STRATEGIC ENVIRONMENT AND SOCIAL ASSESSMENT (SESA) FOR INDONESIA’S
REDD+ READINESS PREPARATION PRELIMINARY REPORT
RFP NUMBER: 01/POKJA ULP/PPI/05/2018
Prepared for:
DIRECTORATE GENERAL OF CLIMATE CHANGE MINISTRY OF ENVIRONMENT AND FORESTRY (KEMENTERIAN LINGKUNGAN DAN KEHUTANAN)
GD. MANGGALA WANABAKTI BLOK IV LT. 6 JL. JEND. GATOT SUBROTO
JAKARTA
Prepared by:
PT HATFIELD INDONESIA LIPI BUILDING 3RD FLOOR, JL. IR. H. JUANDA NO. 18
BOGOR 16122, INDONESIA
OCTOBER 2018
WB 8916 VERSION 1
TABLE OF CONTENTS
LIST OF TABLES ... II LIST OF FIGURES ... II DISTRIBUTION LIST ... III AMENDMENT RECORD ... III
1.0 INTRODUCTION ... 1
1.1 BRIEF DESCRIPTION OF THE ASSIGNMENT ... 1
1.2 PURPOSE OF THE INCEPTION REPORT ... 1
2.0 ORGANISATIONAL AND ADMINISTRATIVE SETUP ... 2
3.0 STARTING SITUATION ... 3
3.1 INCEPTION PHASE ACTIVITIES ... 3
3.2 EAST KALIMANTAN ... 5
3.2.1 Stakeholder Mapping ... 5
3.2.2 Data Analysis ... 6
3.2.3 Gap Analysis ... 6
3.3 JAMBI ... 6
3.3.1 Stakeholder Mapping ... 6
3.3.2 Data Analysis ... 7
4.0 APPROACHES AND IMPLEMENTATION PLAN ... 8
4.1 APPROACHES ... 10
4.1.1 East Kalimantan ... 10
4.1.2 Jambi... 10
5.0 INDICATIVE FINDINGS ... 11
5.1 STRATEGIC ENVIRONMENTAL AND SOCIAL ASSESSMENTS (SESA) ... 11
5.2 POTENTIAL RISKS/IMPACTS TO GUIDE THE ESMF DEVELOPMENT... 15
5.2.1 Improving Land Governance ... 16
5.2.2 Strengthening Government Capacity for Forest Administration ... 17
5.2.3 Reducing Deforestation Linked to Oil Palm Expansion ... 17
5.2.4 Reducing Deforestation Linked to Over logging and Timber Plantation ... 18
5.2.5 Reducing Encroachment by Providing Sustainable Alternatives... 19
5.3 INDICATIVE CONTENT OF SESA, ESMF, FGRM AND IPPF ... 20
5.3.1 Indicative Content of SESA ... 20
5.3.2 Indicative Content of ESMF ... 21
5.3.3 Indicative Content for FGRM ... 22
LIST OF TABLES
Table 1 Summary of consultant team’s tasks for the assignments... 2
Table 2 Summary of relevant secondary data compiled during the inception phase. ... 4
Table 3 Summary of timeline for completing SESA & ESMF. ... 9
Table 4 Shortlist of predicted environmental impacts of ER Program in East Kalimantan. ... 13
Table 5 Shortlist of predicted social impacts of ER Program in East Kalimantan. ... 15
Table 6 Potential implications and mitigation measures for land governance. ... 16
Table 7 Potential implications and mitigation measures for reducing deforestation linked to oil palm plantation. ... 17
Table 8 Potential implications and mitigation measures for reducing deforestation linked to over logging and timber plantation. ... 18
Table 9 Potential implications and mitigation measures for reducing encroachment by providing sustainable alternatives. ... 19
Table 10 Indicative content of SESA. ... 20
Table 11 Indicative content of ESMF. ... 21
Table 12 Indicative content of the FGRM. ... 22
Table 13 Indicative content of IPPF. ... 23
LIST OF FIGURES
Figure 1 Medium list of predicted positive environmental impacts... 12Figure 2 Medium list of predicted negative environmental impacts. ... 12
Figure 3 Medium List of predicted positive social impacts. ... 14
Figure 4 Medium list of predicted negative social impacts. ... 14
DISTRIBUTION LIST
The following individuals/firms have received this document:
Name Firm Hardcopies CDs Email FTP
Mrs. Novia Widyaningtyas FCPF / P3SEKPI
- - -
Mr. I Wayan Susi Dharmawan - - -
AMENDMENT RECORD
This report has been issued and amended as follows:
Issue Description Date Approved by
1 First version of Preliminary Report
2018-10-12
Bambang TSA Project Director
Adhi Rachmat S Hariyadi Project Manager
1.0 INTRODUCTION
Forest Carbon Partnership Facility (FCPF) has provided the Government of Indonesia with grant to finance the preparation of REDD+ Implementation. The overall goal of this project is to strengthen the technical and management capacity for REDD+ implementation at national and sub-national levels.
Forest Carbon Partnership Facility selected East Kalimantan Province as a CarbonFund pilot province for activities in 2018 to 2024. Similarly, Initiatives for Sustainable Forest Landscape (ISFL) selected Jambi Province for BioCarbon Fund pilot. The two mechanisms aim for implementation of performance-based payment system that will be formalized under Emission Reduction Payment Agreement (ERPA). Both FPCF and ISFL have kicked off the programs in respective provinces, and indicative approaches have been developed accordingly. FCPF Grant supports a subset of readiness effort that consists of the following components:
1. Analytical Work;
2. Support of Readiness Process;
3. Reference Emission Level (REL) and Monitoring, Reporting & Verification (MRV); and 4. Regional data collection and capacity building.
In East Kalimantan, Social and Environmental Standards for REDD+ (SES REDD+) has been developed based on national safeguards-related initiatives such as The Principles, Criteria and Indicators for REDD+ Safeguards (PRISAI) and Safeguards Information System (SIS).
1.1 BRIEF DESCRIPTION OF THE ASSIGNMENT
To support REDD+ implementation in Indonesia, World Bank requires Strategic Environmental and Social Assessment (SESA) and Environmental and Social Management Framework (ESMF) as key safeguards documents. These two documents are integral parts of the readiness components, where analytical components of the SESA will be used for ESMF. The indicative REDD+ ESMF is already established for national level, and will be used as the basis for ESMF development. SESA and ESMF are part of the Emission Reduction Program Document (ERPD) that has been developed for East Kalimantan Province. Development of SESA followed the guideline prescribed in Government Regulation (Peraturan Pemerintah – PP) no. 46/2016 regarding guideline for Strategic Environmental Assessment.
1.2 PURPOSE OF THE INCEPTION REPORT
The purpose of this inception report is to describe the process for setting up team organisation, as well as administrative setup. This inception report also contains description of proposed team mobilisation according to the tasks for completing SESA, ESMF and the components therein.
Additionally, inception report contains identification of starting point for PT Hatfield Indonesia. This is primarily crucial for East Kalimantan Province, as the process of ERPD write up has started. Activities done during the inception phase and initial findings are also reported in this document. The inception phase covered a period from contract signing in August 2018 to October 2018 when preliminary report is due for submission.
2.0 ORGANISATIONAL AND ADMINISTRATIVE SETUP
Key staffs assigned by PT Hatfield Indonesia have at least ten years of relevant experience, including considerable experience in Sumatra and Kalimantan, Indonesia. Our team of experts brings strong knowledge and experience in preparing SEAs for regional planning and working on REDD+ programs supported by the KfW and other international organizations. Our experts include key staffs who have successfully prepared ESMF documents for project developments supported by the World Bank and the Government of Indonesia in the past two years. This demonstrates experience with the World Bank safeguard policies: Environmental Assessment (OP/BP 4.01), Natural Habitats (OP/BP 4.04), Forests (OP/BP 4.36), Pest Management (OP/BP 4.09), Physical Cultural Resources (OP/BP 4.11), Indigenous Peoples (OP/BP 4.10), and Involuntary Resettlement (OP/BP 4.12).
The team of experts covers a full range of scientific disciplines, including natural resource management, socio-economic and community engagement, forestry, REDD+, and conservation. The key staffs include individuals with knowledge of the policy environment governing various REDD+
programs with strong experience in working with central and local governments, international organizations and civil society. In addition, our team of experts has extensive experience in developing strategic environmental and social assessments in Indonesia, particularly in situations where multiple stakeholders are involved. Immediate mobilization of all proposed experts is possible as all are based in-country, and are available to commit to their respective roles under this assignment. Additionally, PTHI will also assign non-key experts to support with SESA and integrated ESMF. The team is organised according to the tasks summarised in Table 1.
Table 1 Summary of consultant team’s tasks for the assignments.
Team Assignments Roles/Tasks Team Members
Data Collection Collecting secondary data in East Kalimantan and Jambi;
Conducting interview (primary data) in East Kalimantan and Jambi
Collecting spatial data for East Kalimantan and Jambi
Ichsan Irwanto (East Kalimantan)
Akhmad Wijaya (East Kalimantan)
Kasaya Anissa Rahmaniah (Jambi)
Erick Mardi Tjahyono (Jambi)
Rina Wulandari (Bogor - spatial data)
Data Analysis Analysing data to support identification of strategic issues for SESA and ESMF.
Analysis is done in tabular, as well as spatial format
Rudi Tambunan
Syarifah Syaukat
Bambang Tri Sasongko Adi
Adhi Rachmat Hariyadi
Yunus Helmy Public Consultation Arranging and conducting public
consultations in East Kalimantan and Jambi. Public consultations consist of one in each province (East Kalimantan and Jambi), and at least two of the districts in the province (representing permanent sampling plot locations)
Dany Yuda Saputra (East Kalimantan)
Akhmad Wijaya (East Kalimantan)
Mashudi Noorsalim (Jambi)
Erick Mardi Tjahyono (Jambi)
SESA write-up Formulating SESA report based on analysis and data available to support identification of strategic sectors, as well as potential impacts
Rudi Tambunan
Syarifah Syaukat
Bambang Tri Sasongko Adi
Team Assignments Roles/Tasks Team Members ESMF write-up Formulating ESMF report based on
SESA. ESMF includes Indigenous People’s Plan (IPP); Access Restriction Action Plan (ARAP) to support
identification of strategic sectors, as well as potential impacts
Rudi Tambunan
Syarifah Syaukat
Bambang Tri Sasongko Adi
Mashudi Noorsalim
Jaya Perana
PTHI recruited consultant’s representatives consisting of Mr. Akhmad Wijaya and Mr. Erick Mardi Tjahyono in East Kalimantan and Jambi provinces respectively. Representatives will bridge stakeholder engagement activities and assist SESA/ESMF writing teams with additional data collection, data analysis and drafts as required. Team mobilisation and activities are supervised the Mr. Bambang Tri Sasongko Adi, the Project Director.
3.0 STARTING SITUATION
PT Hatfield Indonesia (PTHI) started the assignment on August 1, 2018. By that time, the Emission Reduction Program Document (ERPD) for East Kalimantan Province and interim SESA & ESMF had already been developed. Therefore, PTHI’s entry to the process in East Kalimantan Province needed to be adjusted and aligned with existing progress through the following approaches:
1. Understanding the contents of East Kalimantan’s ERPD by examining this document and attending review sessions done by World Bank’s Technical Advisory Panel (TAP);
2. Coordinating with Local Council for Climate Change (Dewan Daerah Perubahan Iklim – DDPI) and other organisations involved in the development of East Kalimantan’s ERPD; and
3. Collecting secondary data and records of Focused Group Discussions (FGD) and public consultations leading to the development of interim SESA and ESMF for East Kalimantan.
Kick-off of Emission Reduction (ER) Program in Jambi Province had taken place, but the ERPD has not been produced for Jambi Province. Entry to the process in Jambi Province needs to be done through coordination with General Secretariat (Sekretariat Bersama – Sekber), other organisations and individual consultants involved in the development of Jambi’s ERPD.
3.1 INCEPTION PHASE ACTIVITIES
Activities in inception phase consist of preparation and communication (coordination) with existing stakeholders. Preparation involves activity components such as:
Finalising contracts with external sub-consultants and representatives in East Kalimantan and Jambi;
Conducting internal team briefing to ensure that all team members have the same understanding on the objectives of the assignments, and all team members are aware of roles and responsibilities in achieving the objectives of the assignments (outlined in Section 2.0);
Secondary data collection (from DG PPI, P3SEKPI and other credible sources), summarised in Table 2;
Engagement with stakeholders in East Kalimantan, specifically SESA and Safeguards team;
Engagement with stakeholders in Jambi, specifically members of Sekber, Provincial Government (Environmental Agency, Bappeda), NGO (WARSI) and existing programs in Jambi (MCA-I and Forest Programme II); and
Drafting SESA & ESMF for East Kalimantan Province.
Table 2 Summary of relevant secondary data compiled during the inception phase.
Description of documents Source Relevance for SESA and ESMF
ERPD Advanced Draft and annexes
P3SEKPI SESA Baseline
information
SESA Strategic Issues
Interim SESA
ER Program objectives Safeguards Gap Analysis REDD+ Working Group East
Kalimantan
SESA Gap Analysis
ESMF Matrix DDPI Indicative environmental
and social risks
Indicative environmental and social impacts Workshop on customary
communities (Masyarakat Hukum Adat)
Forestry Agency – East Kalimantan Province
Compilation of strategic issues for Indigenous Peoples Plan (IPP)
Minutes meeting and results TAP review
P3SEKPI Improvements on Safeguard
sections Compilation of Background
Information
P3SEKPI Safeguard REDD+
ERP Design and Matrix P3SEKPI ER Program design
Strategic Issues
Underlying causes &
drivers
Risks and impacts
Spatial data P3SEKPI Baseline data
Strategic Issues
Gaps
Meeting Records 2015-2018 P3SEKPI Documentation of meetings on SESA and ESMF as part of the process prescribed in PP 46/2016.
ERPD Vietnam P3SEKP Examples for SESA & ESMF
Various publications on REDD+ and natural resource management issues in East Kalimantan
Desktop research Background information on strategic issues and safeguards principles
Activities at national level during inception period consist of involvement and support during World Bank’s Technical Advisory Panel mission in Jakarta and Bogor. Minutes meetings and result of TAP mission were used as background information to further develop SESA and ESMF for East Kalimantan Province. Detailed activities conducted for East Kalimantan and Jambi provinces during inception period are described in sections below.
3.2 EAST KALIMANTAN
Referring to the PP 46/2016 regarding the guideline for strategic environmental assessment (SEA), stakeholder mapping, screening and scoping processes were done in the initial stage of SESA in East Kalimantan. This was done based on secondary data available from P3SEKPI, DDPI, as well as from REDD+ working group and forestry agency in East Kalimantan Province.
3.2.1 Stakeholder Mapping
Stakeholders consisting of government and non-government agencies at provincial, district and grass root levels are identified in Chapter 1 of ERPD Document. These stakeholders are categorised into:
Stakeholders that influence the implementation of Emission Reduction (ER) Program;
Stakeholders that will be impacted by ER program implementation; and
Stakeholders relevant with information on ER program.
3.2.1.1 Government Stakeholders
Government stakeholders relevant with the ER program implementation are:
Central Government: MoEF and MoF;
Provincial Government: Bappeda, Forestry, Plantation, Fishery, Environment, Mining agencies; and
District Government: Bappeda of district/city.
3.2.1.2 Non-Government Stakeholders
Non-government stakeholders relevant with the ER program implementation consists of (but not limited to):
Regional council for climate changes (DDPI), national & regional forestry councils;
NGO (WWF, TNC, Bioma, Forclime, GGGI, Kerimapuri, Kawal Borneo, Prakarsa Borneo, Yayasan Bumi);
University & Research Institute: Center for Climate Change Study, Mulawaraman University, CSF; and
Working Groups: District REDD+, Green Economy, Timber legality
All of these stakeholders have been involved in the development of existing ERPD.
3.2.2 Data Analysis
Analysis done in SESA includes assessment of strategic issues consisting of:
Environmental carrying capacity for sustainable development in East Kalimantan Province;
Estimation of environmental and social impacts and risks;
Performance of ecosystem services;
Efficiency in natural resource utilisations;
Vulnerability and adaptation capacity towards climate change; and
Resistance and resilience of natural resource potentials to climate change.
Results of analysis are the basis for formulation of Environmental and Social Management Framework (ESMF). The ESMF document sets up safeguards mechanisms to mitigate negative impacts.
Ultimately, this process recommends improvements on policies, plans and programs contained in the ERPD. Existing data and information from sources listed in Table 2 allow identification of
Strategic emission reduction issues;
Risks;
Impacts; and
Gaps between planned ER activities and existing Safeguards.
3.2.3 Gap Analysis
Gap analysis was done by comparing the risks identified in the interim SESA (and further analysed in SESA) with existing safeguards and World Bank’s operational and bank policies. Gap analysis is done to ensure that all risks caused by the ER Program are addressed by the existing safeguards to also to ensure the compliance with the WB/OP standards.
Should one or more World Bank’s OP/BPs are triggered by ER Program, the next step of the analysis is to conduct gap analysis. This analysis aims to identify if existing national regulations and safeguard (e.g., SIS REDD+, PRISAI, and SES REDD Kaltim) are relevant to address the abovementioned risks. Safeguard mechanism to address these risks will be formulated in Environmental and Social Management Framework (ESMF) documents that will be developed separately from SESA.
3.3 JAMBI
Activities in Jambi Province consisted of Introduction and preparation of stakeholder engagement.
Preparation for ERPD development includes planning for recruiting individual consultants for writing up ERPD chapters.
3.3.1 Stakeholder Mapping
In addition to the representatives of MoEF (c.q., Directorate General for Climate Change), stakeholders in Jambi consist of Substance Team, Private Sectors and FCPF-World Bank.
3.3.1.1 Substance Team
Substance team of Jambi Province is tasked with initiating the process of developing the design for the ER Program, and developing the ERPD. The substance team members are:
Academics (University of Jambi – UNJA);
Jambi provincial government agencies such as plantation, forestry, environment, regional research, provincial planning/Bappeda, and Forest management units (Kesatuan Pengelolaan Hutan – KPH);
Technical Implementation Units of central government offices: Bukit Duabelas National Park, Nature Conservation Agency (BKSDA); Watershed management office (BPDAS) Batanghari, and Social Forestry and Environmental Partnership (BPSKL), and Production Forest Management Bureau (BPHP);
Organisations such as: Banir, KKI Warsi, YLBHL, Cakrawala, WWF, SSS Pundi, Gita Buana, Mitra Aksi, ZSL, CAPPA and SETARA; and
Private sectors: PT Wira Karya Sakti, and PT REKI.
3.3.1.2 Private Sectors
Private sectors, specifically land-based businesses (e.g., plantation and forestry sectors) are stakeholders relevant with ER program implementation in Jambi. Private sectors consist of plantation, forestry and ecosystem restoration companies.
3.3.1.3 FCPF-World Bank
FCPF and World Bank as the funds provider for ER Program in Jambi Province assigned a representative to assist the development of ER Program Design and the ERPD document.
3.3.2 Data Analysis
Identification of strategic issues has been done in the initial draft of project document. Currently, the Project Development Objectives (PDO) is being developed. The draft contains the following components:
Strengthening Policy and Institutions;
Implementing sustainable land management; and
Result-based payments and management
These components will be used as the basis for identifying strategic issues, risks, impacts in the SESA, as well as the basis for establishing mitigation plan in the ESMF.
4.0 APPROACHES AND IMPLEMENTATION PLAN
Time for preparing the SESA and ESMF document is very limited, so approaches and implementation plan must be done in effective and efficient manners. General approaches for completing the assignment are:
Secondary data collection and compilation;
Identification of strategic issues from secondary data (East Kalimantan) and focus group discussions (Jambi);
Data Analysis based on secondary data (risk, impact and gap analysis with existing safeguards); and
Development and finalisation of SESA & ESMF documents (including Land Acquisition and Resettlement Action Plan-LARAP, Access Restriction Action Plan-ARAP, Feedback Grievance and Redress Mechanism-FGRM and Indigenous Peoples Plan-IPP)
The timeline for completing the assignment is summarised in Table 3.
Table 3 Summary of timeline for completing SESA & ESMF.
Milestones PTHI
Team Mobilisation
2018 2019
Oct Nov Dec Jan Feb Mar Apr
Inception / Preliminary Report Data Collection, SESA & ESMF writing Draft Final SESA & ESMF – East Kalimantan Data Analysis, SESA & ESMF writing
Public Consultation – East Kalimantan Public Consultation team
Revision to the Draft SESA & ESMF – East Kalimantan SESA & ESMF writing FGD on Safeguards – Socialisation at District level in East
Kalimantan Public consultation and data collection
Draft Final SESA & ESMF - Jambi Data analysis, SESA & ESMF writing Public Consultation - Jambi Public consultation team, data collection Revision to the Draft SESA & ESMF – Jambi Data analysis, SESA & ESMF writing team
FGD on Safeguards – Socialisation at District level in Jambi Public consultation team, data collection Finalising SESA & ESMF documents for East Kalimantan and
Jambi provinces SESA & ESMF writing
4.1 APPROACHES
Specific approaches for developing SESA and ESMF documents are described in sections below.
4.1.1 East Kalimantan
4.1.1.1 Integrating Existing Work
Extensive work has been done by team in East Kalimantan, and most of this work has been included in the ERPD. Therefore, the approach for completing the SESA and ESMF documents for East Kalimantan Province consists of integration of existing work and alignment with input from TAP mission. Based on TAP evaluation, the crucial aspects to improve are the development of SESA, ESMF and FGRM documents. Additionally, there is a need to include the Indigenous People’s Plan in the existing SESA draft. These are the steps that need to be discussed with the ERPD writing team in East Kalimantan.
4.1.1.2 Focused Group Discussion (FGD) and Interviews
These were done to fill in the gaps on aligning the SESA, ESMF and FGRM requirements with additional information available among ERPD writing team in East Kalimantan. The use of interim SESA and ESMF are discussed and agreed as a useful approach for developing the SESA, ESMF and FGRM.
4.1.1.3 Risk and Impact Analysis
Risk and impact analysis are done by SESA writing team based on the data contained used in ERPD, as well as on the additional information obtained during FGD and interviews. This is part of the scoping process, which forms the basis for establishing ESMF (including FGRM and Indigenous Peoples Plan).
4.1.1.4 Public Consultation
Public consultation is done by Public Consultation Team to ensure input and subsequent buy-ins from relevant stakeholders on the improved version of SESA and ESMF. These will be used to formulate recommendations for:
Justifying the strategic issues, risks and impacts identified in SESA; and
Safeguards on environmental and socio-cultural issues (i.e., avoiding, mitigating or offsetting negative impacts), as identified in the scoping process.
4.1.2 Jambi
4.1.2.1 Secondary Data Collection and Compilation
Secondary data collection in Jambi Province starts with the acquisition of Strategic Environmental Assessment (Kalian Lingkungan Hidup Strategis - KLHS) on spatial plan and/or on medium term development plan. This assessment provides a basic understanding on strategic environmental and social issues that need to be explored further in the context of ER Program implementation in Jambi.
4.1.2.2 Involvement in the ERPD Development Process
Involvement supports the identification of strategic issues, as the project document objectives and ER program design are developed. These strategic issues are the materials for subsequent screening and scoping process prescribed for SESA development.
4.1.2.3 Screening and Scoping
Long list of strategic issues are screened into medium and short lists of strategic issues. The shortlisted strategic issues are subject to further analysis within SESA exercise.
4.1.2.4 Data Analysis
This step consists of risk, environmental and social impact analysis of short listed strategic issues.
Clustering of these into positive and negative impacts enable identification of issues with highest risks and impacts. These form the basis for formulating recommendations for mitigating the negative impacts in ESMF document.
4.1.2.5 Public Consultation
Public consultation is done in the following manners with that described in Section 4.1.1.4.
5.0 INDICATIVE FINDINGS
Findings during the inception period are limited to those of East Kalimantan Province. Indicative SESA and ESMF results are described below. These results are subject to refinement and adjustment based on the result of FGDs and public consultation processes.
5.1 STRATEGIC ENVIRONMENTAL AND SOCIAL ASSESSMENTS (SESA)
Interim result and subsequent Focus Group Discussions done during SESA indicate a long list of positive and negative environmental issues that are further translated into impacts. These long lists are summarised into medium list of Positive and negative environmental impacts shown in Figure 1 and Figure 2 respectively.
Figure 1 Medium list of predicted positive environmental impacts.
Figure 2 Medium list of predicted negative environmental impacts.
Sustainable management practices
are improved
Emission at the village level is reduced.
Improve protection to protected areas and
reduce the level of illegal logging
Forest area will be more protected and
this will minimize deforestation in the
future
Improved forest protection and other
ecosystem services
Clear FMU boundary will improve forest area management by
FMU
Improved capacity of FMU to manage forest
area better
Minimise deforestation by improving supervision
and alternative community livelihood
Improved forest
protection from fire Reduced illegal logging
HCV areas within timber plantation concession will be more protected
Reduced forest degradation and
deforestation
Better protection of conservation forest
Improved quality of habitat, environment
and protected areas within the estate crops
Sustainable benefits for environment and
community
Improved the quality of environment and
ecosystem
Improved forest and natural habitat
protection
Reduced forest conversion for new
estate crops
Reduced land and forest fire
Better village landuse and reduced forest
conversion
Better protection and improved mangrove
ecosystem
Reduced threat on forest habitat
Potential success of the project and positive impact to
environment
Improve the level of ER program success
Better project performance (reduced
emission, improved forest cover)
Potential land conversion due to cultivation of some
commodities
Non sustainable agriculture practices and estate crops
practices
Reduced forest area if the dispute through SF is not well
implemented.
Potential increase of illegal logging by communities due to
loss of livelihood income
Posible introduction of invasive species
Reduced environmental quality due to application of non- environmental friendly fertilizer
Increasing threats on swamp/peat area
Unsustainable agriculture practices will potentially reduce
the quality of riparian environment
Unsustainable aquaculture practices will potentially reduce
the quality of aquatic environment
Potential threat to protected/conservation areas due to inappropriate licensing
process
Environmental impacts are further summarised into short lists consisting of impacts described in Table 4.
Table 4 Shortlist of predicted environmental impacts of ER Program in East Kalimantan.
Positive Impacts Negative Impacts
Improve protection to protected areas and reduce the level of illegal logging
Potential loss of community livelihood for MA and local community
Improved carbon stock Reduced forest area if the dispute through SF is not well implemented.
Forest area will be more protected and this will minimize deforestation in the future
Potential increase of illegal logging by communities due to loss of livelihood income
Improve forest management practices Potential threat to protected/conservation areas due to inappropriate social forestry licensing process
Clear FMU boundary will improve forest area management by FMU
Possible introduction of invasive species
Improved capacity of FMU to manage forest area better
Unsustainable aquaculture practices will potentially reduce the quality of aquatic environment
Improved forest protection and other ecosystem services
Improved quality of habitat, environment and protected areas within the estate crops
Better village land-use and reduced forest conversion Sustainable benefits for environment and community Reduced land and forest fire
Improved forest and natural habitat protection Reduced forest conversion for new estate crops Reduced illegal logging
HCV areas within timber plantation concession will be more protected
Positive respond and interest from plantation company that will positively impact on reducing illegal logging Reduced forest degradation and deforestation Better protection of conservation forest
Better protection and improved mangrove ecosystem
Similarly, screening and scoping process of SESA produced long lists of predicted positive and negative social impacts. These lists are summarised into medium list of predicted positive and negative impacts, as shown in Figure 3 and Figure 4 respectively.
Figure 3 Medium List of predicted positive social impacts.
Figure 4 Medium list of predicted negative social impacts.
Reduced land / area conflict as a result of better licensing system
Reduced conflict between communities on
forest area
Community groups including vulnerable group will be receiving
more benefits.
Potential loss of local community income
Improved community livelihood
Potential additional income by involvement in the community forest
fire brigade
Improved capacity on SFM and RIL at various
stakeholders
Reduced conflict between company and
community by collaborative and participative approach
Improved capacity of community group related
to social forestry
Increased community income from social
forestry program
Improved capacity on forest conservation
Improved access to forest by the forest conservation partnership
scheme
Improved capacity of government and private sector, as well as farmers
group
Improved capacity of small holders in sustainable crops
practices
More benefit for local community (environmental services,
e.g., ecotourism, and economic activities)
New opportunity for community's livelihood
Improved community income and food security
Sustainable income generation for local
communities
Possible tensions and conflicts among stakeholders
due to inadequate FGRM
Community concerns are not accommodated into the program/activities due to
lack of capacities
Limited forest timber for community housing
construction
Less impact for vulnerable groups (MA, poor people and
women)
Trigger for new disputes
Less opportunity for local community to utilise forest
resources
Potential for resettlement or reduce community access to
forest
Potential conflict with community and other surrounding entities
Potential unability to access to finance for the newly
established company
Potential conflict due to not all community members have a chance to participate
Potential conflict due to lack of awareness on forest
conservation
Losing the opportunity for community to have a value
added to agricultural commodities
Potential conflicts between formal and traditional laws
Potential loss of community livelihood
Potential trigger for new disputes
Social impacts are further summarised into shortlists containing predicted impacts described in Table 5.
Table 5 Shortlist of predicted social impacts of ER Program in East Kalimantan.
Positive Impacts Negative Impacts
Reduced land / area conflict as a result of better licensing system
Less opportunity for local community to utilize forest resources;
Reduced land/tenurial conflict between private sector and community
Potential conflicts between formal and traditional laws
Improved community livelihood Community concerns are not accommodated into the program/activities due to lack of capacities;
Community groups including vulnerable group will be receiving more benefits.
Trigger for new disputes
Improved capacity of government and private sector, as well as farmers group
Potential for resettlement or reduce community access to forest
Improved capacity of small holders in sustainable crops practices
Potential conflict with community and other surrounding entities;
Improved capacity on SFM and RIL at various stakeholders
Potential loss of community livelihood, for them who have to find other forest area due to the boundary demarcation/ conflict with private sectors.
Better access to forest resources for cultural reason and non-timber forest product.
Potential inability to access to finance for the newly established company
Improved access to forest resources and improved community livelihood
Losing the opportunity for community to have a value added to agricultural commodities
Improved capacity of community group related to social forestry
Improved capacity on forest conservation
Improved access to forest by the forest conservation partnership scheme
Sustainable income generation for local communities More benefit for local community (environmental services, e.g., ecotourism, and economic activities)
5.2 POTENTIAL RISKS/IMPACTS TO GUIDE THE ESMF DEVELOPMENT
Environmental safeguards management framework (ESMF) in this preliminary document is based on potential risks that may be associated with the ER program design. However, the risks are mainly hypothetical and need to be justified with more evidence. At this stage, the risks listed in this section not conclusive. World Bank Safeguards1 employ indicative approach for four types of interventions consisting of:
Type 1: Capacity Building;
1 Indicative Safeguard approach for the four types of Technical Assistance activities.
Type 2: Assisting in preparation of policies, programs, plans, or legal frameworks;
Type 2: Land-use planning and natural resource management; and
Type 4: Preparing feasibility studies or technical designs.
These types are used as references in formulating the environmental and social management framework (ESMF) for ERP in East Kalimantan.
The following potential risks/impacts will also be used as the reference to develop the Feedback Grievance Redress Mechanism (FGRM) and the Indigenous Peoples Planning Framework (IPPF).
5.2.1 Improving Land Governance
Improving land governance involves two aspects consisting of capacity building and improving regulatory instruments. Risk and gap analyses have identified that improving land governance can potentially trigger OP/BP 4.36 (Forest). 4.10 (indigenous people) and 4.12 (Involuntary re-settlement).
Improving land governance is relevant with Type 1 and Type 2 interventions. Capacity building for improving land governance does not usually have adverse environmental impact. However, the policies resulting from the efforts for improving land governance may have impacts on the forest management and social impacts, including potential involuntary resettlement. Strategic Environmental and Social Assessment (SESA) does not foresee involuntary resettlement as a potential risk, but recognise that there may be impacts on indigenous communities. Safeguard measures are already available in form of relevant government regulations, SIS REDD, PRISAI and SES REDD Kaltim.
Potential implications and relevant mitigation measures related to improving land governance are summarised in Table 6.
Table 6 Potential implications and mitigation measures for land governance.
Implications Mitigation measures
Law 23/2014 transfers land-based (forest- based) governance to the provincial level.
This may create gaps between policy- making processes at the provincial level with implementation process at district level.
Some districts in East Kalimantan (e.g., Mahakam Ulu and Kutai Barat) are remote and lacking communication infrastructure, so province-to-district coordination can be challenging. Improving land governance may involve introduction of policies that district implementers may not be familiar with.
OP/BP 4.36:
Empowering forest management units (Kesatuan Pengelolaan Hutan – KPH) that operate in the districts.
Empowerment may include increasing capacities related with ER Program such as carbon stock assessment/carbon accounting, carbon sequestration and MRV;
Identification of critical land and formulation of watershed management approaches (rehabilitation and/or
infrastructures for land and soil conservation such as retaining dam and gully plug); and
Inclusion of ER Program within management plans of the KPH.
Contradiction between government and customary (adat) policies. Designation of forest, conservation areas and/or carbon accounting areas may overlap with existing customary land tenure (e.g., customary forest) used for foraging, religious and other customary purposes. Consequently, there is a risk of alteration (or restriction) for access.
OP/BP 4.10
OP/BP 4.12 (Not foreseen)
Indigenous Peoples Plan and Access Restriction Action Plan that include (but not limited to):
Procedure for Free and Prior Informed Consent (FPIC);
Compensation for access restriction; and
Compensation for livelihood displacement (if relevant with access restriction/modification).
5.2.2 Strengthening Government Capacity for Forest Administration
This strategy is relevant with Type 1 Technical Assistance (Capacity Building). There are no adverse environmental and social impacts associated with this strategy, and safeguards instruments are adequate to support this strategy. The risk is possibly more closely associated with management (time schedule) and administrative, rather than with environmental and social aspects. The risk consists of:
Potential delay in conducting capacity building for conducting Environmental Assessment (OP/BP 4.01); development of Environmental Action Plan (OP/BP 4.02); and
The lack of reputable training providers for conducting Environmental Assessment (OP/BP 4.01); development of Environmental Action Plan (OP/BP 4.02); natural habitats management (OP/BP 4.04) and forest management (OP/BP 4.36).
5.2.3 Reducing Deforestation Linked to Oil Palm Expansion
This strategy requires engagement with private sector (plantation companies), and is closely related to technical assistance Type 3 (Land-use planning and natural resource management). This strategy may consist of halting the expansion of palm oil plantation (moratorium), and introducing sustainable plantation mechanism. Reducing deforestation linked to oil palm expansion is anticipated to have environmental and social impact; thus triggering OP/BP 4.02, 4.01, 4.04, 4.09, 4.10, and 4.36.
Therefore, mitigation measures need to be formulated (Table 7).
Table 7 Potential implications and mitigation measures for reducing deforestation linked to oil palm plantation.
Implications Mitigation measures
Introduction of sustainable oil palm plantation may still pose environmental threats (such as changes in hydrology, loss of biodiversity and natural resources)
OP/BP 4.01 OP/BP 4.02 OP/BP 4.09 OP/BP 4.36 OP/BP 4.10
It is recommended that sustainable oil palm plantation is preceded by proper environmental assessment (OP/BP 4.01) and environmental action plan (OP/BP 4.02);
Sustainable oil palm plantation should consider benefit to local communities, as well as respect to the customary and indigenous peoples’ rights (natural and cultural resources). This needs to be included in the IPP;
Inclusion of local communities in maintaining HCV;
It is recommended that sustainable oil palm plantation adopt natural resource and/or biodiversity management concept such as HCV, ISPO or RSPO.
Oil palm plantation alters the natural vegetation, and may also employ specific measures for pest
Implications Mitigation measures
control (biological and/or chemical). Therefore, proper assessment on pest management will be required to be included in the preparation of sustainable oil palm plantation.
Limiting oil palm plantation may produce social impacts related to employment and potential benefit that community / indigenous people may receive
Limiting expansion of oil palm plantation must be accompanied by efforts to optimise production by:
Ensuring high quality harvest; and
Post-harvest processing.
Limiting oil palm plantation may create tension between plantation companies and local communities.
Such tension may arise due to changes in plans, and the anticipation of employment and/or benefit that may not be realised due to these changes.
Limiting the expansion of oil palm plantation, and introduction of sustainable oil palm plantation needs to consider the following steps:
Socialisation of moratorium and introduction of sustainable oil palm plantation. It is important that plantation companies, local communities and government share common understanding of the approach;
Formulation of alternative revenue for plantation companies and communities. This is to offset the potential revenue that cannot be realised due to the limitation; and
Setting up conflict resolution mechanism. This may also be addressed in Feedback Grievance Redress Mechanism (FGRM).
5.2.4 Reducing Deforestation Linked to Over logging and Timber Plantation
This strategy requires engagement with private sector (logging companies), and is closely related to technical assistance Type 3 (Land-use planning and natural resource management). This strategy may employ two main objectives consisting of prevention of over logging and creating added value to timber plantation (e.g., non-timber forest product and/or carbon credits). Implementation may trigger risks related to OP/BP 4.01 (Environmental Impact Assessment), 4.02 (Environmental Action Plan), 4.04 (Natural Resource), and 4.36 (Forest). Numerous examples have been implemented in East Kalimantan (Berau Forest Carbon, FORCLIME and Reduced Impact Logging). Table 8 shows indicative impacts / implications with the potential mitigation measures.
Table 8 Potential implications and mitigation measures for reducing deforestation linked to over logging and timber plantation.
Implications Mitigation measures
Sustainable harvesting mechanism such as Reduced Impact Logging may create damages such as area damage and topsoil
OP/BP 4.01 OP/BP 4.02 OP/BP 4.04 OP/BP 4.36
Environmental impact assessment should be conducted to anticipate the level of damages caused by harvesting mechanism. Consequently, environmental action plan may be developed to mitigate more damages;
Implications Mitigation measures negative impacts; and
Environmental monitoring should be done to assess the status of forest/natural resources in the logging concession areas.
Limiting timber plantation operation to reduce deforestation may create tension between timber plantation companies and local communities. Such tension may arise due to changes in annual plans, and employment and/or benefit that may not be realised due to these changes
Limiting the operation of timber plantation, and introduction of sustainable timber harvest/silviculture methods need to consider the following steps:
Socialisation and introduction of sustainable timber plantation. It is important that plantation companies, local communities and government share common understanding of the approach;
Formulation of alternative revenue for plantation companies and communities. This is to offset the potential revenue that cannot be realised due to the limitation; and
Setting up conflict resolution mechanism. This may also be addressed in Feedback Grievance Redress Mechanism (FGRM).
5.2.5 Reducing Encroachment by Providing Sustainable Alternatives
This strategy is closely linked with Technical Assistance Type 3 (Land-use planning and natural resource management). This strategy may employ objectives related to sustainable use of natural resources and other economic activities such as trading and creative economy. This strategy may trigger risks related with OP/BP 4.07 (Water resource management), 4.09 (Pest management), 4.10 (Indigenous people), and 4.20 (Gender development). Impacts or implications of the proposed ER component and indicative mitigation measures are summarised in Table 9.
Table 9 Potential implications and mitigation measures for reducing encroachment by providing sustainable alternatives.
Implications Mitigation measures
Design and implementation of sustainable alternatives may involve development of income generating activities based on agriculture and/or creative economy. Local communities may not be able to sell their products / commodities due to constraints such as inability to access market, and failure to address indigenous/customary communities, vulnerable groups and gender representative.
OP/BP 4.10 OP/BP 4.20
Sustainable alternatives need to be developed based on sound feasibility study that includes production capacity, market demands, pricing and value chain analysis;
Coordination and collaboration with Provincial Service Bureau (Badan Layanan Usaha Daerah – BLUD);
Collaboration with private sectors through Corporate Social Responsibility (CSR) programs;
Training on financial aspects for local communities;
Implementation of Best Management Practice principles, especially for land-based activities;
Issues related to customary and indigenous communities, as well as their involvement in
Implications Mitigation measures
economic activities need to be reflected in the Indigenous Peoples Plan (IPP);
Introduction of social forestry and conservation partnership schemes to encourage natural resource protection and management; and
Economic benefit from sustainable alternatives needs to reach all members of communities, including vulnerable groups and gender representatives.
Economy based on natural resource (e.g., agriculture) may have implications in pest and watershed
management. Agriculture activities may attract pest, and may also alter watershed characteristic in the area. This is particularly crucial in areas of critical watersheds in East Kalimantan Province consisting of:
Mahakam, Kandilo (Paser), Manggar (Balikpapan), Bontang, Sangatta, Tarakan, and Nunukan.
OP/BP 4.09 OP/BP 4.20
Sustainable alternatives need to consider the following steps:
Inclusion of pest management and pest control as part of the feasibility study (especially for
agriculture-related scheme); and
Consideration of provincial spatial plan to ensure the preservation of critical watershed;
5.3 INDICATIVE CONTENT OF SESA, ESMF, FGRM AND IPPF 5.3.1 Indicative Content of SESA
Based on several references and series of discussion with the Moef-FCPF team and the World Bank Team, the following tabel describe the indicative content of SESA.
Table 10 Indicative content of SESA.
No. Section
1 1. INTRODUCTION Concise background about ESMF,
link to the FCPF and World Bank Safeguard Policies, and why SESA is needed for the ER Program
2 1.1 Background 3 1.2 Objectives
4 2. METHODOLOGY Methodology for data collection
(baseline, public consultation), impact assessment
5 2.1 Data Collection 6 2.2 Data Analysis 7 2.3 Public Consultations
8 3. BASELINE CONDITION Already exist in the ERPD (Bab 3 ERPD, especially Section 3.2.1 to 3.2.6).
Compiled from spatial map collected from the Province and data that have been validated for the ERPD development.
Any potential additional data will be collected but should ensure the consistencies with the ERPD (total area for district, province and other numbers).
9 3.1 Environmental and Social Conditions 10 3.1.1 Natural Forest Type
11 3.1.2 Climate conditions 12 3.1.3 Forest fires
13 3.1.4 Soil and topography 14 3.1.5 Biodiversity status
15 3.1.6 Socio-economic and culture conditions 16 3.2 Landuse and Forest Cover
17 3.2.1 Mining, Oil and Gas Concessions
No. Section
19 3.2.3 Plantatioin concessions 20 3.2.4 FMU concession
21 4. DESCRIPTION OF ER PROGRAM Already available at ERPD (Section 4.1)
Already available at ERPD di Section 4.3.1 (need to be updated from MOEF, the new design in response to the TAP review)
22 4.1 Drivers and Underlying Causes of Deforestation and Forest Degradation
23 4.1.1 Drivers of Deforestation and Forest Degradation 24 4.1.2 Underlying Causes
25 4.2 ER Project Components and Activities 26 4.2.1. Component 1: Improving land governance
27 4.2.2. Component 2: Strengthening Government Capacity for Forest Administration
28 4.2.3. Component 3: Reducing Deforestation Linked to Oil Palm Expansion
29 4.2.4. Component 4: Reducing Deforestation Linked to Overlogging and Timber Plantation
30 4.2.5. Component 5: Reducing Encroachment by Providing Sustainable Alternatives
31 4.2.6. Component 6: Project Management and Monitoring 32 5. ENVIRONMENTAL AND SOCIAL IMPACT
ASSESSMENT Refer to matrix we have developed,
but need to be discussed among team for any revision/ adjustment.
Results from field FGD need to be added later on.
33 5.1 Policy and Regulation Framework 34 5.2 Gap Analysis
35 5.3 Environmental and Social Impact Assessment 36 5.4 Environmental and Social Mitigation Plan 37 5.5 Institutional Arrangement for SESA 38 5.6 Public Consultation for SESA
39 6. CONCLUSIONS AND RECOMMENDATIONS 40 6.1 Conclusions
41 6.2 Recommendations
5.3.2 Indicative Content of ESMF
Indicative content of ESMF (Environmental, Social Management Framework) is presented in Table below:
Table 11 Indicative content of ESMF.
No. Sections
1 1.0 INTRODUCTION Concise background about ESMF,
link to the SESA, and why ESMF is needed for the ER Program 2 1.1 Background
3 1.2 Objectives
4 2.0 ERP PROGRAM DESCRIPTION Same content with SESA 5 2.1 Component 1
6 2.2 Component 2 7 2.3 Component 3 8 2.4 Component 4 9 2.5 Component 5
No. Sections 10 2.6 Component 6
11 3.0 POLICY AND LEGAL FRAMEWORK Same content with SESA 12 3.1 GOI Regulations
13 3.2 World Bank Safeguards Policies 14 3.3 Gap Analysis
15 4.0 ENVIRONMENTAL AND SOCIAL IMPACT
ASSESSMENT Similar content with SESA, with
some adjustment based on the TOC 16 4.1 Project Categorisation
17 4.2 Project Screening
18 4.3 Environmental Impact Assessment 19 4.4 Social Impact Assessment
20 4.5 Indigenous Peoples Planning Framework 21 4.6 Resettlement Planning Framework
22 5.0 IMPLEMENTATION ARRANGEMENT Refer to the Mitigation Plan in SESA, and describe the structure and hierarchy of institution at the province and national
23 5.1 Institutional/Stakeholder Analysis 24 5.2 ESMF Institutional Arrangement 25 6.0 CAPACITY BUILDING AND TRAINING 26 7.0 ESMF IMPLEMENTATION BUDGET
27 8.0 ESMF CONSULTATION AND INFORMATION DISCLOSURE
5.3.3 Indicative Content for FGRM
Indicative content of FGRM (Feedback Grievance Redress Mechanism), referring to several references and based on discussion with the World Bank Team, is presented in table below:
Table 12 Indicative content of the FGRM.
No. Sections Content
1 1.0 INTRODUCTION Why FGRM is needed for the ERP, given the Kalimantan and REDD+ context 2 1.1 Background
3 1.2 Objectives
4 2.0 LAWS AND REGULATIONS FRAMEWORK Summary of Guidelines (ILO, WB, Cancun) and National Regulations (PP, MOEF Min. Decrees)
5 2.1 International Guidelines 6 2.2 National Regulations
7 3.0 SOCIAL CONTEXT OF THE PROJECT AREA Baseline from secondary sources, map of tenurial/tradiaional community (MHA), Socio-Economic baseline data (income, livelihood activities, access to the natural resources)
8 3.1 Social Baseline Conditions 9 3.1.1 Indigenous Peoples 10 3.1.2 Tenurial Aspect
11 3.1.3 Overview of Land/Tenurial Conflict 12 3.2 Community Livelihood
13 3.2.1 Community-Forest Interaction 14 3.2.2 Sources of Livelihood
15 4.0 CURRENT PRACTICES ON LAND CONFLICT Traditional and Formal Laws in handling
No. Sections Content 16 4.1 Traditional/Cultural Laws
17 4.2 Formal Laws
18 5.0 PROPOSED FGRM FOR REDD+ Description of FGRM for the ERP, process, hierarchy, procedures, institutional setup.
19 5.1 Goals and Objectives of FGRM 20 5.2 Scope of the FGRM
21 5.3 Principles of FGRM 22 5.4 Structure of FGRM 23 5.5 Procedures of FGRM
24 6.0 OPERATIONALISATION OF FGRM How to internelise the FGRM in the government level and jow to link the FGRM at the project level to the National System
25 6.1 Roles of Stakeholders in the FGRM 26 6.2 Institutional Arrangement of the FGRM 27 6.3 Monitoring and Evaluation Requirement 28 6.4 Communication and Coordination
29 7.0 CONCLUSIONS AND RECOMMENDATIONS Conclusion and recommendations (next action plan for FGRM implementation) 30 7.1 Conclusions
31 7.2 Recommendations
5.3.4 Indicative Content for IPPF
As one of the deliverable, Indigenous Peoples Planning Framework will have the following indicative content:
Table 13 Indicative content of IPPF.
No. Sections Content
1 1.0 INTRODUCTION Why IPPF is needed for the ERP, given the Kalimantan and REDD+
context 2 1.1 Background
3 1.2 Objectives
4 2.0 THE ER PROJECT DESIGN Summary of Guidelines (ILO, WB, Cancun) and National Regulations (PP, MOEF Min. Decrees) 5 2.1 Project Objectives
6 2.2 Project Components
7 2.3 Project Beneficiaries ad Locations
8 3.0 LEGAL AND REGULATORY FRAMEWORK IN IPs List and short description of applicable laws, regulations, and policies
9 3.1 Relevant GOI Regulations and Policies 10 3.2 World Bank Safeguards Policies 11 3.3 Relevant International Instruments
12 4.0 Indigenous Peoples in Indonesia From relevant secondary data and from ERPD doc.
13 4.1 Indigenous Peoples in East Kalimantan 14 4.2 Potential Impacts on Indegenous Peoples
15 5.0 POSSIBLE MITIGATION MEASURES FOR RISKS IDENTIFIED
From internal team discussion and through the FGD in the province and
No. Sections Content 16 5.1 Screening for the presence of Indigenous peoples national level 17 5.2 Social Impact impact assessmendtz
18 5.3 FPIC
19 5.4 Preparation of IPs Development Plan
20 6.0 INSTITUTIONAL ARRANGEMENT Refer to ERPD
21 7.0 MONITORING AND EVALUATION Monev Plan during project implementation
22 8.0 GRIEVANCE REDRESS MECHANISM Summary from FGRM and address specific issues on IPs
23 9.0 DISCLOSURE ARRANGEMENT Plan, media, materials 24 10.0 BUDGET REQUIREMENT Estimate on budget for IPPF
implementation