INO: West Kalimantan Power Grid Strengthening Project

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Social Monitoring Report

# Semiannual Report January-June 2017

INO: West Kalimantan Power Grid Strengthening

Project

Prepared by Joint Venture of Tractebel Engineering Ltd and Powergrid International Limited (Thailand) with Sub-Consultant PT. Caturbina Guna Persada for the PT PLN and the Asian Development Bank.

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CURRENCY EQUIVALENTS

(as of 19 July 2017)

Currency unit – Indonesian rupiah (Rp) Rp1.00 = $0.0000751710

$1.00 = Rp13,303

NOTE

(i) In this report, "$" refers to US dollars.

This social monitoring report is a document of the borrower. The views expressed herein do not necessarily represent those of ADB's Board of Directors, Management, or staff, and may be preliminary in nature.

In preparing any country program or strategy, financing any project, or by making any designation of or reference to a particular territory or geographic area in this document, the Asian Development Bank does not intend to make any judgments as to the legal or other status of any territory or area.

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Project Implementation Strengthening West Kalimantan Power Grid

Social Monitoring

Semi Annual Report

January

– June 2017

ADB Loan No.: 3015-INO AFD Loan No.: CID 1024 01 B

Prepared for: PT. PLN (Persero)

Submitted by:

Joint Venture Tractebel Engineering Ltd. and Powergrid International Ltd. with Sub-Consultant PT. Caturbina Guna Persada

Submitted on July 19, 2017

PT PLN (PERSERO) UIP KALBAGBAR Jl. Letjend Suprapto No. 50 G, Pontianak Kalimantan Barat

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Abbreviations

ADB Asian Development Bank

AFD Agence Française de Développment

AP Affected Person

BPN Badan Pertanahan Nasional (National Land Agency)

COI Corridor Of Impact

EIA Environmental Impact Assessment

EMA External Monitoring Agency

FGD Focus Group Discussions

HH Household

IDR, Rp. Indonesian Rupia

IOL Inventory Of Losses

IP Indigenous People

IR Involuntary Resettlement

LAC Land Acquisition Committee

LARP Land Acquisition Resettlement Plan

MUSPIKA Musyawarah Pimpinan Kecamatan (Board of Subdistrict

Government Leaders)

NGO Non-governmental Organization

NJOP Nilai Jual Objek Pajax (tax object sales value)

OPGW Optical Groundwire

PBHTP Biaya Perolehan Hak Atas Tanah dan Bangunan (Cost for

the Acquisition of the right Land and / or Buildings)

PIC Project Implementation Consultant

PLN PT Perusahaan Listrik Negara (Persero) (State Owned

Electricity Enterprise)

RCCP Resettlement Customary Communities Plan

RCCDP Resettlement Customary Communities Development Plan

ROW Right-Of-Way

SES Socio Economic Survey

T, T. Tower

TL Transmission Line

TOR Terms of Reference

UPK Unit Pembangunan Konstruksi (Construction Development

Unit)

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Page 2 of 36 Weights and Measures

ha hectare kg kilogramme km kilometer kV kilovolt m meter m² square meter

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Page 3 of 36 NOTE

This social monitoring report is a document of the borrower. The views expressed herein do not necessarily represent those of ADB's Board of Directors, Management, or staff, and may be preliminary in nature.

In preparing any country program or strategy, financing any project, or by making any designation of or reference to a particular territory or geographic area in this document, the Asian Development Bank does not intend to make any judgments as to the legal or other status of any territory or area.

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Page 4 of 36 SUMMARY

During this semi annual period, PLN has completed to conduct second phase of socialization about the inventory result and total amount of ROW compensation for section 2 (Ngabang – Tayan), package 3 of 150 kV Transmission line. By the end of August 2017, the remaining ROW compensation payment of 2 villages (21 spans) for package 3 (Bengkayang-Ngabang-Tayan) 150 kV transmission line will be completed.

The calculation for the appraisal of land and trees based on the standard appraisal of Indonesia (SPI) 2013 and conducted by public appraisal KJPP Dwi Haryanto. The calculation method for buildings is based on the condition, age and use of the building. The appraisal method for land is based on market price, location and condition of land. Land price for wet land or paddy field is about Rp. 37,000 per square meter and for dry land or agriculturally used land about Rp. 43,000 to 48,000 per square meter for Landak and Sanggau Regency. According to regulation no. 38/2013, of the Ministry of Energy and Mineral Resources, Article 4, Transmission Line, issued on 24 December 2013, the compensation for land restriction within the ROW corridor is 15% of market price.

Complaints by the landowners sometimes come up as the landowner feels that one or several of his trees have not been compensated yet. Such issue may cause obstacles and delays to the stringing activities as the landowner insists on clarification by PLN. In order to avoid such disputes during construction, PLN Land Acquisition team continuously goes for rapprochement to landowners. Following up the dispute issue, PIC and PLN Land acquisition team meet the disputes person to clarify their demand and land acquisition team conduct re-inventory to clarified disputes land and trees. In resolved social issue such as demand of Adat Ceremony, impact of clearing works, PLN has intensive coordinate with Head of village particularly at Mamek Village. At Mamek village has more than 10 social issues arise that result obstruction of stringing work and have been resolved on June 2017. The coordination also shall be conducted between contractor and head of village to accelerate stringing work without any obstruction.

PLN should make sure on conducting inventory of plants, the land owner and village leader should come to witness the inventory process to avoid complaints in the future.

Special measures under PLN’s community development program will be delivered to severely affected people and vulnerable people. Based on RCCP and RCCDP, APs identified as severely affected are those people who lose more than 10 % of their total productive land / assets, and APs who are categorized as vulnerable include elderly headed households, disabled, landless, Indigenous People (IP), women headed households but not considered poor and severely affected. Income

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restoration and rehabilitation program will be provided for severely APs by PLN in close consultation with APs.

Verification of severely and vulnerable affected house hold is conducted by PIC and result 25 identified as severely affected people in corridor transmission of 150 kV (package 3). For corridor transmission line of 275 kV has 2 severely affeced people and 6 vulnerable affected people from 5 villages. It has been decide that PLN has plan to give seeds and agriculture training or other support coincide with condition of vulnerable and severely affected people as income restoration program on the next smester.

The electricity distribution programme under the grant measures have been completed. This electricity distribution also covers 3 villages in corridor of package 3 ie. Amboyo utara (Tno 208-230); Napal (Tno 146-149); Ado (Tno 120-123) which ever demand for electricity connection to their village.

89 Towers passed the forestry area required permit letter from Forest Ministry of Republic Indonesia. On 20 February 2014 Forest Ministry of Republic Indonesia has issued Principle Agreement of Forest Land use on behalf PT PLN (Persero) for SUTET 275 kV Bengkayang - Jagoibabang and SUTT 150 kV Singkawang-

Bengkayang, Bengkayang – Ngabang, Ngabang Tayan, West Kalimantan Province,

Letter No S-100/Menhut-VII/2014. Subsequently, the needed permit for the forestry area was finally issued on 16 January 2017 by Capital Investment Cooridating Board (Badan Koordinasi Penanaman Modal-BPKM) No: 6/1/IPPKH/PMDN/2017.

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1. Introduction

1.1 Introduction of Project and Basic Data

The Government of the Republic of Indonesia has signed loan agreements with the Asian Development Bank (ADB) and the Agence Française de Développment (AFD) in the amount of US$ 49.5 million each to enable PT Perusahaan Listrik Negara (PLN) to realize the construction of 82 km 275 kV transmission line from the border with Sarawak in East Malaysia to Bengkayang in West Kalimantan, Indonesia, 275/150 kV substation at Bengkayang, 145 km 150 kV transmission line from Bengkayang to Ngabang and Tayan, 150/20 kV substation at Ngabang and extension of 150/20 kV Tayan substation. Construction works for the 125 km 275 kV Interconnector were completed on the Sarawak side in October 2015, and for the first circuit on West Kalimantan side on 30 December 2015; the second circuit was completed on 23 March 2016. The first circuit of the 275 kV Interconnector and Bengkayang substation were energized on 20 January 2016, and the second circuit was energized on 19 May 2016. Since the start of supply PLN imports 50 to 100 MW of electricity produced by hydro power plants in neighbouring Sarawak at a much lower cost than generated by PLN’s own diesel and oil fired power plants in West Kalimantan. The import of electricity is scheduled to increase during peak load periods up to 230 MW. The signed power exchange agreement allows power trade between West Kalimantan and Sarawak for 20 years.

PT PLN (Persero) has assigned the Joint Venture of Tractebel Engineering Ltd. and Power Grid International Limited (Thailand), to carry out the monitoring of resettlement and community development with regard to compliance to the Resettlement Customary Communities Plan (RCCP) for the 275 kV transmission line and associated substation, and Resettlement Customary Communities Development Plan (RCCDP) for the 150 kV transmission line and associated substation.

The present report shows the progress of land acquisition, social and vulnerability issues during the construction for the period from January 1, 2017, to June 30, 2017.

1.2 Project Scope

The project comprises of design, supply, installation, testing, and commissioning of the following works:

Package 1: 275 kV Transmission Line between Bengkayang substation and the border with Sarawak, East Malaysia (80.26 km)

Package 2: 275/150 kV Substation at Bengkayang

Package 3: 150 kV Transmission Line from Bengkayang substation to the new 150/20 kV Ngabang substation (93.3 km), and from there to the existing Tayan substation (46.6 km)

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Package 4: 150/20 kV Substation at Ngabang and Tayan Substation extension

1.3 Project Location

The project is located on the Indonesian part of Borneo Island in West Kalimantan in the three districts Bengkayang, Landak and Sanggau.

The location of the project is presented on Map 1 and the West Kalimantan Power Grid Strengthening Project is presented on Map 2.

Map 1. Project location on the Map of Indonesia

Map 2. Map of West Kalimantan Power Grid Strengthening Project

1.4 Project Administration

The re-organisation of PLN resulted in changes of PLN’s project administration. The implementation of the project now is managed by PT PLN (Persero) Unit Induk Pembangunan KALBAGBAR (UIP KBB) located in the offices of PLN in Pontianak

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(formerly UIP X in Balikpapan) and Unit Pelaksana Proyek KALBAGBAR 3 (UPP KBB 3) at PLN’s site office in Singkawang (formerly UPK 5 in Bengkayang). The organisation charts of PLN UIP KBB and UPP KBB 3 are shown in Annex 1. PLN is supported by the Project Implementation Consultant (PIC) whose organisation chart is shown in Annex 1 too.

The monitoring of the Land Acquisition progress, social and vulnerability issues is carried out by the PIC’s Social and Resettlement Specialist and in cooperation with PLN and the contractors to ensure that accuarate data are provided and social issues are properly resolved under consideration of local customary.

2. Resettlement, Community Customary and Social Issues

2.1 General Description

This semiannual report for the period January to June 2017 states the social aspects of the implementation progress of the West Kalimantan Power Grid Strengthening Project. This report includes: a) an update of land acquisition implementation by PLN UPK 5 of the approved RCCDP 275 kV Transmission Line Project and RCCP 150 kV Transmission Line Project; b) a compilation of Social Issues emerged from the land acquisition and resettlement implementation by PLN UPP KBB 3 (formerly by UPK 5) as well as the ones developed during civil works implementation and how those have been mitigated; c) progress of Capacity Building services provided by Social Specialist of Project Implementation Consultant (PIC) to PLN and contractors; and d) action plan to further improve project implementation and monitoring to meet the project policy and compliance with RCCDP and RCCP.

PT PLN (Persero) as the Project Executing Agency is responsible for the implementation of the land acquisition and resettlement plan, i.e. Resettlement Customary Communities Development Plan (RCCDP) for 275 kV Transmission Line

Bengkayang – Jagoibabang and Resettlement Customary Communities Plan

(RCCP) for 150 kV Transmission Line Bengkayang – Ngabang – Tayan. The substations are covered in the RCCDP and RCCP too. For the acquisition of the land required for the bases of the transmission line towers, PLN has established an

internal land acquisition team under the UPK 5 (Unit Pelaksana

Konstruksi/Construction Implementation Unit) in Bengkayang which due to PLN’s

reorganisation changed to UPP KBB 3 (Unit Pelaksana Proyek/Project Implementation Unit West Kalimantan Region 3) to acquire land less than one hectare for each tower site through direct negotiation with landowners. This internal land acquisition team has been tasked also to conduct inventory of losses for the Right-of-Way (ROW) of the 275 kV transmission line corridor, i.e. identify trees and assets affected by the construction works and compensate landowners for loss of land, trees, plants and assets. For land acquisition of more than one hectare, in particularly for substations, Land Acquisition Committee (LAC) was formed in each district where the selected substations are located. Those LACs of Bengkayang and Landak have closely collaborated with PLN UPK 5 to conduct land acquisition for the

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substations. Overall land acquisition and resettlement implementations have been managed by PLN UPP KBB 3 (formerly by UPK 5) and District LACs in accordance with the updated RCCDP and RCCP approved by ADB.

As refer to RCCDP that in 2013 PLN has acquired 89 of 201 land parcels for towers and affected 98 HH for corridor of 275 kV (Jagoibabang – Bengkayang). Magmagan substation has acquired 66.087 sq.m affected 5 HH. In the corridor of 150 kV (Bengkayang – Tayang) will affected 1,107 HH of tower and restricted use.

The potential impact by the construction of transmission lines concern temporary access roads, permanent land acquisition, and restricted use of land and clearance of trees within ROW corridor. The construction of the transmission line also has positive impacts to the landowners and communities located near the project area such as:

1) Affected households receive cash compensation payments which can be used for reinvestment and needs of family life;

2) Creation of employment opportunities for the local people during land clearing and civil works as well as in the period of construction depending on individual’s capabilities;

3) Opportunity for local entrepreneurs to supply building materials and other services during construction and post construction e.g. maintenance.

Implementation of the Resettlement Customary Communities Development Plan (RCCDP) for the 275 kV Bengkayang – Jagoibabang Transmission Line and Resettlement Customary Communities Plan (RCCP) for the 150 kV Bengkayang – Ngabang - Tayan Transmission Line including the associated substations requires monitoring. PLN UIP X has awarded a contract for monitoring of the implementation of RCCDP and RCCP to the independent monitoring agency (IMA) PT. Data Persada Consultant. The IMA shall provide external monitoring reports to PLN UIP X and PLN Head Office / PT PLN (Persero) for any follow up actions required to minimize negative impacts of the RCCDP and RCCP implementation. The draft of the IMA report was issued in April 2015 and the Final Report was submitted to PLN in September 2015. On beginning of 2017, IMA has started to conduct second monitoring that focused along the corridor of ROW for 275 kV and 150 kV. By the end March 2017 the draft report of IMA for corridor 150 kV (Bengkayang – Ngabang – Tayan) has been submitted to PLN.

PIC’s Social Specialist assists the project to meet ADB’s Involuntary Resettlement (IR) policy requirements in delivering land acquisition and resettlement of the West Kalimantan Power Grid Strengthening Project. The PIC’s Social Specialist worked together with PLN UPP KBB 3 (formerly by UPK 5) and the contractors of the four project packages to strengthen the project implementation process and solve social issues caused by the construction works. Several activities were conducted in the period of January - June 2017. Those activities include capacity building and

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awareness to the four contractors on the project compensation policy, social issues identification, mitigation strategy, as well as a general orientation on local wisdom and customary institutions relevant to project implementation. On site monitoring was conducted in some critical areas in which social issues were reported. Most social issues originated from the contractors’ activities such as material transport, access road, cutting trees and local empowerment. The contractors’ made good efforts to resolve social issues by coordinating with head of village and youth leader.

With strong leadership of the PLN UPP KBB 3 (formerly by UPK 5) internal land acquisition team, most of the issues raised have been solved in the meantime. The contractors have adapted lessons learnt from PLN UPP KBB 3 (formerly by UPK 5) land acquisition team and used them to mitigate the issues raised during the construction activities.

2.2. Contractors’ construction activities for transmission lines

The scope of the contractors’ civil works comprise of excavation, conctruction of foundations for the tower bases, tower erection, and stringing of conductors and OPGW. PT. Bukaka Teknik Utama is the contractor for the 275 kV Transmission Line from Bengkayang substation to Jagoibabang (Package 1) and Consortium KEC and Mitsubishi Corporation for the construction of the 150 kV Bengkayang – Ngabang - Tayan Transmission Line (Package 3). CG Consortium is the contractor for the construction of the 275/150 kV Bengkayang substation (Package 2). The construction of 150/20 kV Ngabang Substation and the extension of Tayan substation (Package 4) is undertaken by PT. Siemen Indonesia.

During the implementation of the works for Package 1 and Package 3, changes of tower types were required e.g. from AA tower type to tower type BB for which a larger area is needed. In such case PLN had to purchase additional land adjacent to that one already acquired. The purchase of the additional area necessitated negotiations and only after the additional area had been acquired the contractors could commence with the construction works. Temporary access roads are required for transport of materials for civil works activities and erection of towers, as well as for stringing of conductors. In case of damage to trees / crops the contractors have to pay compensation to the owners of land and vegetation.

According to the contractors Bukaka and KEC, labourers are recruited both locally and from other areas of Indonesia. Local labours are recruited from nearby villages and / or hamlets traversed by the transmission lines. The labour recruitments usually involved local leaders and / or village / hamlet heads to propose and select suitable workers for earth and civil works, and transport of materials to the tower locations.

3. RCCDP and RCCP Implementation Progress

PLN has updated the Resettlement Customary Communities Development Plan (RCCDP) for the 275 kV Transmission Line of the Strengthening West Kalimantan Power Grid Project in August 2013. The updated RCCDP covers 81.5 km 275 kV

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Transmission Line from 275/150 kV Bengkayang Substation to the border with Sarawak at Jagoibabang. This updated RCCDP for the 275 kV transmission line also includes due diligence for the land purchased by PLN prior to the ADB approval of the RCCDP. The total number of transmission line towers of the 275 kV Bengkayang - Jagoibabang transmission line is 201.

Following the RCCDP and RCCP approval, PLN UPK 5 internal land acquisition team continued acquisition of the remaining land for tower sites. It is reported that the land acquisition for the remaining tower sites of the 275 kV Bengkayang – Jagoibabang Transmission Line is consistent with the updated RCCDP.

In March 2014 PLN updated the Resettlement and Customary Communities Plan

(RCCP) for the 150 kV Bengkayang – Ngabang - Tayang Transmission Line route.

This updated RCCP covers the 150 kV Bengkayang – Ngabang – Tayan

Transmission Line and 150/20 kV Ngabang Substation. Total number of towers of the 150 kV Bengkayang-Ngabang-Tayang transmission line was 393 at that time. As indicated in the RCCP of 150 kV Bengakayang – Ngabang - Tayan transmission line, the Tayan substation is an extension of the existing one and did not need new land to be purchased as it already belonged to PLN.

During the civil work activities for the 150 kV Transmission Line route from Bengkayang to Tayan via Ngabang, rerouting and inserting towers had been proposed by the contractor KEC. PIC’s team had reassessed the rerouting which resulted in the increase in the number of towers from 393 to 408. As soon as the new locations were approved, an ad-hoc land acquisition assessment was performed for the additional towers to comply with ADB IR policy requirements. 89 Towers passed the forestry area required permit letter from Forest Ministry of Republic Indonesia. On 20 February 2014 Forest Ministry of Republic Indonesia has issued Principle Agreement of Forest Land use on behalf PT PLN Persero for SUTET 275 kV Bengkayang - Jagoibabang and SUTT 150 kV Singkawang-

Bengkayang, Bengkayang – Ngabang, Ngabang Tayan, West Kalimantan Province,

Letter No S-100/Menhut-VII/2014. Letter is shown in annex 2.

The needed permit for the forestry area has been issued on 16 January 2017 by Capital Investment Cooridating Board (Badan Koordinasi Penanaman Modal-BPKM) No: 6/1/IPPKH/PMDN/2017. Permit is attached.

3.1 Land Acquisition Procedure and Grievance Process

The land acquisition was undertaken by PLN UPK 5 West Kalimantan team in collaboration with the local governments. The procedures for land acquisition are as follows:

1) Consultations with APs and relevant stakeholders to inform on the purposes of the project development, potential impacts and land acquisition activities. 2) Identify corridor of ROW and inventory of property and vegetation.

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3) Land valuation based on local market price. The valuation result was used as a basis for negotiation with the APs.

4) Deliberation / consultation with APs on the compensation rate and payment. 5) Transfer of compensation amount to landowner.

6) Release of land title from the APs to PLN.

With regard to disputed land parcels, PLN UPK 5 also conducted a series of meetings with MUSPIKA and local district government. Documents required to solve such disputes are:

1) A Minutes of Meeting involving owner(s) of disputed land, MUSPIKA and head of Adat.

2) Signed Statement Letter of Dispute from Owner of disputed land

3) Document no 1) and 2) will be sent to PLN UPK 5 if agreements have been reached between the owners of disputed land, and compensation payment can be processed.

4) If there is no agreement, the case of the disputed parcels can be brought to Bupati (head of district government) and the Governor of West Kalimantan. 5) If the case of disputed parcels cannot be resolved, PLN may take the case to

the court of law for adjudication.

These phases also apply for other grievance issues.

Figure 1: Project Grievance and Redress Mechanism

Complaint of Affected people

Resolved

Governor (30 days)

Not yet resolved

Court of Law

Not yet resolved Not yet

General Manager PLN UIP X (2 weeks)

General Manager PLN UPK V (2 weeks)

Bupati / Head of Local district (30 days)

Head of sub sidstrict / MUSPIKA (2 weeks)

Head village (2 weeks) Not yet resolved Not yet resolved

Not yet resolved

Contractor (2 weeks)

Not yet resolved

Resolved

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Page 15 of 36 3.2 Actual land acquisition issues during this period

Land Acquisition for tower of package 3 (Bengkayang – Ngabang – Tayan) has already compeleted on 2016 while compensation of ROW section 1 (Bengkayang-Ngabang) still on going. On April 2107, PLN start to conduct socialization for compensation corridor ROW at section 2 (Ngabang – Tayan) and start to pay compensation for ROW on May and still remain 21 span to be completed on August 2017

3.3 Income restoration

Income restoration shall be implemented for APs who have lost their productive base, business, jobs or other income sources, regardless of whether they have lost their house. Based on RCCP and RCCDP, APs identified as severely affected are those people who lose more than 10 % of their total productive land / assets, and APs who are categorized as vulnerable include elderly headed households, disabled, landless, Indigenous People (IP), women headed households but not considered poor and severely affected. Income restoration and rehabilitation programme will be provided for severely APs by PLN in close consultation with APs.

To implement the income restoration programme, PIC assisted PLN to gather information about the present condition of severely affected people. In RCCDP 9 severly affected people are listed as severely APs through the loss of land for the 275 kV transmission line towers. In RCCP 3 severely affected people and 17 vulnerable people. PIC conducted short interviews with severely affected people to get information about their socio-economic condition. Based on the information gathered at the interviews with APs it can be concluded that the APs listed in RCCDP own much more land than stated in RCCDP and RCCP. All severely affected people are farmers who use their land to grow rubber trees, pepper, rice, and oil palm.

Regarding resettlement entitlements the income restoration programme also should be applied to vulnerable groups including elderely, Indigenous People, woman headed households which are neither considered as poor nor severely affected. In the RCCDP/RCCP the number of AP is stated but no other information at all. PIC tried to get the list of vulnerable people from PLN UPK 5 but PLN considers such information as sensitive and does not intend to share it outside of PLN.

However, in March 2016 ADB handed over to PIC the list of vulnerable people identified within the ROW corridor of the 150 kV Ngabang – Tayan transmission line (Section 2 of Package 3). During this semi annual period, PIC has already completed to conduct interview to severely and vulnerable affected people at 275 kV, 150 kV. According to the data stated in above mentioned list, there are 50 affected households identified as vulnerable people. Three affected vulnerable people was passed away and six people do not affect to project and seven affected people cannot be found. As result of short interview that most of affected people use

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compensation for daily live cost, keep it in credit union and share to their family member. This condition result that compensation do not significant impact to their standard of living. Result of short interview to severely and vulnerable affected people is 25 confirmed identified as vulnerable affected people and 0 person confirmed identified as severely affected people. Detail list of Vulnerable and Affected people in corridor of 150 kV shown in Annex 3.

All those people living in around area of 150 kV transmission line. Most of the farmers along the 150 kV transmission line plant rubber and oil palm trees and none of the farmers plant pepper. The income restoration programme should fit their custom to plant rubber and oil palm trees as main income resources. PLN has plan to give seeds of pepper or corn to vulnerable and severely affected people as implementation of income restoration program. Different condition in package 1, 275 kV (Jagoibabang-Bengkayang) which most farmer have livelihood by planting pepper, rice and oil plam trees.

As no information of vulnerable affected people in 275 kV, PIC tried to sorting data of affected people of 275 kV that was handed over from ADB social safeguard. Sorting was conducted based criteria of minimum income of regional, ethnic group and woman heading households.

As result of verification of vulnerable affected people at package 1 (Jagoibabang – Bengkayang) is 6 person identified as vulnerable affected people and 2 person identified as severely affected people in package 2 (Bengkayang substation). 2 of 6 vulnerable affected people is very old and cannot work as farmer any more and the others affected people work as pepper and corn farmer as main income. Detail list of Vulnerable and Affected people in corridor of 275 kV shown in Annex 4.

On 19 January 2017 the meeting in ADB office Jakarta to discussed about Income restoration plan. Income restoration plan will be implemented based on need assessment of affected people. Pepper or corn seed will be given as income restoration of equal with minimum cash Rp. 1,000,000,- / HH. PLN also will provide Fertilizer and training for pepper plant by coordination with Bengkayang agriculture agency. Implementation of income restoration by coordination with Bengkayang agriculture agency and social agency. PLN has plan to implemented income restoration on March 2017 while approval from Head office PLN Jakarta is completed. (Minutes of meeting attached in annex 5)

According to the implementation schedule of RCCDP and RCCP, the implementation of the income restoration programme should have been completed for RCCDP in March 2014 and for RCCP in March 2015. By the end of this monitoring period, PLN had not yet implemented the income restoration programme as the proposal of income restoration is on process approval at PLN Head office.The approval from Head Office PLN Jakarta for the income restoration is finally released and the implementation of the program are scheduled on September and October.

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The list of vulnerable AP living within the ROW corridor of the 150 kV Ngabang – Tayan transmission line is shown in Annex 3 and list of vulnerable AP living in ROW corridor 275 KV Jagoibabang-Bengkayang transmission line is shown in annex 4

4. Land Acquisition and Compensation Progress

The main project resettlement principle is to avoid and if that is not possible, to minimize resettlement impacts, and restore the livelihood of all APs at least to their pre-project condition. Compensation for lost land and non-land assets will follow the principle of replacement cost. The compensation progress is perfomed as described below. Unfortunately the detailed list of compensation payments for land and crops cannot be shown in this semiannual report as PLN UPP KBB 3 (formerly by PLN UPK 5) decided not to release it to anybody outside of PLN.

Thus this semiannual report will only show the progress of the land acquisition process, ROW clearance and sample of list of compensation payment. Summary compensation data for land and trees / crops is not available from PLN UPP KBB 3 (formerly by PLN UPK 5). Total affected people as shown in annex 6still cannot be completed as PLN act as Land Acquisition Committee has not completed to summarize the administration of compensation.

4.1 275 kV Bengkayang – Jagoibabang Transmission Line and Substation

In total 201 towers have been acquired by PLN for the implementation of the Bengkayang – Jagoibabang transmission line. Land acquisition was completed on 30 September 2015.

4.2 150 kV Bengkayang – Ngabang –Tayan Transmission Line

The 150 kV Bengkayang – Ngabang – Tayan Transmission Line comprise of 280 towers for the Bengkayang – Ngabang section and 128 tower sites for the Ngabang – Tayan section as updated by administrative consolidation, i.e. 408 towers in total. PLN has completed to released land for 408 towers in the 150 kV Bengkayang – Ngabang – Tayan transmission line by the end of December 2016

The progress and action plan of land acquisition and ROW for the 150 kV trans-mission line as of 30 June 2017 is shown in Annex 7.

4.3 Implementation of Compensation Process of ROW

The construction of the 275 kV Bengkayang – Jagoibabang transmission line affected 13 Villages in 5 Subdistricts. Compensation within the ROW corridor was completed for affected trees and properties. Most affected areas consist of trees such as hard wood, productive trees and fruits. Along the area of the 13 villages, the progress of ROW compensation for the transmission line corridor was completed with the compensation payment for Durian trees between tower 119 and 120 in March 2016, more than one year after occurance of this issue.

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Whenever the ROW corridor is released, the area should be immediately cleared by the contractor to avoid any other social issue that could arise. During construction the contractor has the responsibility to pay compensation for damages caused by construction and stringing activities. Most impacts during stringing activities resulted in damages to trees as temporary loss. The contractor coordinated with PLN UPK 5 for the price of trees/plants referred to in Bupati Bengkayang decree No. 286/SETDA/2013 about determination of basic price compensation for plants in Bengkayang District in 2013 for corridor 275 kV.

Complaints by the landowners sometimes come up as the landowner feels that one or several of his trees have not been compensated yet. Such issue may cause obstacles and delays to the stringing activities as the landowner insists on clarification by PLN. In order to avoid such disputes during construction, PLN Land Acquisition team continuously goes for rapproachement to landowners. Moreover, landowners demand prices much higher then the price offered by PLN for plants and Process of compensation for plants within corridor of ROW, i.e.

1. Inventory of affected trees / crops

2. Administration process of inventory result and signed by owners

3. Deliberation related to all ROW problems presented to all stakeholders 4. Socialization of payment system

5. Payment of the compensation amount by Bank Transfer 6. Clearing the released ROW

According to regulation no. 38/2013, of the Ministry of Energy and Mineral Resources, Article 4, Transmission Line, issued on 24 December 2013, the compensation for land restriction within the ROW corridor is 15% of market price. Whether APs were compensated for the restricted use of land in 275 kV as stated above is beyond the knowledge of PIC as such information was not made available by PLN.

First phase of socialization for ROW corridor of 150 kV was conducted on January – March 2016. On first phase socialization, in each subdistrict LAC / PLN explained preliminary information about stringing work and the compensation for trees to be granted as referred to Bupati Landak Decree. PLN also gave general explanation about the free space required for the transmission line.

Second phase of socialization commence on September 2016 was conducted by PLN UPP KBB3 Singkawang. Socialization was attended by PLN UIP Pontianak, PLN UPP KBB 3 Singkawang, the public appraisal company KJPP Dwi Haryanto Agustinus Tamba, MUSPIKA, Head of Dewan Adat Dayak (DAD), Army, Police and affected people. In this socialization, Head of Dewan Adat Dayak asked the villagers not to obstruct the construction work and any concern to Adat problem should be avoided. PLN explained to all affected people the compensation for land and plants within the ROW corridor of the 150 kV transmission line based on Regulation no.

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38/2013 of Ministry of Energy and Mineral Resources of the Republic Indonesia about compensation for land, building and plant under the free space of high voltage transmission line. PLN will pay 15% of the appraised land value as compensation for land located within the ROW corridor as the land still belongs to the people but the use is restricted. Second phase of socialization of ROW compensation is completed on April 2017 and compensation payment for section 2 of Pacakage 3 (Ngabang Tayan) paid in middle of April 2017 and will be completed on July 2017.

The process of compensation start with first phase of socialization and continue with inventory. The result of the inventory is re-checked by PLN and the final result is announced on the Bulletin board at each village for 14 days so that owners are aware of the result and can lodge complaints within this period.

Determination of the price for trees and land is done by the public appraisal company KJPP Dwiharyanto Agustinus Tamba which was hired by PLN in February 2016. PLN is conducting a second phase of socialization regarding the compensation payments to be received by affected people at each village after the public appraisal company has issued the total compensation plan. If there is no objection or complaint from the affected people, PLN will pay the compensation within one week after this second socialization.

In case that the affected people cannot be found or affected people refuse the offered compensation PLN can consign the compensation to the district court, and the contractor can conduct stringing works. This procedure is stated in Regulation no. 38/2013 article 6 (5) of Ministry of Energy and Mineral Resources. In each second socialization, the public appraisal company KJPP Dwi Haryanto also explained calculation method for buildings is based on the condition, age and use of the building. The appraisal method for land is based on market price, location and condition of land.

The appraisal method for trees is based on the price of seed, maintenance cost, manpower and social loss. According to the public appraisal company the appraisal price for trees is higher than the cost stated in Bupati Landak Decree no. 050.13/278/HK-2013 for the determination of price for plant compensation.

PLN still needs to revise certain parts of the tree inventory due to complaints by landowners with regard to the number of trees and their size category. This complaints result some area should have pending compensation payment and caused obstruction of clearing and stringing work.

Compensation payments for the use of the ROW corridor 150 kV (Bengkayang – Ngabang – Tayan) started at the end of September 2016 and will be completed on August 2017

As reported in Environmental report that Transmission line of 150 kV passed forest for 89 towers and at present permit letter from Ministry of forestry for 89 location

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towers still not issued yet. 89 towers location that passed the forest are managed by community for their livelihood. Refer to Ministry regulation of energy and Mineral resources No. 33 year 2016 about Technical completion of land, building and/or Plant managed by community in Forest for accelerate development of electricity infrastructure that PLN can conduct technical completion direct to community who managed land, building, and plant in forest.

5. Capacity Development and Awareness Services of PIC

5.1. Capacity development to Contractors

Together with PLN internal land acquisition team of UPP KBB3 / UPK 5 in Bengkayang, PIC provided assistance particularly to guide the project implementation concerning the entitlement matrix and eligibility in the compensation and resettlement policy principles as stated in the RCCDP and RCCP. Other services provided included field assistance to cope with social issues emerged including the issues faced by the contractors. Regular monthly meetings on the project implementation progress were set up to continuously monitor the progress. PLN UPK 5 and PIC provided initial orientation to the contractors prior to the commencement of the civil works to help and guide the contractors’ supervisors to understand potential social safeguards / social issues and develop a plan for handling and mitigating complaints / issues emerging during the project implementation.

5.2. Support to PLN on the Compensation Payment Principle Analyse

PT PLN (Persero), as stated in the Project Administration Manual, is required to assign an external monitoring agency to monitor the RCCDP implementation and analyze compensation payment principles, severity and vulnerability impacts to affected persons following the completion of RCCDP 275 kV Bengkayang – Jagoibabang implementation. The monitoring report will be used to identify whether the compensation payments provided by PLN meet ADB IR policy principles and suggest to PLN if there is corrective action needed.

Prior to an external monitoring team mobilization, PIC Social Specialist provided assistance to initially analyze the compensation payment principles of the RCCDP’s implementation. A clustered random sampling was applied in selecting affected persons for the interviews conducted by PIC’s Social Specialist. However, since severity and vulnerability impacts analysis requires a full census of affected persons, a further analysis must be conducted by IMA hired by PLN. PIC has conducted short interview with 70 affected people and interview for vulnerable and severly affected people has been done as well.

Most of them feel satisfied with compensation that already received but unfortunately compensation cannot raise their income. The people use the ROW compensation for dailiy living cost, share to family member and saving in bank as passive capital.

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Some affected people use the ROW compensation for expanded their agriculuture business still cannot raise their revenue as the trees have just planted. Eventhough the compensation cannot raise their income but the living standard of affected people is better. Most of affected people use the compensation to renovate their house, buy motorcycle and other consumer goods. Some of them still save the compensation in Bank.

Satisfaction of ROW compensation is influenced by income standard of affected people. Some affected people feels not satisfied with the ROW compensation as they cannot replace the trees that have been released, particularly rubber trees and it cause the decrease of income. Compensation impact to income is not significant as most of affected people still have same condition of level income after received compensation. The affected people do not used compensation for capital business and only few people use compensation to buy seeds and build store. One affected people planted their land in corridor of ROW by planting corn not yet harvested. Some of affected people still afraid to work on field of corridor of ROW. They still worry about the impact of radiation. During the interview, PIC social specialist ensure the affected people that working on field of corridor ROW is save and no radiation impact. As result of the interiview with affected people that amount of ROW compensation and process of land acquisition have fulfilled their satisfaction.

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5.2.1. Compensation and Recovery Analysis

As indicated in the project compensation policy, in general compensation payment for affected assets should meet replacement value and / or market price principle. This is to ensure that project affected persons who lost their assets and / or income source will have at least the same or better social and financial condition than before the project was implemented.

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As refer to Regulation of Ministry of Energy and Mineral Resources Republic of Indonesia no 38/213 about Compensation for land, building and plant under SUTT/ SUTET article 3 that concessionaire of electric supply and operation should provide appraisal institution to appraise compensation value. Since Februaty 2016, public appraisal company KJPP Dwi Agustinus Tamba was hired by PLN to determine price of trees, building and land for ROW in corridor 150kV. Appraisal method based on Standard appraisal Indonesia (SPI) 2013. The appraisal method for building based on condition, age and use of building. The appraisal method for trees is based on the price of seed, maintenance cost, manpower and social loss. According to the public appraisal company the appraisal price for trees is higher than the cost stated in Bupati Landak Decree no. 050.13/278/HK-2013 for the determination of price for plant compensation.

Comparison price for rubber trees and oil palm trees for compensation within the corridor of the ROW of the 150 kV transmission line is as follows:

Table 1: Comparison Price for rubber trees and oil palm trees

Name of Tree

Appraisal Price Bupati Landak Decree

Non Productive tree (Rp.) Productive Tree (Rp.) Non Productive tree (Rp.) Productive Tree (Rp.) Rubber 300,000 500,000 10,000 75,000 Oil Palm 1,000,000 1,500,000 100,000 320,000

6. Social Issue and Mitigation

With regard to PIC services, Social Specialist assisted PLN to conduct a series of ad-hoc consultations in the field. The first consultation meeting was about the project information disclosure. It targeted the participation of generally impacted communities, affected households as well as involving formal and informal leaders to inform about the benefits and disadvantages of the project. The second consultation was more advanced and addressed the needs of affected persons / landowners, witnessed by officials of the government, police and military officials. The socialization described the inventory of losses and how it was administered. Details of compensation policy for land, plants/crops and other assets affected were also described. The community was also informed about the PLN UPP KBB 3 internal land acquisition team and the procedure for grievance related to the inventory of losses and the compensation to be paid.

Most of the social issues concern land acquisition and clearing of ROW corridor of trees as the landowners claim a higher price than the price offered for compensation. The majority of the land acquisition issues relate to disputed parcels due to overlapping borders that impact to plants compensation, and that landowners do not agree with the price offered by PLN. Impact of rerouting of towers also cause problems for land acquisition as LAC has done rapproachement with landowners for

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the original location and has to conduct new process of land acquisition for the new location.

Land acquisition issues cause obstacle to the construction as the landowners do not allow the contractor to work in the area before the problem is resolved. PLN UPP KBB 3 continued conducting meetings with landowners, MUSPIKA and head of Adat to resolve the land acquisition issues to get agreement from the landowners. The process of problem resolving in some cases takes even a few months.

Table 2: List of social issues found at site and mitigation

No Social Issue Mitigation

1 Demand Higher Compensation

Negotiation conducted by LAC (PLN) and coordinated with MUSPIKA.

2 Disputed Land LAC (PLN) coordinate with MUSPIKA and held meeting with dispute persons, facilitated by local leader.

3 House adjacent to ROW corridor

LAC (PLN) and Public Work evaluate the position of house whether affected of not. Whenever there is a house affected by the ROW corridor, Public Work will determine the price of house based on type of building and Bupati Decree.

4 Communities demand that their houses are connected to PLN distribution system

Include electrification of villages located near the 150 kV transmission line in list of villages to be electrified under Grant measures.

5 Social Conflict Develop local empowerment opportunity during construction and develop local business by using local supplier for material for the construction of foundations.

6 Temporary loss as result of construction impact

Contractor compensates for temporary loss such as damage to structures, fallen trees and access road during the construction.

7 Customary Tradition Contractor pays compensation to landowner where transmission line passes sacred spots and traditional ceremony will be held before start of the construction and usually conducted at each village passed by the transmission line. Each traditional ceremony cost Rp. 10,000,000. At present along the corridor 150 kV there’s no more traditional cermenoy held in project area as The head of Dewan Adat Dayak asked to the community not to demand traditional ceremony to contractor or PLN.

The Social issue arise at access road of Tayan substation where PLN construct concrete access road width 3,7m and side ditch at both side. The people at Kawat village claim to provide more width for 2 vehicle capacity. To facilitate the claim of Kawat people, PLN and contractor held meeting with Kawat village people at Head of village house. In the meeting with PLN, Siemens Contractor and PIC social specialist on 27 April 2017, The people of Kawat village explain that access road is used by people of Kawat village for motor bike and truck and the width 3,7 m is not sufficient for 2 trucks or cars. Kawat people demand the width of access road should be 6 m for 2 road lane. Unfortunately at that time, the access road construction has

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been 90% completed and cannot be removed. As result of discussion and site survey by PLN, contractor, PIC social specialist and Kawat village people agreed that access road to substation Tayan will have 3 locations of opened road (exit) as turn access where 2 vehicle can meet at a spot of access road.

One obstruction was occurred between tower 48 – 49 land owner do not accept the offering price of land. Land owner demand for 500 million rupiah for compensation land for 2 spans of ROW. As PLN can not comply that demand result the compensation was consignment to court. The consignment process was not working as land owner did not intend to resolve this issue and cause delay of stringing work. PLN and contractor try to approach and negotiate with land owner and he asked new price for compensation was Rp. 100,000,000,- and unfortunately that price still outreach of total compensation which has been determined by appraisal. The compensation price as result of appraisal is Rp. 14,000,000,-. On beginning of May PLN and contractor again approach and negotiate land owner and met agreement that land owner receive compensation is Rp. 50,000,000,- and stringing work can continue.

Other same issue also occurred at ROW for tower no 210-214; 219-220 (section 1

Bengkayang – Ngabang) that land owner demand high price. Eventhough PLN has

already took this issue to court as consignment but all land owner still do not intend to resolve tis issue and obstruct stringing work. In June 2017 PLN coordinated with MUSPIKA to resolve this issue and socialized to land owner that compensation of ROW has been consignment on court and land owner should not obstruct the stringing work. Stringing work can continue at these locations also guarded by MUSPIKA.

Obstruction as result of social issue also arise when contractor cutting trees outside corridor of ROW which has not been paid. The obstruction as result of cutting trees outside corridor of ROW occurred in span Tno124-T125 that land owner do not allowed the contractor to work on his land before the issue resolved. PIC assist PLN to approach land owner to get agreement with the land owner Tno 124-125 and at beginning of April, contractor can continue to work on this area. The same issue also occure at span between Tno 33-Tno 34, PLN resolved the issue by compensate the trees which need to be acquired and contractor should pay trees outside the corridor of ROW that no need to be acquired.

6.1 Electricity distribution programme under Grant measures

The electricity distribution programme under the Grant measures covers 18 villages and subvillages in the three districts Bengkayang, Landak and Sanggau (Annex 8). At present these subvillages use generators managed by each head of village. Only 5 of the listed 18 subvillages are located in the project area of the Bengkayang – Ngabang – Tayan transmission line and none in the area of the 275 kV transmission

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line. The other 13 villages are far away from the project sites and most subvillages are surrounded by Tembawang (adat forest).

Income of community members varies from Rp. 50,000 to 110,000/day. Their source of income is farming (rubber, paddy and palm oil); farmers who own private palm plantations have an income of at l’east Rp. 2,000,000/month. Even though the cost of electricity installation is expensive for the community, about 50% of the households make an effort to pay the cost of electricity installation in 2 or 3 instalments. The remaining 50% of households did not request yet for electric installation as they cannot afford to pay the installation cost.

The community expects to get connected to PLN’s supply system as the transmission line pass their village such at Napal, Amboyo and Angan village. In the Angan Village have 20 towers are located (tower 61 to 79 of Section Bengkayang - Ngabang) but there is still no electricity supply. Amboyo village located 23 towers (tower no 208 to 230) has no electric supply either. On June, PIC visited to 3 villages in project area which demand electricity i.e Amboyo Utara, Napal and Ansang (Ado) and at present these 3 villages have completed electrified. The villages people pleased their villages connected electricity, because without grant electricity distribution their village will not get electricity connected sooner.

7. Indigenous People / Custom Community in Project Location

Often a social problem is related to local tradition and culture which are hardly understood by other people (outsiders) who are engaged with the technical work. This type of issue sometimes is also considered as irrational by the contractors as it bothers their work. However, culture should be interpreted as a set of idea-behaviour and behavioural outcome, which holistically has been institutionalized and is believed by the people that support cultural values.

Tower construction is considered as interfering in nature and the balance of religious life, thus it should be accompanied by activities such as ritual or traditional ceremony. However, not all community groups supporting the culture and tradition are requesting ceremonies. Normally if there are traditional ceremony requests that potentially will burden the project implementation progress, coordination with local government, MUSPIKA, and Dewan Adat Dayak (DAD) will be done as a precaution to avoid exploitation of traditional rituals by non-qualified groups. PLN has convinced DAD about the importance and benefit of construction of the electricity network in the subdistrict of Seluas area at West Kalimantan.

Implementation of Adat activity before Tower erection. The time for the Adat

activity is decided by Adat head and all cost are financed by the contractor. The construction works are often disrupted because cultural activities have to be performed in almost every banuaq (culture territories). By the lesson learnt of social cases which result from the implementation of Adat activity, contractors have already

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understood, follow the Adat rules and are more carefull to work at the area within Adat rules.

Sample of Adat Clearance received following Consultation prior to civil work implementation

Up to now, the Dayak indigenous of West Borneo still preserve their local traditions which are heritages of their ancestors. Almost in the entire life cycle they pass through a series of traditional rituals, either individually or as community. Traditional activities are more visible since the “New Government Regime” era ended in 1998; since then there is more flexibility and discretion in life related to ritual and spiritual traditions. In West Borneo it is characterized by the existence of the Dayakologi Institute, an institution that is managed by a number of academics and Dayak cultural figures with the aim to keep inventory, documenting, protecting and continuing the ancestors’ tradition of cultural heritages. In fact, ritual ceremony that relates to a series of traditional ritual in Dayak culture is getting stronger but there are also people who take advantage of rituals for their personal gain. In these cases Dayakologi Institute plays its role. Since the beginning, Dayakologi Institute always socialized and motivated the society to preserve culture and minimize its misuse. In order to make the implementation and control easier, each area has its territory and cultural leader.

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Related to this issue, contractors or PLN will be called by Tumenggung or cultural leader to discuss about the culture to be respected before constructing towers. A series of traditional ritual ceremonies will be held depending on rules of each region. In practice, the invitation or announcement is delivered by local government (usually Headman or Sub-district Head) for legality and administrative records. Financial matters are covered by the contractors, while traditional ritual is carried out by local cultural institution.

Long before the ritual is performed, coordination has been made between the local government, cultural institution or contractor/PLN and about payment of the cost for the ceremony. The request for the fund is sent to the contractor through Subdistrict or Village. If all preparations have been done, the invitation is sent out. After the traditional rituals are done, local government prepare a report as the evidence that the area is practicing traditional rituals.

In the project area of the 150 kV transmission line the demand of adat ceremony is not as frequent as in the project area of the 275 kV transmission line. Demand for compensation for adat ceremony only occurred when Dewan Adat had to be involved in resolving social issues. Demand for adat ceremony cause delayed of cutting trees work at Lulang Village for 3 months as result of head village delayed adat ceremony. The village people who work to cut trees do not want to work before Adat ceremony is held. PLN push head of Lulang village to conduct adat ceremony at beginning of April 2017 as the cost of Adat ceremony has been paid on December 2016. Other obstruction of stringing work was occurred at tower 147 as result of demand of Adat ceremony. Previous sub contractor who worked at this area has already conduct adat ceremony and new sub contractor just come to conduct stringing, again the land owner demand for adat ceremony and do not allowed sub contractor to work at this area before they pay Rp. 8,000,000,- for adat ceremony to head of Darit village.

8. Actions and Strategies developed to improve the Project Social

Safeguard Compliances

Key areas should be addressed to improve project implementation performance including:

 Land preparation / clearing vs. tradition, cultural string of home living: Managing problems that relate to preparing land, cutting trees for interest of the project. The understanding of social aspect of culture especially cultural problem in Dayak people’s live will be the key-opener to the implementation of social communication with the community, through Focus Group Discussions (FGD). During the operation of the project, contractors has already build good relationship with local people and taking care all tradition customs as demand of community before starting work of construction.

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At the other issue concern to cutting trees process which conduct by sub contractor need to supervised intensively by main contractor to avoid wrong cutting trees as this issue could arise as obstruction.

 Social compensation: The preparation of some social compensation programmes to muffle the possibility of distractions and social conflict either emerged from their own society or outside society that will disturb the project. This social compensation passing through some steps discussion and FGD that prioritize NEED rather than WANT. People should understand those aspects. PIC will take a lead to facilitate this and supported by PLN. Concern to social compensation that will be implemented through income restoration program to some severely and affected vulnerable people at 275 kV and 150 kV and PIC has conduct survey direct to affected vulnerable and severely people concern to their need.

 Grievance Mechnism : On second socialization phase, LAC must ensure the procedure are in place to allow affected people to lodge a complaint or a claim with the assurance of a timely and satisfactory resolution of that complaint or claim. In addition, the project may have to make special accommodations for women and members of vulnerable groups to ensure that they have equal access to grievance redress procedures. Such accommodation may include employment of women or members of vulnerable groups to facilitate the grievance redress process or to ensure that groups representing the interests of women and other vulnerable groups take part in the process.

 Coordination: Implementation of coordination with some parties who control such land that might be disturbed by project activity through:

i. Religious leaders, public figures, women, youth, etc., in locations controlled

by people and/or prone locations, cultural reason, etc.

ii. Traditional leaders, traditional institutions, etc., especially in a number of

locations that are considered sacred with trust system, and the locations also have some cultural heritages.

iii. Government institutions that control the land such as Ministry of Forestry,

school, local government, etc.

iv. Government institution and other institutions that dominate important and

vital objects in the project sites such as Armed Forces Institute (ABRI). All concerned project stakeholders will have to increase their participation.

Social empowerment and community development for impacted community and

executive power: This activity is not a recommendation for the direct impact of the project activities, but it can be a form of social compensation that will be given (if any). A number of activities such as counselling, saving electrical energy, training for managers of facilities, sanitary facilities, counselling for Cleanliness and Health, Clean Water and Sanitation Community-based (SANIMAS) for society, women's groups, etc.

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One positive impact during the construction works is the establishment of new small businesses i.e temporary small shops near the substation and increase of income for coffee shops and small restaurants near the tower locations. The contractor gives people who live near the construction sites the opportunity to provide catering for workers on site. The contractor also used local empowerment for foundation works, material transport, and security to guard machines and material, and local public communication.

Table 3: Local Empowerment for 150 kV Transmission Line Works

The contractor hires local people by coordinating with the Head of Village, thus the contractor cannot choose the local people whether vulnerable or not. Village leader or local youth leader arrange the people who can work on the project. As the skills of local people are limited, the contractor only can give general work to local people; most workers come from Java as they have more experience in working for construction of transmission lines.

To avoid obstruction to the tower construction for Package 3 as result of social issues, the contractor empowered the local population to construct foundations for towers. The local empowerment and material supply was facilitated and coordinated by the Head of Village. The contractor also had to compensate for temporary access roads.

INO: West Kalimantan Power Grid Strengthening Project

Social Monitoring Report