SEA for Indonesian Master Plan for Accelerated Economic

Ministry Of Foreign Affairs Of Denmark

Report

November 2013

SEA for Indonesian Master Plan for

Accelerated Economic Development

(MP3EI)

Pre-Scoping Report

Sulawesi EC

Pre-Scoping Report - Sulawesi Economic Corridor / JVB / 2013-11

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SEA for Indonesian Master Plan for

Accelerated Economic Development

(MP3EI)

Pre-scoping Report

EC Sulawesi

Prepared for Ministry Of Foreign Affairs Of Denmark

Represented by Mr Peter Oksen

Project manager Joshua Jon van Berkel

Project number 61800814

Prepared by Michal Musil, Yesaya Hardyanto

Final Draft submitted 21/11/2013

Approval date

Revision

Classification Open/Restricted/Confidential


This page is intentionally left blank

i

CONTENTS

Introduction ................................................................................................................. 1 11.1 Background on SEA MP3EI Project .............................................................................................. 1 1.2 SEA Process and where the current Pre Scoping Phase Fits Within This Including

Purpose and Expected Outputs from Pre-Scoping. ....................................................................... 1 1.3 Pre-Scoping Activities .................................................................................................................... 2

Early Stakeholder Discussions ...................................................................................................... 2 1.3.1

Review the MP3EI Planning for the Kalimantan EC, Provincial Spatial Plans Development 1.3.2

Plans .............................................................................................................................................. 3 Developing Preliminary List of Key Potential Issues in Sulawesi EC ............................................ 3 1.3.3

Stakeholder Mapping ..................................................................................................................... 3 1.3.4

Organizing Pre-Scoping and Data Collection Workshop ............................................................... 3 1.3.5

Finalizing and Disseminating Pre-Scoping Report ........................................................................ 3 1.3.6

1.4 Further Steps ................................................................................................................................. 4

Overview of MP3EI Planning in the Economic Corridor ........................................... 5 22.1 Delineation of Economic Corridor .................................................................................................. 5 2.2 MP3EI Planning for EC .................................................................................................................. 7

Main Planned Economic Activities ................................................................................................. 7 2.2.1

Main Policies and Regulations ....................................................................................................... 8 2.2.2

Main Planned Infrastructure ........................................................................................................... 9 2.2.3

2.3 Overview of Autonomous Provincial Planning ............................................................................. 10 2.4 Overview of major ongoing/to-be-implemented projects ............................................................. 11

Summary of Relevant Baseline Features................................................................. 14 33.1 Environmental Quality .................................................................................................................. 14

Water ............................................................................................................................................ 14 3.1.1

Air and Climate............................................................................................................................. 14 3.1.2

Land and Soil ............................................................................................................................... 15 3.1.3

3.2 Ecosystems .................................................................................................................................. 17 Biodiversity ................................................................................................................................... 17 3.2.1

Forests ......................................................................................................................................... 19 3.2.2

Coastal Degradation .................................................................................................................... 20 3.2.3

3.3 Socio and Economic Aspects ...................................................................................................... 21 Human Health .............................................................................................................................. 21 3.3.1

Livelihood ..................................................................................................................................... 22 3.3.2

Industry and Mining ...................................................................................................................... 23 3.3.3

Energy and Waste ....................................................................................................................... 24 3.3.4

3.4 Environmental Management ........................................................................................................ 26 Protected Areas ........................................................................................................................... 26 3.4.1

Environmental Conflicts ............................................................................................................... 27 3.4.2

Preliminary Overview of the Potential Issues for EC .............................................. 29 4 Deforestation / Degradation of Forests Functions ....................................................................... 29 4.1.1

Air and Water Pollution ................................................................................................................ 29 4.1.2

Land and Soil Degradation .......................................................................................................... 30 4.1.3

Coastal Degradation .................................................................................................................... 30 4.1.4

Loss of Biodiversity ...................................................................................................................... 31 4.1.5

Disaster Risk Management .......................................................................................................... 31 4.1.6

Human Health Risks .................................................................................................................... 32 4.1.7

Livelihood Opportunities .............................................................................................................. 32 4.1.8

Environmental Management ........................................................................................................ 33 4.1.9

Other Specific Issues ................................................................................................................... 33 4.1.10

ii Pre-Scoping Report - Sulawesi Economic Corridor / JVB / 2013-11

Main Conclusions and Preliminary Recommendations Resulting from the 5

Pre-Scoping .............................................................................................................. 34 5.1 Identified Risks and Opportunities ............................................................................................... 34 5.2 Initial Policy Recommendations ................................................................................................... 35

References ................................................................................................................ 36 6

FIGURES

Figure 2.1 Delineation map of Sulawesi Economic Corridor .......................................................................... 6 Figure 2.2 Location of KPIs and indication of assigned financial allocations ................................................. 7 Figure 2.3 Main planned Infrastructure in Kalimantan EC .............................................................................. 9 Figure 3.1 Coral reefs, Seagrass and Mangrove distribution in Sulawesi EC (BIG, 2013; Ministry of

Marine Affairs and Fisheries, 2013 and Ministry of Forestry, 2013) ........................................... 21 Figure 3.2 Map of Conservation Areas in Sulawesi ...................................................................................... 27

TABLES

Table 3.1 Average pollutant concentration during the periods of 2001-2010 .............................................. 15 Table 3.2 Extent of plantation Land in Sulawesi (2006) .............................................................................. 16 Table 3.3 Freshwater endangered species in Sulawesi .............................................................................. 18 Table 3.4 Territory of Forests Areas (in thousands Ha) in Sulawesi up to 2006 ......................................... 19 Table 3.5 Deforestation in Sulawesi provinces (hectares) .......................................................................... 19 Table 3.6 Main employment characteristics in Sulawesi provinces ............................................................ 23

APPENDICES

iii

MP3EI Planning Information in Sulawesi EC A

A.1 Planned Policy/Regulations and Infrastructure Developments in Sulawesi

EC

A.2 List of KPIs and Their Designation for Specific Types of Economic

Development

A.3 List of Main Planned Infrastructure Projects

A.4 List of Main Planned Economic Development Projects

Supporting Information B

B.1 Preliminary List of Relevant Stakeholders for Sulawesi EC

B.2 Minutes from Pre-Scoping Workshop

B.3 List of Participants of Pre-Scoping Workshop

B.4 Invitation and Agenda

Introduction

1

Introduction 1

1.1 Background on SEA MP3EI Project

In 2011, the Government of Indonesia introduced the first version of the Master Plan for

Acceleration and Expansion of Indonesia Economic Development 2011-2025 (MP3EI). The

MP3EI represents the main Indonesian a core of Indonesia’s long-term development documents

strategy with its prime objective “to realize the Indonesia 2025 vision to create a self-sufficient,

advanced, just, and prosperous Indonesia and to transform Indonesia into a developed country

by 2025”. The MP3EI includes a strategic focus on 22 economic activities (i.e. the Policy) and

the implementation of these activities in the defined Economic Corridors (ECs).

While executing the recently released updated version of the MP3EI, however, it was realised

that the MP3EI and associated National Medium Term Development Plan (RPJMN) needed to

deepen their consideration of social and environmental factors to assure the overall vision of

sustainability in Indonesia. Thus, along with several other initiatives, the Strategic Environmental

Assessment (SEA) was chosen as a method for realizing the required level of integrated policy

and planning development. The SEA is required by Indonesian legislation for policy, planning

and program development.

To accomplish the required SEA Greening, Bappenas, together with the Ministry of Economic

Coordination a key MP3EI coordinating body of the Government of Indonesia (KP3EI), was

charged with developing an appropriate SEA approach. This approach entails the execution of

one MP3EI ‘Policy’ SEA and six Economic Corridor (EC) SEAs. Further, Bappenas approached

the Royal Danish Embassy and DANIDA for assistance via the third instalment of the

Environmental Support Program (ESP3).

The project MP3EI SEA was launched in June 2013 and shall last until July 2014. This

document consists of the pre-scoping reporting of one of the six EC SEAs

1.2 SEA Process and where the current Pre Scoping Phase Fits Within This Including Purpose and Expected Outputs from Pre-Scoping.

In accordance with general objectives of SEA i.e. addressing the strategic levels of decision-

making to effectively minimise risks to environmental resources and human health likely

resulting from policy, plan or program implementation, whilst providing opportunities for growth

and sustainable development options, the MP3EI SEA intends to provide creditable strategic

environmental analyses of the MP3EI Policy and Economic Corridor Planning and, where

necessary, recommendations on how to minimize or avoid associated negative effects and the

means to strengthen positive effects. Optimally, the SEAs shall foster the integrated evolution of

a truly sustainable MP3EI, along with the associated planning procedures (e.g. RPJMN and

provincial planning) as well as – to the extent possible – individual projects.

The SEA process for the Economic Corridor includes following analytical steps:

Pre-scoping involves the initial analysis of the Economic Corridor (EC) Plans and related

baseline features to focus the SEAs and provides likely feedback on the key issues – this

step includes also first consultations with the relevant stakeholders through workshops in

each EC.

Scoping Analysis involves comprehensive identification of the key strategic issues via

structured expert analyses and stakeholders´ consultations for each EC.

2 Pre-Scoping Report - Sulawesi Economic Corridor / JVB / 2013-11

Analysis of likely effects of proposed activities in ECs involves the verification if an identified

issue is strategic through appropriately developed qualitative and (semi) quantitative

analysis techniques.

Formulation of Mitigation Measures is based on the characterisation of the strategic issues

and likely impacts identified from the previous stage. This will allow for experts to, as far as

possible, pinpoint feasible and implementable measures to avoid or mitigate likely adverse

impacts as well as to enhance potential positive ones.

Compilation of the SEA Report to summarize all findings including conclusions from

consultations with relevant stakeholders and formulate final set of the recommendations.

This document, as indicated above, presents the initial pre-scoping EC feedback,and represents

the currentstage of the SEA EC process. It has been compiled during September – October

2013 with focus on initial preliminary analysis of the likely strategic issues for the Sulawesi EC.

The pre-scoping has been carried out by the MP3EI SEA Team experts, with support obtained

through consultations with the central authorities and national NGOs; as well as from the

participants of the Pre-scoping & Baseline Workshop MP3EI SEA for Sulawesi EC (Makassar,

October 8th, 2013 – see Appendix B.2 for detailed information). In addition to analytical work

and consultations, the data collection – especially provincial Spatial and Development Plans –

has also been undertaken as part of pre-scoping activities.This report summarizes findings from

the pre-scoping analyses and consultations i.e. provides an overview of the preliminary scope of

assessment, baseline data and relevant plans´ review. Findings from pre-scoping will provide a

basis for further and detailed analysis of the key strategic issues in the scoping phase.

1.3 Pre-Scoping Activities

The pre-scoping activities of Sulawesi EC are intended to assist defining the scope of the

assessment, ensuring relevant to the Sulawesi EC (i.e. the list of the key strategic issues) and to

facilitate stakeholder consultation process in order to underpin further analytical work.

To carry out the task, several activities have been and will be undertaken as follows:

Early Stakeholder Discussions 1.3.1

A variety of pre-scoping issues were discussed with the KP3EI, Bappenas and particularly the

leading ministry of Sulawesi (Ministry of Marine and Fisheries) as well as other stakeholders

related to Sulawesi EC. The focus of these discussions was:

Obtaining a list of projects initiated or soon to be initiated, stages of completion for

implemented projects; selection criteria for projects (if applied) in Sulawesi

Determing linkages between MP3EI EC and other plans at the national and provincial levels

Uncovering opportunities for SEA input at the EC level (e.g. room for input or modification;

integration of environmental criteria)

Identifying what KP3EI/Bappenas/KLH consider key environmental and social concerns and

problems related to the implementation of the MP3EI within Sulawesi EC.

Discover the accessibility of provincial level data and information (both from the GOI and

other stakeholders)

Introduction

3

An additional consultative meeting was held with the Ministry of Marine and Fisheries as the

lead Ministry for MP3EI in Sulawesi EC. Following issues were discussed:

The acessibility of the baseline data rergading the coastal ecosystems in Indonesia

updates on EC projects status

the Ministry´s concerns related to the possible environemntal impacts (especially of planned

mining projects) towards marine and fisheries sector in Sulawesi.

Review the MP3EI Planning for the Kalimantan EC, Provincial Spatial Plans 1.3.2Development Plans

A review of the MP3EI Economic Activities proposed for Sulaweesi EC and the provincial plans

within the EC has also been undertaken during the pre-scoping phase. This was to provide the

scoping process with a full understanding of the objectives of the relevant plans, proposed

developments and constraints for each area. However, since most of the planning documents

are available on the provincial level, only the information regarding the status of the plans are

presented at this stage (see section 2.3) The baseline mission to the corridor is expected to

update the information regarding the provincial planning.

Developing Preliminary List of Key Potential Issues in Sulawesi EC 1.3.3

Using the master list of key strategic issues identified for the MP3EI Policy SEA, a more specific

overview has been developed for Sulawesi EC using secondary literature (e.g. Environmental

Yearbook). The information has been briefly summarised in line with the the following

principles:

Highlighting existing environmental and social issues of importance in Sulawesi EC

Specifying detailed problems and concerns for each issue within Sulawesi

Identifying needs for further data/information

Identifying of key stakeholders relevant to specific issues in Sulawesi

Stakeholder Mapping 1.3.4

With assistance from the project stakeholders, the SEA Team have prepared an initial list of

relevant stakeholders for Sulawesi EC during the pre-scoping phase. The initial list of relevant

stakeholders in Sulawesi can be viewed in detail in Appendix B

Organizing Pre-Scoping and Data Collection Workshop 1.3.5

A workshop was organized in Makassar on October 8th, 2013, in order to:

Gather feedback on proposed issues, concerns and problems relevant to a given EC

Gather information on ongoing and planned development

Obtain baseline data from provincial agencies

Conclusions from the discussions and main comments received are summarized in Appendix

B.2 of this Report.

Finalizing and Disseminating Pre-Scoping Report 1.3.6

Considering findings from the activities above, the Pre-Scoping Report has been drafted and

opened for additional comments through the MP3EI SEA Project website


1.4 Further Steps

The next immediate step after pre-scoping is to undertake scoping activities. This will include a

number of activities, such as:

a. Collection of additional data and information needed as identified in the Pre-Scoping phase

b. Literature review of data and information collected for supporting the list of potential key

issues in the Economic Corridor

c. Undertaking internal scoping among the SEA experts

d. Undertaking SEA Scoping Workshop with stakeholders

e. Completing and submitting final Scoping Report

Overview of MP3EI Planning in the Economic Corridor

5

Overview of MP3EI Planning in the Economic Corridor 2

This section outlines the most environment-relevant aspects of the overall MP3EI planning in the

Sulawesi Economic Corridor. It is acknowledged that the presented information is based on the

current content of the MP3EI document, which is however still under development, and thus

might be a subject of change.

2.1 Delineation of Economic Corridor

Sulawesi Economic Corridor (EC) anticipates implementation of activities in the provinces of

South Sulawesi, Central Sulawesi, North Sulawesi, West Sulawesi, Southeast Sulawesi &

Gorontalo, where Zones for Investment Focus (Kawasan Perhatian Investasi - KPI) and major

projects are planned. The EC includes 12 national strategic areas (KSN), located within the

corridor. The territorial distribution of the EC Sulawesi main types of economic activities is

indicated in following figure. Agricultural activities in light blue node, Cocoa with yellow node,

Fisheries turquoise node, Nickel mining purple node, and Oil and (natural) gas being indicated

with orange node.


Figure 2.1 Delineation map of Sulawesi Economic Corridor

The Sulawesi EC comprises of 6 main economic centers: Makassar, Kendari, Mamuju, Palu,

Gorontalo and Manado. The MP3EI related interventions are envisaged to take place within 28

Zones of Investment Focus (KPI) within the economic corridor.

The KPIs represent the main economic zones in each EC that consist of production

centres/investment activities concentrated in specified geographical locations. The selection

criteria for a location to become a KPI, include total investment value (the most significant),

Government and local government support towards the local production centres, suitability to

broader strategic interests (social, economy and political impact), and directives from the

Government. Most KPIs are designated within the area of Central Sulawesi province (10 KPIs)

with major economic activities in fisheries and nickel, followed by South Sulawesi (7 KPIs) with

major activities in food agriculture and fisheries. The list of KPIs with the proposed designations


7

for specific main economic activities within the economic corridor can be viewed in detail in

Appendix A.

Figure 2.2 Location of KPIs and indication of assigned financial allocations

2.2 MP3EI Planning for EC

Main Planned Economic Activities 2.2.1

The economic development in Sulawesi EC are dominated by main economic activities:

Agriculture (evenly distributed throughout the region),

Cocoa (with largest land area of cocoa production located in South Sulawesi and Central

Sulawesi),

Fishery (with fishing activities taking place namely in Makassar Strait, Tolo Bay, Tomini Bay,

Maluku Sea and Halmahera Sea)

Nickel mining, with four important locations with abundant reserves of nickel:

- Sorowako, East-Luwu Regency, South Sulawesi

- Morowali Regency, Central Sulawesi

- Pomalaa, Kolaka Regency, Southeast Sulawesi

- Konawe Regency, Southeast Sulawesi

In addition, specific consideration is given to the Oil & gas sector for strategic reasons, in spite

of the fact that the sector is not a major contributor to the overall economic output of the region

and the oil and gas reserves of Sulawesi are comparatively small.


The objectives relevant for designated main Sulawesi EC economic activities (to be developed

within the KPIs) are as follows:

1. Agriculture (Rice, Corn, Soybean and Cassava)

- Increase the food agriculture through food intensification

2. Cocoa

- Improve yield of cocoa upstream value chain through increasing production (cocoa

beans and processed products), sustainable productivity and improving quality of

cocoa through fermentation and certification;

3. Fishery

- Prioritize on aquaculture development to exceed the target of catch fisheries production

(27.32 million ton by 2015)

4. Nickel

- Increase the production by focusing on smelter development in Maros Regency

5. Oil & Gas

- Gas exploitation in: (i) Donggi Senoro, Banggai Regency, Centreal Sulawesi, (ii)

Mamuju Regency, West Sulawesi, (iii) Wajo Regency, South Sulawesi

- Petroleum exploitation in Luwuk Regency, Central Sulawesi

- Development of oil & gas field in Karama, West Sulawesi

Major projects with private investments planned in Sulawesi (as currently indicated by the

validation process of KP3EI secretariat) include number of projects in the sectors of Fisheries

(48 projects); nickel mining (5 projects); food agriculture (4 projects); oil and gas (4 projects);

cocoa (3 projects), cement industry (1 project) and gold smelter (1 project).

In terms of investment volume, the largest single project investment is the laterit nickel mining in

Morowali (to be finalised in 2015) and LNG Refinery development and operation in Donggi-

Senoro (finalised in 2015), both share the largest investment of IDR 25,000 billion each. While

the fisheries projects combined altogether totalling only in IDR 3,612.7 billion, a very small share

in comparison with investment in nickel (IDR 57,078.0 billion) and oil and gas activities (IDR

39,928.2 billion). A list of these economic projects can be viewed in detailed in Appendix A.

Main Policies and Regulations 2.2.2

In order to achieve the objective of the economic development in Sulawesi EC, several policies,

regulations and infrastructure developments are put forth in order to enhance the

implementation of MP3EI (i.e. regulations on land conversion and spatial plan area) while some

are dedicated to control and manage the economic activities (i.e. application of international

standards, regulatory control for fishing activities). The planned infrastructure developments are

intended to support other economic activities (e.g. private investments) envisaged in EC Plans

(i.e. improving access roads, port capacity, powerplants development etc). The planned

policy/regulation and goals for infrastrucutre development can be seen in Appendix A.


9

Main Planned Infrastructure 2.2.3

Main planned infrastructure in Sulawesi entails namely developments in transport and energy

sectors, assisiting and creating synergy witht the mining activities.The oad development is

planned to link Palu and Parigi, and another toll-road will also be constructed to connect

Manado and Bitung. Among other transport infrastructure planned in the region there is the port

development in Makassar, international port in Bitung and airport development in Tampa

Padang.

Planned energy infrastructure in the region include development of three powerplant units in

Lahendong, powerplants in Amurang, Barru, Kendari and Janeponto; and Hydro-powerplants in

Poso. A water supply infrastructure is also planned to be developed in Makassar city. The

overview of planned main infrastructure can be viewed in detail in Figure 2.3 below.

Figure 2.3 Main planned Infrastructure in Kalimantan EC


2.3 Overview of Autonomous Provincial Planning

Along with the MP3EI planned development in Sulawesi EC, it also important to acknowledge

the information on autonomous provincial plans such as RPJPD (Long Term Regional

Development Plans), RPJMD (Mid Term Regional Development Plans) and RTRWP (Provincial

Spatial Plans). Considering the key components and priorities of these provincial plans in the

EC in further SEA analyses will help to identify the likely conflict potential between the MP3EI

planning within the corridor and the provincial planning on various stages of implementation.

The autonomous planning in Sulawesi that would be considered in the assessment include, but

is not limited to, the following :

Provincial planning of North Sulawesi (RPJPD, RPJMD and RTRWP)

The RPJMD of North Sulawesi was legalised under Regional Regulation No.4/2011 and

sets the mid-term regional development plan for 2010-2015. The mid term development plan

refers to the RPJPD 2005-2025 that outlines the long term development plan.

The proposed spatial planning for 2011-2031 was prepared and is still undergoing the

finalsiation process in the BKPRD/regional board for spatial planning coordination.

Provincial planning of Central Sulawesi (RPJPD, RPJMD and RTRWP)

The RPJPD of Central Sulawesi Province was legislated under Regional Regulation

No.6/2009 and set out the long term regional development plan for 2005-2025. The current

Provincial spatial planning of Central Sulawesi has not been finalised.

Provincial planning of South Sulawesi (RPJPD, RPJMD and RTRWP).

The RPJPD of South Sulawesi Province was legalised under Regional Regulation No.

10/2008 and set the long term development planning for 2008-2028. While the RPJMD was

legislated under Regional Regulation No.12/2008 and sets the 5 year development plan for

2008-2013. In the time of compiling this report, a new mid term development plan (RPJMD

2014-2019) is in the preparation process.

Provincial spatial planning (RTRWP) of South Sulawesi has been finalised under Regional

Regulation No.9/2009 and set the spatial planning direction for 2009-2029.

Provincial planning of Southeast Sulawesi (RPJPD, RPJMD and RTRWP)

The RPJPD of Southeast Sulawesi outlines the long term development plan for 2005-2025

and supported with the mid term development plan in 2008-2013. The most currrent

provincial spatial plan (RTRWP) of Southeast Sulawesi was legislated under Regional

Regulation No. 3/2004 and outlines the spatial planning directives for 2004-2019.

Provincial planning of Gorontalo

Information regarding the RPJPD and RPJMD of Gorontalo province have not been

obtained at this stage, however it is of key importancue to identify these plans at the latter

stage to get a better understanding of the planning situation. On the other hand, Gorontalo

provincial spatial planning (RTRWP) was legislated under Regional Regulation No.4/2011

and set the spatial planning direction for 2010-2030.

Provincial planning of West Sulawesi (as it is a new province, most of the planning usually is

still included within the previous province, South Sulawesi)


11

2.4 Overview of major ongoing/to-be-implemented projects

As a result of the adopted MP3EI planning approach combining the national priorities with the

bottom-up projects suggested in the regions, the MP3EI represents most of the major

developments within the EC territory. However, there are also some already long-prepared

autonomous development projects in Sulawesi (provincial plans) that may generate cumulative

impacts if taken together with MP3EI planning in the EC.

Some of those autonomus developments can be summarised as folllow:

a. North Sulawesi

High priority provincial projects are already proposed to be included in MP3EI (including

Bitung international port development, Trans-Sulawesi railway that links Manado-Bitung,

road enhancement that links Atinggola-Maelang-Kaiya in 121.5 length etc). Nonetheless,

other autonomous developments that can be considered in North Sulawesi are1:

- Highway (toll road) development from Manado toTomohon (timeframe plan: 2015-

2021) and Kairagi-Mapanget (2017-2021)

- Bridge development that links Bitung-P Lembeh, timeframe plan: 2017-2021

- Regional terminal development in BIMINDO (Bitung-Manado) metropolitan areas and

KAPET (Integrated Development Zones), commencing from 2013-2015

- Railway developments that link urban zones of Bitung-Minahasa-Manado (timeframe

plan: 2022-2026)

- Inter-cities railway developments that link Bitung-Kema-Belang-Tutuyan-Molibagu,

timeframe plan: 2014 until 2026

- Development of a number of powerplants: (i) steam powerplants (PLTU) in Kema,

Lilang (50 MW) in North Minahasa regency and Powerplants Teep-Moinit, Tenga in

South Minahasa (50 MW); (ii) Hydro power plants Poigar (30 MW) in Bolang

Mongondow regency and (iii) Geothermal powerplants Ambang (40 MW) in Bolang

Mongondow Timur regency

- Airport development in Miangas, Talaud regency (timeframe plan: 2012-2014)

b. Central Sulawesi

Provincial autonomous development to be included in the MP3EI include: road development

that links Soroako-Bahodopi in Morowali regency, bypass road developments that link Palu-

Parigi (36.45 km) and Poso Energy Hydro powerplants (3x 65 MW). Other (ongoing)

autonomous developments2 to be implemented out of MP3EI are:

- National strategic road developments that will link Batubere-Kolonodale, Mamboro-

Pagirimpu, Sausu-Manggalapi-Palolo and outer ring road in Palu city

- Highway/Toll-road developments that links Pantolan-Palu, Molosipat-Kasimbar-Toboli-

Poso-Tindantana and Toboli-Pantoloan

- Geothermal powerplants development in Marana, Donggala regency (40 MW)

1 Source: North Sulawesi Provincial Spatial Plan (RTRWP Sulawesi Utara 2010-2030)

2 Source: Central Sulawesi Provincial Spatial Plan (RTRWP Sulawesi Tengah 2012-2032)


c. West Sulawesi

Most of the major projects under the provincial development in West Sulawesi already have

been included in the MP3EI. i.e.enhancement of Tampang Padang airport, road-development

that links Majene-Poliwali and Hydropower plants development (PLTA) Poko (2x117 MW) and

PLTA Karama (450 MW).

d. Gorontalo

Similar to West Sulawesi, most major projects in Gorontalo provincial plans are already/to-be

included in MP3EI plans (i.e. Gorontalo Outter Ring Road improvement, Jalaludin airport

enhancement, Powerplants/PLTU Gorontalo 1 (50 MW), PLTU Gorontalo 2 (2x50 MW) and

Gorontalo Peaker (25 MW)).

e. Southeast Sulawesi

Information on the content of the provincial spatial planning documents was not available when

this report was written.

Considering the scale of the cumulative impacts that may be generated as a result of MP3EI

implementation combined with developments prepared within the autonomous planning

processes on the provincial level, more thorough and comprehensive review of the planned

interventions and projects will be undertaken at scoping stage to identify possible strategic

impacts.


13



Summary of Relevant Baseline Features 3

This section outlines the strategic baseline features in Kalimantan EC structured into the

following categories: Environmental Quality (includes Water, Air & Climate, Land & Soil);

Ecosystem (Biodiversity, Forests, Coastal degradation); Socio-Economic Aspects (Human

health, livelihood, Industry and mining, Energy & waste) and Environmental Management. This

introductory analysis based on literature and elementary statistical data interpretation, focuses

on the strategic baseline categories and is aimed to assist to the process of identification of key

issues relevant for the EC SEA. Further analytical activities, including GIS mapping, are

currently undertaken to further improve the scoping process

3.1 Environmental Quality

Water 3.1.1

There is no systematic and comprehensive monitoring of water qualitiy in rivers in Indonesia. In

2011, Ministry of Environment conducted a monitoring of river water quality in 33 provinces. The

results showed that only one river in Sulawesi (namely Lariang River in Central Sulawesi) meets

the quality standard3. Along with this accidential report, there are many documented cases of

heavy water pollution in rivers across the EC. For example eight rivers located in regencies and

municipalities across Gorontalo province have been reportedly polluted with hazardous

inorganic chemical substances. (The Jakarta Post, March 19, 2013). Pollution of water bodies of

Central Sulawesi (namely Palu River, Palu Bay, Lake Lindu, Lake Poso, Lalong bay, Podi river,

Poboya, Bahodopi) has been indicated as a major issue in SEA on Local Development Plans

(Sucofindo 2011).

Among the main sources of pollution poor municipal waste management (both solid waste and

wastewater), industrial wastewater discharge, contamination of water by often highly toxic

leachate from the tailings and other residues from mining operations (gold, nickel) can be listed.

An important factor affecting water quality with impact on coastal marine environment is the

content of soil particles, causing sedimentation and accumulation of sediment-attached

nutrients. Elevated levels of erosion are associated with poor watershed management and land

use change. This problem is also apparent in the system of Lake and River Tondano in North

Sulawesi, where extensive silting and euthropication severly degraded the environmental

conditions of the lake.

Air and Climate 3.1.2

Ambient air quality is an issue relevant mainly for urbanized areas and areas adjacent to

industrial sites in Sulawesi. Systematic monitoring in Indonesia is carried out only in major cities,

among which is also the city of Makassar in South Sulawesi Province. Available data (see figure

below) indicates serious air pollution situation with average concentration values for main

polluting substances fairly exceeding standards established by legislation and WHO guidelines.

3 Water quality standard refer to Decree of State Minister of Environment No 115/2003 regarding Guidelines for

Determination of Water Quality Status and also to refer to criteria of water quality Class I and II under Government Regulation No 82/2001

Summary of Relevant Baseline Features

15

Table 3.1 Average pollutant concentration during the periods of 2001-2010

Parameter AverageStandard

DeviationRange INAAQS

WHO

Guidelines

SO2 76 51.7 8.6 - 253 60 -

CO 1041 534 66.7 - 3709 - -

NO2 43.2 21.1 10.3 - 99.5 100 40

O3 54.5 27.8 17.3- 226 50 -

Pb 0.7 0.37 0.14 - 2.28 1 0.5

TSP 188 85.6 46.4 - 565 90 -

PM10 54.6 16.9 20.6 - 85.72 - 20

INAAQS = Indonesia National Ambient Air Quality Standard; WHO = World Health Organization Unit : (µg/m

3)

Source : Sattar et al., 2012

It can be estimated, that situations in other large urbanized areas throughout the region will not

be significantly different. Concerns regarding the low ambient air quality have arisen for instance

within the SEA on Local development plans in Northern Sulawesi – Poboya, Moilong, Toili and

western Toili (Sucofindo 2011).

A combination of emissions from traffic and industrial sources can be regarded as the main

drivers for air pollution in urban areas, however, a more systematic analysis of the limited data

available is needed to establish proper baseline for furhter SEA steps. Ocassionally, the ash

emissions associated with the vulcanic activity can bring about short-term but significant and

large territorry affecting drops in the ambient air quality.

From the prespective of Climate Change, the land-use change induced emissions are primary

contributors to the total emissions of GHG in the region4, while emissions from industry

(including energy sector) and waste management (e.g. disposal of freon air conditioning, or

landfill gases emissions) constitute arguably less significant problem, given to a relatively low

level of industrial production and large share of electricity generated by hydroplants in Sulawesi.

Land and Soil 3.1.3

From the Sulawesi land area of 18,852,236ha approximately 12.488.000ha are forested areas

(66.24% of total land) and the remaining is allocated for cultivation activities such as

paddyfields, dryland farming, plantation, non-agriculture activities (settlement, industries, mining)

and other land use. Based on Sakernas (2008), Sulawesi wetlands areas accounted for

approximately 892.256 ha (4.73% of total land of Sulawesi) where most is allocated for technical

and rainfed irrigation wetlands. South Sulawesi shares the largest area of wetlands with total

area of 568.748 ha (12.17 % of total Sulawesi land).

Land other than forests and non-agricultural areas is allocated for plantation activities mostly in

a form of community based plantation. The major part of plantation land is allocated for five

main commodities such as palm oil, coconut, rubber, cocoa and coffee. Cocoa has the largest

share with most of the cultivated land concentrated in South, Central and Southeast Sulawesi.

Data on plantation areas for different commodities in 2006 is provided below.

4 The share of emissions from land-based sectors (Land Use, Land Use Change and Forestry – LULUCF, including peat

fires and agriculture) is approximately 67% of total national emission, the largest of any sector, accoridng to the MoE in 2010 (BAPPENAS, GIZ). Consequently, for the reasons stated above, even higher figure (i.e importance of the LULUCF in the emission inventory) can be estimated for Sulawesi.


Table 3.2 Extent of plantation Land in Sulawesi (2006)

Province Plantation land (ha)

Palm oil Coconut Rubber Cocoa Coffee

North Sulawesi n/a 269.368 n/a 10.263 9.579

Central Sulawesi 48.431 171.705 3.160 221.812 10.714

South Sulawesi 24.490 115.535 19.475 250.233 67.592

Southeast Sulawesi 2,966 54.358 n/a 200.065 10,703

Gorontalo n/a 62.933 n/a 9.597 1.642

West Sulawesi 75.154 67.643 1.209 137.112 26.73

Source: Ministry of Agriculture, 2007

Information regarding the ex-mining site locations available from the inventory conducted in

selected 20 provinces by the Ministry of Agriculture (2006)5 indicate that ex-mining sites in

Sulawesi can be found in North Sulawesi (2.438 ha), Gorontalo (3.635 ha), but namely in

Central Sulawesi (289.417 ha), which constitutes of the highest figure among all inspected

provinces (with South Kalimantan displaying the second largest area of ex-mining sites with a

total of 28.226 ha) (Ministry of Agriculture, 2006). Two major mining companies’ concession

areas are located in South, Central and Southeast Sulawesi (PT INCO Tbk/VALE) and in

Bahubulu, Southeast Sulawesi (PT ANTAM Tbk).

Unfortunately, comprehensive information on the land use dynamics for Sulawesi EC is not

readily available. However, a recent study conducted on South Sulawesi (Sumbangan Baja et

al. 2011) revealed that conversion of forested land to other uses is widespread. During the

period from 1997 to 2004 the largest conversion was into grassland and into agriculture land,

while in the period 2004-2009, the conversion of forest to other land-use decreased to a certain

extent. The conversion of dryland (mixed) agriculture into rice fields can also be recorded. Other

types of changes include conversion from dry land agriculture into rainfed paddy fields,

plantations, and residential areas, as well as some relatively small changes between other

different land-use/land cover types. The driving factors involved in the changes include the

opening of new paddy fields supported by government policy, infrastructure development,

natural disasters, large scale plantation development by the private sector, land clearing for

mining, certain socio-cultural aspects (such us loss of indigenous culture based on sustainable

use of local resources), and institutional factors and land-related policies including both

agriculture intensification programs on one hand as well as environmental policies on the other

hand6 (Sumbangan Baja et al. 2011).

The findings above seem to be consistent with aggregated information for the national level.

However, a detailed analysis of regional differences and specific driving factors for Sulawesi EC

will require more detailed information on land-use change patterns across all provinces. The

need to gather this additional information will be determined during the subsequent scoping

stage of the Project.

In terms of soil degradation, reference material indicates that it occurs as a result of land use

change and unsound agricultural practices in Sulawesi; namely in the form of erosion and

contamination. Excesive use of fertilizers and pesticides is relevant particularly for plantation

agriculture. Other contributing factors are mining (contamination with heavy metals e.g.mercury,

and other toxic substances) at and around the nickel and gold mining localities, and at the waste

management sites. Soil pollution has been reported e.g. from North Sulawesi - Poboya, Moilong,

Toili, West Toili and Bahodopi (SEA on Local Development Plans, Sucofindo 2011).

5 Published in: Ministry of Environment: The State of the Enironment Report in Indonesia 2007

6 e.g. Green Movement of South Sulawesi (Sulawesi Selatan Go Green) controling the rate of sedimentation in

Jeneberang, Saddang, WalanaE catchment to maintain the performance of Bili-Bili dam and hydropower of Bakaru, and to prevent siltation of Lake Tempe through the tree planting program in each catchment (Pemerintah Provinsi Sulawesi Selatan, 2005).


17

Erosion is enhanced especially by deforestation and agricultural activities in areas with

complicated geomorphology and steep slopes. Large territories of Sulawesi are prone to

landslides.

3.2 Ecosystems

Biodiversity 3.2.1

Terrestrial Biodiversity The occurence of terrestrial endemic species in Sulawesi is particularly noteworthy, as out of

127 occuring mammal species 72 (62%) is endemic, which makes Sulawesi a region with one of

the highest rates of endemic mammals in the world. If bat species (i.e. species with better

potential for migration) are not counted, then the share of endemic mamals increases to

stunning 98%. In addition, 34% of Sulawesi’s nearly 1500 bird species are endemic. The

northern peninsula of Sulawesi (Minahasa, Totabuan and Gorontalo) can be regarded as a

particularly biodiversity-rich area in the region, as it is home to 86% of 103 types of endemic

birds and 20 types of endemic bats.

The general characteristics of other terrestrial fauna in Sulawesi are unfortunately not thouroghly

documented. 25 species of amphibians are known, as well as 40 lizards and at least 52

terrestrial snakes. In addition, there are 38 species of large swallow-tailed butterfly.

Researchers have also found 67 endemic species of fish in Sulawesi's dwindling mangrove

forests.

Of particular interest are the follwing species:

Two wild cattle species, the Lowland anoa and the Mountain anoa. Both are listed as

Endangered by the IUCN. Little is known about these animals but they are heavily hunted

for food and their horns.

Babirusa, also known as 'pig-deer, comprises three species of pig. Each male babirusa

sports a set of four tusks, two of which stick through their snout. All three species are

threatened with extinction.

Sulawesi palm civet which is classified asVulnerable. This predator lives and hunts in a

wide-variety of habitats.

Crested black macaque is called the most threatened primate on Sulawesi. It is killed for

bushmeat and caught for the pet trade. In addition, deforestation and mining have taken a

heavy toll on its habitat. The species is considered Critically Endangered.

Maleo, a chicken-sized bird. They nest in traditional sites, over a third of which have been

abandoned recently due to human impact. They lay one massive egg in meter-deep pits,

which humans sometimes poach for food.

Newly discovered species include e.g. the Togian White-eye, a small olive black and white

passerine, which is likely endangered; the Togian hawk-owl in 2004; and a rediscovered species

of pygmy tarsier in 2000.

Sulawesi also has several karst7 areas, the most famous one is Karst Maros-Pangkep with total

area of 30.000 ha, the second largest karst in the world. It has a very rich biodiversity with more

than 284 flora species where 30 of them are protected and endemic species (Fiscus spp,

7 Geological formation shaped by the dissolution of a layer or layers of soluble bedrock (typicaly limestone). The erosion

often results in formation of specific landscape rich in caves and other distinctive geomorphological features.


Diospyros celebica) (PSL-UNHAS, 1997). The karst locations are also home to cultural heritage

sites (e.g. Prehistoric Park Leang-leang and Sumpang Bita)

Marine Biodiversity Sulawesi is surrounded by biodiversity-rich seas with large habitats of seagrass and coral reefs.

These habitats are home to leatherback, hawksbill, and green sea turtles, as well as dugongs

and six of the world's seven giant clam species. Whales that use the waters as a by-way include

sperm whales, pygmy sperm whales, and killer whales.

One of the marine biodiversity standouts is the Sulawesi coelacanth. This is the second species

of the prehistoric survivor and is classified as Vulnerable by the IUCN Red List because it is

threatened as bycatch (i.e. despite not being a primary target for fishermen). A study undertaken

by Ministry of Marine and Fisheries and LIPI (Ubaidillah et al, 2013) documented a number of

endangered aquatic and marine species in Indonesia. In Sulawesi alone, the list of marine

species categorized as endangered by IUCN Red list include: scalloped hammerhead

shark/Sphyrna lewini (endangered) occuring in both beach- and offshore waters of Sulawesi,

banggai cardinalfish/Pterapogon kauderni (endangered), with distributions in Lembeh Bitung

strait, North Sulawesi and Luwuk, Central Sulawesi.

Freshwater/Aquatic Biodiversity Another example of an important biodiversity source are the freshwater ecosystems in the

ancient lakes located in Sorowako (Malili, Mahalona and Towuti Lakes) inhabited by number of

endemic species. Many other species in various Sulawesi freshwater habitats are threatened

with extinction (see table below).

Table 3.3 Freshwater endangered species in Sulawesi

Species Name Habitat & distribution in Sulawesi Status (IUCN Red

List)

Duck-billed buntingi (Adryanichthys

kruyti) Poso Lakes, Sulawesi

Critically

endangered

Rockfish (Mugilogobius amadi) Poso Lakes Critically

endangered

Sulawesi Forest Turtle

(Leucocephalon yuwonoi)

(rivers, small swamps) Palu, Central

Sulawesi and Gorontalo

Critically

endangered

Cardinal Shrimp/Matano Blue Dot

Shrimp (Caridinia dennerli) Matano Lakes

Critically

endangered

Orchid Shrimp/Red Orchid Shrimp

(Caridinia glaubrechti) Endemic in Towuti Lakes Endangered

Black Tiger Shrimp (Caridinia

holthuisi)

Endemic in Mahalona, Matano and

Towuti Lakes and Petea river Endangered

Red Goldflake Shrimp (Caridinia

spinata) Endemic in Towuti Lakes Endangered

Harlequin Shrimp (Caridina

spongicula) Endemic in Towuti Lakes Endangered

Red Stripes Shrimp (Caridina

striata)

Endemic in Malili Lakes, distributed

also in Towuti & Mahalona Lakes Endangered

Celebes beauty (Caridinia

wolterckae) Endemic in Towuti Lakes Endangered

Source: Ubaidillah, Rosichon et al (2013)


19

Forests 3.2.2

Total forest areas in Sulawesi represent 66.24 % of the total land of the region. Among different

forestry categories the largest share accounts for Protected Forests (4,836 ha).

Table 3.4 Territory of Forests Areas (in thousands Ha) in Sulawesi up to 2006

Province Protected Forests

Nature Reserves/Pre

servation Areas

Limited Production

Forests

Permanent Production

Forests

Hunting Forests

Convertible Production

Forests

Total Forests

Area

North Sulawesi

341 518 553 168 - 35 1.615

Central Sulawesi

1.490 671 1.476 501 5 252 4.395

South Sulawesi

1.944 775 856 188 14 102 3.879

Southeast Sulawesi

1.061 266 419 633 8 212 2.599

Gorontalo* - - - - - - -

West Sulawesi**

- - - - - - -

Total 4.836 2.230 3.304 1.490 27 601 12.488

Source: Ministry of Forestry (2008)

*) Forest areal of Gorontalo is still included in North Sulawesi Province

*) Forest areal of West Sulawesi is still included in South Sulawesi Province

Dueto production of valuable tropical wood, the forestry sector is an important source of income

in Central-Sulawesi and Southeast-Sulawesi (i.e mainly teakwood production). In the past,

wood and rattan were exported without processing, however, current governmental regulation

has banned the exports of unprocessed forest products.

According to the Forest Watch (2011), forests of different types and conditions comprise about

46.65 % of the Sulawesi territory. Approximately 80% of its original forest cover has already

been lost or seriously degraded in Sulawesi. Over 50 percent are considered to be in poor

condition, while 30 percent—mostly in the highlands (above 1500 meters)—are classified as in a

good condition. The current rate of deforestation is lower than much of Indonesia, primarily

because of large-scale loss of forests occured in the previous decades. Between 2000 and 2009

about 15 % of Sulawesi forests have been lost.

Table 3.5 Deforestation in Sulawesi provinces (hectares)

Forest cover 2000 Forest cover 2009 Forest loss

North Sulawesi 634.075,14 550,957.98 83.117,16

Gorontalo 822,380.41 729,170.68 93,209.73

Central Sulawesi 4,258,885.08 3,826,773.54 432,111.55

South Sulawesi 1,691,028.52 1,125,876.88 565,160.64

Southeast Sulawesi 2,297,743.06 1,949,252.34 348,490.73

West Sulawesi 1,003,073.55 857,322.76 145,750.79

Sulawesi 10,707,185.76 9,039,345.18 1,667,840.59

Indonesia 103,329,366.78 88,170,440.19 15,158,926.59

Source: Forest Watch Indonesia, 2011

Logging and conversion for different land-use, namely for the production of Cocoa and food

agriculture production, are the main causes of deforestation in Sulawesi (see section 3.1.3).

Forest limits are not apparent in the territory, and low level of public awareness combined with

poor regulation enforcement leaves the forest land vulnerable for small- and large-scale


encroatchment. Illegal logging plays significant role in the problem (South, West and North

Sulawesi), however, it is the lack of clear ownership rights to the forest land, that leaves

communities with little incentive to reject illegal logging or manage forests in a long-term

sustainable way.

Coastal Degradation 3.2.3

Pressure on coastal ecosystems is triggered namely by the rapid coastal development activities

(residential, fisheries, ports, etc.). Although much of the area has already been degraded,

mangrove forests are found in estuaries and along Sulawesi's large coastline. Removal or

damage of Mangrove cover (typically for firewood and development of aquaculture ponds)

results not only in direct loss of biotope and ecosystem functions but also triggers coastal

erosion. Noticable remains of large mangrove forests can be found, for example, in Boni Gulf

and islands in Southeast Sulawesi, along the Southern coast of Central Sulawesi, or Southern

Gorontalo.

Amongst other factors, overfishing is highly impacting (e.g. including blast and cyanide practices

and illegal gears), along with sea water pollution via industrial and domestic sewage discharge.

As admitted in the MP3EI document8, overfishing for large pelagic fish species in North

Sulawesi, and demersal fish species and shrimps in South Sulawesi, has already resulted in a

decrease in catches for both commercial and subsistent fishermen.

Much of the coral reef areas off the coast of Sulawesi are clasified as threatened. In particular,

large reef areas along the Western and Eastern coasts of South Sulawesi belong to the

categories ranging from High Threat to Critical (according to the ReefBase.org classification9).

Coastal reefs are however under pressure consistently along the whole coast of Sulawesi

mainland as well as adjacent islands.

In most cases, the overfishing (including destructive methods) and watershed based pollution

(river water pollution, siliting) are the main reasons for reef degradation. Coastal development

contributes to the degradation of reefs primarily in the areas along the coast of South Sulawesi

Province, eastern coast of Boni gulf, in North Sulawesi, and - to a certain extent - in the vicinity

of all coastal setlements across the region. Marine pollution is also an important factor for the

area adjacent to City of Makassar in South Sulawesi (ReefBase.org – ReefGIS10

).

8 Masterplan P3EI, 2011, English version, p. 128.

9 ReefBase is the official database of the Global Coral Reef Monitoring Network (GCRMN), as well as the International

Coral Reef Action Network (ICRAN). The ReefBase Project is housed at the WorldFish Center in Penang, Malaysia, with funding through ICRAN from the United Nations Foundation (UNF). 10

Stated description is based on interpreting the visualisations presented in ReefBase.org – ReefGIS webgis site.


21

Figure 3.1 Coral reefs, Seagrass and Mangrove distribution in Sulawesi EC (BIG, 2013; Ministry of Marine Affairs and Fisheries, 2013 and Ministry of Forestry, 2013)

3.3 Socio and Economic Aspects

Human Health 3.3.1

With a population of 17.4 million (as of 2010, 7% of national total) and a land area of 174,600

km2

(i.e. approximately 10% of the Indonesian territory), Sulawesi has population density close

to the national average at 92 inhabitants per km2.

Predominantly rural in character, Sulawesi is dominated by low rates of urbanization

(percentage of population living in cities) across all provinces (ranging from 29.4 percent for

South Sulawesi to 19.7 per cent in Central Sulawesi) as compared to the national average of

44%.

A large share of this rural population lacks adequate access to health care, as reflected in the

poor performance of indicators such as Infant mortality rate (IMR) presented in the official

statistics (Indonesia Health Profile 2010). In West Sulawesi Province, this rate is the highest in

all of Indonesia, at 72 per 1000 live births, closely followed by Central Sulawesi with a IMR of

60 per 1000 live births. In fact, none of the Sulawesian Provinces reaches the national IMR

average of 34 per 1000 live births. West Sulawesi also exhibits the lowestvalue nationwide for

under five years of age mortality (96 per 1,000 live births).


In terms of Life Expectancy at Birth, indicating general health status of population, Central

Sulawesi, Gorontalo, Southeast Sulawesi, and West Sulawesi lagg behind the national average,

while more developed provinces of South and North Sulawesi reach values above the

Indonesian average (Indonesia Health Profile 2010).

Among communicable diseases of concern, higher prevalence of malaria exists in Central

Sulawesi reaching 2.08 cases per 1000 inhabitants, while Gorontalo and North Sulawesi

oscilate around the national average at 1.96 per 1000 inhabitants. In comparison, the figure in

Papua is over 17 per 1000 in habitants.

The number of reported AIDS cases remains well below the national average.

The whole of Sulawesi, i.e. together with most of the Eastern regions of Indonesia, fall into the

category of High Endemic Provinces in terms of Leprosy (values of Newly Case Detection Rate

(NCDR) higher than 10 per 100.000 inhabitants).

Elevated incindence of Dengue Haemorrhagic Fever (DHF) has been reported in North and

Central Sulawesi (in 2010 87,70 and 81,80 cases per 100.000 inhabitants respectively, with the

national average being 65,7). Note however that incidence of DHF is highly volatile and figures

can change substantialy over time.

Livelihood 3.3.2

The economy of Sulawesi is dominated by agriculture, securing 31.82% of gross regional

domestic product (GRDP) of Sulawesi, while second in line i.e. trade, hotel and restaurant

sector contributed only 15.24% in 2008. In terms of regional disparities, South Sulawesi

generates almost a half of Sulawesi GRDP, Central Sulawesi 15.90%, North Sulawesi 15.73 %,

South East Sulawesi 12.53%, West Sulawesi 4.39% and Gorontalo 3,33 %.There are

differences in the economy structure among provinces - the contribution of agriculture in South

Sulawesi is the smallest, while the contribution of manufacturing is higher than in the other five

provinces. North Sulawesi has more diversified economy with substanital shares of

construction,services, and trade (including hotels and restaurants) in GRDP.

About 50 % of the total workforce in Sulawesi finds employment in Agriculture. A substantial part

of the agricultural production on the island is small-scale (family farms). Despite this, Sulawesi is

the third largest food producing province in Indonesia, which accounts for 10 % of rice and 15 %

of national corn production. While having limited possibilities for expansion of cultivated land,

there is potenitial for further increase in productivity (e.g. irrigation, fertilizers, mechanization,

etc. are used less in Sulawesi than in other regions in Indonesia). Of certain importance is also

animal husbandry – South Sulawesi is the third cattle-producing province in the country.

Cocoa production area in Sulawesi measures 838,037 Ha (58% of Indonesian cocoa plantation

area, and 63% of national cocoa production volume). Most of the land for cocoa production is

owned directly by farmers (96%). As highlighted in the MP3EI document, despite increasing

planting area, production (and productivity) has been in decline in recent years, due to lack of

investment and other related factors11

.

Fisheriesemploy a large number of residents in Sulawesi, engaged mainly in small-scale coastal

fisheing using traditional boats and techniques, while modern fisheries and processing points

are gradually being developed as well along with aquaculture (both fish and shrimp) facilities.

Sulawesian fishery sector is the largest among all Indonesian regions.

Poverty statistics indicate an above national average share of people with low incomes, namely

in agriculture dominated Gorontalo (17,22 %), and Central Sulawesi (14,94 %), while South and

North Sulawesi provinces exhibit figures below 10% (2012). However the trend within the last

11

Masterplan PE3I, 2011, English version, p. 125.


23

decade shows gradually declining figures. For example, Gorontalo displayeda high percentage

of 27,35 % of financially disadvantaged people in 2007.

Currently, as indicated in table 3.5 below, the more developed and richer provinces of North and

South Sulawesi attract more workforce, which in turn results in higher unemployment figures.

Table 3.6 Main employment characteristics in Sulawesi provinces

Unemployment rate

(2010, %)

Employment to population ratio (2010,

%)

Annual employment

growth rate (2006-2010)

Sulawesi Utara (North) 9.6 57.2 3.1

Sulawesi Tengah (Central) 4.6 66.0 3.0

Sulawesi Selatan (South) 8.4 58.8 4.6

Sulawesi Tenggara (Southeast)

4.6 68.6 4.5

Gorontalo 5.2 61.1 4.4

Sulawesi Barat (West) 3.3 69.1 6.3

Sulawesi (total) 6.9 61.6 4.2

Indonesia (33 Provinces) 7.1 62.9 3.2

ILO: Labour and Social Trends in Indonesia 2011

In agriculture dominted regions labour productivity, i.e. measured by output per worker, is

generally lower than in regions exporting natural resources or industrial products. West Sulawesi

and Gotonato belong to provinces with the lowest employment figures in Indonesia at

approximatly half of the national average in 2010.

Unfortunately, sectoral statistics on employment and their time-series, which would enable a

more detailed analysis of the importance of different economic activities in relation to the

livelihoods of local comunities in different Sulawesi regions, was not available at the time of

reporting.

A critical issue in some parts of Sulawesi especially in remote areas is the accessibility of safe

water. In South Sulawesi, only Pare-Pare city has the sufficient water infrastructure services

covering up to 80 % of housholds, while in Makassar the access to water services & sanitation is

relatively low, especially for the low income community (also due to relatively high price for

water utilities). Other areas such as Maros regency, Takalar, Jeneponto and Enrekang also face

with the same problem (USAID, 2013). In West Sulawesi, between 2009 and 2011, one third of

households do not have sufficient access to clean drinking water, and the share of the

population with access to clean drinking water tend to keep decreased between 2009 (66,5 %)

and in 201163,93% (BPS Sulbar, 2012).

Industry and Mining 3.3.3

Nickel mining in Sulawesi contributes approximately 7%t to the GRDP. The region holds 50% of

the nickel reserves in Indonesia. Majority of production comes from mines in Sarowako, South-

Sulawesi; where ore of low quality is partially processed for the export; Nickel ore is also mined

in Pomalaa in Southeast-Sulawesi. Other substantial deposits are located in Morowali Regency,

Central Sulawesi and Konawe Regency, Southeast Sulawesi. Due to a lack of procession


capacities most production is exported as ore. Many of these activities are associated with a

significant range of environmental problems. For example, air pollution, land degradation, and

disruption of ecosystems. Social challenges to local communities arise due to the large number

of migrant workers, as well as land disputes especially in relation to customary land.

In addition to Nickel, there are several other mining-related economic activities, notably asphalt

extraction on Pulau Buton (Southeast Sulawesi), gold in North Sulawesi, and limestone in South

Sulawesi. North Sulawesi is endowed with substantial deposits of copper, which so far have not

been extensively exploited.

Both oil and gas reserves in Sulawesi Economic Corridor are relatively low compared to other

regions of Indonesia with 0.64% and 2.69% of total national reserves respectively. Extraction is

also relatively difficult due to specific geographical conditions (e.g. complicated land and sea

contours). Nevertheless, an intensificatioin of extraction activities is planned in Central Sulawesi,

West and South Sulawesi.

Industrial production has a relatively minor importance in the Sulawesi economy. In addition to

the very limited mineral processing capacities, main activities take place within food-processing

(palm oil, cocoa, etc.), production of construction concrete from limestone (South Sulawesi), and

to a certain extent manufacturing (e.g. timber products).

Energy and Waste 3.3.4

As of 2012, the installed power generation capacity in Sulawesi was 1.731 MW (4% of national

total). The main transmission network consists of two mutually unconnected segments (located

in North and South Sulawesi provinces) with combined length 2.988 km for 150 kV, and 482 km

of 275kV. There are also many small autonomous systems serving individual localities across

the region.

A large proportion (well over 50%) of electricity generating capacity consists of hydro plants

located in South, Central and North Sulawesi. Geothermal production in Sulawesi is represented

through three 20-MW units at the Lahendong power plant. Complementary capacity provides oil

and gas generators. Further potential for renewables exist, as indicated by the number of related

energy projects envisaged within the MP3EI EC Sulawesi planning, such as the Karama

Hydropower Plant in West Sulawesi potentially consisting of three separate dams with a total

installed capacity of 4400 MW, and other hydro (especially in category of micro-hydro plants

below 200 kW) and geothermal projects (see indicative list of projects within MP3EI Sulawesi

EC). Solar energy potential has been used so far only in small scalle, as well as the potenital for

biofuel crops cultivation.

It is estimated (DESDM, 2006) that the micro-hydro potential in Sulawesi accounts for 154,23

MW (i.e. close to 30% of total potential in micro-hydro segment in whole Indonesia)12

. North

Sulawesi has the largest potential with 47.86 MW, followed by Central Sulawesi (36.37 MW) and

South Sulawesi (31.10 MW).13

With the exception of South and North Sulawesi, the rate of electrification (percentage of

population with access to electricity) remains among the lowest in the nation (e.g. Gorontalo

55.88%, and Southeast Sulawesi 57,90 %) and a lack of capacity to meet growing energy

12

Original source - DESDM, 2006. Blueprint Pengelolaan Energi Nasional (BP-PEN) 2005-2025. Jakarta: Departemen

Energi Sumber Daya Mineral - quoted in (Subekti & Sudibyo, 2011). 13

The existing potential for micro-hydro plants has been already partially utilized. From the 84,2 MW of combined

potential of North Sulawesi and Central Sulawesi, 56,19 MW were already utilised, leaving the remainder 28,03 MW for future use. On the other hand, South Sulawesi and Southeast Sulawesi have the potential of 52,2 MW with only 9,93 MW being utilised. A number of micro hydro power plants have been also constructed in West Sulawesi (Mamasa and Mamuju regency).


25

demand is one of the barriers for economic development. For example, according to data from

the Department of Energy and Mineral Resources of North Sulawesi in 2011, there has been a

waiting list for 88,94 MW power users amounting to 13.409 customers, mostly from urban and

industrial areas.

According to the official indicator “percentage of households with access to proper waste

disposal in accordance with MDGs“ (Indonesia Health Profile 2010), only North and South

Sulawesi provinces exceed the national average of 55 %, while only about one third of

households have access to proper waste disposal in Gorontalo and Southeast Sulawesi.

Due to inadequate solid waste management systems, the whole region is facing serious

environmental and sanitation issues, including increasing levels of illegal waste dumping into

rivers, canals, and roads. As a part of the national program to improve waste management, a

project of Regional Sanitary Landfill in Mamminasata (South Sulawesi) has been puth forth (with

the support of Australian and Japan development assistance programs) as one of the pilot

projects assisting provinces to comply with with Law no. 18/2008 on waste management.

A study undertaken in Makassar shows that for residential wastewater, approximately 85% of

households have access to septic tanks/communal latrines but in areas with no sanitation

infrastructure (low-income illegal settlements), open defecation is practiced (McDonald, 2011).

Stormwater drainage channels are often blocked due to rubbish and sediment accumulation

(UNHASS, 2011 in Tjandraatmadja et al, 2011)). For non-residential wastewater, major volumes

of waste discharge are typically produced by commercial food enterprises, car dealers, wood

processors, supermarkets and other light industries (Tjandraatmadja et al, 2011). A feasibility

analysis for Geothermal Power Plant Lahendong’s focusing on wastewater quality in North

Sulawesi revealed that wastewater quality was affected by high arsenic concentrations

(exceeding the value limit (Hariyadi, 2012)). More thorough analysis on wastewater

management in Sulawesi (relevant locations) will be undertaken at the scoping stage,

Waste from mining (i.e. large scale tailings) pose the risk of soil and water contamination

destroying aquatic habitat, and pose threat to water resources used by humans. In the context

of Sulawesi i.e. considering its unique coastline, the risk of contamination of marine coastal

ecosystems is of particular importance, especially due to the fact that fisheries are a source of

livelihood for a large part of the population, whose health can thus be directly affected.


3.4 Environmental Management

Protected Areas 3.4.1

According to the Ecoregion Environmental Yearbook (SLHE) 52 areas in Sulawesi (together

with other locations in Maluku and Papua) account for 44,1 % of national conservation areas).

The protected areas consist of 13 Nature Reserves (Cagar Alam/CA), 14 Wild Reserves (Suaka

Margasatwa/SM), 4 National Parks (Taman Nasional/TN), 4 Grand Forest Parks (Taman Hutan

Rakyat/Tahura), 8 Nature Recreational Parks (Taman Wisata Alam/TWA), 6 Marine

Recreational Parks (Taman Wisata Alam Laut/TWAL) and 4 Hunting Game Reserves (Taman

Buru) (Kementerian Lingkungan Hidup, 2011). Among the most well-known parks on the island

is the Lore Lindu National Park (with as status of UNESCO Biospheric Reserve) comprising

229,000 hectares, Bogani Nani Wartabone National Park (300,000 Ha located in border area

between North Sulawesi and Goronato) and Rawa Aopa Watmohai National Park (105,194 Ha)

in southeast Sulawesi.

Most of the parks, however, suffer frequent encroachment related to illegal logging, mining, and

conversion into crops production land. Thousands of illegal gold miners have been found to

conduct their business in Bogani Nani Wartabone National Park (www.mongabay.com)14

Sulawesi also has three national marine parks: Bunaken, Wakatobi, and Take Bonerate.

Bunaken National Park includes islands, mangroves, seagrasses, and coral reefs. Taka

Bonerate National Park protects the Taka Bonerate atoll (and surrounding coral reefs), the

world's third largest atoll and the largest in Southeast Asia. Wakatobi National Park protects the

island chains and 25 coral reefs off Southeast Sulawesi.

The distribution of National Parks and other conservation areas in Sulawesi can be seen in

Figure below:

14

http://www.mongabay.com/profiles/sulawesi.html


27

Figure 3.2 Map of Conservation Areas in Sulawesi

Environmental Conflicts 3.4.2

Poor environmental management practices, lack of environemntal regulation and low

enforcement of existing laws are often factors contributing to the worsening environmental

situation in Sulawesi.

Illegal logging is estimated to account for the 40 % of total production of timber on the national

level, and represents an important problem also in the Sulawesi context. It has been reported for

exapmle in the Morowali Conservation Park and Banggai forest in Central Sulawesi, where

organized groups of illegal loggers often camp in the forest for certain periods of time.

Indigenous residents in the area are unable to stop the illegal logging due to fears of violent

response (Jakarta Post 13 December 2012)15

.

Pollution and habitat destruction from mining poses a threat to biodiversity and ecosystem

functions as well as to human health. Mining has been even reported to occur within the

boundaries of protected areas. Publicized cases of conflicts represent following examples:

The Toka Tindung (gold) Mining Project in North Sulawesi caused controversy due to the

proposed, but unapproved, disposal of toxic mine wastes into a densely populated region in the

vicinity of the international Bitung Harbor and above the major fishing region of Rinondoran Bay

between Lembeh and Bangka. A conflict emerged asthe EIA approval issued in 2009 for the

mine was allegedly not compliant with legislation (according to the release published by

NGOs16

). Currently the mine is in operation.

15

Accessed through http://www.illegal-logging.info 16

Mines And Communities http://www.minesandcommunities.org/article.php?a=9984


Another examle of a social conflict triggered by the mining operations is the conflict over the

One Pute Jaya and Bahumotefe community lands in Central Sulawesi, designated for the nickel

mining projects developed by PT Inco, and the environmental impacts of the nickel processing

facilities located in Sorowako, North Luwu Regency, South Sulawesi reported by NGOs through

the Mining Watch web page.17

The National-wide issue of illegal mining can also be documented in Sulawesi. The problem is of

structural nature, illegal miners are often backed up by local and regional official structures in

oposition to the central government interests and large state or foreign mining companies

holding the legal licences. Organized illegal operations are sometimes being passed off as

"indigenous mining," providing a veneer of legitimacy that distracted environmental activists are

willing to accept (John McBeth, 2000)18

.

North Sulawesi's Minahasa Peninsula is currently experiencing intense illegal gold mining

activity. It has been estimated that 200 tons of mercury isused annually in Indonesia in the

recovery of gold from the illegal mines. Small scale mining activities are thus associated with

high risk of mercury contamination and severe impacts on human health.

Watershed management issues have been listed as a priority issue in SEA for the development

plans of Central Sulawesi Province (Sucofindo 2011), and in particular within the SEA for the

Local Development plans of North Sulawesi (Sucofindo 2011), where degradation and rapid

siliting of Tondano Lake – a popular tourist destination, important fish farming hub and source of

power for electricity generating turbines – is an issue of main concern for the local communities.

17

http://www.miningwatch.ca/sulawesi-communities-reject-inco-call-renegotiation-pt-incos-contract-work 18

http://www.indonesiatraveling.com/kalimantan/kalimantan-nature-reserves/west-kalimantan/418-illegal-mining-

kalimantan-and-sulawesi.html

Preliminary Overview of the Potential Issues for EC

29

Preliminary Overview of the Potential Issues for EC 4

Deforestation / Degradation of Forests Functions 4.1.1

Population growth and associated migration fuel the need for expanding livelihood opportunities,

together with expanding commercial plantations and other economic activities are the main

drivers of deforestation, that is especially noticable in South Sulawesi (Enrekang regency, Gowa

regency, Bone regency), and West Sulawesi. Considering the MP3EI Sulawesi EC plan to

expand plantation and other economic activities in areas that are currently left as protected for

conservation purpose, it will likely have an exacerbating effect. Among negative secondary

strategic impacts are, biodiversity loss, climate change (both on the micro level, and as

contribution to emissions of GHG), alteration of the hydrological regime of an affected territory

(including erosion and sedimentation problems, floods, impact on irrigation systems etc.).

The above mentioned physical and ecological impacts can also have corresponding knock-on

impacts to socio-economic factors such as, loss of agriculture yield, increasing costs of

production etc. Communities depending partialy on entirely on forests for their livelihood are

particularly vulnerable, and forests conversion can be source of social conflicts, especially in

case of customary forests.

Areas of specific concern include forested land throughout the region (especially in Central and

Southeast Sulawesi) and namely indigenous customary land. Indigenous communities are the

most vulnerable groups. Of particular concern is the conversion of mangrove to fishpond areas

relevant also in North Sulawesi & Gorontalo.

Air and Water Pollution 4.1.2

Air Quality One of the main drivers of the pressures to air quality is industrial activities (esp nickel smelter).

The nickel smelting/processing industries produce high levels of emissions, in particular SO2. In

most urban areas where many economic activities are in place, transport and industry sectors

are likely to contribute equally to the deteriorated air quality.

Emissions data for GHG resulting from deforestation and other land-use changes together with

emissions from industry, energy generation and transport indicate growing trends, thus

contributing to the effects of climate change, which are experienced even on micro-level (North

Sulawesi and Gorontalo).

Water Quality Several number of lakes in Sulawesi are known to have important biodiversity functions and are

currently the source of drinking water for a number of communities. The mining and nickel

development in the Sulawesi EC has the potential to increase water demand and conflict over

water resources in areas adjacent to mining. .

Increased discharge of wastewater associated with industrial centres (such as Bitung industrial

area and Manado, North Sulawesi) could affect water quality in terms of scale and cumulative

nature. In the case that no wastewater treatment plants are proposed as part of the plans,

waste-water volumes can be expected to increase in newly developed areas. Discharge without

treatment could affect the water quality in the catchment areas.

Water pollution is particularly relvant for urban areas close to major mining production such as

Sarowako, South-Sulawesi; or Pomalaa in Southeast-Sulawesi (nickel), and in general for

communities located in the vicinity of industrial areas and mining sites.


At some locations (North Sulawesi and elsewhere), the marine water intrusion constitute

significant risk, contributing to the vulnerability of the water resources already endangered by

floods and droughts.

Land and Soil Degradation 4.1.3

Land use change (especially conversion of forests for other use) and unsustainable land

management practices have often devastating impact on soil. Erosion and contamination

(pesticides, fertilizers) arecommonplace and with extending area of plantations, problems

escalate and generate impacts on hydrological regime and further downstream.

Overexploatation of soil and resulting decrease of productivity is associated with cocoa

plantations. Pollution caused by pesticides has been experienced in Pinasungkulan, North

Sulawesi, as well as other locations.

Of particular importance is the contamination related to mining (given the scale of mining

operation in the region). The continued mining development or insufficient control over illegal

miningwilllead to continued risk of further expansion of areas of contaminated soils and ground

water.

Among other land degradation factors relevant for the Sulawesi EC planning, soil pollution

resulting from improper waste management, both in municipal and industrial sectors, and the

land subsidence experienced in coastal metropolitan areas (Makassar) can be included.

Coastal Degradation 4.1.4

Potential issues regarding coral reefs loss due to coastal development and pollution related to

watershed management could potentially present disturbance to water quality.Transported

nutrients such as nitrogen or phosphorus can also affect the biodiversity of reef ecosystems.19

Localised coastal morphological issues (erosion and accretion) related to short term and long

term port development/expansion are one of potential issues should be considered. Land-use

change, particularly deforestation, and hydrological modifications have the potentialdownstream

impacts, beside the localised development on the coast.

Coastal population growth in deltas, barrier islands and estuaries may lead to widespread

conversion of natural coastal landscapes to agriculture, aquaculture, silviculture, as well as

industrial and residential uses (Valiela, 2006). Rapid urbanisation on the other hand, may trigger

consequences such as enlargement of coastal inlets and dredging of waterways for navigation,

port facilities, and pipelines. In consequence this may exacerbate saltwater intrusion into

surface and ground waters. Other major direct impacts of human activities could include

drainage of coastal wetlands, deforestation and reclamation in urban areas (e.g. Manado City,

North Sulawesi), and discharge of sewage, fertilisers and other contaminants into coastal

waters.

The coastal management that suffers from incomplete coastal areas zoning may affect

remaining areas with rich coastal ecosystems that are located close to ports and other coastal

19

As pointed out by the participants of the pre-scoping workshop of Sulawesi EC, the reef degradation

occurs namely in Sangihe and Talaud island regency, North Sulawesi; coral and mangrove loss is pressing

issue e.g. along the coast of South & West Sulawesi, Selayar island, small islands in Macan and Pasitalu,

North Sulawesi. Coral reefs areas off coast of Sulawesi, are mostly clasified as threatened. In particular,

large reef areas along the Western and Eastern coasts of South Sulawesi belong to the categories ranging

from High Threat to Critical. Additional threat is illegal fishing (Miangas Island, North Sulawesi).


31

infrastructures, and aquaculture areas. Such degradation will affect most coastal communities,

especially local fishermen.

Loss of Biodiversity 4.1.5

Sulawesi is particularly important for endemic species and unique biological communities,

particularly located around the lake systems and coastal areas. Increased mining and

agricultural activities, as well as the intensificatioin of fishing effort have the potential to further

disturb these ecosystems.

In addition to the continuined reduction of natural ecosystems area, the fragmentation and

disturbance by infrastrucutre and other developments could reduce the overall capacity of the

ecosystem to support biological diversity in its original extent20

. Of importance in Sulawesi is the

issue of overfishing and destructive fishing which could generate the loss of important marine

biodiversity as coastal ecosystems (coral reefs and mangroves) will also be disturbed. Hunting

and illegal trade with endangered species can contribute to the worsening of the overall

situatuon.

Roads and associated development can lead to habitat loss from cutting through valuable

undesignated habitat and leading to fragmentation of biotopes and migratory corridors.

Thisundermines the conservation effort, especially relevant for the endemic terrestrial species

living in the region.

Disaster Risk Management 4.1.6

Environmental degradation taking place due different number of factors (land use change and infrastructure development) have the potential to intensify the damage inflicted by natural disasters. Deforestation, erosion, overgrazing, overcultivation and incorrect agricultural practices amplify the effects of natural hazards. Land degradation and desertification pose a serious threat in the region in the wake of growing populations and enhanced demand for food. South and West Sulawesi regions are characterized by large populations in risk from negative impacts of climate change, including massive floods. One of the specific risks associated with seismic activity in Sulawesi is the impact of an earthquake event on stored tailings from mining activities. An earthquake could have the capacity to damage tailing dams containing contaminated materials. Loss of mangroves providing protective functions for the coastal ecosytems by reducing effects of waves and storms, whilst also stabilising shorelines (Polidoro et al. 2010) (Lacambra et al. 2008). Where mangroves have been destroyed due to coastal development and other increased human activities, villages and shorelines may be heavily impacted by storms and inundated by tidal waters (Irin 2012).

Particularattention needs to be paid to the communities living in locations adjacent to seismic

activity/fault lines, and coastal areas where storms and tidal water may present risk to

development (relevant for North Sulawesi esp. around the Ambag volcano mountain, Pomuman;

Lokon volcano mountain, Tomohon & Soputan volcano, Tompaso; Gorontalo and South and

West Sulawesi; flood risks prevalent in Sigi and Parigi Montong regency, Central Sulawesi).

20

Discussion during the prescoping workshop indicated that this is particularly relevant for North, South

Sulawesi (Maros regency, Bantimurung, small islands close to Macan & Pasitalu, Spermonde islands) and

West Sulawesi. Habitat destruction is a threat to endangered species in many locations, for example in

Manado bay, in coastal biotopes of small islands around Macan and Pasitalu islands, for Bangka island, as

well as for Limboto Lake in North Sulawesi


Human Health Risks 4.1.7

Inadequate access to basic health care and sanitary infrastructure contributes to the

comparatively poor public health in the region. Insufficient water supply infrastructure, both in

urban and rural areas is a widerspread problem, as well as poor access to health care in remote

areas including small islands (namely in South and West Sulawesi). Pollution-associated risks to

public health are key issues in highly urbanized areas with low ambient air quality, and in mining

adjacent communities (water contamination – e.g. mercury and other heavy metals

contamination in Central Sulawesi, or in coastal areas (along the coast of Totok bay & Buyat,

North Sulawesi)). Contamination of water resources by poor waste (solid and wastewater)

management is highly relevant for disadvantaged population groups both in rural and urban

areas. Unsound use of pesticides and fertilizers can have negative impacts on plantantion

workes and local communities.

TBC, Malaria and Dengue Haemorrhagic Fever are the communicable diseases of main

concern, relevant namely for South, West and Central Sulawesi. As aformentioned in the

baseline section, higher prevalence of malaria exists in Central Sulawesi while incindence of

Dengue Haemorrhagic Fever (DHF) reported in North and Central Sulawesi above the national

average (Indonesia Health Profile, 2010). However, note that incidence of DHF is highly volatile

and figures can change substantialy over time.

Prevalence of HIV/AIDS (of concern namely for North Sulawesi and Gorontalo) remains

relatively low, however, the current socio-demographical trends can contribute to increases in

the number of people belonging to vulnerable groups – migrant workers, mining workers in

remote areas, port workes and seafarers, poor urban population.

High rate of maternal/baby mortality and poor nutrition issues are relevant for disadvantaged

communities namely in South and West Sulawesi.

Anecdotally, increased occurences of endemic diseases such as schistosomiasis (relevant only

in Donggala regency, Central Sulawesi) have beenexperienced.

Livelihood Opportunities 4.1.8

The orientation of the regional economy on extractive industries results in relatively high per

capita economic output, that is however not always accompanied with growth in job

opportunities (e.g. large cash-crops plantation management is relatively low labour-intensive as

compared with traditional agriculture land cultivation).

Mining activities do not necessarily provide opportunities for local communities, as they employ

migrant workers possessing basic required skils and who acceptthe living conditions in the

mining localities. It also competes with the agricultural utilization of the land, which is the key

subsitence activity for rural communities. Fishery are a major source of employmentin Sulawesi

but mostly in the form of small-scale coastal fisheries, with traditional boats and techniques. The

change of livelihood from fishing is frequent, resulting in loss the of traditional knowledge and

social cohesion in coastal communities.

Aggregated information indicates that Sulawesi’s poverty rate is above the national average.

However, a more detailed analysis would be required to rule out the possibility that the living

conditions of the most disadvantaged groups are not neglected and do not go unreported.

Another key factor is the issue of subsistence livelihood of indigenous communities as pertheir

customary rights to forested land. The economic development activities pursued by external

investors or official authorities often dramaticaly limits the opportunities to continue with

traditional models of obtaining livelihood, and fuels social conflitcts.

Tendency that rises concerns regarding the future improvement of livelihood opportunities are

declining number of students in vocational schools.


33

Another barrier to the improvement of livelihood opportunities is inadequate public transport

system between regions and in large cities and small islands.

The areas of specific concern are located throughout the region, consisting of indigenous

customary land, as well as mining and plantation development areas (namely in South and West

Sulawesi). Vulnerable groups are indigenous communities, migrant and unskilled workers, as

well as the unemployed.

Environmental Management 4.1.9

In general, poor coordination and planning (including coastal management), combinedwith low

representation of indigenous communities and other vulnerable groups contribute to the

occurence of high number of environmental conflicts.

Low enforcement and compliance with existing environmental legislation and problems with

management of nominally „protected“ areas are prevalent throughout the region.

Promoting of sound environmental management practices (and regulation enforcement) is

particularly important in the sector of mining, forestry, and plantation agriculture. Combating

illegal mining (e.g. in Banggai and Morowali regency and in Palu city, Central Sulawesi, as well

as other localities of South and West Sulawesi) and logging activites is so far inefficient and

illegal activities take place even in designated protected areas.

Existing industrial activities are characterised by low use of innovative technologies and

methods (energy efficiency, low emission / low waste technologies etc.). Wastewater

management regulations are not sufficient and not enforced.

Other Specific Issues 4.1.10

The following issues transpired during the pre-scoping workshop with local stakeholders:

Inefficient energy use and growing energy demand (relevant namely for South & West

Sulawesi)

Illegal use of public transportation with limited access to public services (i.e. bentor

transportation in Ambon) (relevant in North Sulawesi & Gorontalo).

Marginalised local community due to inter-island migration activities (relevant in North

Sulawesi & Gorontalo)

Increased human trafficking and underage prostitution activities (relevant in North Sulawesi

& Gorontalo)

The above listed problems will be further addressed in the scoping stage of SEA.


Main Conclusions and Preliminary Recommendations 5Resulting from the Pre-Scoping

Based on the analysis of baseline conditions and issues identified for furtherstudy, this section

highlights likely risks and opportunities to be considered within the planning process and

formulates initial policy recommendations.

5.1 Identified Risks and Opportunities

Estimated Risks/Impacts

Rapid coastal development at the expense of remaining functional ecosystems

Risk of exacerbating soil degradation problems and water regimes during the conversion of

forests into plantation agriculture land and unsustainable agricultural practices

Impact of climate change on coastal lowlands (agriculture, fishery, disaster management)

Increase of water and air pollution from mining, transport and waste management

(Potential) Conflicts

Territorial/land use conflicts resulting from inconsistent permitting procedures.

Cross sectoral conflicts (mining vs. plantation vs. forestry).

Conflicts among stakeholders with conflicting permits (awarded from local authorities vs.

central authorities),

Conflicts among stakeholders with official permits vs. communities with customary claims.

Spatial conflict between natural protected areas and planned developments - transport

infrastructure, mining, plantation development

Management Issues

Illegal mining and logging and lack of enforcement of environmental legislation

Catchement/watersheds management improvement

Opportunities to be Explored

Climate change mitigation and adaptation scheme

Potential for improvement of waste and wastewater treatment infrastrucutre

Main Conclusions and Preliminary Recommendations Resulting from the Pre-Scoping

35

5.2 Initial Policy Recommendations

Directing the future development for plantation, production forests as well as physical

infrastructures in areas of bareland/marginal land.

Improving integrated coastal management

Improving financing (fiscal) policy for environmentally friendly infrastructure development,

public services facilities and social protection for the poor/weak communities.

Introduce systematic programme of compensations in form of investments to public

infrastrucutre and services for communities affected by envisaged MP3EI investments

Implement institutional measures to improve coordination between the central Government

and local governments regarding land use (permitting procedures related to mining,

plantation and forestry sectors).

Applying good environmental management and international best practices in the economic

development (both policy and project level).

Strengthening the legal framework and law enforcement to restore the function of

conservation and protected areas. Ensuring that new proposed developement areas

(production) are not harming the important ecosystem, biodiversity and local

culture/heritages.

Construction and development in areas located along the seismic fault lines should be

accompanied with complete and prepared hazard management and contingency plan, and

proper communication of these plans to the public and decision-makers, making them aware

of the measures should be ensured. Measures to protect financial investments are also

important as MP3EI plans are designated to attract more private investments to fuel the

economic activities in the region.

The mining development should consider whether the location is adjacent to existing

industry and urban areas, as well as a planned future port expansion. In this case, issues

like increased emissions should be considered for interaction and cumulative impact.


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challenged in urban water and wastewater services for Makassar, South Sulawesi, Indonesia.

Makassar: CSIRO and National Research Flagships Climate Adaptation

Ubaidillah, Rosichon; Marwoto, Ristyanti M; Hadiaty, Renny K; et al. 2013. Biota Perairan

Terancam Punah di Indonesia. Jakarta: Direktorat Konservasi Kawasan dan Jenis Ikan, Ditjen

KP3K, Kementerian Kelautan dan Perikanan dan LIPI

USAID, No Date. ’IUWASH Information Sheet Regional South Sulawesi‘, accessed at

http://iuwash.or.id/category/download-publication/regional-information-sheet/

http://www.reefbase.org/global_database/default.aspx?section=r2&region=&country=IDN

http://iuwash.or.id/category/download-publication/regional-information-sheet/


APPENDICES


APPENDIX A

MP3EI Planning Information in Sulawesi EC




A-1

MP3EI Planning Information in Sulawesi EC A

A.1 Planned Policy/Regulations and Infrastructure Developments in Sulawesi EC

No Economic Activities Planned Regulation Planned Infrastructure/Connectivity

1 Food Agriculture

Expanding planting area by optimizing the utilization of land, the creation of new paddy fields, rehabilitation and conservation of agricultural land

Securing the availability and sustainability of food production through development of food reserves and storage, empowerment and institutional capacity building of farmers

Reducing the potential loss of quantity and value of post-harvest through improved quality storage and development

Improving financing access for farmers

Strengthening insititutions to support farmer’s empowerment and improve their coordination function

Improve access roads to reduce dependence on commercial intermediaries

Improve irrigation facilities, where production capacity is vulnerable to climate change if it continues to rely on simple irrigation dependent on rain

Revitalize and improve the capacity of existing warehouse and storage to increase the life of food in storage, and to reduce losses caused by bad storage

Improve access roads between farms and trading centers, to help farmers facilitate sales and reduce reliance on intermediaries who raise prices up to 30 percent of final price

Develop/improve farm irrigation networks, village irrigation networks, and micro water management as well as construct/repair pumps, wells, water ponds, etc

2 Cocoa

Providing active support during the rehabilitation and rejuvenation of plants, provision of cocoa cloned seeds, and controlling cocoa plant pests;

Increasing the implementation of financing schemes for fermentation of cocoa beans to produce higher quality processed products (butter, powder, cake) for export;

Diversifying export markets for refined products (butter, powder, cake) which will provide added-value in the value chain

Developing industry and home industry which will absorb food products of processed cocoa

Creating an efficient chain for cocoa trade, therefore enabling farmers and the industry to obtain a fair and adequate margin

Increasing the capacity of ports in Makassar, Mamuju and Manado

Increasing the capacity of storage facilities in trading centers and ports

Improving road access from the plantations area to processing industry, ports and regional as well as export trade centers

Increasing the capacity of infrastructure (electricity, water, telecommunications) in all areas of cocoa production and processing industries

A-2 Pre-Scoping Report - Sulawesi Economic Corridor / JVB / 2013-11

Application of international standards for cocoa products

Increase business partnership between industry and cooperatives and SMEs.

Performing conversion and spatial area for the development of cocoa plantation and its processing industry

3 Fishery

Increasing the added-value of products with the provision of land conversion subsidies for the manufacturing of ponds/shrimp culture

Increasing activities for seaweed processing

Developing capture fishery-based Minapolitans to accelerate the development of fishery industry zones based on catch fisheries, as well as developing aquaculture Minapolitans

Developing a regulatory and supervisory systems that is more strict and enforceable for fishing activities

Performing conversion of mangrove areas into shrimp ponds according to the applicable requirements

Development of fish breeding centers/hatcheries to produce quality seeds

Construction and development of fishing ports

Development of Fish Processing Unit

Increasing the capacity of the ports in Makassar and Manado

Developing/improving access roads from fishing location to the port and a regional trade center

Developing a marine storage facilities, in the auction places and trading centers

Increasing the capacity of infrastructure (electricity, water, telecommunications)

4 Nickel Mining

Simplification of rules and bureaucracy (among agencies and ministries) to facilitate the activity initiations and mine operations

Improvement of the business process to make investments in nicel mining more atrractive, alleviate pressures associated with inefficiencies in terms of the acquisition of mining and manufacturing contracts

Improvement of land-related regulations and clarify land use through spatial planning

Government support in the form of incentives to investors in capital intensive industries

Power plants (energy availability) to meet the processing needs

Accessible roads between mining areas and processing facilities

Sea port infrastructure which will serve the delivery of equipment and raw materials from other areas, for instance from Papua-Kepulauan Maluku

5 Oil & Gas

Optimization through enhanced oil and gas exploration and production of local oil and natural gas

Providing a positive investment climate, enhancement of legislation and licensing of oil and gas activities

Increasing the synergies between government and relevant stakeholders

Providing incentives for the construction of refineries in the country

Increasing convenience for investors in running their business

Improving information about oil & gas availability

Improvement and development of oil and gas infrastructure to increase public access to natural gas and fossil fuel

Improvement and development of access to new exploration and exploitation areas, both on land and offshore

Development of refining oil and gas infrastructure

Development of infrastructure for fuel storage


A-3

A.2 List of KPIs and Their Designation for Specific Types of Economic Development

No Zones of Investment

Focus Designation Province

1 KPI Makassar Food Agriculture, Cocoa, Fisheries, Oil &

Gas, Textile, Food-Beverage, Other sector

South Sulawesi

2 KPI Maros Food Agriculture, Fisheries, Copper,

Other sector South Sulawesi

3 KPI Wajo Food Agriculture, Fisheries, Oil & Gas South Sulawesi

4 KPI Palopo (Luwu) Food Agriculture, Fisheries, Oil & Gas South Sulawesi

5 KPI Pare-Pare Fisheries, Food-Beverage, Other sector South Sulawesi

6 KPI Mamuju-Mamasa Cocoa, Palm Oil, Other sector West Sulawesi

7 KPI Palipi Food Agriculture, Fisheries, Other sector South Sulawesi

8 Kendari Fisheries Southeast Sulawesi

9 Kolaka Fisheries, Nickel, Iron-Steel Southeast Sulawesi

10 Konawe Utara Food Agriculture, Nickel, Iron-Steel,

Tourism, Other sector Southeast Sulawesi

11 Palu Food Agriculture, Fisheries, Other sector Central Sulawesi

12 Morowali Fisheries, Nickel, Palm Oil, Rubber,

Other sector Central Sulawesi

13 Parigi Moutong Fisheries Central Sulawesi

14 Banggai Fisheries, Oil & Gas Central Sulawesi

15 Donggala Fisheries Central Sulawesi

16 Poso Fisheries Central Sulawesi

17 Bitung Fisheries North Sulawesi

18 Manado Food agriculture, Fisheries, Tourism,

Other sector North Sulawesi

19 Minahasa Utara Fisheries, Food-Beverage, Other sector North Sulawesi

20 Gorontalo Food Agriculture, Fisheries, Other sector Gorontalo

21 Gowa Food agriculture, Timber South Sulawesi

22 Toli-toli Fisheries, Other sector Central Sulawesi

23 Tojo Una-una Fisheries Central Sulawesi

24 Sigi Fisheries Central Sulawesi

25 Buol Fisheries, Other sector Central Sulawesi

26 Boalemo Fisheries Gorontalo

27 Gorontalo Utara Fisheries Gorontalo

28 Pohuwato Food agriculture Gorontalo


A.3 List of Main Planned Infrastructure Projects

No Main Planned Infrastructure

Developers Description

1 Road: Palu-Parigi Ministry of Public Works Length 36.45 km

2 Toll Road: Manado-Bitung BPJT - Ministry of Public

Works Length 39 km

3 Powerplant Lahendong Unit

IV,V,VI PT PLN & PGE Capacity 3x20 MW

4 Bitung Port PT Pelindo IV & Ministry of

Transportation International Hub Airport

5 North Sulawesi Steam

Powerplant 2 - Amurang PT PLN Capacity 2x 50 MW

6 Tampa Padang Airport Ministry of Transportation Airport Expansion

7 Poso Hydro Powerplant PT Poso Energy Capacity 390 MW

8 South Sulawesi Steam

Powerplant - Barru PT PLN Capacity 2x50 MW

9 Southeast Sulawesi Steam

Powerplant - Kendari PT PLN Capacity 1x10 MW

10 Water Supply System -

Makassar City Ministry of Public Works

Development and Advancement of Capacity from 1000 l/s to

2000 l/s

11 Makassar Port PT Pelindo IV & Ministry of

Transportation Port Expansion

12 Jeneponto Steam

Powerplant PT Bosowa Energy Capacity 2x100 MW

A.4 List of Main Planned Economic Development Projects

No Projects Name Investment Value (IDR

Billion) Developers

Starting Period

End Period

KPI

Main Economic Activity - Food Agriculture

1 Development of Crop Seed Industry in Kab. Sidrap

3.5 Private 2011 2014 Makassar

2 Guard management / agriculture farming, West Sulawesi

265.0 Government 2013 Palipi

3 Development of nursery / seed for paddy, maize, soybean and cassava, West

Sulawesi

15.0 Government 2013 Palipi

4 Development Seed & Corn Processing

Industry 4.0

Mix (SOE, Private)

2007 2010 Pohuwato

Main Economic Activity - Cocoa

1 Cocoa processing plant 273.0 Private 2010 2013 Makassar

2 Cocoa processing plant 500.0 Mix

(Government, Private)

2012 2017 Mamuju-Mamasa

3 Processing of cocoa into butter and

powder 500.0

Mix (Government,

Private) 2013 2017

Mamuju-Mamasa

Main Economic Activity - Fishery

1 Building of packing house (along with packaging machine)

1.3 Government 2011 2012 Makassar

2 Development of PP Untia 364.0 Government 2005 2015 Makassar

3 Development of shrimp farming and shrimp processing place

61.0 Private 2011 2013 Makassar

4 Development of seaweed cultivation 108.0 Private 2011 Makassar

5 Development of shrimp farming 93.0 Private 2011 2013 Maros


A-5

6 Development of seaweed cultivation 1.0 Private 2011 Maros

7 cocoa processing plant 44.0 Private 2011 2013 Maros

8 Development of seaweed cultivation 53.2 Private 2011 Maros

9 Development of fish freezing industry and other aquatic biota in Bantaeng

21.0 Private 2011 2012 Wajo

10 Development of an ice industry and cold storage

8.0 Government 2011 2015 Wajo

11 PPI Bulukumba 22.0 Government 2013 Wajo

12 PPI Lappa Sinjai 13.0 Government 2011 Wajo

13 Development of shrimp farming 2.0 Private 2011 2013 Wajo

14 Development of seaweed cultivation 21.7 Private 2011 Wajo

15 Development of shrimp farming 67.0 Private 2011 2013 Wajo

16 Development of seaweed cultivation 28.6 Private 2011 Wajo

17 Development of smoked tuna fish processing centers in Kab.Luwu

10.0 Government 2011 2015 Palopo (Luwu)

18 Development of ATC and SRC seaweed industry Kab.Luwu

10.0 Government 2011 2015 Palopo (Luwu)

19 Seaweed Development Marketing Depot 2.0 Government 2011 2015 Palopo (Luwu)

20 Development of shrimp farming 75.0 Private 2011 2013 Palopo (Luwu)

21 Development of seaweed cultivation 49.0 Private 2011 Palopo (Luwu)

22 Development of shrimp farming 4.5 Private 2011 2013 Palopo (Luwu)

23 Development of seaweed cultivation 5.0 Private 2011 Palopo (Luwu)

24 Traditional fish market development (rehabilitation market)

1.5 Government 2011 Pare-Pare

25 Development of shrimp processing units 78.0 Mix


2012 2014 Pare-Pare

26 Development of shrimp farming 34.0 Private 2011 2013 Pare-Pare

27 Development of seaweed cultivation 27.0 Private 2011 Pare-Pare

28 Development of PPN Palipi 614.0 Government 2011 Palipi

29 PPI Manggolo 25.2 Government 2007 2013 Kendari

30 Development of PPI and fish processing industry

100.0 Government 2010 Togean

31 Development of fish processing units 7.7 Private 2004 2006 Palu

32 Development of Carragenan industry 150.0 Mix


2009 2014 Morowali

33

Development of fish processing industry (Development of PPI Tandaoleo, Making of Fish Home, Demersal Fish Hatchery,

processing / manufacturing industry)

150.0

Mix (Government,

Private) 2012 2014 Morowali

34 Development of Seaweed Cultivation

Area and Carragenan Industry 15.0 Mix


2012 2013 Morowali



2009 2014 Parigi

Moutong



2009 1014 Tojo Una-

Una



2012 2014 Banggai

38

Development of fish processing industry (Revitalisation of PPI Pagimana, Making

Home Fish, Demersal Fish Hatchery, Industrial processing / manufacturing)

150.0

Mix (Government,

Private) 2011 2014 Banggai




2012 2013 Banggai

40 Development of aquaculture industry and

management of freshwater fish 30.0

Mix (Government,

Private) 2013 2014 Sigi

41 Development of PPI Donggala and Fish Processing Industry

100.0 Government 2005 Donggala

42 Development of cultivation and

processing industry in Sidat 30.0

Mix (Government,

Private) 2013 2014 Poso

43

Development of tuna and people's tuna processing industry in Kab. Buol (part of the development of Outer Ring Fishing

Port Kab. Toli-toli)

30.0

Mix (Government,

Private) 2012 2013 Buol

44 Development of integrated fisheries (with industrial processing and preserving of

fish and other aquatic biota) 263.0 Private 2012 2014 Bitung

45 Development of processing and prervation of marine fish industry

200.0 Private 2011 2012 Bitung

46 Development of Seaweed Cultivation and

Seaweed (ATC) Processing Industry 100.0 Mix


2012 2014 North

Minahasa

47 PPI Amurang, North Sulawesi 20.0 Government 2007 Manado

48 PPI Bahoi (Sitaro), North Sulawesi 23.0 Government 2012 Manado

Main Economic Activity - Nikel

1 Expansion of Nickel Mining and Processing, Kab. Luwu Timur, South

Sulawesi (excluding hydropower Karebe)

15,000.0 Private 2011 2016 Palopo (Luwu)

2 Modernization and Optimization of Ferronickel Pomalaa-(Construction of

Coal Fired Power Plant)

4,500.0 SOE 2011 2013 Kolaka

3 Development of Nickel Pig Iron Plant in Mandiodo

7,578.0 SOE 2011 2014 Konawe Utara

4 Nickel Mining and Refining (including Nickel Ore Preparation Facilities

Development)

5,000.0 Private 2011 2016 Morowali

5 Nickel laterite mining (Mining and Processing of Nickel Exploration)

25,000.0 Private 2011 2015 Morowali

Main Economic Activity - Oil and Gas

1 Development of LPG terminal 6,748.2 Private 2009 2014 Makassar

2 Development of Gas Refining and Processing industry

5,580.0 Private 2011 Wajo

3 Construction and operation of LNG plants Donggi-Senoro

25,000.0 Private 2011 2015 Banggai

4 Exploitation of upstream Oil and Gas in

Donggi-Senoro Gas Project 2,600.0

Mix (BUMN, Private)

2011 2015 Banggai

Other Economic Activity - Cement

1 Development of Cement industry 4,138.8 SOE 2011 2013 Pare-Pare

Other Economic Activity - Gold

1 Gold ore processing and refining, Gorontalo

2,375.0 Private 2011 2013 Gorontalo

APPENDIX B

Supporting Information




B-1

Supporting Information B

B.1 Preliminary List of Relevant Stakeholders for Sulawesi EC

No Institution Groups Issues/Sectoral Relevance

1 Bappeda, South Sulawesi Government Regional planning

2 BLHD, South Sulawesi Government Environmental management

3 Bappeda, Central Sulawesi Government Regional planning

4 BLHD, Central Sulawesi Government Environmental management

5 Bappeda, North Sulawesi Government Regional planning

6 BLHD, North Sulawesi Government Environmental management

7 Bappeda, West Sulawesi Government Regional planning

8 BLHD, West Sulawesi Government Environmental management

9 Bappeda, Southeast Sulawesi Government Regional planning

10 BLHD, Southeast Sulawesi Government Environmental management

11 Bappeda, Gorontalo Government Regional planning

12 BLHD, Gorontalo Government Environmental management

13 PPLH Regional Sumapapua (Sulawesi) Government Environmental management

14 Universitas Sam Ratulangi University Network Agriculture and Environmental issues

15 Universitas Tadulako University Network Forestry and Environmental issues

16 Universitas Hassanudin University Network Marine and Fisheries ; Environmental

issues

17 Universitas Haluoleo University Network Environmental issues

18 Universitas Negeri Gorontalo University Network Food-agriculture issues

19 WALHI NGO Environmental issues

20 AMAN NGO Indigenous people issues

21 JATAM NGO Mining issues

22 KIARA NGO Marine and Fisheries issues

B-2 Pre-Scoping Report - Sulawesi Economic Corridor / JVB / 2013-11

B.2 Minutes from Pre-Scoping Workshop

MP3EI SEA Minutes of Meeting

Meeting: Prescoping MP3EI SEA – Sulawesi EC/2013 Attendees: See Appendix A. Absent : -

Date: 08 October 2013 Time: 09.00-16.00 WIB Venue: Kayangan Room, Aston Hotel Makassar

Issues Action/Remarks

1. Opening of the workshop by KP3EI Connectivity WG

Framework for activities

Greening MP3EI and SEA process

Expected output of the activities

All to note (presentation)

2. Introduction from DHI-Integra

Introduction of SEA Team

Overview of workshop agenda

Expected output of the workshop

All to note

3. Introduction of the participants Attached

4. Screening for SEA video Moved to coffee break session

5. Workshop 1st Session a. Introduction on SEA

Overview of potentials and threats to environmental conditions from the proposed development.

Overview of the importance and principles of SEA

SEA development in Indonesia

Objective of baseline data workshop b. MP3EI SEA Project Implementation & Deliverables

Project Background, Team, Output and Scheduling

MP3EI SEA Approaches and Workplan (both for Policy and Economic Corridors)

Economic Analysis Input - Coffee Break (Screening for SEA video)

c. Expected output of MP3EI SEA Prescoping

Importance of Baseline Data

MP3EI SEA Database/Information System Management

Hands on Baseline Data Collection

- Overview of Potential National Strategic Issues - Assignment for group work activities - Overview of plenary discussion

d. More on SEA

Usual SEA steps

SEA and Planning, SEA and EIA

Next stage: Scoping!

All to note

6. Questions/concerns/feedbacks: 6.a. Veronica Kumurur – Universitas Sam Ratulangi, Manado

- Suggestion for SEA team to come up with the list of issues first then identify what baseline data required

- What methodology/references the team sourced to come up with 11 national issues? Concerns towards the identification of long list of issues should involve more stakeholders which are representative

The presoping/baseline workshop use a new approach in identifying important baseline features (based on valid data/studies) in Sulawesi before jumping


B-3

enough. - The list of national issues do not necessarily relevant with the local

issues in Sulawesi

6.b. Roland Barkey – PPLH Universitas Hassanudin, Makassar - Has the experience in preparing SEA for RPJMD North Maluku, SEA

for mining sector in North Maluku, SEA for RPJMD Kab/Kota Bone-Bolango, SEA for RPJMD West Sulawesi and recently SEA for RPJMD South Sulawesi province)

- What is the extent of data validity as some studies have quite old data (e.g. Ecoregion Conservation Assessment in 2005)

6.c. Fidaan Azus – Bappeda, South Sulawesi

- Suggested to involve more stakeholders to identify the long list of issues as there was concerns that it will be premature to use the list of issues with very few stakeholders (private sector should be included)

- Suggested to hold prescoping/FGD within each province to involve more stakeholders

- South Sulawesi province has just recently prepared SEA for its local midterm development plan (RPJMD 2013-2018) – will be published for public in the third week of October.

6.d. Muhammad Akhsan – Bappeda, West Sulawesi

- There is a program supported by US Government that focus on agricultural (cocoa) development in upper land West Sulawesi called Millenium Challenge Corporation (MCC). Suggested to use the opportunities to use the data sources from MCC into SEA MP3EI study in Sulawesi EC.

6.e. Muhammad Lukman – Research Center for Marine, Small Island and

Coastal Areas Management - The information given in the workshop isby far the best available

information that the participants can provide, in the future this information might change thus the team should collect more information from different stakeholders/institutions

6.f. Mahir Takaka – AMAN

- The issues in Sulawesi should be seen in a whole comprehensive framework not by province and suggested to involve more community groups to address more social issues (indigenous community)

6.g. Herman Koessoy – Bappeda North Sulawesi

- Expected the team to have a complete analysis before scoping workshop.

- Suggested to identify more stakeholders to be invited to scoping workshop

- In his experience preparing SEA, there is a ‘High Level Meeting’ for echelon 1 or 2 only where questions should only be limited to decision making (yes/no), not identifying the issues anymore.

- Suggested that SEA to be done in a comprehensive method and result in a credible and quality SEA. Need to invite more various stakeholders to involve in the process and if possible, to do a field visit to each of the province to meet with the relevant institutions and get more data.

into conclusion of what issues are relevant in the EC. At this stage it is possible to begin to identify what baseline data is available and what important information can be obtained. It is expected that prescoping workshop would also result in recommendation of relevant stakeholders to invited to scoping. All to note. At this stage, we are trying to get all the available data and then out data team will select which one is more relevant. All to note and similar to answer for 6a. This stage is only the beggining for the SEA and will invite more stakeholders in the next stage. All to note All to note All to note All to note. Similar to answers in 6a and 6c, more stakeholders will be invited and the team will put the best effort to prepare a credible SEA but would need the help/support from local stakeholders too.


7. Group Assignments

Division into groups and debriefing on group assignments - Identification of issues relevant to Sulawesi (based on list of

nation-wide issues) regarding the available data and its spatial distribution

- Groups divided into three (a. North Sulawesi & Gorontalo; b. South Sulawesi & West Sulawesi; c. Central Sulawesi; Southeast Sulawesi were not present) and asked to work on potential key issues in province.

Exercise on potential key issues identification and baseline data collection

8. Plenary discussion

Summary of list of specific issues and available data/information: 1. Human Health

Following issues are relevant in South, West and Central Sulawesi:

- High incidence of emerging and infectious diseases – TBC, malaria and dengue (data available in Health Agency, Health Faculty Universitas Hassanudin); high incidence of HIV suspects (relevant in North Sulawesi & Gorontalo, data: health agency); increased endemic diseases such as schistosomiasis (relevant only in Donggala regency, Central Sulawesi)

- Environmental conditions negatively affecting human health – air pollution, noise (data available in Health Agency and Public Works, esp for Central Sulawesi there is a study undertaken by PPLH Univ Tadulako on mercury pollution exceeding the benchmark quality); heavy metal pollution in coastal areas (along the coast of Totok bay & Buyat, North Sulawesi)

- Insufficient water supply infrastructure, both in urban and rural areas (relevant in South & West Sulawesi, data available in Health agency, Public Works and PDAM)

- Poor access to health services in remote areas including small islands (relevant in South & West Sulawesi, data available in Health agency, Public Works)

- High number of population living in disaster-prone areas (relevant North Sulawesi esp around the Ambag volcano mountain, Pomuman; Lokon volcano mountain, Tomohon & Soputan volcano, Tompaso and in South & West Sulawesi; flood risks prevalent in Sigi and Parigi Montong regency, Central Sulawesi; data available in BPBD)

- High number of population atpotential risk as a result of climate change, including massive flood (relevant in South & West Sulawesi, data available in BPBD)

- High rate of maternal/baby mortality and poor nutrition issues (relevant in South and West Sulawesi, data available in Health Agency

2. Livelihood Following issues are relevant in South & West Sulawesi:

- High number of social conflicts involving indigenous communities – especially in case of mining and palm oil plantations development (data available in Social affairs agency, Kesbang and Police)

- High poverty rate (data available in BPS) - Declining number of students in vocational schools (data

available in Education agency) - Inadequate public transport systems between regions and in

large cities and small islands (Transportation agency)

- Rapid urbanisation (also relevant in North Sulawesi & Gorontalo, data available in BPS)

- Large scale mining conflicts affecting the local communities (mining vs agriculture) – data available in Forestry agency & ESDM

- Change of local livelihood esp from fishermen into vendor sellers (relevant in North Sulawesi & Gorontalo)

All to note and to be updated with prescoping report and further scoping process.


B-5

- Low benefits of development distributed to the community (relevant in all Sulawesi)

3. Land and soil Following issues are relevant in South Sulawesi (prevalent in panden-panreng, lengkubale & tanahmea cape) & West Sulawesi:

- Increasing rate of agriculture land conversion (also relevant in North Sulawesi & Gorontalo; data available RTRW document and BLH)

- High rate of land degradation by industry/mining (prevalent in Bone and Gowa regency, South Sulawesi; data available in BLH and Forestry Agency); land degradation due to excessive use of pesticide in agropolitan area (Pinasungkulan, North Sulawesi)

- Increasing risk of soil erosion (data available in BLH and Forestry Agency)

- Soil pollution resulting from improper waste management/landfilling

- Land subsidence in coastal metropolitan areas (Makassar) - Forest areas land use conflicts (data available in Forestry

agency) - Inter-regional border issues (i.e. South Sulawesi and Central

Sulawesi) – data available in Spatial Planning agency/RTRW document and General Governance bureau

- Decreased agriculture land productivity (cocoa plantation) - Change of nature landscape due to land use change to

settlements/business activities (relevant in hills area in Manado, North Sulawesi)

4. Water Quality Following issues are relevant in South, North and West Sulawesi:

- Heavy river water, lake (esp lake Tondano in North Sulawesi), marine pollution due to domestic wasterwater (Bitung indusrial area and Manado, North Sulawesi) and arthesis water pollution (data available in BLH, R&D center for marine and coastal areas management UNHAS)

- Insufficient waste water management systems (data available in BLH, PPLH Unhas and BPBD)

- High vulnerability to floods and droughts (data available in BLH) - Marine water intrusion (also relevant in North Sulawesi, data

available in BLH) - Deteriorated water quantity and quality

5. Air Quality Following issues are relevant in South & West Sulawesi:

- High GHG emissions from deforestation (data available in BLH, Bappeda, ESDM and Forestry Agency)

- Increasing GHG emissions from energy, industry, transport and waste sector, agriculture, forestry and other land-use (data available in BLH, Bappeda and ESDM)

- Micro climate changes (esp relevant in North Sulawesi & Gorontalo)

6. Forests Following issues are relevant in South Sulawesi (Enrekang regency, Gowa regency, Bone regency) & West Sulawesi:

- High rate of deforestation and forest degradation (data available in BPKH)

- Local forest use often authorised inconsistently with national forest law (data available in BKSDA)

- Illegal logging (also relevant in North Sulawesi) - Land use change from forest to non-forest areas (mangrove to

fishpond areas) – relevant also in North Sulawesi & Gorontalo - Low use of non-timber forest products

- Unclear boundaries of forest areas 7. Biodivesity

Following issues are relevant in North, South Sulawesi (Maros regency, Bantimurung, small islands close to Macan & Pasitalu, Spermonde islands) & West Sulawesi (data available in PPLH UNHAS, Conservation laboratorium UNHAS and BKSDA):


- Habitat fragmentation (endangered habitat of ancient fishes in Manado bay, coastal habitat fragmentation in small islands around Macan and Pasitalu islands)

- High number of threatened species (especially in Bangka island where Dugong species exists)

- High vulnerability of biodiversity to climate change - Ecosystems overexploitation (including poaching, illegal trade of

flora and fauna, destructive fishing methods, human-wildlife conflict)

- Introduction of alien species - Low use of ecoregion assessment/study for conservation

management

- Loss of endemic species in Limboto Lake (North Sulawesi) 8. Coastal Degradation

Following issues are relevant in South, North & West Sulawesi: - High level of coastal habitat degradation (coral reefs loss

prevalent along coastal areas in Sangihe and Talaud island regency, North Sulawesi; coral and mangrove loss along the coast of South & West Sulawesi, Selayar island, small islands in Macan and Pasitalu, North Sulawesi; ) resulting from costal development, water pollution (including sedimentation), mining (especially offshore) and illegal fishing (Miangas island, North Sulawesi) – data available in R&D center for marine and coastal areas management UNHAS, BLH and Fisheries Agency in each province

- High vulnerability of costal ecosystems to climate change - High level of coastal erosion - Deteroriated aquaculture condition quality - Uncontolled reclamation in in urban areas (also relevant esp in

Manado city, North Sulawesi)

- Incomplete coastal areas zoning 9. Environmental management

Following issues are relevant in North, South & West Sulawesi: - High number of environmental conflicts (Data: AMAN, PPE

Sulawesi-Maluku)

- Weak coordination of planning systems (Data: BLH) - Lack of proper coastal management (Data: Dinas Kelautan &

Perikanan) - Difficulties in protected areas´ management (Data: Forestry

agency)

- Low level of environmental compliance enforcement (Data: BLH) - High incidence of floods due to the landscape changes and

inadequate drainage system in rural areas (esp relevant in North Sulawesi)

- Limited involvement of indigenous people (women) in environmental management esp in emission reduction program and degradation.

10. Mining & industries Following issues are relevant in South & West Sulawesi:

- Low use of innovative technologies and methods in industry (energy efficiency, low emission / low waste technologies etc.) – data: Industries and trade affairs agency, ESDM)

- Illegal mining using dangerous chemical materials (mercury or cyanide); small scale illegal mining is also prevalent Banggai and Morowali regency and in Palu city, Central Sulawesi.

- Insufficient regulations controlling the wasterwater management 11. Energy and waste

Following issues are relevant in South & West Sulawesi: - Inefficient energy use and growing energy demand – data: ESDM

12. Additional key issues: Natural disaster risks management - Inadequate disaster management infrastructure, relevant in North

Sulawesi (Ambag volcano mountain, Pomuman; Lokon volcano mountain, Tomohon & Soputan volcano, Tompaso) and Gorontalo:

13. Additional key issues: Land, Sea and Air transportation (relevant in


B-7

North Sulawesi & Gorontalo) - Illegal use of public transportation with limited access to public

services (i.e. bentor transportation in Ambon) 14. Additional key issues: socio-cultural issues (relevant in North Sulawesi

& Gorontalo) - Marginalised local community due to inter-island migration

activities - Increased human trafficking and underage prostitution activities

Feedback and recommendation for following workshop/activities - SEA quality. Participant expected that the team should carry out

a credible SEA by using valid information and engaging more relevant stakeholders in the process and also comply with the applicable regulation related to SEA (Ministerial Regulation No.67/

- To improve the baseline data collection, participants suggested to meet different stakeholders as many as possible to get more comprehensive data/ not just based on the prescoping workshop

- Stakeholders identification. For further/following activities, more stakeholders should be invited including the private sectors as they are closely related with projects to be implemented

All to note and to be considered for the following activities.


B.3 List of Participants of Pre-Scoping Workshop

No Name Institution

1 Mahir Takaka AMAN

2 Dessy Rahmayanti Bappeda, Gorontalo Province

3 Muhammad Lukman

Center for Marine, Coastal and Small

Island Research & Development -

Universitas Hassanudin Makassar

4 Arthur Bappeda, Central Sulawesi Province

5 Mariam Alaiyya Bappeda, Central Sulawesi Province

6 Miranti Widya RP Bappeda, Central Sulawesi Province

7 Naharuddin Universitas Tadulako, Palu

8 Muhammad Akhsan Bappeda, West Sulawesi Province

9 Eka H Maharani Center for Ecoregion Management /PPE

Sulawesi – Maluku

10 Marini Center for Ecoregion Management /PPE

Sulawesi – Maluku

11 Herman Koessoy Bappeda, North Sulawesi Province

12 Roland Barkey

Center for Environmental

Research/PPLH Universitas Hassanudin,

Makassar

13 Indra BLH, Central Sulawesi Province

14 Abdul Muis BLH, Central Sulawesi Province

15 Muhliz BLH, Central Sulawesi Province

16 Prama Wirasena Natural Resources Conservation

Agency/BKSDA, South Sulawesi

17 Veronika Kumurur Engineering Faculty - Universitas Sam

Ratulangi, Manado

18 Fidaan Azuz Bappeda, South Sulawesi Province

19 Asdar Bappeda, South Sulawesi Province

20 M Alwi BLH, West Sulawesi Province

21 Petrus Sumarsono KP3EI Connectivity Working Group

22 Imelda S Y Sinaga KP3EI Connectivity Working Group


B-9

B.4 Invitation and Agenda



B-11



Documents

SEA for Indonesian Master Plan for Accelerated Economic