Overall there are no significant gaps between Indonesian safeguards and the World Bank safeguards policies. A gap analysis was used to provide guidance for the development of ESMF, including gap filling measures towards compliance with applicable World Bank‟s safeguards policies. The ESMF highlights the need to strengthen the existing safeguards related to indigenous peoples, grievance mechanism, access to forest resources, and environmental and social management and monitoring
8 This section is also complemented by similar analyses in the SESA (see Table 26) and Section 5.1 of ESMF. More analysis will be provided in this section for final report.
program. Among the environmental and social risks, Indigenous Peoples and Involuntary Resettlement are one of the important aspects that needs to be emphasized in the program-SLMP design. Development of Indigenous Peoples Planning Framework (IPPF) and Process Framework (PF) and ensuring inclusion into other management plan is crucial to ensure that the ER program complies with the World Bank safeguard policies.
The following table describes the gaps analysis exercise of the key consideration issues of the ER activities and how mitigation measures are built into the ESMF.
Table 2 Summary of gap analysis of key considerations.
Aspect World Bank Policy Indonesian Regulation Gap ESMF Role
OP 4.01 Environmental Assessment Environmental
Assessment
OP 4.01 Paragraph 1 specifies that projects funded by the World Bank require an environmental assessment.
Environmental and social assessments are conducted through the AMDAL process in accordance with the Ministry of Environment Regulation No. 5 Year 2012 on business activities mandatory to have AMDAL.
The assessment is also regulated by Government Regulation No. 27 Year 2012 concerning
Environmental Permit, where each business and/or activity (project) plan mandates an Environmental Permit if an AMDAL or UKL-UPL assessment is required
No gap. While UKL-UPL (according to AMDAL regulation) is based on
threshold values, this value has already taken into
consideration the nature and scale of the impacts. This is in line with environmental assessment of the Bank Policy which is based on nature and scale of the impact.
Environmental assessment refers to the Indonesian Regulations that require the development of environmental documents according to the results of screening (Annex 6).
UKL-UPL assessments are expected to be required for the nature and scale of the ERP activities.
Environmental Screening
OP 4.01 Paragraph 8 states that a screening process is required to determine the scale/scope of the project and the type of
environmental assessment required.
Based on Minister of Environment Regulation No 5/2012, Appendix 1, a screening of potential impacts is conducted to determine the type of environmental documents that will be required (AMDAL/UKL-UPL/SPPL) based on criteria described in the regulation.
The screening process of the regulation does not consider social impacts due to land acquisition/involuntary resettlement, including access restrictions, potential impacts on Indigenous Peoples and physical cultural resources in relation to ER activities.
There may be lack of capacity for addressing environmental and social risks identified in this screening process
ESMF provides negative list and preliminary screening process for ER activities that include identification of potential impact towards involuntary resettlement/access restriction, indigenous peoples, and physical cultural resources.
(Annex 1 and 2)
Management of
environmental and social impacts
OP 4.01 Environmental Assessment
Environmental and social assessments are conducted through the AMDAL process in accordance with the Ministry of Environment Regulation No. 5 Year 2012 on business activities mandatory to have AMDAL.
The assessment is also regulated by Government
The management and monitoring plan developed through the AMDAL/UKL-UPL process, in general, supports the Bank requirement.
Capacity for management of
The ESMF strengthens the AMDAL/UKL-UPL system by providing specific
Environmental Codes of Practices (ECOPs) for ER activities such as agroforestry,
Aspect World Bank Policy Indonesian Regulation Gap ESMF Role Regulation No. 27 Year 2012 concerning
Environmental Permit, where each business and/or activity (project) plan mandates an Environmental Permit if an AMDAL or UKL-UPL assessment is required
environmental and social impacts is needed for FMU, private companies and smallholder farmers (villages).
There is no integrated system of conflict resolution across sectors in Jambi.
aquaculture and ecotourism (Annex 3).
Scope OP 4.01 Environmental Assessment
For Category A projects, ESIA TORs is required, and scoping and consultation are conducted for the preparation of the TORs for the EA report.
Under Indonesian System, the scope of EA consists of: (1) project announcement to the public and inputs received; (2) preparation of TOR; (3) EA studies; (4) EA review by EA committee, (5) environmental permit or rejection of EA (no permit).
Under the GoI regulation, the AMDAL, UKL-UPL and/or SPPL is not required or limited to assessing associated facilities, ancillary facilities, induced impacts and site selection analysis.
Consultations are required only for the Terms of Reference and AMDAL panel.
The SESA process will serve as a plaform for broader public consultations and engagement on environmental and social aspects of the ERP.
Public Consultation
OP 4.01 Environmental Assessment
- During EA process, the Borrower consults project affected groups and local NGOs about the project‟s environmental aspects and takes their views into account.
- For Category A projects, the Borrower consults these groups at least twice: (a) shortly after environmental screening and before the TORs for the EA are finalized; and (b) once a draft EA report is prepared. In addition, the Borrower consults with such groups throughout project
Under Indonesian regulation (Law No. 32/2009 on Protection and Management of the
Environment and Ministry of Environment Regulation No. 17/2012 on Community Involvement in ES and Environmental Permit Process, at least there are three levels of public involvement and consultation processes: (1) announcement of proposed project/activity in the media or other means before ToR is prepared;
(2) consultation process where the responsible agencies receive inputs from public through one or two ways communication (meeting, interview, etc); and (3) public involvement in the EA committee to assess and approve the results of EA studies, usually represented by independent experts from university and representatives of environmental NGO and/or community figures.
No gap. However, the quality of public consultations vary and at times will need to be improved to enhance their accessibility and inclusiveness.
ESMF will strengthen public consultations especially through the FPIC process. Project activities expected to be implemented during the pre- investment grant, and hence there will be resources for such consultations. RBP will not involved activities under category A of the bank policy on EA or that require full EA under Indonesian Law.
Aspect World Bank Policy Indonesian Regulation Gap ESMF Role implementation as necessary to
address EA-related issues that affect them. For Category B project at least one public consultation needs to be conducted.
- For meaningful consultations, the Borrower provides relevant project documents in a timely manner prior to consultation in a form and language that are understandable and accessible to the group being consulted.
- Minutes of the public meetings are included in the reports.
Grievance mechanism
OP 4.01 Environmental Assessment
OP 4.10 Indigenous Peoples
Ministry of Environment and Forestry No. P.83 Year 2018 regarding Guidelines on Working Arrangements for Law Enforcement on Environment and Forestry Aspects at Regional Level.
Ministry of Environment and Forestry No. P.22 Year 2017 regarding Management of Grievances related to Indications of Pollution and/or
Environmental Damage and/or Harm to Forests.
There is no specific mechanism for managing and resolving grievances related to ER activities.
The ESMF provides a Feedback and Redress Grievance Mechanism (FGRM) for managing and resolving grievances related to
implementation of ER activities (Annex 7).
OP 4.09 Pest Management and OP 4.36 Forest Possible
contamination to soil and water as result of pest management practices
OP 4.09 avoidance of using harmful pesticides. A preferred solution is to use Integrated Pest Management (IPM) techniques OP 4.36 aims to reduce deforestation, enhance the environmental contribution of forested areas, promote
Laws and regulation are in place on regulating harmful pesticides and their usage.
Formulation and implementation of pest management plans are not specifically required by the law.
Additionally, contamination to soil and water is also relevant with artisanal / illegal mining activities.
The ESMF provides guideline on establishing an integrated pest management plan for the ER activity base on best international practices (Annex 4).
Aspect World Bank Policy Indonesian Regulation Gap ESMF Role afforestation, reduce poverty, and
encourage economic development OP 4.04 Natural Habitats Possible loss
of natural habitats and biodiversity
OP 4.04 promotes and supports natural habitat conservation and improved land use by
conservation of natural habitats and the maintenance of ecological functions.
Laws and regulations are in place on protection of forests, threatened and endangered species at the national and provincial levels.
There is no specific regulation on assessing natural habitats and key biodiversity areas.
High conservation values have been identified for non-forest designated lands.
There is no effective strategy to halt massive encroachment into the national park.
The ESMF provides guideline for the development of a management framework for biodiversity through HCV studies developed by FSC (Annex 5) to identify and manage natural habitats and key biodiversity areas.
OP 4.10 Indigenous Peoples and Adat Land Potential
impacts on Indigenous Peoples
The policy on indigenous peoples underscores the requirement to identify indigenous peoples, consult with them, ensure that they participate in, and benefit from Bank-funded projects in a culturally appropriate way – and, that adverse impacts on them are avoided, or where not feasible, minimized or mitigated
Masyarakat Hukum Adat is recognized by the constitution (article 18)
Adat land rights stipulated in Forestry Law No.
41/1999 and Ministry of Home Affairs No.
54/2014.
Jambi Government has issued a Provincial Regulation on the Guidelines for the Recognition of Masyarakat Hukum Adat in Jambi (Provincial Regulation No. 1/2015)
The analysis provided in the SESA document identified overlapping areas between Adat land and forest and plantation concessions (Palm Oil), which suggests potential risks (e.g., tenurial conflicts and access restrictions following improved forest management).
The realization of Hutan Adat rights is not a clear-cut process. Before the MoEF can transfer Hutan Adat rights to communities, Masyarakat Hukum Adat need to be recognized by their regional governments, either at the level of district or province.
J-SLMP supports tenure recognition for Adat communities. The ESMF consists of an IPPF to guide engagement and management of risks and impacts on Indigenous Peoples (Annex 8).
Aspect World Bank Policy Indonesian Regulation Gap ESMF Role
OP 4.11 Physical Cultural Resources Impacts on
physical cultural resources
OP 4.11 Physical Cultural Resources. Identify and mitigate potential impact towards physical cultural resources for each sub- project.
Law No. 11/2010 on Cultural Heritage states that cultural heritage needs to be preserved and protected. These sites are recognized by the government through issuance of a decree.
The law is in accordance with OP 4.11, however cultural sites that have not been recognized by the government, but have cultural values need to be preserved by the ERP (e.g., Megalithic artifact in Kerinci and Geopark in Merangin).
Before the MoEF can transfer Hutan Adat rights to
communities, Masyarakat Hukum Adat need to be recognized by their regional governments, either at the level of district or province
The ESMF provides a framework for preserving and reporting unexpected discovery of physical cultural resources (Annex 10)
OP 4.12 Involuntary Resettlement and Access Restriction Involuntary
resettlement and/or access restrictions
Involuntary Resettlement is triggered in situations involving involuntary taking of land and involuntary restrictions of access to legally designated parks and protected areas. The policy aims to avoid involuntary resettlement to the extent feasible, or to minimize and mitigate its adverse social and economic impacts.
The GoI‟s framework for handling tenure
settlements in Forest Areas (PPTKH) is set out in the Presidential Regulation No. 88/2017. Several measures to address forest occupation and/or encroachments are informed by the functions of the forest estates concerned (i.e. conservation, protection and production).
Under the Agrarian Reform Program, the GoI is committed to protecting the rights of the poor, including informal occupants within the forest estates (Kawasan Hutan).
Social forestry is considered as the GoI‟s Process Framework to provide forest dependent communities access to land and natural resources for livelihoods. However, there is lack of clearly and formally recognized rights to customary forest areas resulting in the overlap of commercial land use licenses with customary lands, often resulting in conflicts or dispossession, or both.
The ESMF contains an RPF and PF to clearly define the requirements, approach and guideline for addressing potential access restrictions and involuntary resettlement in conjuction with OP 4.12 (Annex 9).