OPERATION PHASE
24 The following Key Issues illustrate major issues to be addressed in environmental assessments or other supporting studies. The list of Key Issues should not be regarded as comprehensive. The issues to be addressed in any environment assessment must be tailor-made to the specific characteristics of the location and the planned project activities.
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1. GHG emission reduction
Positive benefits from net GHG emission reduction
2.Social inclusion
Gender integration
Vulnerable groups
Indigenous people
Potential economic opportunities from availability of electricity to benefit women and vulnerable groups, indigenous people
SUPPLEMENTARY MANAGEMENT PLANS
Stakeholder engagement plan
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SAFEGUARDS GUIDELINE FOR
GRID-TIED MINIHYDROPOWER Run-of-river or diversion Applicable for projects with the following characteristics:
TYPICAL PROJECT COMPONENTS:
Multiple micro hydro power, each consisting of: 1. Diversion / storage structure /pipe and intake works. 2. Feeder channel. 3. De-silting tank. 4. Power channel (and/or tunnel or pipe). 5. Forebay or balancing reservoir/ surge tank. 6. Spill channel/ by-pass arrangement. 7. Penstock and supports. 8. Powerhouse building. 9. Tail race channel. 10. Civil works for switchyard.
ASSOCIATED FACILITIES& ACTIVITIES:
Transmission line. See separate safeguards guideline for transmission line. Catchment area protection
SCALE/SIZE: < 10 MW
LOCATION: Protected area.
Non-protected area.
Settlement area.
Non-settlement area.
ELECTRICITY UTILIZATION: Rural electrification
Income generating activities
ENVIRONMENTAL & SOCIAL SAFEGUARDS
ENVIRONMENTAL PERMIT
Required Additional approvals from Min. Forestry and/or Min. Public Works may be needed
ENVIRONMENTAL ASSESSMENT
AMDAL, if in protected area See list of protected area (Permen 5, 2012), which includes river banks/riparian area, and protected forests.
UKL/UPL for < 10 MW
Key issues25: Potential effects:
PRE-CONSTRUCTION &CONSTRUCTION PHASE
1. Infrastructure
Access to site– i.e. construction or widening of road to site.
Establishment of a reservoir or diversion (if applicable)
Land acquisition/use for powerhouse
Chance-find of cultural heritage sites.
Source of construction materials.
Landslide, erosion around reservoir or diversion
Economic displacement
Disturbance of natural habitats, including aquatic life (fish)
Landslides/erosion in quarries, burrow-pits or other source of construction materials
25 The following Key Issues illustrate major issues to be addressed in environmental assessments or other supporting studies. The list of Key Issues should not be regarded as comprehensive. The issues to be addressed in any environment assessment must be tailor-made to the specific characteristics of the location and the planned project activities.
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2. Environmental quality
Air quality
Dust particles and noise during construction
3. Health and safety of the public
Increased safety risks
OPERATION PHASE
1.Protection of watersheds
Increased deforestation can lead to increased water runoff during storms and flow variability.
2. Community water use
Downstream economic and household activities
Gender-specific impacts related to water use
Reduced flow
Change in access to water course
3.Social inclusion
Gender integration
Vulnerable groups
Indigenous people
Potential economic opportunities from availability of electricity to benefit women and vulnerable groups, indigenous people (if any at the site)
SUPPLEMENTARY MANAGEMENT PLANS
Catchment area management plan.
Stakeholder engagement plan
Mini-hydro management plan Community role and O&M strategy
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SAFEGUARDS GUIDELINE FOR
INTEGRATED LANDSCAPE MANAGEMENT PROJECT (Based on Berbak Pre-Feasibility Study) Applicable for projects with the following characteristics:
Main Activity: Peatland (canal) management and reforestation. Additional Activities: small scale aquaculture, hybrid solar PV-diesel electricity systems, and/or other small scale natural resource management.
KEY PROJECT COMPONENTS of MAIN ACTIVITY:
Peatland (Canal) management 1. Construction of dam(s).
2. Drainage canals.
3. Rehabilitation of surrounding vegetation.
4. Intensified rice cultivation.
Reforestation of peatlands
1. Detailed survey of degradation
2. Establishment of nurseries
3. Detailed instruction on proper site preparation
4. Planting, maintenance
5. Training on harvesting techniques
6. Paludiculture trials for potential income generation
ASSOCIATED FACILITIES: Hybrid solar photovoltaic (PV)-diesel electricity system (< 1MW each) 1. Solar PV modules. 2. Central Inverter. 3. Production Meter. 4. Net Meter. 5. Main distribution Panel. 6. Controller. 7. Grid structure to local recipients. 8. PV site. 9. Diesel generator. 10. Batteries for excess power storage. 11. Mini grid.
SCALE/SIZE: TBD
LOCATION: Protected area.
Non-protected area.
ELECTRICITY UTILIZATION: Increase local income generation by providing new business and production opportunities as well as extracurricular activities.
ENVIRONMENTAL & SOCIAL SAFEGUARDS
ENVIRONMENTAL PERMIT
Required.
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ENVIRONMENTAL ASSESSMENT
AMDAL for Integrated Project is recommended. The need for AMDAL is governed by activities planned in a protected area (peatland)26. Main and additional activities to be addressed in an integrative manner in the Environmental Management and Monitoring Plans.
Key issues of Main Activities27: Potential effects:
PRE-CONSTRUCTION & CONSTRUCTION PHASE
1. Infrastructure
Construction of canals.
Construction of dams to improve hydrology of the peat swamp
Source of construction materials (including compacted peat)
Economic displacement
Hydrological changes (positive)
Landslides/erosion in quarries, burrow-pits or other source of construction materials
2. Environmental quality
Construction waste and domestic waste from workers
Air quality
Dust particles during construction and earth moving
Removal and disposal of construction waste
3.Temporary in-migration
People seeking work or other opportunities related to the project construction.
Worker’s camp
Land use
Pressure on natural resources and public facilities
Domestic liquid and solid waste
4. Health and safety of the public and construction workers.
Increased safety risks
OPERATION PHASE
1. Potential for GHG Emission Reduction Rehabilitation of peatland hydrology is expected to reduce GHG emission.
Net positive benefit
2. Canals System Maintenance
Hydrological system maintenance
Peat fire prevention & control
Peat fire risk if canal system not maintained
3.Increased Agricultural and Aquaculture Productivity
Use of fertilizer and pesticide
Hydrological system maintenance
Potential water pollution from excessive use of fertilizer
Health hazard from prolonged use of pesticide
4.Social inclusion
Gender
Vulnerable groups
Indigenous people
Potential economic opportunities from availability of electricity to benefit women and vulnerable groups, indigenous people.
26 See attached list of areas considered as conservation areas (by Permen LH No. 5 Year 2012). It defines peatland as conservation area (kawasan lindung). 27 The following Key Issues illustrate major issues to be addressed in environmental assessments or other supporting studies. The list of Key Issues should not be regarded as comprehensive. The issues to be addressed in any environment assessment must be tailor-made to the specific characteristics of the location and the planned project activities.
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SUPPLEMENTARY MANAGEMENT PLANS
Stakeholder engagement plan Project activities (including aquaculture and agricultural intensification) to involve different ethnic groups and vulnerable groups, and ensure engagement of women.
Power system O&M strategy Includes community role in O&M, management of waste (spent battery, etc.).
Compensation plan (where applicable)
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SAFEGUARDS GUIDELINE FOR
ON-GRID CONNECTION FOR ISLAND COMMUNITIES (Based on Scenario 6 in the Karampuang Pre-Feasibility Study) Applicable for projects with the following characteristics:
TYPICAL PROJECT COMPONENTS:
1. Submarine cable to mainland 2. Assumes transmission to consumers and distribution infrastructure are
responsibility of PLN (not project sponsor)
ASSOCIATED FACILITIES: Transmission line. See separate safeguards guideline for transmission line
SCALE/SIZE:
LOCATION: Protected area.
Non-protected area.
Settlement area.
Non-settlement area.
ELECTRICITY UTILIZATION: Supply local communities with cheaper subsidized electricity.
Increase local business and production as well as extracurricular activities.
ENVIRONMENTAL & SOCIAL SAFEGUARDS
ENVIRONMENTAL PERMIT
Required.
ENVIRONMENTAL ASSESSMENT
AMDAL, for submarine cable is > 150 kV (Refer to Permen LH No. 5, 2012)
UKL/UPL, if submarine cable < 150 kV (to be confirmed)
Key issues28: Potential effects:
PRE-CONSTRUCTION AND CONSTRUCTION PHASE
1. Submarine Cable
Selection of location
Laying of cable, machinery and support installations
Seabed disturbance
Disturbance of ship/boat lanes
Economic displacement (disturbance of marine resource access by traditional fishermen)
Disturbance of coral reefs and other natural habitats
OPERATION PHASE
1. O&M of Submarine Cable
Disturbance of ship/boat lanes
Economic displacement (disturbance of marine resource access by traditional fishermen)
SUPPLEMENTARY MANAGEMENT PLANS
Stakeholder engagement plan
Compensation plan (where applicable)
28 The following Key Issues illustrate major issues to be addressed in environmental assessments or other supporting studies. The list of Key Issues should not be regarded as comprehensive. The issues to be addressed in any environment assessment must be tailor-made to the specific characteristics of the location and the planned project activities.
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SAFEGUARDS GUIDELINE FOR
CACAO INTENSIFICATION Farmer field schools (FFS) and cocoa development centers (CDC) Applicable for projects with the following characteristics:
TYPICAL PROJECT COMPONENTS:
1. Training in good agricultural practices 2. Cocoa development centers (CDC) 3. Farmer field Schools (FFS) 4. Cocoa doctors (local smallholders with CDC training who excelled in the initial FFS)
SCALE/SIZE: Small scale farmers
LOCATION: Small scale farm land
UTILIZATION: FFS to teach interventions, such as: pruning, replacing aging trees with quality seedlings, grafting, sanitation, fertilizer and pesticides.
ENVIRONMENTAL & SOCIAL SAFEGUARDS
ENVIRONMENTAL PERMIT
Not required.
ENVIRONMENTAL & SOCIAL PERFORMANCE
Project activities are not expected to cause negative environmental or social impacts. However, the project may, in the long-term, generate indirect (secondary or tertiary) and cumulative impacts due to changes in farmer’s cocoa cultivation practices. Although no environmental assessment is required, project sponsors are required to monitor and provide additional guidance to the farmers regarding use of fertilizer and pesticides, and regarding possible expansion of cocoa cultivation when interventions are successful. Below are issues project sponsors must be aware of in designing the training programs:
Key issues:
Potential effects:
1. Chemical fertilizer and pesticides
Choice of products
Storage and handling
Proper application and dosage
Long-term use of chemical fertilizer and pesticide
Pesticides not on the prohibited list of GoI and USG
Health and safety related to storage and handling
Water pollution due to excessive use of fertilizer
Long-term health hazards due to consistent use of fertilizer and pesticide.
2. Expansion of Cocoa Cultivation
Clearing of forest for expansion of cocoa
planting
Encroachment into protected forests or other protected areas.
Land-use change
Disturbance of ecosystem services, natural habitats
3.Social inclusion
Gender
Vulnerable groups
Indigenous people
Ensure participation of women, ethnic and religious groups, cacao day laborers, and any other marginalized groups in the training programs.
SUPPLEMENTARY MANAGEMENT PLANS
N/A
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SAFEGUARDS GUIDELINE FOR
COMMUNITY AGROFORESTRY PROJECT Applicable for projects with the following characteristics:
PROJECT COMPONENTS: 1. Community engagement through participatory action research and planning 2. Selective crop shifting from current crops to intercropped timber plantations 3. Establishment of an equitable payment structure 4. Sustainable land use through appropriate harvesting techniques.
ASSOCIATED FACILITIES: N/A
LOCATION: Protected area.
Non-protected area.
ENVIRONMENTAL & SOCIAL SAFEGUARDS
ENVIRONMENTAL PERMIT
Not Required. No planned construction of physical facilities, or change in landscape or land-use.
ENVIRONMENTAL & SOCIAL PERFORMANCE
Project activities are not expected to cause negative environmental or social impacts. Although no environmental assessment is required, project sponsors are required to ensure social inclusion in the projects, and monitor any medium-term impacts due to changes in the crop selection and harvesting patterns. Below are issues project sponsors must be aware of:
Key issues: Potential effects:
1.Social inclusion
Gender
Vulnerable groups
Indigenous people
Equal opportunity for involvement of women, indigenous groups (where applicable) and other vulnerable groups
2. Expansion into protected areas
Possible encroachment into protected forests or other protected areas.
Land-use change
Disturbance of ecosystem services, natural habitats
SUPPLEMENTARY MANAGEMENT PLANS
Stakeholder engagement plan
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SAFEGUARDS GUIDELINE FOR
TRANSMISSION LINE Associated with on-grid (commercial) renewable energy projects – For potential IPP financed by GP Applicable for projects with the following characteristics:
TYPICAL PROJECT COMPONENTS:
Physical components:
Towers/ Poles
Power lines (voltage?) to nearest PLN transmission line.
ASSOCIATED FACILITIES: Possibly:
Conductors
Circuits, stations and transformer yards.
SCALE/SIZE: Length of power lines
Voltage of power lines
Distance between towers/poles, size of footprint for each tower/pole
LOCATION: Protected areas (?)
Settlement area (?)
Cultivation area (agricultural fields, Agroforestry areas)
ENVIRONMENTAL AND SOCIAL SAFEGUARDS
ENVIRONMENTAL PERMIT
Required In addition, may require Ijin Pinjam Pakai from Ministry of Forestry (if anticipate use of forest areas)
Standard information required
Line voltage
Total length of line in km
Minimum height of conductors over ground level
Width of the right of way in meters
Source& destination of power
Number and types of towers/poles
Height of towers/ poles
Number of circuits, stations and transformer yards
Points of interconnection
ENVIRONMENTAL ASSESSMENT
AMDAL, if sell to PLN’s> 150 kV, until 500 kV. (Refer to Permen LH No. 5, 2012)
UKL/UPL, if sell to PLN’s 150 kV (or less) (to be confirmed)
Key issues29: Potential effects:
PRE-CONSTRUCTION &CONSTRUCTION PHASE
1. Infrastructure
Land acquisition/ siting
Construction of towers/ poles
Access to site– i.e. construction or widening of road to site.
Chance-find of cultural heritage sites.
Facilities to support construction (roads, garages, storage areas and camps).
Social impacts related to land acquisition and economic displacement
Disturbance of natural habitats
Disturbance of cultural heritage sites.
Soil degradation (compaction, gullying, erosion).
29 The following Key Issues illustrate major issues to be addressed in environmental assessments or other supporting studies. The list of Key Issues should not be regarded as comprehensive. The issues to be addressed in any environment assessment must be tailor-made to the specific characteristics of the location and the planned project activities.
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2. Environmental quality
Air quality (noise, dust)
Construction waste and domestic waste from workers
Dust particles due to construction and earth moving
Removal and disposal of construction waste
Disposal of domestic waste
3.Temporary in-migration
People seeking work or other opportunities related to the project construction.
Worker’s camp
Land use
Pressure on natural resources and public facilities
Domestic liquid and solid waste
Socio-cultural discord
4. Health and safety of the public and construction workers
Increased safety risks
OPERATION PHASE
1. Health and safety of the public Social acceptance of potential exposure to electromagnetic fields
Increased safety risks
SUPPLEMENTARY MANAGEMENT PLANS
Stakeholder engagement plan
Compensation plan (if necessary)
Resettlement action plan - RAP (If applicable)
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LIST OF AREAS CONSIDERED ‘PROTECTED AREAS’ (KAWASAN LINDUNG) (Source: Appendix III, Ministry of Environment Regulation No. 05 Year 2012 Regarding Planned Businesses/ Activities that Require an AMDAL) 1. protected forest (kawasan hutan lindung); 2. peatland (kawasan bergambut); 3. catchment area (kawasan resapan air); 4. coastal area (sempadan pantai); 5. river bank/riparian area (sempadan sungai); 6. area surrounding lakes or dams(kawasan sekitar danau atau waduk); 7. game reserve and marine game reserve (suaka margasatwa dan suaka margasatwa laut); 8. nature reserves and marine nature reserves (cagar alam dan cagar alam laut); 9. coastal zones with mangrove forest (kawasan pantai berhutan bakau); 10. national part and marine national park (taman nasional dan taman nasional laut); 11. forest park (taman hutan raya); 12. ecotourism park and marine ecotourism park (taman wisata alam dan taman wisata alam laut); 13. cultural and science park (kawasan cagar budaya dan ilmu pengetahuan); 14. geologic park (kawasan cagar alam geologi) ; 15. groundwater recharge area (kawasan imbuhan air tanah); 16. spring buffer zone (sempadan mata air); 17. germ plasma protection area (kawasan perlindungan plasma nutfah); 18. wildlife refuge area (kawasan pengungsian satwa); 19. coral reef (terumbu karang); dan 20. protected wildlife and marine biota corridor (kawasan koridor bagi jenis satwa atau biota laut yang
dilindungi).
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Appendix 9. Environmental Impact Assessment Requirements
based on Minister of Environment Decree No. 5
year 2012 in combination with IFC PS Measures:
Proposed Business/activities and Supporting
Activities
INCLUDED in Appendix I
NOT INCLUDED in Appendix I
Are the test locations of Proposed Business and/or Activities within and/or directly adjacent to Protected
Areas?
Use the list of Protected Areas in Annex III (Protected Areas shall be
determined in accordance with Indonesian laws and regulations)
Use the Criteria of locations directly adjacent to
protected areas (Article 3 Paragraph (3))
NOT WITHIN and/or directly adjacent to
Protected Areas
WITHIN and/or directly adjacent to
Protected Areas
Use Exception Criteria of type of Business and/or Activities that need EIA for those locations within
and/or directly adjacent to Protected Areas
INCLUDED in the Exception Criteria of Article 3 Paragraph
(4)
NOT INCLUDED in the Exception
Criteria of Article 3 Paragraph (4)
Required to have AMDAL
Required to have UKL-
UPL or SPPL
Note:AMDAL refers to Environmental Impact AssessmentUKL-UPL refers to Environmental Management Efforts-Environmental Monitoring EffortsSPPL refers to Environmental Management Statement
For On-going Projects and Activities
Environmental and Social Due DiligenceAnd/or
Environmental & Social AuditAnd/or
Environmental & Social Gap AnalysisAnd/or
Social Gender Integration Plan (SGIP)
Supplementary StudiesStakeholders Engagement Plan (SEP)
And/orPublic Consultation & Disclosure Plan (PCDP)
And/orCultural Heritage Plan (CHP)
And/orIndigenous People Plan (IPP)
And/orGrievance Mechanism (GM)
And/orHealth & Safety
And/orLand Acquisition & Resettlement Action Plan
(LARAP/SRAP)
IFC Performance Standard Measures
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Appendix 10. Public Consultation and Disclosure Guidance
Pillars Action Remarks
Identify and Mapping Project Stakeholder
Listing and verify relevant group, organization and people which directly or indirectly affected by the project.
This activity can be started from the boundary areas directly affected by the project or facilities that does not support/directly affected by the project. This information can be obtained through discussions with local government, NGOs and other related parties.
Understanding stakeholder perspectives and relevance.
Understanding the interests of each stakeholder and their influence to the project.
Prioritize stakeholder’s relevance and identifying issues.
Ensure the level of involvement of each stakeholder. 4W+1Hprinciples are important to be applied.
Refer to past stakeholder information
It is important to use the existing stakeholder groups and its information. It will help the process of mapping and identification of the project stakeholders.
Open Dialogue and Engagement during Project Design, Implementation and Evaluation
Plan the process Stakeholder Engagement Plan is necessary to develop.
Using basic principles for consultation
The good consultation process will be: targeted affected peoples, early scope key issues; informed relevant information, meaningful: readily understandable format and culturally appropriate; two-way interaction; gender-inclusive; indigenous and vulnerable people involvement; localized to reflect appropriate timeframe, context and local language; free from manipulation/coercion; documented; reported back; and follow-up
Incorporate feedback Clear feedback during consultation process to addressed the issues related with project design, proposed mitigation measures, development benefit and opportunities.
Document the process and result of consultation
Documenting consultation activities and their outcomes is critical to effectively managing the stakeholder engagement process. When and where did such meetings take place? With whom? Around what topics and themes? And with what results? If commitments to stakeholders have been made during or as a result of these consultations, these too need to be documented.
Report back and follow-up the result
It is both good practice and common courtesy to follow up with stakeholders whom you consulted, to let them know what has happened and what next steps in the process will be.
Consultation with Indigenous People
Pre-consult where possible Determine the issues for consultation in advance of the consultation process. Guidance question: who are the affected? Who are the appropriate representatives? What are the key issues for consultation? What mean and format for consultation? What is the likely timeframe for consultation? Does the government have any obligation to consult under law? What the government role? What steps need to be taken to ensure the process is free, prior and informed?
Identify appropriate representatives
Careful identification of indigenous peoples’ representative is an essential part of the preparation for the consultation process. Guidance question: who are the elected officials
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Pillars Action Remarks of the territorial jurisdiction impact by the project/measure? To what extent do these authorities adequately leaders IP? Who are the traditional leaders of the IP? Are there has the representatives of all group in IP communities (women, youth and elderly)?
Identify issues for consultation Pre-consulting with indigenous peoples’ representatives and other institutions or organizations that work with them can provide insights as to the subjects that tend to be particularly important for indigenous peoples during the consultation process. These may include: clear timetable; potential adverse impact on IP; clear method and criteria for identify the IP; address adverse impact and participation; access to IP lands for environmental and social assessment; identify and protect of cultural sensitive site; influx of outside workers; benefit for IP; capacity building.
Give special care to cultural appropriateness
To help promote the informed participation of indigenous communities, special care should be given to the form and manner in which information is communicated.
Share responsibilities with government for disclosure and consultation
The government may be required to engage with IP prior to the involvement others stakeholders.
Gender Consideration in Consultation
Get the full picture Good practice encourages seeking out the views of women, because they provide project with a more complete picture of potential risks, impacts, and opportunities relating to their project. Women’s views should also be sought out when designing employment, compensation, and benefits programs, as these may require special targeting in order to facilitate more equitable distribution.
Disaggregate your data Collect a good deal of information from affected communities and other stakeholders. To allow this data to better serve you in terms of understanding gender differences related to your project, it should be disaggregated by gender.
Team composition and emphasis
Having female representative during consultations targeted at women can also be helpful and create a channel for communication and relationship-building between local women and the project.
Get more women in the room The key to getting more women in the room is to make meetings more accessible and convenient. For example: choose a time of day, date, and location convenient for women; and ask networks with pre- dominantly female membership to encourage their members to participate.
Use active facilitation Women’s participation can be facilitated in public meetings or workshops through a number of different techniques, such as increasing the amount of time spent in smaller groups; having some group-work that is single sex, etc.
Hold separate meeting Since in many cultures women’s voices are often not effectively present or heard in traditional meetings or workshops, it may be necessary to take special steps to create a venue in which
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Pillars Action Remarks women’s own issues and concerns can be raised.
Raise priority issues for women Active intervention may be required to identify issues that are important to women and to make sure they are given equal weight. This includes getting such issues onto the meeting agenda, raising them in group discussions, and including them in survey questionnaires.
Remember: women not homogenous groups.
It is helpful to keep in mind when trying to engage women that they are not a homogenous group. All women will not necessarily have the same interests or priorities
Capacity Building for Project Stakeholders
Provide training and workshop for related stakeholder
Training programs to project-affected stakeholder to acquire the technical skills related with project is necessary to increase their capacity.
Cross visit to related project Cross visit with other project or location is necessary for share and exchange the experience.
Information Disclosure
Transparent Good practice involves taking steps to increase transparency and accountability as a means of promoting understanding about your project and engendering public trust.
Apply good practice principles Good practice principles: Disclose early; disclose objective information; design disclosure to support consultation; provide meaningful information; ensure the accessibility of information.
Weigh the risk and benefits There will be situations in which disclosing certain types of information at sensitive stages in the project cycle might entail risks. Such factors will need to be considered in deciding what to disclose and when. Other reasons for non-disclosure might include: commercial confidentialities and proprietary information, information of a personal privacy, safety, or individual security nature; or situations where releasing information very early in the development of a project might unnecessarily raise public expectations, cause speculative behavior, or create unnecessary fears.
Manage information on sensitive and controversial issues
There are certain stakeholder issues, such as land acquisition and resettlement for example, that may be particularly sensitive and thus carry risks to the project if information about them is not communicated and managed effectively. In these cases it may be better to release information about the issue at the same time as conducting face-to-face consultations.
Grievance Mechanism Process is important For affected communities and other stakeholder groups seeking to have their complaints resolved, the perception of transparency and “fairness of process” is important.
Scale the mechanism to project needs
Grievance mechanisms should be designed to fit the context and needs of a particular project. Smaller projects with relatively straight- forward issues might have simpler means of addressing complaints, such as through community meetings, community liaison personnel and suggestion boxes allowing for anonymity. Larger, more complex projects will likely need a more formalized process and mechanism, And a higher level of dedicated resources for
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Pillars Action Remarks receiving, recording, tracking, and resolving complaints.
Put in writing and publicize A policy or process for addressing complaints cannot be effective if nobody knows about it. The grievance procedures should be put into writing, publicized, and explained to relevant stakeholder groups.
Bring in third parties where needed
The project can facilitate this by providing project- related information in a timely and understandable manner. In cases where significant imbalances in knowledge, power, and influence. The project may wish to reach out to other partners to assist in the process. In terms of advocacy, an NGO might be brought in to assist local communities and advocate on their behalf.
Make it accessible Projects that make it easy for people to raise concerns and feel confident that these will be heard and acted upon can reap the benefits of both a good reputation and better community relations.
Response time and transparency matter
It is good practice for the project to publicly commit to a certain time frame in which all recorded complaints will be responded to (be it 48 hours, one week or 30 days) and to ensure this response time is enforced. This helps allay frustration by letting people know when they can expect to be contacted by project personnel and/or receive a response to their complaint.
Keep good record and report back
Whether it is simply keeping a log book (in the case of small projects) or maintaining a more sophisticated database (for bigger projects with more serious impacts), keeping a written record of all com- plaints is critical for effective grievance management.
Don’t impede access to legal remedies
If the project is unable to resolve a complaint, it may be appropriate to enable complainants to have recourse to external experts. These may include public defenders, legal advisors, legal NGOs, or university staff.
References:
Stakeholder Engagement: A Good Practice handbook for Companies Doing Business in Emerging Markets, IFC, 2007.
Community Planning Toolkit: Community Engagement, BIG Lottery fund, 2014
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70 70 Appendix11a. Land Acquisition and Resettlement Policy
Framework (LARPF)
1. Introduction
This document constitutes the policy framework for land acquisition, process framework for
access restriction, and compensation/assistance for Project Affected Persons (PAP) for Green
Prosperity Project (GP Project). Millennium Challenge Account Indonesia (MCA-I) has agreed to
apply IFC Performance Standard 5 and World Bank (O.P. 4.12) about environmental and social
safeguard policies in the design and implementation of this program. Because this program
identifies activities/Specific-projects during the implementation phase, it is impossible to
determine the involvement of land acquisition that will probably needs resettlement plan during
project preparation.
This framework establishes principles and procedures to be followed if activities undertaken
during the GP Projects implementation causes land acquisition (including land donation) and/or
access restriction. In such instances, the framework requires that a Land Acquisition and
Resettlement Action Plan (LARAP) is prepared for Specific-projects causing land acquisitions well
as plan of action for access restriction. The purpose of these action plans are to ensure that any
potential impacts are minimized, and that any Persons affected by such impacts are provided
ample opportunity, through provision of compensation or other forms of assistance, to improve
or at least restore their incomes and living standards.
2. Policy Objectives and Key Definitions
Every reasonable effort will be made to avoid or minimize the need for land acquisition, and to
minimize all adverse impacts. If land acquisition and associated adverse impacts cannot be
avoided, the principle objective of the LARPF is to ensure that all Persons subjected to adverse
impacts (“Project Affected Persons” as defined below) are compensated at replacement cost (as
defined below) for lost land and other assets or lost to productive assets and otherwise provided
with any rehabilitation measures or other forms of assistance necessary to provide them with
sufficient opportunity to improve, or at least restore, their incomes and living standards.
The process framework to mitigate the impacts of access restriction which is also part of this
LARPF will ensure that project activities by: i) avoiding any unnecessary restriction of access to
natural resources that will adversely affect local communities; ii) ensuring adequate participation
and consultation of the affected population in the overall project; iii) ensuring that restriction on
access to resources, and mitigation measures put in place as a result, are determined with the
participation of the affected parties.
Key definitions are as follows:
1. Project Affected Persons (PAP) refers to all of the people who, on account of the project
related activities, would have their (i) standard of living adversely affected; or (ii) right,
title, interest in any house, land (including premises, agricultural and grazing land) or
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any other fixed or movable asset acquired or possessed temporarily or permanently; (iii)
access to productive assets adversely affected, temporarily or permanently; or (iv)
business, occupation, work or place of residence or habitat adversely affected; and
“Project Affected person” means any of the Project Affected Persons.
2. Land acquisition is the process whereby a person involuntary loses ownership, use of,
or access to, land as a result of the project. Land acquisition can lead to a range of
associated impacts, including loss of residence or other fixed assets (fences, wells,
tombs, or other structures or improvements that are attached to the land).
3. Rehabilitation is the process by which Project Affected Persons are provided sufficient
opportunity to restore productivity, incomes and living standards. Compensation for
assets often is not sufficient to achieve full rehabilitation.
4. Replacement cost is the method of valuation of assets which determines the amount of
compensation sufficient to replace lost assets, including any necessary transaction costs.
Replacement cost shall normally be assessed by independent appraisal
team/institutions, properly constituted in accordance with Indonesian Law and applying
the appropriate rules for valuation. Where domestic law does not meet the standard of
compensation at full replacement cost, compensation under domestic law is
supplemented by additional as to meet the replacement cost standard.
3. Key Principles
Wherever possible, Specific-project designs should be conceived as development
opportunities, so that PAP may benefit from the services and facilities created for, or by,
Specific-project activities.
All PAP are entitled to compensation for lost assets or loss of access to productive asset,
or loss of access to natural resources designated as restriction area, or to alternative but
equivalent forms of assistance in lieu of compensation; to ensure that they will not be
worse-off due to the Specific-project implementation. Compensation rates as established
in a LARAP refer to amounts to be paid in full to the individual or collective owner of the
lost asset, without depreciation or deduction for taxes, fees or any other purpose.
Compensation scheme, including alternative income generation for restoring the PAP’s
livelihood will also apply to the lost or restriction of access to productive assets.
Value of assets to be compensated will be assessed by independent appraisal
team/institution as required in national regulation (UU No. 2/2012 on Land Acquisition
for Development of Public Interest). Valuation methods need to reflect use of
replacement cost.
When cultivated land is acquired, effort should be made to provide land-for land
replacement. Replacement house plots, sites for relocating businesses, or replacement
agricultural land should be of equivalent use value to the land that was lost.
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PAP should be consulted during the process of LARAP and action plan for access
restriction preparation, so that their preferences are solicited and considered. The action
plans are publicly disclosed in a manner accessible to PAP.
Methods by which PAP can pursue grievances will be established, and information about
grievance procedures will be provided to PAP.
4. Preparing Land Acquisition and Resettlement Action Plan (LARAP) and Action Plan for
Access Restriction
Land Acquisition
The GP Projects will finance four main activities, namely Participatory Land-Use Planning,
Technical Assistance and Oversight, GP Facility, and Green Knowledge. The potential investment
in GP Project, inter alia: a). administrative boundary setting; the updating and integration of land
use intervention; and enhancing spatial plans at the district and provincial level; b). Provision of
technical assistance and project oversight to help eligible districts and project sponsors and
community groups identify and develop potential investments in sustainable, low-carbon
economic growth and prepare funding applications to be submitted to the Green Prosperity
Facility; c). financing facility that will provide grant financing for low-carbon development projects
to support investments in two thematic areas: renewable energy and natural resources
management. d). Provision of technical assistance and support for strengthening local, provincial
and national capacity to drive forward Indonesia’s nation-wide low-carbon development strategy
within the context of the GP Project, including assistance to develop and improve related centers
of excellence in science and technology in Indonesia.
The project implementation unit/proponent (PIU) will screen and pre-identify the scale of impact
of the land acquisition, based on estimated number of affected people and size of land to be
taken. Based on the IFC and WB policy, there are two main resettlement planning instruments for
project impacts, namely Land Acquisition and Resettlement Action Plan (LARAP) and Abbreviated
LARAP.
Land Acquisition and Resettlement Action Plan (LARAP) is required when land acquisition
affects more than 200 people, takes more than 10% of household productive assets and/or
involves physical relocation.
Abbreviated LARAP is acceptable if fewer than 200 persons are affected but land acquisition
is minor, less than 10% of all productive assets of the affected households are taken.
The project has indicated and negative listed that no large-scale infrastructure which will lead to
the large-scale land acquisition/resettlement will be financed. No LARAP is anticipated in any
Specific-projects to be financed. The Specific-projects will only involve small-scale infrastructures
with limited land acquisition, which will only need Abbreviated LARAP or will acquire through land
donation. For this project purpose, the term LARAP will be used instead Abbreviated LARAP. (See
Appendix3.1 for Outline of Abbreviated LARAP and Appendix 3.3 for sample of Statement Letter of Land
Donation).
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Access Restriction
Any access restrictions that may result from GP Projects activities for specific uses, and thus
prohibiting activity in sensitive areas trigger the policy on involuntary resettlement, which then
need a development of process framework. During implementation, an action plan for access
restriction will be developed together with the affected communities to describe the agreed
restrictions, management schemes, measures to assist affected persons and the arrangements
for their implementation. The action plan can take many forms. It can simply describe the
restrictions agreed to, persons affected, measure to mitigate impacts from these restriction, and
monitoring and evaluation arrangement. (See Appendix 3.2 for Outline for Action Plan for Access
Restriction).
All action plans must be reviewed and approved by GP Director prior to activities/Specific-projects
final approval and must be disclosed locally in a manner accessible to PAP, and kept on file by GP
unit. Each LARAP and Action Plan for Access Restriction should be reviewed and approved by the
MCA-I through GP Director before being implemented.
5. Public Consultation and Disclosure
The PIU shall disclose information about the project and land acquisition process to the PAPs and
the village leader explaining the proposal, potential impacts and legal rights of the PAP under this
framework.
PAP should be provided with opportunities to participate in planning and implementation of any
activities that will affect them adversely or positively. All PAPs are to be informed regarding
potential impacts and proposed mitigation measures, including compensation/assistance
schemes.
The PIU will ensure that women will be involved in any consultation process. In case of under-
representation or where needed, separate meetings with marginalized households, including
women shall be organized so that their specific concerns can be discussed. Consultations will be
undertaken at venues and times that are suitable for women and will not disadvantage them.
Where it is inconvenient for women to attend the meeting, these women will be consulted by
visiting their homes.
The documents of action plans should be available in Bahasa Indonesia, taking into account
literacy levels, and will be disclosed at places accessible to the PAP, in particular to ensure that
the PAP understands their entitlements. The document will also be disclosed at the project
website at MCA-I website and GP Portal.
6. Eligibility and Entitlement Policy
Land Acquisition
All PAPs are eligible for compensation and/or other forms of assistance, as relevant to the nature
of impacts affecting them
Specifically, PAP will be entitled to the following types of compensation and rehabilitation
measures:
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PAP losing agricultural land:
- The preferred mechanism for compensation of lost agricultural land will be through
provision of replacement land of equal productive capacity and satisfactory to the
PAP. If satisfactory replacement land cannot be identified, compensation at
replacement cost may be provided.
- PAP will be compensated for the loss of standing crops at market prices, for economic
trees at net present value, and for other fixed assets (ancillary structures, wells,
fences, irrigation improvements) at replacement cost.
- Compensation will be paid for temporary use of land, at a rate tied to duration of
use, and the land or other assets will be restored to prior use conditions at no cost
to the owner or user.
PAP losing residential land and structures
- Loss of residential land and structures will be compensated either in-kind (through
replacement of house site and garden area of equivalent size, satisfactory to the PAP)
or in-cash compensation at replacement cost.
- If after partial land acquisition the remaining residential land is not sufficient to
rebuild or restore a house of other structures of equivalent size or value, then at the
request of the PAP the entire residential land and structure will be acquired at
replacement cost.
- Compensation will be paid at replacement cost for fixed assets.
- Tenants, who have leased a house for residential purposes will be provided with a
cash grant of three month’s rental fee at the prevailing market rate in the area and
will be assisted in identifying alternative accommodation.
Project Affected Persons losing business
- Provision of alternative business site of equal size and accessibility to customers,
satisfactory to the pproject affected business operator;
- Cash compensation for lost business structures; and
- Transitional support for loss of income (including employee wages) during the
transition period;
- Transitional support for loss of income
Infrastructure and access to services
Infrastructure will be restored or replaced at no cost to the communities affected
No deduction for taxes and transaction administrative cost for compulsory land acquisition. For
negotiated land acquisition where there is a willing seller and a willing buyer, no administrative
cost will be deducted and tax obligations will be covered by the negotiated transaction.
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Access Restriction
To offset any lost revenue that might result in the near term from the access restrictions, as well
as from the introduction of natural resources management practices, including bringing overall
activity effort in line with environmental carrying capacity, the Project will support an alternative
livelihoods program.. The Project will facilitate access by affected people to such programs. Other
options of compensation will also be considered upon consultation with the affected people. For
example, through a participatory process community members will ensure that revenue streams
from any access restrictions are fully and sustainably mitigated. If communities choose to engage
and endorse access restrictions, it is anticipated that losses will be compensated by one or more
available alternatives such as: sharing any chain of revenues from the natural resources, gaining
wages from employment in the protected area and related activities, value addition and sale of
non-timber forest products, including alternative livelihood development activities identified
during the participatory process.
These in line with Involuntary Resettlement policy, which defines project-affected persons as
anyone who (a) through involuntary taking of land, is relocated or loses shelter, loses assets or
access to assets, of loses incomes sources of means of livelihood, or (b) suffers adverse impacts
on livelihood because of involuntary restriction of access to legally designated parks and/or
protected areas. Such persons are to be informed about their options and rights and consulted on
and offered choices among feasible resettlement alternatives. In the case of access restrictions,
the natures of the restrictions and of the measures to mitigate their adverse impacts (action plan)
are to be determined with the participation of the affected groups.
7. Voluntary Land Acquisition
It is very likely that the Specific-projects will involve voluntary land acquisition, in which the PAPs
are voluntarily contributing their small portion of land for the projects. Land contribution is
acceptable only if there are informed consent and power of choice.
Informed consent means that the people involved are fully knowledgeable about the project
and its implications and consequences and freely agree to participate in the project.
Power of choice means that the people involved have the option to agree or disagree with
the land acquisition.
Because determining informed consent can be difficult, the following criteria are suggested as
guidelines:
The infrastructure must not be site specific.
The impact must be minor, that is, involve no more than 10 percent of the area of any
holding and require no physical relocation.
The land required to meet technical project criteria must be identified by the affected
community, not by line agencies or project authorities (nonetheless, technical authorities
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can help ensure that the land is appropriate for project purposes and that the project will
produce no health or environmental safety hazard).
The land in question must be free of squatters, encroachers, or other claim or
encumbrances.
Verification (for example, notarized or witnessed statements) of the voluntary nature of
land donations must be obtained from each person donating land. (See Appendix 3.3 for
sample of Letter of Land Donation).
If community services are to be provided under the project, land title must be vested in
the community, or appropriate guarantees of public access to services must be given by
the private title holder.
Grievance mechanism must be available.
8. Implementation Arrangements
The LARAP and action plan for access restriction review organizational arrangements, to ensure
that implementation procedures are clear, that responsibility is clearly designated for provision
of all forms of assistance, and that adequate coordination among all agencies involved in action
plans implementation is assured.
The action plans must include a detailed implementation schedule, linking the project
construction timetable to land acquisition-related and access restriction related activities. The
implementation timetable should establish that in-cash or in-kind compensation should be
completed before the Specific-project implementation.
The PIU will handle the daily activities of the Project and has overall responsibility to oversee
adherence to this LARPF as well as action plans preparation and implementation. The will ensure
that entitlements and measures in the action plans (LARAP and action plan for access restriction)
are consistent with LARPF and that suitable budgetary provisions are made for timely
implementation of the action plans.
For projects involving acquisition of customary land, the PIU will ensure that (i) any land disputes
are resolved and a written on use of the land is signed with customary landowners and included
in the LARAP; (ii) compensation or lease rates are agreed with landowners before work begins on
the site.
9. Costs and Budget
The action plans will include detailed cost for compensation (in cash and in kind) and establish
sources for all funds required, and will ensure that fund flow is compatible with the timetable for
payment of compensation and provision of all other assistance.
All costs covered under this LARPF shall be borne by the GP Project or by the GoI. Funds flow will
follow the procedures established under the overall project funds flow.
10. Grievance Procedure
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Grievance procedures are established for the PAPs to bring their complaints to PIU, which include
reasonable performance standards, e.g., time required to respond to complaints, and should be
provided without charge to PAP. The procedure should follow the grievance redress mechanism
of MCA-I Grievance Mechanism System. The name and contact detail of the designated
unit/persons for handling complaints shall be displayed at each disclosure site.
However, should there be the project related mechanisms fail to resolve complaints, the action
plans should also state other ways available. The local practice for conflict resolution should be
considered for seeking resolution.
11. Monitoring of Implementation of the Action Plans
PIU will ensure that the action plans implementation will be externally monitored by a qualified
entity. The action plans should establish the scope and frequency of monitoring and reporting
activities. External monitoring reports will be prepared for simultaneous submission to the MCA-
I through GP Director.
Periodic report should track items such as:
i) disclosure of information and consultation with PAP;
ii) status of land acquisition and/or access restriction;
iii) payments for assets compensation and loss of income;
iv) income restoration activities, including the alternative income generation;
v) public information dissemination and consultations process;
vi) the benefits of the project;
vii) number and type of grievances received, how they are being addressed and when they
have closed out
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Appendix 11b. Outline of Land Acquisition and Resettlement
Action Plan-(LARAP)
The scope and level of detail of the action plan vary with the magnitude and complexity of land
acquisition and access restriction. The plan covers the elements below as relevant.
A description of the project, identification of how the Project has given rise to land
acquisition;
Identification of potential project impacts;
Asset and livelihood census survey of 100% of PAPs and a valuation of their assets and
respective income sources;
The institutional framework and organizational responsibilities;
Eligibility and the entitlement matrix;
Methodologies for valuation of losses and compensation for losses;
PAP participation, consultation and disclosure;
Grievance mechanism procedures;
Implementation schedule and budget; and,
Monitoring and evaluation activities.
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Appendix 11c. Outline of Action Plan for Access Restriction
Project background and how the plan was prepared, including consultations with local
communities and other stakeholders;
The socio-economic circumstances of local communities;
The nature and scope of restrictions, their timing, as well as administrative and legal
procedures to protect affected communities’ interests;
The anticipated social and economic impacts of the restrictions;
The communities or persons eligible for assistance;
Specific measures to assist these people, along with clear timetables of actions and
financing sources;
Protected area boundaries and use zones;
Implementation arrangements, roles and responsibilities of various stakeholders,
including government ad non-government entities providing services or assistance to
affected communities;
Arrangement for monitoring and enforcement of restrictions and natural resources
management agreements;
Clear output and outcome indicators developed in participation with affected
communities
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Appendix 11d. Example of Statement Letter of Land Donation
Statement Letter of Land Donation
I, the undersigned:
Name :
Occupation :
Address :
Herewith declare that I voluntarily donate my land or assets affected for the project / Specific-
project ……………………………………………………………………………………………….. (Write the name of
project / Specific-projects to be constructed)
Location of land :
Size of land :
Current land use :
Status of ownership :
With reasons :
Map/sketch of donated land with borders :
...........................................................................................................................................................
...........................................................................................................................................................
.................................................................................................................
This statement was made in good faith without any coercion.
Place, date of the agreement
Knowing,
Landowner Signature Acknowledgement by Head of Village,
Name: ................................ Name: ................................
Signature of heirs and witnesses:
1. Name: ............................................ Signature:
2. Name: ............................................ Signature:
3. Name: ............................................ Signature:
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Appendix 12. Indigenous Peoples Planning Framework (IPPF)
1. Introduction
Since GP Project components may support activities/Specific-projects across several provinces in
the country, they are likely to affect Indigenous People (IP) or ethnic minority in a number of
Specific-project areas in participating provinces such as Jambi, Central Sulawesi, East Nusa
Tenggara and West Nusa Tenggara.
This IPPF is prepared in order to provide some general principles and procedures that will be
applied during Specific-project preparation and implementation, if IP are to be affected. In the GP
Project activities, therefore, the purpose of the framework is for ensuring consultation, giving IP
a voice, and an opportunity to benefit from the program.
Objective
The primary objectives of the IPPF are to ensure that:
such groups are afforded meaningful opportunities to participate in planning that affects
them;
opportunities to provide such groups with culturally appropriate benefits are considered;
any project impacts that adversely affect them are avoided, to the extent possible. If
unavoidable, mitigation measures should be developed.
This is in line with the national objective in empowering indigenous community (Komunitas Adat
Terpencil - KAT), in which to grant of authority and belief to KAT to self-determine their own
destiny and various development activity programs available within their location and their
necessity through protection, reinforcement, development, consultancy and advocating to
improve their social prosperity level.
2. Definition
The national legislation, Presidential Decree No. 111/1999 sets the criteria as follows: a) in form
of small, closed and homogenous community; b) social infrastructure supported by familial
relationship; c) in general geographically remote and relatively difficult to reach; d) in general live
with sub-system economy; e) its Government of Indonesia equipment and technology is simple;
f) dependency to local environment and natural resources are relatively high; g) limited access of
social, economic, and political service.
The terms “indigenous people”, “indigenous ethnic minorities” and “tribal groups”, describe social
groups with a social and cultural identity distinct from the dominant society that makes them
vulnerable to being disadvantaged in the development process. For the purposes here,
“indigenous people” is the term that will be used to refer to these groups.
Indigenous peoples are commonly among the poorest segments of a population. According to the
IFC Performance Standard and World Bank policy, the term “Indigenous Peoples” is used in
generic sense to refer to a distinct, vulnerable, social and cultural group processing the following
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characteristics in varying degrees: a) a close attachment to ancestral territories and to the natural
resources in these areas; b) self-identification and identification by others as members of a distinct
cultural group; c) n indigenous language, often different from the national language; and d)
presence of customary cultural, economic, social or political institutions.
For the purpose of this Framework, the definition of IP will try to follow both the criteria of the
Bank and the national legislation.
3. Screening for indigenous people among the affected populations
Initial screening of the potential presence of IP in the Specific-projects area will be conducted by
using combination criteria of IFC Performance Standard and World Bank and national legislation
identification. All Specific-project areas which have IP communities and are candidates for GP
Project support will be visited (at the time of first consultation with communities) by a project
implementing unit and relevant local authorities, including personnel with appropriate social
science training or experience. Prior to the visit, respective project implementing unit will send
notice to the communities informing their leaders that they will be visited for consultation. The
notice will request that the communities invite to the meeting representatives of farmers, women
associations and village leaders for discussion on the Specific-project. During the visit, the
community leaders and other participants will be consulted and present their views with regards
to the Specific-project.
At this visit, personnel with social science training or experience will undertake a further screening
for IP population with the help of local leaders, local authorities, and NGO as necessary. The
screening will check for the following: (a) names of IP groups in the affected village; (b) total
number of IP in the affected villages; (c) percentage of IP in affected villages; (d) Number and
percentage of indigenous households within a described zone of influence of the proposed
Specific-project.
If the results show that there are IP communities in the zone of influence of the proposed Specific-
project, a social assessment will be planned for those areas.
Preliminary screening of the IP presence was done referring to the World Bank’s IP mapping
(2010) which provide data on the IP distribution in Indonesia using the World Bank characteristic
of IP combined with the criteria of Ministry of Social Affairs. The screening result for the 12
(twelve) participating districts is presented in the table below. For a number of districts, data are
not available. The result of this screening is still to be confirmed and verified with other sources,
including to be consulted with local community leaders in the field.
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Table 1. List of IP villages in the Project Location (World Bank, 2010)
No. District (Province)
Sub-district Village Name of IP
1. Merangin (Jambi) Lembah Masurai Pasar Masur Suku Anak Dalam
Pamenang Lantak Serit Suku Anak Dalam
Bangko Sungai Putih Suku Anak Dalam
Sungai Manau Bungo Tanjung Suku Anak Dalam
Markeh Suku Anak Dalam
Tabir Kel. Kampung Baru Suku Anak Dalam
Tabir Selatan Sungai Sahut Suku Anak Dalam
Bunga Antoi Suku Anak Dalam
2 Muaro Jambi (Jambi) Mestong Nyogan Suku Anak Dalam
Pelempang Suku Anak Dalam
KM.39 Tanjung
Pauh
Suku Anak Dalam
KM. 32 Tanjung
Pauh
Suku Anak Dalam
Sungai Landai Suku Anak Dalam
Sungai Bahar Tanjung Lebar Suku Anak Dalam
Markading Suku Anak Dalam
3 Solok Selatan (West
Sumatera)
No IP (or no data available)
4 Lombok Tengah (NTB) No IP (or no data available)
5 Lombok Timur (NTB No IP (or no data available)
6 Lombok Utara (NTB) No IP (or no data available)
7 Sumba Timur (NTT) Nggaha Oriangu Prai Bakul No IP name
Prai Karang No IP name
TandulaJangga Tandula
Tabundung Tapil Baradita/Sumba
Waikanabu No IP name
Maidang Maidang
Pinupahar Ramuk Mbarandita
Paberiwai Wairara No IP name
Karera Praisalura Praisalura
Hamba Wutang No IP name
Kabanda Kabanda
Matawai Lapawu Katiku Wai No IP name
Katiku Luku No IP name
Mahu Bokul No IP name
Kahaunga Eti Matawai Katingga No IP name
Lai Mbonga No IP name
Meorumba No IP name
Lulundilu No IP name
Wula Wajelu Haray Haray
Umalulu Ngaru Kanoru Ndeparyami
Haharu Ndapayami No IP name
Mbata Puhu Sumba
Napu No IP name
8 Sumba Barat (NTT) Lamboya Gaura Gaura
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No. District (Province)
Sub-district Village Name of IP
Wanokaka Hupu Mada No IP name
Loli Bera Dolu No IP name
Waikabubak Tebara Loli, Ana Paso Ka
9 Sumba Tengah (NTT) No IP (or no data available)
10 Sumba Barat Daya
(NTT)
No IP (or no data available)
11 Mamasa (Central
Sulawesi)
Sumarorong Tadisi To Sareung
Mambi Talippuki Tomaera
Aralle Salutambun No IP name
12 Mamuju (Central
Sulawesi)
Pangale Polopangale No IP name
4. Social Assessment (SA) and Consultation
During the preparation of the Specific-project proposal and/or Specific-project approval, a social
assessment process will be undertaken to define the Information dissemination to all members
of the IP community will be conducted specifically targeting appropriate message routes in
accordance with prevailing customs and traditions, including using the commonly used IP
language in every meeting, minutes, brochures, etc.
5. Indigenous People Plan
Free, prior and informed consultations will be conducted through a series of meetings, including
separate group meetings: indigenous village leaders; indigenous men; and indigenous women,
especially those who live in the zone of influence of the proposed work under Specific-project.
Discussions will focus on Specific-project impacts, positive and negative; and recommendations
for design of Specific-projects. If the SA indicates that the proposed Specific-project will cause
adverse impact or that the IP community rejects the proposal, the Specific-project will not be
approved (and therefore no further action is needed). If the IP supports the Specific-project
implementation an IPP will be developed to ensure that the IP will receive culturally appropriate
opportunities to benefit from the Specific-project activities.
The IPP is prepared in a flexible and pragmatic manner, and its level of detail varies depending on
the specific project and the nature of effects to be addressed. It will include the following
elements, as needed:
a. A summary of Social Assessment (SA);
b. A summary of results of the free, prior, and informed consultation that was carried out
during Specific-project preparation;
c. A framework for ensuring free, prior, and informed consultation with the affected
indigenous communities during project implementation.
d. An action plan of measures to ensure that the Indigenous Peoples receive social and
economic benefits culturally appropriate;
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e. The cost estimates and financing plan for the IPP;
f. Accessible grievance mechanism, which takes into account the availability of customary
mechanism;
g. Monitoring, evaluation and reporting mechanism
The IPP of each Specific-project should be reviewed and approved by MCA-I through the GP
Director and ESP Director before Specific-project implementation begins.
The IPP should be disclosed publicly so that accessible to the affected indigenous community.
Upon agreed by the GP Director and ESP Director, for the Specific-projects that work at the
existing systems with community-decision making process, a stand-alone IPP may not be required.
The process to ensure that the IP are included as beneficiaries and participate in any activities will
be incorporated in the Specific-project design.
6. Principles if a Specific-project affects indigenous peoples
There are a number of measures to be applied when the IP are presence in the Specific-project
area and are part of the beneficiaries, in relation to the development of indigenous peoples plan.
Project implementation unit or proponent (PIU) will ensure that free, prior and informed
consultations are undertaken, in a language spoken by, and location convenient for,
potentially affected IP. The views of IP are to be taken into account during preparation
and implementation of any Specific-project, while respecting their current practices,
beliefs and cultural preferences. The outcome of the consultations will be documented
into the Specific-project documents.
If the IP conclude that the Specific-project will be beneficial to them, and that any minor
adverse impacts, if any, can be mitigated, a plan to assist them will be developed based
on consultation with the IP and local representatives. The community should also be
consulted to ensure that their rights and culture are respected. The assistance may also
include institutional strengthening and capacity building of indigenous villages and
community groups working with the Specific-project.
In the issue of access restriction to the natural resources, the IP will participate in the
zoning and mapping activities in order to fully benefit from the project. In full consultation
with the IP groups, the zoning and mapping activities will define the areas with customary
rights of the local IP and reflect the issues in the IPP with particular actions to protect or
compensate the groups.
Where indigenous people are identified that represent a sufficiently large interest, efforts
will be made to ensure that the group is represented and that regular and formal
communication is established with the group.
Where the indigenous people speak a language different from Bahasa Indonesia, relevant
brochures and documents will be translated in the appropriate language. Provision has
been made in the project budget to allow for additional translations of relevant project
documents.
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These steps will be aimed at ensuring that indigenous peoples participate fully in the project, are
aware of their rights and responsibilities, and are able to voice their needs during the
social/economic preliminary survey/exercise and in the formulation of the Specific-projects and
operational policies. In addition, they will be encouraged to submit Specific-project proposals that
cater to their group's needs, if necessary.
7. Reporting, Monitoring and Documentation
Besides specific attention to IP issues in supervision and monitoring, PIU will include these matters
in their progress reporting. The MCA-I (through GP and ESP unit) supervision missions will
periodically pay special attention to ensure that that the Specific-projects affecting IP afford
benefits to them and no adverse impacts on them.
8. Implementation Arrangement
The PIU will be responsible for training the respective project implementing unit or local
authorities to undertake the work of consultation, screening, social assessment, analyses and
preparing IPPs and addressing any grievances.
PIU of individual Specific-projects and local authorities are responsible for implementing IPP
(arrange adequate staff and budget).
Appendix 13. Physical Cultural Chance Find Procedures
1. Definitions
Physical cultural resources are the sites, areas, objects, or artifacts that have archaeological,
paleontological, historical, architectural, religious, aesthetic, or other cultural, religious or spiritual
significance to a commune, religious group, ethnic group and / or the wider public or nation. They include
movable or immovable objects, sites, structures, groups of structures, and natural features and
landscapes, for example: Sacred landmarks, Sacred burial sites or human remains, Pilgrimage sites or
routes, Fossils, Rock drawings, Ancient structures, Places of worship.
2. Chance Find Procedures
If any person discovers a physical cultural resource, such as (but not limited to) archeological sites,
historical sites, remains and objects, or a cemetery and/or individual graves during excavation or
construction, the Contractor shall:
1. Stop the construction activities in the area of the chance find;
2. Delineate the discovered site or area;
3. Secure the site to prevent any damage or loss of removable objects. In cases of removable
antiquities or sensitive remains, a night guard shall be arranged until the responsible local
authorities take over;
4. Notify the local authorities immediately (within 24 hours or less);
5. Responsible local authorities are in charge of protecting and preserving the site before
deciding on subsequent appropriate procedures. This would require a preliminary evaluation
of the findings to be performed by archeologists. The significance and importance of the
findings should be assessed according to the various criteria relevant to cultural heritage;
those include the aesthetic, historic, scientific or research, social and economic values;
6. Decisions on how to handle the finding shall be taken by the responsible authorities. This
could include changes in the layout (such as when finding an irremovable remain of cultural
or archeological importance) conservation, preservation, restoration and salvage;
7. Implementation for the authority decision concerning the management of the finding shall
be communicated in writing by relevant local authorities; and
8. Construction works could resume only after permission is granted from the responsible local
authorities concerning safeguard of the physical cultural resource.
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