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PT PLN (Persero)

INDONESIA POWER TRANSMITION DEVELOPMENT–2 (IPTD-2)

LAND ACQUSITION AND RESETTLEMENT ACTION PLAN

(LARAP)

TEMBILAHAN

SUBSTATION DEVELOPMENT

INDRAGIRI HILIR REGENCY

RIAU PROVINCE

Draft Land Acqusition and Resettlement Plan (LARAP)

2 Januari 2012 Consultation Version

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Land Acquisition and Resettlement Action Plan

(150 KV) Tembilahan Substation

I. INTRODUCTION

1.1 Project Description

To increase the electric power supply and the reliability of transmission system in this province,

PLN UIP RING SUM I through UPK RING SUM REG II will construct a 30 MVA Tembilahan

Substation. The Tembilahan Substation construction project will be implemented by PT PLN

(Persero) as a part of the IPTD-2 project, financed under IBRD Loan

The Tembilahan Substation construction project involves construction of the foundation, control

building, and installation of S/S equipment (150 kV Line Bays, 30 MVA transformer, and 12 x 20

switch gear). About 20.000 m2 land needs to be acquired for Tembilahan Substations from 1

(one) land owner. The location map of Tembilahan Substation construction project are provided

in Appendix 1.

Land acquisition for the substation construction will be conducted in accordance with national

laws, local government regulations, and the World Bank procedure. The implementing unit –

PLN UPK RING SUM REG II – will follow the steps outlined in the standard procedure as set

out in the Land Acquisition and Resettlement Policy Framework.

1.2 LARAP Preparation

This LARAP has been prepared based on data and information collected during the joining

survey between PLN UIP RING SUM I and PLN Wilayah Riau & Kepulauan Riau to find

alternative of substation location. The document contains results and analysis of the following :

• identification of the location for Substation bases

• identification of land owner of the respective land for Substation base

• inventory of assets (structure, trees, etc.) on the land for Substation bases

• identification of NJOP and market price of land for Substation bases

• identification of indicative price and market price of affected trees

• implementation schedule and responsible institution

• cost estimation

II. DESCRIPTION OF PROJECT AREA

2.1 Project Location

The 30 MVA Tembilahan Substation is planned to be constructed to connect the 150 kV Rengat

Substation – Tembilahan Substation in the Riau Province. The Tembilahan Substation location at

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Jl Raya Sungai Beringin Parit 21, Desa Sungai Beringin, Kecamatan Tembilahan, Kabupaten

Indragiri Hilir, Riau Province (Cordinate UTM 0297384; 9969676).

2.2 Land Use

Total land area required for Tembilahan Substation is about 20.250 m2. The land to be acquired

for this project is owned by 1 (one) local people. Land for Tembilahan Substation bases is an

open area and is used for coconut trees and palm oil plants. Land condition for Tembilahan

Substation is shown in Figure 2.1 and 2.2.

Figure 2.1. Land Condition for Tembilahan Substation

Figure 2.2. Coconut Trees in Tembilahan Substation

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III. PEOPLE AND ASSETS AFFECTED BY PROJECT

3.1 Identification of land owner and land affected Table 3.1. below presents the summary of impacts on individual parties to be affected by land

acquisition for Tembilahan Substation bases.

Table 3.1: People and Assets Affected

Land holding* (m2) Tower No

No Land Owner

M/F

Age

(yr)

AcquiredLand

(m2) At S/S

Base Site

Other Location

Total

% Affected

Land

1 2 3 4 5 6 7 8 9=(5/8)%

T.01 1

AGUS MAULANA

M - 20.250 37.100 20.000 57.100 35,5

Status of the land ownership is land heritages initially by H. SAID MAULANA (parent os AGUS

MAULANA). Totally six persons (a wife and five children of H. SAID MAULANA) have an

ownership right of this land. Legal document of ownership right for this land is Document of

Purchase and Transfer of Ownership Right (Akta Jual Beli). Hj. ARBAIYAH (H. Said Maulana’s

wife) and AGUS MAULANA are representative of four other family member to take

responsibility for transaction purchase and transfer of this land. This Legal Document shown in

Appendix II.

Regarding to the site survey and initial consultation with land owner in November 2011, the land

is not cultivated. There are some coconut and little palm oil trees which never harvested by land

owner especially for palm oil trees which was just planted. The land owner gets no income from

the land. So, according to the land owner during the interview, there will no impact on the

family’s income due to the land acquisition as his main job is a lecturer. The land owner is very

happy with the PLN’s plan to buy his land and has asked for a quick transaction.

3.2 Trees and Crops Affected

There is no building in the land to be affected. Table 3.2 shows type and number of trees/crops in

the land.

Table 3.2. : List of tree/crops to be affected

NO KIND of CROPS SMALL/ SEED MEDIUM LARGE

1. Coconut Tree - - 43

2. Palm oil Tree 25 - -

Source : Preliminary land and assets inventory, November 2011

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IV. COMPENSATION

Compensation rates and any kind of allowances, if applicable, will be negotiated between the

PAP and PLN. The agreements reached during the negotiations are signed in a comprehensive

meeting by the PAP or their representatives, the Head of Village (Kepala Desa), Sub-District

(Camat), or District (Bupati) or their representative, and PLN.

4.1 Land

Based on the national regulations, the final level of land compensation for the PAP will be

determined through a process of negotiation. In the cases of land acquisition more than 1 ha

(10.000 m2), land acqusition will be conducted by Land Acquisition Committee (LAC)

established by Local Government (Bupati).

Refering to National Land Agency Regulation concerning Implementation of Presidential

Regulations No. 36/2005 jo President Regulation No. 65/2006, there is a procedure to determine

the base price for land compensation. Appraisal Team or an Independent Appraisal Agency who

already certified by National Land Agency will appraise the land value. The Appraisal Team

members who established by Bupati consist of several Government Official from some institution

which related with land issue (Tax Agency, Regional Land Agency/BPN, Academic Expert, etc).

This Appraisal Team will do some research to determine the base price from several information,

such as location and land condition, NJOP (Land Price from Tax Agency), existing land used,

infrastructure surround the land and some information about market price. The result of price

research will be reported to Land Acqusition Committee LAC). This Price will used by LAC as

refference base price in negotiations with PAP.

Appendix III presents NJOP figures issued by local Tax Offices and the range in land market

price based on the most recent transactions at the time (period 2011). The lower part of the range

pertains to lower classes of land (eg. unproductive land, poor access, etc.) while the higher end of

the range pertains to higher classes of land (good access road, proximity to town / urban centre,

productive, ect.).

Table 3.1 below summarizes NJOP and current land market price (based on Camat records of

land transaction in the affected Kecamatan ) in the sub-project area. From the data presented, it

may be seen that the NJOP for land in the sub-project area Rp.3.500 / m 2 and that the local

market price for land ranges from Rp. 75,000 / m 2 to Rp. 250,000 / m 2.

Table 4.1. : List of NJOP, Market Price, and Compensation Rates Paid to the PAP

District/ Kabupaten

Sub-District/ Kecamatan

VILLAGE NJOP 1

(Rp. / m2 ) Market Price 2

(Rp. / m2 )

Indragiri Hilir Tembilahan Sungai Beringin 3.500 75.000 – 250.000

Notes : 1

NJOP for 2011 issued by local Tax Offices (Attached)

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2 Latest Land Transaction Rates in the respective village / kecamatan as reported by

Camat

4.2 Tree / Crops Compensation

Land owner whose trees and crops are affected / acquired for the purpose of project construction

are entitled to receive market rates for affected trees and crops.

Indicative compensation rates for tree crops are reviewed from time to time by the Kabupaten

Agency for Agriculture and up-dated based on the prevailing market rates. Based on the

recommendation of Agriculture Agencies, the Kabupaten Government has set indicative

compensation amounts for the types of trees. During the LARAP preparation, the newest decree

of Bupati Indragiri Hilir is not obtained yet. On the land acquisition implementation, the

compensation for trees and crops will refer to this decree, if needed.

Instead, Appendix IV shows the Pekanbaru (kabupaten nearby) Bupati Decree on the indicative

prive for the trees/crops. This decree will only refer for the cost estimation for the trees/crops

compensation amount. While for the implementation, PLN will refer to the newest decree of

Indragiri Hilir Bupati for the price. It is also a common practice that the land owner has

calculated the trees/crops plants in his/her offering price, like in Gedong Tataan (Lampung). PLN

will compensate based on the agreement with the land owner.

V. IMPLEMENTATION AND INSTITUTIONAL ARRANGEMENT

Refering the Decree of the Head of National Land Agency No.3/2007 concerning Implementation

of Presidential Regulations No. 36/2005 and President Regulation No. 65/2006, procedure for

conducting land acquisition for public interest are as follow:

1. Local Government (Bupati) issuing the Location Permitt

2. Land Acquisition Committee (LAC) is established by Bupati, who consist of:

• Sekretaris Daerah (District Secretary) as Team Leader

• Eselon II Government Official as Co-Team Leader

• Regional Chief of National Agrarian in Kabupaten as Team Secretary

• Several Local Government Official from Technical Agency who related with Land

Acqusition Process

3. LAC carries out socialization and consultation with PAPs, Kepala Desa/Lurah and Camat

(subdistricted head)

4. LAC conducts an inventory of land and any assets be acquired To conduct inventory of land and assets to be acquired, LAC involving the relevant agencies in the Local Government, such as Regional Land Agency (BPN Wilayah), Agriculture Agency (Dinas Pertanian) and etc.

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5. The results of inventory assets to be acquired announced in publically accesible places, such

as Kelurahan or Kecamatan Office.

6. LAC appoints licensed land appraisers or institution or to form Land Appraisal Team to

appraise land price for compensation. Land Appraiasal Team report to LAC.

7. LAC negotiated the amount of compensation to the land owner.

Negotiations for land and crops compensation rate and its compensation payment for the

proposed will be commenced in May 2012.

Civil works will only be commenced after the PAP get the compensation for his assets.

PAP will get the certificate for his remaining land at least 6 months after the compensation

payment. Fund for certification process will be borne by PLN.

VI. CONSULTATION PROCESS AND GRIEVANCE REDRESS PROCEDURE

6.1 Consultation / Participatory Process

National regulations instruct that PAP be adequately informed and consulted during the process

of land and crops acquisition. National law and regulations provide for final compensation rates

to be reached by a process of negotiation (musyawarah).

Information on the sub-project has been received by land owner since preliminary survey

activities and initial consultation conducted by the project in November 2011, when the project

made an inventory of assets on Substation bases for LARAP document and initial consultation for

EMP perapartion. By this initial consultation, land owner convey his willingness to sell the land

for Tembilahan Substation construction. Amount of cash from this land acquisition will be used

for expanding family business investment.

6.2 Consultation and Disclosure

PLN UIP RING SUM I (the implementing unit) will do the socialization and consultation with

the land owner and the community surrounding as necessary on March 2012 prior to

compensation negotiations. The information for socialization will include :

� Brief sub-project description.

� Details regarding the project location.

� National provisions concerning compensation eligibility and entitlements.

� The sub-project’s commitment to hire local labours during construction activities.

� Complaints and grievance redress procedure.

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In keeping with standard operating procedures, PAP will be informed during the socialization

process that they were entitled to compensation at Appraisal Team investigation rates. This

entitlement was also stated in the written materials displayed in village office.

6.3 Grievance Redress Procedure

Consultation and participation of PAP will serve to minimize the occurrence of major grievances.

However, in order to ensure that PAP have a mechanism for redressing any grievances over land

acquisition and compensation, a complaints and grievances procedure has been established by the

sub-project in accordance with Presidential Decree (PP) Number 36 / 2005 articles 17 and 18 and,

Decree of The Head of national Land Agency Number 3 / 2007, articles 18 and 22.

� Any grievance should be sent to and first addressed by PLN UIP RING SUM I.

PT PLN (PERSERO) UIP RING SUM I

c.q. Manager of UPK RING SUM REG II

Jl. Jenderal 45 – Pekan Baru – Riau Province

Phone/fax: 0761-719102

Email: sekgm@pikitringsuar.co.id

� Investigation and verification will be conducted within 15 days since complaint are received

and the results will be discussed with the PAP to look for solution and agreement.

� If the issue cannot be resolved in direct negotiation between PLN and the PAP, the PAP can

then appeal to Bupati or who has the power to decide the matter.

� If the PAP is still not satisfied with the response then he / she has the legal right to submit an

appeal to the Governor of the Province.

� In addition to the above steps, the PAP unsatisfied by the Bupati’s Office decision will have

access to the appropriate courts of law.

� The PAP may request the Village Head to assist in processing his / her complaint.

� The grievance lodged by an PAP can relate to any aspect of the land acquisition and

compensation rates being offered for his / her losses.

VII. MONITORING AND REPORTING

As there is no physical resettlement activity involved for the 150 kV Tembilahan Sub-station

sub-project and only 1 land owner affected, internal monitoring of LARAP implementation is

adequate. This monitoring will be conducted in quarterly basis, or if there is any progress in land

acquisition and will be reported to PLN Head Office and World Bank. This internal monitoring

and report preparation will be conducted by PLN UIP RING SUM I.

Information to be included in the monitoring report are:

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• Actual dates of inventory of assets, socialization, consultation, public meetings, negotiation

and compensation payment and date of start of civil works;

• Names of affected people (land and assets owners);

• Number of Ha of land acquired; number of trees/crops acquired;

• Total amount compensation paid for land and trees/crops;

• Total number of complaints, grievances and court cases, if any and average time to resolve;

• Any supporting documents will be attached, such as: minutes of socialization, minutes of

negotiation, complaint record, etc.

VIII. COST ESTIMATION AND SCHEDULE

PT PLN (Persero) will finance all expenditures involved in land acquisition and tree crop

compensations for the Tembilahan Substation project. The final amounts disbursed will be

determined by negotiations in accordance with national laws and regulations. Table 8.1. provides

a breakdown of estimated expenditure to be paid to PAP for compensation of land and trees on

the Substation base sites, amounting to a total of Rp 5.276.830.000,-. Taking into account

monitoring and evaluation and possible compensation for affected seasonal crops during cable

stringing, the total expenditure will come to approximately Rp 5.368.982.450,- (equivalent to

US$ 546.528,83).

Table 8.1 : Estimated Land Acquisition and Compensations for Affected Assets

EXPENDITURE ITEMS AMOUNT (Rp.)

A. Land for Substation Bases :

1. Land Acquisition 20.250 m2 x Rp 250.000/m2

2. Trees on Acquired land

(Reference to Pekanbaru Mayor Decree – Appendix IV) Coconut Tree 43 (Large) x Rp 250.000

Palm Oil 25 (Small) x Rp 25.000

5.062.500.000

10.750.000

625.000

Sub-total for compensation 5.073.875.000

Honoraria for Land Acquisition Committee, and operational cost (4 % of the sub-total)*

202.955.000

Total for Land Acquisition and Compensation to PAP 5.276.830.000

B. Monitoring & Evaluation (1.5 % of Total) 79.152.450

C. Certification 13.000.000

Grand Total 5.368.982.450

Grand Total US$ equivalent 546.528,83

Notes: *)Honoraria for LA has included all the activities done by the LAC, such as survey, asset

inventory and negotiation

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Table 8.2. : Socialization, Consultation and Participation Schedule & Process

Schedule ACTIVITY IMPLEMENTOR TARGET REMARKS

Jan 2011 Initial survey and impacts assessment.

PLN UIP RING SUM I & PLN UPK RING SUM REG II

Village Head, Potential PAP

Assessment of affected assets and project impact

Feb 2012 Principle & Location Permitt Issued By Bupati Indragiri Hilir

PLN UPK RING SUM REG II

Local Government

Feb 2012 Land Acquisition Committee established

PLN UPK RING SUM REG II

Local Government

March 2012

Socialization and Consultation.

Land Acquisition Committee

PAP

March 2012

Land and Assets Inventory

Land Acquisition Committee

PAP Inventory for affected land and assets.

March – April 2012

Announce of the results of land and assets inventory

Land Acquisition Committee

Public Places Information about land owner legally, an results of land inventory

April 2012 LAC appoint Land Appraisal Team/ Land Appraisal Agencies

Land Acquisition Committee

Land Appraisal Team established by Bupati/LAC

April 2012 Land Appraisal Team report their work (Land Appraisal Result) to LAC

Land Appraisal Team

May 2012 Negotiation for land, tree and crops compensation

Land Acquisition Committee.

PAP Preparation for negotiation

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Schedule ACTIVITY IMPLEMENTOR TARGET REMARKS

May 2012

Preparation of compensation fund

PLN UPK RING SUM REG II

- Preparation of “Daftar

Nominatif”

June 2012 Disbursement of compensation payments

PLN UPK RING SUM REG II

PAP

July 2012 Monitoring and Evaluation

PLN / PIC, MONITORING TEAM

AP sample / Key informants

Post-evaluation

Table 8.2. above presents an account of the process (schedule of activities) that demonstrates the

extent to which (a) PAP were made aware of the sub-project, its impacts and PAP’ compensation

eligibility and entitlements, and (b) PAP have been properly consulted.

Final compensation settlements will be negotiated between LAC, PLN and PAP. Proceedings will

be witnessed by Camats and Village Heads to ensure that negotiations were conducted fairly and

transparently. Minutes of meeting for negotiations will also be provided to the PAP.

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APPENDIX I

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APPENDIX III

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APPENDIX IV

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