The World Bank RESTRUCTURING ISDS Institutional Strengthening for Improved Village Service Delivery (P165543) Integrated Safeguards Data Sheet Restructuring Stage Restructuring Stage | Date ISDS Prepared/Updated: 06-Jul-2020| Report No: ISDSR30058 Regional Vice President: Manuela V. Ferro Country Director: Satu Kristiina Jyrintytar Kahkonen Regional Director: Benoit Bosquet Practice Manager/Manager: Janamejay Singh Task Team Leader(s): Anna Charlotte O'Donnell, Bambang Soetono The World Bank RESTRUCTURING ISDS Institutional Strengthening for Improved Village Service Delivery (P165543) Note to Task Teams: The following sections are system generated and can only be edited online in the Portal. . I. BASIC INFORMATION 1. BASIC PROJECT DATA Project ID Project Name Institutional Strengthening for Improved Village Service P165543 Delivery Task Team Leader(s) Country Anna Charlotte O'Donnell, Bambang Soetono Indonesia Approval Date Environmental Category 26-Jun-2019 Partial Assessment (B) Managing Unit SEAS2 PROJECT FINANCING DATA (US$, Millions) SUMMARY -NewFin1 Total Project Cost 350.00 Total Financing 350.00 Financing Gap 0.00 DETAILS -NewFinEnh1 World Bank Group Financing International Bank for Reconstruction and Development (IBRD) 300.00 Non-World Bank Group Financing Counterpart Funding 50.00 Borrower/Recipient 50.00 2. PROJECT INFORMATION The World Bank RESTRUCTURING ISDS Institutional Strengthening for Improved Village Service Delivery (P165543) PROG_INF O Current Program Development Objective To strengthen institutional capacity for improved quality of spending in participating villages. . 3. PROJECT DESCRIPTION 1. In 2014, the Government of Indonesia (GoI) passed the landmark Village Law (Law No. 6 of 2014), significantly increasing fiscal resources for development and community empowerment in Indonesia’s 74,954 rural villages. Between 2014 and 2018 annual fiscal transfers to villages increased from approximately IDR 16.8 trillion ($1.2 billion) to IDR 119 trillion ($8.4 billion). The fiscal transfers are large and in 2018 they accounted for approximately six percent of the national budget, and around 0.5 percent of GDP. On average, a village now receives approximately IDR 1.6 billion ($113,500) every year, although the amount on a per capita basis varies significantly because the allocation formula includes a large, fixed allocation and village population sizes vary greatly.1 The new Village Law also expanded the roles and responsibilities of villages in relation to village administration, infrastructure, basic service delivery and community empowerment. 2. The central government, as well as provincial and district governments, realize villages require support to maximize the development impact of the Village Law. Since 2015, the central as well as provincial and district governments all contribute to financing various programs and systems to improve coordination, village administration, village development and community empowerment, and accountability. At project appraisal, the quality of these support systems was assessed to largely be in place, but they were costly, their effectiveness was mixed, and the efficiency of these systems was low. The four core areas of support included village administration, village development and community empowerment, inter-village development, and accountability—which are the responsibility of three main ministries: the Ministry of Home Affairs (MoHA), Ministry of Village, Disadvantaged Regions and Transmigration (MoV), and the Ministry of Finance (MoF). One overall weakness of the support systems is that they make little use of new technologies to increase the efficiency and effectiveness of capacity building, knowledge sharing and accountability. It was also deemed critical that the support systems more systematically help districts to deliver capacity building and empowerment to villages and community organizations. Key district government entities involved in implementing the Village Law include: (a) the Department of Community and Village Empowerment (DPMD), under MoV, which is responsible for village support and supervision at both the provincial and district levels; (b) the Department of Regional Revenue and Asset Management (DPKAD) which is responsible for disbursing Dana Desa to villages; (c) the district-level Regional Inspectorate, which is overseen by MoHA; and (d) the District Development Planning Agency (Bappeda). In addition, at the sub-district level, Technical Advisors for Village Governments (PTPD) play a coordinating role in village governance and development. One key challenge for districts is that, while roles and responsibilities vis-à-vis villages have increased with the introduction of the Village 1An average village in Indonesia has around 2,500 people or 500-600 households. However, about one-third of villages have less than 500 people or 100 households (generally in Eastern Indonesia and other more remote locations), and about one-third have more than 5,500 people or 1,000 households. The World Bank RESTRUCTURING ISDS Institutional Strengthening for Improved Village Service Delivery (P165543) Law, districts have not seen a commensurate increase in budget or fiscal transfers to effectively manage these responsibilities.2 Finally, national coordination of the village support system continues to be weak. Current systems for national coordination are ad hoc and lack the institutional mandate to effectively enforce decision-making. 3. In 2019, the World Bank approved the Institutional Strengthening for Improved Village Service Delivery project. The project’s development objective is to “strengthen institutional capacity for improved quality of spending in participating villages.� This will be achieved through investments that improve and modernize the Government’s own systems and institutions that build capacity of village institutions, enhancements to and integration of information systems, and aligning these with fiscal transfers to focus on performance and results. The project implementation spans across five ministries. The Ministry of Home Affairs is the Executing Agency, with the Ministry of Villages, National Planning and Development Agency, Ministry of Finance and Coordinating Ministry of Human Development as implementing agencies under the project. Rationale for Restructuring. 4. Since project approval, several factors have contributed to a change in the operating environment of the country. First, national elections in 2019 led to delays stemming from the establishment of a new government, and new staff appointments. Second, in March 2020, the COVID-19 pandemic broke out in Indonesia. As a result, the Government of Indonesia counterparts were occupied with the response to the pandemic, including shifting priorities towards improving data systems to monitor impacts and recovery; tracking financial flows for village fund use and especially for new programs; and responding to an emerging economic crisis. This meant that critical actions to advance the project activities were often delayed, in favor of priority government actions. As the country emerges from the pandemic, the Government is increasingly looking to the role that villages will play in the economic recovery. 5. Proposed changes for restructuring. Based on the above-mentioned changes, the Government of Indonesia requested that the current scope of the project would need to be restructured to (i) modify key activities to more fully align these with emerging priorities of the Government for Village Law implementation; (ii) update implementation arrangements, including clarifying coordination, with new institutional arrangements put in place since 2019; and (iii) drop activities that are no longer priorities for the Government. It was agreed that the Project Development Objective, “to strengthen institutional capacity for improved quality of spending in selected villages� remains relevant and unchanged. The restructuring would not seek any modification to the closing date. The modification and update in implementation arrangement will not trigger any new safeguard policies. All triggered OP/BP 4.01 (Environmental Assessment), OP/BP 4.04 (Natural Habitat), OP/BP 4.36 (Forest), OP/BP 4.11 (Physical Cultural Resources) and OP/BP 4.12 (Involuntary Resettlement) remains relevant to all activities under the modified Components 1, 2 and 3. 6. Revised Project Scope. Under the restructured Project, the activities under each Components will be: Component 1: Strengthening Village Government Institutions. The component will continue to support the Ministry of Home Affairs (MoHA) on the development of a Learning Management System (LMS) for village 2World Bank and MoHA, Study Report: Review of Local Government Capacity to Support Implementation of the Village Law (January 2019); World Bank, District Village Supervision and Support Expenditure Analysis: Synthesis Note (January 2019). The World Bank RESTRUCTURING ISDS Institutional Strengthening for Improved Village Service Delivery (P165543) governments and the rollout. The component will allow social and environmental standards, awareness, and responses to the climate change hotspots and impacts on village livelihoods to be mainstreamed in the manuals and guidelines, as well as training modules for the relevant local government staff. This component would also provide opportunities to strengthen inclusion and participation of the village communities in planning and budgeting, and in upgrading and supporting best practice in procurement systems. With the restructuring, the project has identified the potential to strengthen women’s empowerment training programs through the LMS by leveraging the national Family Welfare Guidance Program (Pembinaan Kesejahteraan Keluarga, PKK) in conjunction with relevant NGOs and civil society to develop a program to train and empower women in planning and budgeting at the village level, and also piloting an approach to improve frontline service delivery in participating village government (approx. 60 districts). Component 2: Promoting Participatory Village Development. This component will continue to strengthen participation and social accountability in village governance systems by leveraging systems of capacity support within the Ministry of Village (MoV) for facilitators as well as for several other programs that support community empowerment and village development. These programs will be supported to be more flexible and adaptable to better respond to needs, and to facilitate innovation and cross-learning for community capacity. The key change of the project restructuring in this component is to drop the activity related to the Village Digital Platform (GoDesa), and include: (i) development training modules related to social accountability, community empowerment and participatory planning and the integration of these modules into the facilitator capacity building program and training rollout; (ii) development of a digitally enabled Learning Management System to transition the training program to a platform-based approach starting in 2022; and (iii) development of a digital marketplace platform, as well as associated technical guidelines and regulations for technical service providers (Penyedia Peningkatan Kapasitas Teknis/P2KTD). Component 3: National Coordination, Monitoring and Policy. This component continues to support improvements and strengthening national coordination and harmonization of regulations, monitoring, and supervision of village development. Under this restructuring, this component will be adjusted and supported: (i) strengthening Coordinating Ministry for Human Development and Cultural Affairs (Kementerian Koordinator Bidang Pembangunan Manusia dan Kebudayaan (Kemenko PMK)’s coordination functions and roles for Village Law implementation; and (ii) development of a national strategy for the improved implementation of Village Law. The Government of Indonesia will finance the Integrated Village Data System, and strategic evaluation and leadership for national policy making. The previous Component 3 of the project, entitled Village Performance Awards (previously Component 3 as per project legal agreement) is being dropped from the loan, as the component did not finance any activities. There will be no further potential indirect impacts related to the possible associated activities that would warrant further assessment and all triggered safeguard policies is no longer applicable for this component. Partial Cancellation. The restructuring will include a partial cancellation of the loan proceeds. No changes to the disbursement arrangements are being sought. An updated financing table is provided below. The World Bank RESTRUCTURING ISDS Institutional Strengthening for Improved Village Service Delivery (P165543) Table 1: Changes to Financing Allocations Component Original Allocation Revised Allocation (US$ million) (US$ million) Component 1 192.5 160.0 Component 2 102.5 85.5 (Dropped component on Village 0.0 - Performance Awards) Component 3 5.0 2.5 Total 300.00 248.0 . 4. PROJECT LOCATION AND SALIENT PHYSICAL CHARACTERISTICS RELEVANT TO THE SAFEGUARD ANALYSIS (IF KNOWN) The overall project implementation continues to be delayed as no activities have commenced in the first two-years of project implementation. The project is expected to target all 74,965 villages in Indonesia, across 380 rural districts in the country with various physical characteristic from coastal and low-land areas to inland/highland areas. Many villages are in remote and small islands whereby access can be a challenge. The Project involves four key line ministries, i.e., MoHA, MoV, Bappenas and Kemenko PMK, as well as various stakeholders at provincial, district, sub- district, and village levels. As the Project is targeted to benefit all villages in the country, it is anticipated that IPs might presence in some villages, and therefore might be affected (positive and negative) by the Project. World Bank IPs Screening Study (2010) indicates that potential IPs presence are geographically distributed in 174 districts (30 provinces) out of about 434 total districts in the country (list of districts where IPs would be potentially presence is included in the Annex of the Project’s ESMF). The presence of the IPs needs to be verified and confirmed in the field once the Project is implemented in the villages, particularly in the 174 districts where IPs presence were initially identified. The proposed project activities will not involve any physical investment or preparation of any plans that would lead to the implementation of physical investment or activities involving downstream environmental and social impacts and risks. However, activities on the establishment or development of e-platform for digital marketplace and e-learning platform as well as strengthening data base system at the Central Level (CPMU and Co-CPMU/CPIUs) will involve the management of electronic wastes (e-waste) which are classified as hazardous waste in Indonesia. The Government has procedures and protocols to dispose any Government assets (including the IT hardware registered in the CPMU and Co-CPMU/CPIUs’ asset) and hazardous wastes or equipment that is considered as hazardous, such as IT hardware. The ESMF has included the e-waste disposal procedures and protocols which was developed based on the Indonesia regulations on hazardous waste management as well as the WBG Environmental, Health, and Safety (EHS) Guidelines on Hazardous Materials and Waste Management. The World Bank RESTRUCTURING ISDS Institutional Strengthening for Improved Village Service Delivery (P165543) 5. ENVIRONMENTAL AND SOCIAL SAFEGUARDS SPECIALISTS ON THE TEAM Indira Dharmapatni, Social Specialist Krisnan Pitradjaja Isomartana, Environmental Specialist Hani Maisarah Binti Mohamad, Environmental Specialist SAFEGUARD_TABLE 6. SAFEGUARD POLICIES TRIGGERED Safeguard Policies Triggered Explanation Under this project restructuring: (i) Component 1 will continue to support a digitally enabled learning management system, as well as a village data system; and (ii) Component 2 supports the development of a digital marketplace for capacity services and a digital innovation platform for villages. Anticipated potential environmental impacts from these investments would be in the form of electronic waste (e- waste) due to the expansion of the existing and/or purchase of information and communication infrastructure required including hardware, software, design, and upgrading data centers (Prodeskel and Siskeudes). Expansion of the existing and/or new installation of IT hardware would take place in MoHA. E-waste is anticipated relevant to the disposal of old/unwanted electronic equipment from the current system or future disposal of the equipment Environmental Assessment (OP) (BP 4.01) Yes when they are no longer needed. E- waste is categorized as hazardous wastes which need proper disposal management. The Project has developed a protocol to manage e-waste disposal as part of the ESMF. The project is no longer financing the development of a digital platform in MOV (GoDesa) or an integrated information & data system (InfoDesa) in Bappenas. Given the nature of the activities explained in the Project Description, it is clear that Components 1, 2, and 3 will not involve any direct physical investment, nor will support the preparation of any plan that would lead to the implementation of physical investment or activities involving downstream environmental and social impacts and risks. The Project’s funds will not be used, in anyway, to prepare any village plans, and/or the design and implementation of subprojects that are The World Bank RESTRUCTURING ISDS Institutional Strengthening for Improved Village Service Delivery (P165543) solely financed by the Government. Having said this, however, the Project provides an opportunity to mainstream the objectives, principles and requirements specified in and consistent with the OP 4.01 and the EHS Guidelines into the improved manuals, guidelines, training modules, Terms of References for the facilitators and monitoring and supervisory team/unit, and into the awareness training and improved capacity building delivery of the village governments. The TORs for the manuals, guidelines and training modules will be shared to the Bank’s safeguards specialist for review. For instance, in identifying natural habitats in the village planning/manuals/training modules such as wetland, peatland, forest boundaries and to preventing them from conversion and degradation. Also, in identifying climate change impacts and identifying opportunities for mitigation and improved resilience at village level in accordance with the SDGs goal 13 and 14 that have been implemented in the existing climate resilience village program. If relevant, to consider also incremental and cumulative impacts from ongoing development planning at the village level and their environmental and social implications, in improving stakeholder engagements, inclusion of vulnerable groups and gender as well as complaint handling system. Component 1, 2, 3 triggers OP 4.01 as the mainstreaming will be consistent with this policy’s objectives, principles, and requirements. Government counterpart contribution in the form of expected budget allocations during the Project period will contribute to the village development and capacity building activities, estimated partial costs for facilitators staff, management costs, and incremental operating costs for the continued implementation of village development activities. These activities will adopt the improved manuals, guidelines, training modules, Terms of References for the facilitators and monitoring and supervisory team/unit, and improved awareness training and improved capacity building delivery of the village governments that have mainstreamed the objectives, principles and requirements specified in and consistent with the OP 4.01 and the EHS Guidelines as explained above. Allocated The World Bank RESTRUCTURING ISDS Institutional Strengthening for Improved Village Service Delivery (P165543) Government budget will ensure that overall Project management, training for village governments, facilitators, PTPD at the sub-district level, monitoring and supervision by the Project apparatus at all levels, development of integrated information management system, etc., will take place using the improved manuals, guidelines, training modules etc. In conclusion, the Project provides an upstream intervention through the above-mentioned mainstreaming to ensure that overall village law implementation will be consistent with the objectives, principles and requirements specified in the OP 4.01. The previous Component on Village Performance Awards will be dropped from the loan and there will be no further potential indirect impacts related to the possible associated activities that would warrant further assessment. Performance Standards for Private Sector The Project is not supporting private sector No Activities OP/BP 4.03 activities as defined under the policy. The Project will not finance activities that involve significant conversion or degradation of critical natural habitats or natural habitats. The Project provides an opportunity to mainstream the objectives, principles and requirements specified in and consistent with OP 4.04 into the improved manuals, guidelines, training modules, Terms of References for the facilitators and monitoring and supervisory team/unit, and into the awareness training and improved capacity building delivery of the village governments. Mainstreaming covers, for Natural Habitats (OP) (BP 4.04) Yes instance, in identifying potential natural habitats presence in the villages such as wetland, peatland, forest boundaries and developing a system in preventing natural habitats from conversion and degradation. Component 1, 2, 3 triggers OP 4.04 as the mainstreaming will be consistent with this policy’s objectives, principles, and requirements. The previous Component on Village Performance Awards will be dropped from the loan, so potential risks to natural habitat from the performance grant proceeds at village level no longer exist. The Project will not finance activities that involve Forests (OP) (BP 4.36) Yes conversion or degradation of critical forest areas or natural forests as defined under the policy. The The World Bank RESTRUCTURING ISDS Institutional Strengthening for Improved Village Service Delivery (P165543) Project is not intended for commercial plantation and there is no Project component to improve the forest function. Improved system supported by the Project under Components 1, 2, and 3 will take into considerations the objectives, principles and requirements of critical forest areas and natural forest. The Project provides an opportunity to mainstream the objectives, principles and requirements specified in and consistent with OP 4.36 into the improved manuals, guidelines, training modules, Terms of References for the facilitators and monitoring and supervisory team/unit, and into the awareness training and improved capacity building delivery of the village governments. Mainstreaming covers, for instance, in identifying of forest types and boundaries and its functions. Component 1, 2, and 3 trigger OP 4.36 as the mainstreaming will be consistent with this policy’s objectives, principles, and requirements. The previous Component on Village Performance Awards will be dropped from the loan, consequently the potential risks to deforestation or significant degradation or conversion to forest from the performance grant proceeds at village level no longer exist. The Project will not procure or use any pesticide or support activities that may lead to the use and/or a Pest Management (OP 4.09) No significant increase in the use of pesticide. The negative list will include this provision The Project will not affect or involve any physical cultural resources. The Project will not finance any sub-project that affects or involves physical cultural resources. The Project provides an opportunity to mainstream the objectives, principles and requirements specified in and consistent with OP 4.11 into the Physical Cultural Resources (OP) (BP 4.11) Yes improved manuals, guidelines, training modules, Terms of References for the facilitators and monitoring and supervisory team/unit, and into the awareness training and improved capacity building delivery of the village governments. Mainstreaming covers, for instance, in identifying potential physical cultural resources in the village. Component 1, 2, 3 triggers OP 4.11 as the The World Bank RESTRUCTURING ISDS Institutional Strengthening for Improved Village Service Delivery (P165543) mainstreaming consistent with the policy’s objectives, principles, and requirements. The previous Component on Village Performance Awards will be dropped from the loan. hence this Policy is no longer applicable for this component. The Project covers all villages nation-wide, therefore, it is expected that some villages would have potential IPs presence, affected and/or benefit from the Project. The Project provides an opportunity to mainstream the objectives, principles and requirements specified in and consistent with OP 4.10 into the improved manuals, guidelines, training modules, Terms of References for the facilitators and monitoring and supervisory team/ unit, and into the awareness training and improved capacity building delivery of the village governments. An IPPF has been prepared in the ESMF, the objectives, principles and requirements specified in the IPPF will be included in the mainstreaming activities under Component 1, 2, and 3. Special attention will also be given for IPs community under OP 4.10. Social sustainability for Components 1, 2 and 3 will also include measures Indigenous Peoples (OP) (BP 4.10) Yes to enhance the inclusion of benefits to IPs and the delivery of culturally appropriate benefits through the strengthening of the existing systems and tools (for instance, concerning training, capacity building, knowledge management, regulations, and M&E). The Project will consider include a more pro- active approach to IPs inclusion and development benefits through a more pro-active targeting of IPs communities, additional supports (TA/PD) in areas with IPs, a broader menu of eligible investments for IPs, monitoring and evaluation of IPs participation and benefits during project implementation. Results of Project monitoring and evaluation will be used to improve the capacity building delivery (such as for the PDs and village apparatus) and/or manuals tailored to the needs to increase IPs participation and benefits. The previous Component on Village Performance Awards will be dropped from the loan. Hence this The World Bank RESTRUCTURING ISDS Institutional Strengthening for Improved Village Service Delivery (P165543) Policy (OP 4.10) is no longer applicable for this component. Components 1, 2, and 3 involve strengthening government systems related to supporting Village Law implementation. Components 1 and 2 involve establishment of a digitalized, IT-based tools, development of e-platform and e-services for learning, capacity building, marketplace for capacity services, knowledge management, harmonization, and simplification of manuals, oversight and monitoring and integrated information and data-system management as well as establishment of internet-based, demand-driven marketplace for the village. Given the nature of the activities described under Components 1, 2, and 3 will not involve any direct physical investment, nor will support the preparation of any plan that would lead to the implementation of physical investment or activities involving downstream environmental and social impacts and risks. In other words, funds from these three components will not be used, in anyway, to prepare any village plans. Involuntary Resettlement (OP) (BP 4.12) Yes The Project provides an opportunity to mainstream the objectives, principles and requirements specified in and consistent with OP 4.12 into the improved manuals, guidelines, training modules, Terms of References’ for the facilitators and monitoring and supervisory team/ unit, and into the awareness training and improved capacity building delivery of the village governments, for instance, in identifying potential needs of land, developing measures to avoid or minimize land acquisition, in improving stakeholder engagements, inclusion of vulnerable groups and gender as well as complaint handling system. Component 1, 2, 3 triggers OP 4.12 as the mainstreaming will be consistent with the policy’s objectives, principles, and requirements. The previous Component on Village Performance Awards) will be dropped from the loan; hence this Policy (OP 4.12) is no longer applicable for this component. The project will not finance construction and/or Safety of Dams (OP) (BP 4.37) No rehabilitation of dam. The World Bank RESTRUCTURING ISDS Institutional Strengthening for Improved Village Service Delivery (P165543) Projects on International Waterways (OP) The project will not be located in the watersheds of No (BP 7.50) any international waterways. The project is not located in any known disputed Projects in Disputed Areas (OP) (BP 7.60) No areas as defined under the policy. KEY_POLICY_TABLE II. KEY SAFEGUARD POLICY ISSUES AND THEIR MANAGEMENT A. SUMMARY OF KEY SAFEGUARD ISSUES 1. Describe any safeguard issues and impacts associated with the Restructured project. Identify and describe any potential large scale, significant and/or irreversible impacts. Given the nature of the activities explained above, Components 1, 2, and 3 will not involve any physical investment or preparation of any plans that would lead to the implementation of physical investment or activities involving downstream environmental and social impacts and risks. Project activities under Components 1, 2, and 3 involve strengthening the existing data system for oversight and monitoring, development of e-platform and e-services for learning, capacity building, marketplace for capacity services, knowledge management, harmonization and simplification of regulations, oversight and monitoring, and establishment of national coordination platform. Anticipated potential environmental impacts would be in the form of electronic waste (e-waste) due to the expansion of the existing and/or purchase of information and communication infrastructure required including hardware, software, design, and upgrading data centers. Expansion of the existing and/or new installation of IT hardware would take place in the CPMU and CPIUs. The Project has developed a protocol to manage e-waste disposal to manage its potential impacts as part of the ESMF. The Project provides an opportunity to mainstream objectives, principles and requirements specified in and consistent with the triggered policies (OP 4.01, OP 4.04, OP 4.36, OP 4.11, OP 4.10 and OP 4.12) and EHS Guidelines into the improved manuals, guidelines, training modules, Terms of References for the facilitators and monitoring and supervisory team/unit, and into the awareness training and improved capacity building delivery of the village governments. Examples of specific strengthening areas are aspects of climate-resilient village adaptation, environmentally friendly agricultural practices, as well as items described in the explanation of OPs above, to support the existing government program to meet the Sustainable Development Goals (SDG) 13 and 14 in establishing the climate resilience village-program. It is expected that from the improved capacity building and institutional strengthening system, the village governments will have a better capacity to prepare various village plans (such as RPJMDes, RKPDes, APBDes) in response to local conditions and village community needs, and that promote efficient and effective spending and ESS friendly, despite the fact that the Project will not finance, in any way, the preparation of any village plans. Government counterpart contribution in the form of expected budget allocations during the Project period will contribute to the village development and capacity building activities, estimated partial costs for facilitators staff, management costs, and incremental operating costs for the continued implementation of village development activities. These activities will adopt the improved manuals, guidelines, training modules, Terms of References for the facilitators and monitoring and supervisory team/unit, and improved awareness training and improved capacity building delivery of the village governments that have mainstreamed the objectives, principles and requirements specified in and consistent with the OP 4.01 and the EHS Guidelines as explained above. Allocated Government budget will ensure that overall Project management, training for village governments, facilitators, PTPD at the sub-district level, monitoring and supervision by the Project apparatus at all levels, development of integrated information management system, etc., will take place using the improved manuals, guidelines, training modules etc. In conclusion, The World Bank RESTRUCTURING ISDS Institutional Strengthening for Improved Village Service Delivery (P165543) the Project provides an upstream intervention through the above-mentioned mainstreaming to ensure that overall village law implementation will be consistent with the objectives, principles and requirements specified in the OP 4.01. Similar principle also applies for the other triggered policies below (OP 4.04, OP 4.36, OP 4.11, OP 4.10 and OP 4.12). 2. Describe any potential indirect and/or long term impacts due to anticipated future activities in the project area. The Project does not envision potential indirect and/or long-term impacts. However, anticipation was made particularly on e-waste disposal. CPMU and CPIUs need to be educated and made aware of about the danger of this particular waste and it should be disposed properly in the dropping point facilitated by the Government/local government, or licensed third-party agencies. The previous Component on Village Performance Awards will be dropped from the loan and there will be no further potential indirect impacts related to the possible associated activities that would warrant further assessment. 3. Describe any potential alternatives (if relevant) considered to help avoid or minimize adverse impacts. N/A 4. Describe measures taken by the borrower to address safeguard policy issues. Provide an assessment of borrower capacity to plan and implement the measures described. The Project has developed an Environmental and Social Management Framework (ESMF) in 2019 to mainstream the objectives, principles, and requirements of the environmental and social safeguards to strengthen the activities under Component 1, 2, and 3, and the previous component on Village Performance Awards. The original ESMF has been updated to reflect the changes due to Project restructuring. The tools in the annex such as screening tools, UKL UPL format etc., can still be used to mainstream these aspects into component 1,2 and 3 activities. There will be no additional environmental and social impacts and E&S objectives, principles, and requirements that need to be mainstreamed in the Project due to the proposed restructuring. Thus, the objectives, principles and requirements as specified in the ESMF remain consistent with the triggered OPs which will be continuously integrated in the activities under Components 1, 2, and 3. The lead implementing agencies, MoHA as CPMU and MoV as Co-CPMU play the main roles in mainstreaming the E&S, and both agencies have involved in the PNPM Rural project and understand the importance of environmental and social sustainability aspects in the implementation of project as well as in broader term of the implementation of Village Law. In addition, in 2012, MoHA as CPMU has experienced in safeguard implementation by establishing environmental and social practical guidance book for National Program for Independent Community Empowerment (Program Nasional Pemberdayaan Masyarakat Mandiri/PNPM). Also, several capacity building activities such as facilitator strengthening were conducted during the PNPM project. Under the current system, safeguard implementation arrangement at the district level is the responsibility of the Local Environmental Agency for environment and Local Planning Agency for coordinating the social aspect. Whereas the “Dinas Pemberdayaan Masyarakat dan Desa� (Local Agency on Community and Village Empowerment) is responsible for supporting and supervising the villages including development and the environmental and social aspects. At the village level, the Section of Governance under the Head of the village is responsible for overseeing and managing environmental and social issues. These institutions manage environmental and social aspects in accordance with the Government Laws and Regulations. It is expected that future performance in managing environmental and social issues would be improved through the capacity strengthening with the guidelines and training modules that The World Bank RESTRUCTURING ISDS Institutional Strengthening for Improved Village Service Delivery (P165543) have mainstreamed the objectives, principles and requirements as specified in the ESMF. The roles of village facilitators in making this happen will be key to strengthen the management of environmental and social issues at the village level. Currently, the Project is experiencing delays in the implementation of several activities, including the development the learning management system and guidelines and training modules under Component 1. Post restructuring, the MoHA, as CPMU, will accelerate the recruitment of E&S Specialist, which has been delayed due to the procurement of National Management Consultant (NMC) package. The main tasks of the consultant will include: (a) developing the guidelines for E&S management, (b) developing training modules on E&S and delivering training for P3PD staff, local governments, local consultants, and facilitators, and (c) ensuring the inclusion of E&S aspects in the management information system. The Project will continue to include and mainstream the E&S objectives, principles and requirements specified in the triggered OPs as reflected in the ESMF in Component 1, 2, and 3. The updated ESMF covers principles, procedures, requirements, and organizational arrangements for managing environmental and social impacts and risks, strategy for capacity building to implement the ESMF, GRM, disclosures, results of ESMF’s public consultations, monitoring and budget. An e-waste disposal protocol has been developed and included in the ESMF. The draft updated ESMF has been virtually consulted with all project management staff and PIUs consultants on March 24, 2022. It was confirmed that the objectives, principles, and requirements of the triggered environmental and social safeguard policies updated ESMF remain relevant to the modified activities under Component 1,2 and 3 and will continue to be mainstreamed in the Project guidelines, manuals and training modules for the respective local government staff and facilitators. During Project implementation, the MoHA and MoV are expected to carry out awareness environmental and social sustainability ESS) training for its management staff, i.e., CPIUs at national, provincial and district levels, as well as for the TAPMD (esp. TA-ID), PTPD, officials of DPMD, and District Inspectorate (new), provincial satker, and technical training for village facilitators and local village facilitators. In addition to training provided to the PTPD and PD as well as to the village apparatus with modules and training delivery that have mainstreamed the ESS particularly the objectives, principles and requirements of the triggered OPs, the Project needs to (1) include E&S aspects in the digital platform/tools developed by the implementing agencies; (2) strengthen the monitoring and supervision activities by including monitoring indicators representing the inclusion of ESS sustainability; (3) include the district environmental agency (DEA) to provide awareness and capacity training to the district inspectorate, PTPD (at the sub-district level) on the ESS; and (4) include the ESS sustainability aspects in the monitoring and supervision activities to villages carried out by the PTPD. 5. Identify the key stakeholders and describe the mechanism for consultation and disclosure on safeguard policies, with an emphasis on potentially affected people. Key Project’s stakeholders involved in the mainstreaming the environmental and social sustainability (ESS) aspects especially the objectives, principles, and requirements of the triggered OPs in the capacity building and institutional strengthening of the Village Law implementation are CPMU/Co-CPMU/CPIUs of the MoHA, MoV, Bappenas and Kemenko PMK; provincial PIUs, district PIUs, sub-districts and village administration and community. Other stakeholders include the regional experts (Tenaga Ahli), village facilitators, and local village facilitators hired by the MoV as well as village communities. The Project carried out public consultations for the original ESMF on 14-15 January 2019 attended by all key line ministries mentioned above. As the nature of the Village Law implementation is community-based at the village level, the mainstreamed ESS aspects particularly the objectives, principles and requirements of the triggered OPs in various The World Bank RESTRUCTURING ISDS Institutional Strengthening for Improved Village Service Delivery (P165543) manuals and training materials for the village facilitators, local village facilitators and village apparatus will be adopted by them during the preparation and implementation of the RPJMDes (village mid-term plan), RKPDes (village annual plan), APBDes (village annual budget) and activity plan. The manuals which have mainstreamed the ESS aspects particularly the objectives, principles and requirements of the triggered OPs will be used as references during the consultations with the villagers in preparing and implementing such plans. As part of the Project restructuring, the ESMF has been updated and consulted with all project management staff including PIUs consultants on March 24, 2022. The updated ESMF will be disclosed in MOHA and MOV’s websites, as well as in the World Bank website. On Grievance Redress Mechanism (GRM), the project use the existing complaint handling venue of SP4N LAPOR!, a national complaint handling system managed by the MenPANRB which is connected with 34 ministries, 96 central agencies and 493 local governments in the country. The system is active and publicly accessible through http://kemendagri.lapor.go.id/. The Project is planning to utilize the current complaint handling venue and moving forward the CPMU (MoHA) plans to (i) assign a dedicated staff (with support from consultant under NMC) to manage complaints related to the P3PD; (ii) develop the Standard Operation Procedure (SOP) that sets clear procedures and mechanisms on complaint handling; and (iii) hire a complaint handling specialist in the NMC to support the Project’s complaint handling management. It is expected that with the Project restructuring, CPMU can accelerate the procurement of the NMC package within which a complain handling specialist will be made available. At the village level, Permendagri No. 114/2014 stipulated that the village should have a complaint handling management system. The head of the village is responsible for managing and processing, as well as in following-up the complaints, and in documenting the complaints as well. This complaint handling management system will benefit the planning process that includes the ESS aspects. DISCLOSURE_TABLE B. DISCLOSURE REQUIREMENTS ENV_TABLE Environmental Assessment/Audit/Management Plan/Other Date of receipt by the Bank Date of submission for disclosure 24-Mar-2022 29-Apr-2022 For Category ‘A’ projects, date of distributing the Executive Summary of the EA to the Executive Directors “In country� Disclosure Country Date of Disclosure Indonesia 09-May-2022 Comments RESETTLE_TABLE Resettlement Action Plan/Framework Policy Process The World Bank RESTRUCTURING ISDS Institutional Strengthening for Improved Village Service Delivery (P165543) Date of receipt by the Bank Date of submission for disclosure 24-Mar-2022 29-Apr-2022 “In country� Disclosure Country Date of Disclosure Indonesia 09-May-2022 Comments INDIG ENOUS_TAB LE Indigenous Peoples Development Plan/Framework Date of receipt by the Bank Date of submission for disclosure 24-Mar-2022 29-Apr-2022 “In country� Disclosure Country Date of Disclosure Indonesia 09-May-2022 Comments COMPLIANCE_TABLE C. COMPLIANCE MONITORING INDICATORS AT THE CORPORATE LEVEL EA_TABLE OP/BP/GP 4.01 - Environment Assessment Does the project require a stand-alone EA (including EMP) report? Yes If yes, then did the Regional Environment Unit or Practice Manager (PM) review Yes and approve the EA report? Are the cost and the accountabilities for the EMP incorporated in the credit/loan? Yes NH_TABLE OP/BP 4.04 - Natural Habitats Would the project result in any significant conversion or degradation of critical Yes natural habitats? The World Bank RESTRUCTURING ISDS Institutional Strengthening for Improved Village Service Delivery (P165543) If the project would result in significant conversion or degradation of other (non- critical) natural habitats, does the project include mitigation measures Yes acceptable to the Bank? PCR_TABLE OP/BP 4.11 - Physical Cultural Resources Does the EA include adequate measures related to cultural property? Yes Does the credit/loan incorporate mechanisms to mitigate the potential adverse Yes impacts on cultural property? IP_TABLE OP/BP 4.10 - Indigenous Peoples Has a separate Indigenous Peoples Plan/Planning Framework (as appropriate) Yes been prepared in consultation with affected Indigenous Peoples? If yes, then did the Regional unit responsible for safeguards or Practice Manager Yes review the plan? If the whole project is designed to benefit IP, has the design been reviewed and NA approved by the Regional Social Development Unit or Practice Manager? IR_TABLE OP/BP 4.12 - Involuntary Resettlement Has a resettlement plan/abbreviated plan/policy framework/process framework NA (as appropriate) been prepared? If yes, then did the Regional unit responsible for safeguards or Practice Manager NA review the plan? FO_TABLE OP/BP 4.36 - Forests Has the sector-wide analysis of policy and institutional issues and constraints NA been carried out? Does the project design include satisfactory measures to overcome these Yes constraints? Does the project finance commercial harvesting, and if so, does it include No provisions for certification system? PDI_TABLE The World Bank RESTRUCTURING ISDS Institutional Strengthening for Improved Village Service Delivery (P165543) The World Bank Policy on Disclosure of Information Have relevant safeguard policies documents been sent to the World Bank for Yes disclosure? Have relevant documents been disclosed in-country in a public place in a form and language that are understandable and accessible to project-affected groups Yes and local NGOs? ALL_TABLE All Safeguard Policies Have satisfactory calendar, budget and clear institutional responsibilities been Yes prepared for the implementation of measures related to safeguard policies? Have costs related to safeguard policy measures been included in the project Yes cost? Does the Monitoring and Evaluation system of the project include the monitoring Yes of safeguard impacts and measures related to safeguard policies? Have satisfactory implementation arrangements been agreed with the borrower Yes and the same been adequately reflected in the project legal documents? III. APPROVALS Anna Charlotte O'Donnell Task Team Leader(s) Bambang Soetono Approved By Safeguards Advisor Ekaterina Romanova 17-Jun-2022 Practice Manager/Manager Janamejay Singh 19-Jun-2022 . Note to Task Teams: End of system generated content