Sing BAPPENAS Environmental and Social Management Frameworks GEF- SCIP December 2021 Abbreviation List AMDAL Environmental Impact Assessment (Analisis Mengenai Dampak Lingkungan) ATR/BPN Ministry of Agrarian & Spatial Planning / National Land Agency (Kementerian Agraria dan Tata Ruang/ Badan Pertanahan Nasional) BAPPENAS Ministry of National Development Planning/National Development Planning Agency (Badan Perencanaan Pembangunan Nasional/ Kementerian Perencanaan Pembangunan Nasional) BAPPEDA Local Development Planning Agency (Badan Perencanaan Pembangunan Daerah) BOQ Bill of Quantity CEDAW Convention on Elimination of Discrimination Against Women CIP Capital Investment Planning CO2 Carbon Dioxide CPMU Central Project Management Unit DED Detailed Engineering Designs DG Director General DKI Special Capital City (Daerah Khusus Ibukota) DPH/HSI Dampak Penting Hipotetik/ Hypothetical Significant Impact EA Executing Agency E&S Environmental and Social ECOP Environmental Code of Practice ESCP Environmental and Social Commitment Plan ESF Environmental and Social Framework ESMF Environmental and Social Management Framework ESMP-(UKL-UPL) Environmental and Social Management Plan (Environmental Management Effort -Environmental Monitoring Effort/Upaya Pengelolaan Lingkungan -Upaya Pemantauan Lingkungan) ESIA Environmental and Social Impact Assessment ESS Environmental and Social Standard FS Feasibility Studies GBV Gender Based Violence GDP Gross Domestic Product GEBs Global Environmental Benefits GEF Global Environment Facility GHG Greenhouse Gases GoI Government of Indonesia GPSC Global Platform for Sustainable Cities GRDP Gross Regional Domestic Product GRM Grievance Redress Mechanism IP Indigenous Peoples IPF Investment Project Financing IPP Indigenous People Plan i IPPF Indigenous Peoples Planning Framework (in ESMF) ILO International Labor Organization Kotaku Urban Slum Upgrading Program KPA AMDAL Assessor Commission (Komisi Penilai AMDAL) LARAP Land Acquisition and Resettlement Action Plan LARPF Land Acquisition and Resettlement Policy Framework LCDI Low Carbon Development Initiative LG Local Government LMP Labor Management Plan MRT Mass Rapid Transportation LVC Land value capture M&E Monitoring & Evaluation MOEF Ministry of Environment and Forestry (Kementerian Lingkungan Hidup dan Kehutanan) MOF Ministry of Finance MOHA Ministry of Home Affairs MPWH Ministry of Public Works and Housing NUDP National Urban Development Project OP Operational Policy (of the World Bank Group) PDO Project Development Objective Permen Minister Regulation (Peraturan Menteri) Perpres President Regulation (Peraturan Presiden) PIU Project Implementation Unit PMC Project Management Consultant OHS/K3 Occupational Health and Safety/ Keselamatan dan Kesehatan Kerja PPK Commitment Making Official (Pejabat Pembuat Komitmen) PPP Public Private Partnership POM Project Operations Manual RDTR Detailed Spatial Plan (Rencana Detail Tata Ruang) RIDF Regional Infrastructure Development Fund RKL-RPL Environmental Management Plan-Environmental Monitoring Plan (Rencana Pengelolaan Lingkungan-Rencana Pemantauan Lingkungan) RPJMD Medium-Term Regional/ Local Development Plan (Rencana Pembangunan Jangka Menengah Daerah) RPJMN National Medium-Term Development Plan (Rencana Pembangunan Jangka Menengah Nasional) RTBL Urban Building and Environmental Plan (Rencana Tata Bangunan dan Lingkungan) RTRW Regional Spatial Plan (Rencana Tata Ruang Wilayah) SCIP Sustainable Cities Impact Project SEA Strategic Environmental Assessment SDGs Sustainable Development Goals SEP Stakeholder Engagement Plan Sekda City/Province Government Secretary (Sekretaris Daerah) SESA Strategic Environmental and Social Analysis ii SK Decision Letter (Surat Keputusan) SKPD/OPD Local Unit Work (Satuan Kerja Perangkat Daerah/Organisasi Perangkat Daerah) SLMP Sustainable Landscapes Management Program SNG Subnational government SPPL Statement of Commitment of Environmental Management and Monitoring (Surat Pernyataan Kesanggupan Pengelolaan dan Pemantauan Lingkungan) TA Technical Assistance TKPPN Inter-Ministerial Urban Steering Committee (Tim Koordinasi Pembangunan Perkotaan Nasional) TOD Transit Oriented Development TOR/KA Term of Reference/Kerangka Acuan TPS Temporary Waste Disposal Site (Tempat Pembuangan Sementara) UHI Urban Heat Island VAC Violence Against Children WB World Bank iii Table of Content ABBREVIATION LIST ................................................................................................................................................. I TABLE OF CONTENT ............................................................................................................................................... IV LIST OF TABLES ....................................................................................................................................................... VI LIST OF FIGURES ....................................................................................................................................................VII 1. INTRODUCTION ................................................................................................................................................ 1 1.1. ESMF Objectives .......................................................................................................................... 1 1.2. Limitations .................................................................................................................................... 2 1.3. ESMF Structure............................................................................................................................. 3 2. PROJECT INTRODUCTION............................................................................................................................... 4 2.1. Project Background ....................................................................................................................... 4 2.2. Project Objectives ......................................................................................................................... 5 2.3. Project Design ............................................................................................................................... 5 2.4. Project Location ............................................................................................................................ 7 2.5. Institutional and Implementation Arrangements ......................................................................... 11 3. POLICIES AND REGULATORY FRAMEWORK .......................................................................................... 16 3.1. The Government of Indonesia Legislation and Regulations ....................................................... 16 3.2. The World Bank Environmental and Social Standards .............................................................. 20 3.3. Gap Analysis on National Policy and the World Bank Environmental and Social Framework . 23 4. ANTICIPATED ENVIRONMENTAL AND SOCIAL IMPACT ..................................................................... 32 4.1. General Assessment .................................................................................................................... 32 4.2. Specific Risks and Impacts ......................................................................................................... 32 4.3. Negative list ................................................................................................................................ 36 5. MITIGATION MEASURES, APPROACHES, AND IMPLEMENTATION ................................................... 38 5.1. Environmental and Social Management Framework Implementation ....................................... 38 5.2. Environmental and Social Management Process ........................................................................ 43 5.3. Monitoring and Evaluation ......................................................................................................... 45 6. STAKEHOLDER AND INFORMATION DISCLOSURE ............................................................................... 46 6.1. Key Stakeholder .......................................................................................................................... 46 6.2. Stakeholder Engagement............................................................................................................. 46 6.3. Information Disclosure and Public Consultation ........................................................................ 47 6.3.1. Information Disclosure ....................................................................................................... 47 6.3.2. Public Consultation ............................................................................................................. 48 7. GRIEVANCE REDRESS MECHANISM.......................................................................................................... 49 8. CAPACITY BUILDING AND FINANCING .................................................................................................... 51 ANNEXES ................................................................................................................................................................... 54 ANNEX 1: LABOR MANAGEMENT PROCEDURES (LMP) ................................................................................ 55 iv ANNEX 2 : CITIES PROFILE .................................................................................................................................... 76 ANNEX 3: PROCEDURE OF SESA BASED ON INDONESIA REGULATIONS AND WB’S ESSS .............. 115 ANNEX 4 : TOR FOR SESA/KLHS ........................................................................................................................ 117 ANNEX 5: INPUTS FOR TOR FOR CIP................................................................................................................. 124 ANNEX 6: TOR FOR E&S DOCUMENT PREPARATION................................................................................... 127 ANNEX 7: OUTLINE FOR AMDAL....................................................................................................................... 142 ANNEX 8: CONTENT FOR UKL-UPL ................................................................................................................... 147 ANNEX 9: FORMAT FOR SPPL ............................................................................................................................. 149 ANNEX 10: TOR FOR TRAFFIC IMPACT ASSESSMENT ................................................................................ 150 ANNEX 11: REVIEW PROCEDURE OF FEASIBILITY STUDY DOCUMENTS.............................................. 152 ANNEX 12: COMPLAINT PROCEDURE THROUGH LAPOR........................................................................... 154 ANNEX 13: INDIGENOUS PEOPLES PLANNING FRAMEWORK (IPPF) ........................................................ 155 ANNEX 14: LAND ACQUISITION AND RESETTLEMENT PLANNING FRAMEWORK (LARPF) .............. 164 ANNEX 15: CHANCE FINDS PROCEDURE......................................................................................................... 196 ANNEX 16: INITIAL SUB-PROJECT LIST ........................................................................................................... 198 ANNEX 17: PUBLIC CONSULTATION FOR ESMF…………………………………………………………………………………… 202 v List of Tables Table 1 National Regulations Table 2 The World Bank Environmental and Social Standards (ESS) Table 3 Summary of Gap Analysis on National Policy with World Bank Environmental and Social Framework Table 4 Environmental & Social Risk Impact Approach Table 5 Environment and Social Mitigation Measure Table 6 Initial Environmental and Social Topics for Capacity Building Table 7 Financial Plan vi List of Figures Figure 1 Overall Relation of Project Components Figure 2 Project Institutional Arrangements Figure 3 The Environmental and Social Management Process vii 1. INTRODUCTION This document represents the Environmental and Social Management Framework (ESMF) for an upstream project activity entitled the Sustainable Cities Impact Project (SCIP) financed by Global Environment Facility (GEF) and will be implemented in Indonesia by the BAPPENAS. The Project will start implementation from early 2022 to 2026. This ESMF is a living document that lays out principles and guidelines to ensure that the environmental and social (E&S) risks and impacts are taken into account in the implementation of project activities, and measures to avoid, reduce and mitigate the potential E&S risks and impacts will be carried out throughout project implementation with reference to. Where impacts are inevitable, the project will ensure that processes to minimize and/or mitigate such risks and impacts are in place as early as possible during the design stage to greening the investment by exploring alternatives of environmentally friendly activities. The ESMF guides project implementers to establish and/or improve and mainstream processes to ensure that activities financed by the SCIP are sustainable, inclusive, and reflect local contexts and needs. The ESMF seeks to maximize positive impacts and benefits of the project by anticipating stakeholder’s needs, issues and responses and ensuring stakeholder input is incorporated into design and mitigation. The ESMF lays out processes for comprehensive monitoring and evaluation, as well as regular reporting. The ESMF also provides guidance to future subprojects that may be developed as the results of the Technical Assistance (TA) through capacity building efforts and strengthen the E&S risk management aspect. This ESMF is developed mainly to guide the upstream activities directly supported by SCIP, but also provided Term of Reference (TOR), outlines, tools and/or guidelines of relevant E&S requirements for preparation of the potential downstream investments (subproject) and structured guidelines for specific infrastructure financing mechanisms propose criteria for identifying environmentally feasible options. Capacity building plan to screen, assess and implement environmental and social safeguards instruments is also provided in the ESMF including with the proposed budget. 1.1. ESMF Objectives The project aims to strengthen environmental and social considerations in city planning, prioritization of capital investment, and in financing of potential sub-projects, in particular biodiversity and climate change mitigation and adaptation considerations, envisaged to generate E&S benefits. The ESMF will outline necessary processes, procedures, and measures 1 as well as support mechanisms needed to ensure that the activities financed under the SCIP are well designed and implemented in a manner that avoids and, if inevitable, minimizes and mitigate potential adverse environmental and social risks and impacts, including on the marginalized and poor; and ensure that all activities and mitigation comply with Government of Indonesia’s policies and the World Bank Environmental and Social Framework (ESF). The processes to meet the objectives are following below: ● Identify and define of proposed activity typologies that are eligible to be supported under the SCIP through a screening process. ● Identify and assess the potential E&S risks and impacts of project and sub-project activities. ● Establish clear standards, procedures, and methodologies to guide E&S screening and subsequent risk assessment and classification. ● Establish standards and procedures for management of identified risks and impacts of project and sub-project activities according to the mitigation hierarchy. ● Specify appropriate roles and responsibilities of identified stakeholders and outline the necessary reporting procedures for E&S management, monitoring & evaluation. ● Determine the training, capacity building, and technical assistance needed to implement the provisions of the ESMF and associated instruments successfully as well as structure budgeting plan during project implementation. ● Establish a budget for the implementation of the ESMF and associated instruments. 1.2. Limitations This ESMF is developed mainly to guide the upstream activities directly supported by SCIP and does not intend to provide specific action plans for the management of E&S aspects of the future subprojects (i.e. downstream investments). As a Technical Assistance project, the ESMF provides instruments and recommendations for potential downstream investments that are expected to be implemented by the future subprojects’ implementer, however the implementation will not be monitored by the SCIP as these are beyond SCIP’s scope. Furthermore, since SCIP’s geographical focus will be in five selected cities, public consultations for the project including its environmental and social management approach i.e. the ESMF will be undertaken at the national level and selected cities namely DKI Jakarta, Semarang (Central Java Province), Balikpapan (East Kalimantan Province), Palembang (South Sumatera Province), and Bitung (North Sulawesi Province). 2 1.3. ESMF Structure The ESMF serves as the overarching guideline for the management of E&S aspects of the project. The ESMF is outlined as follows: • Chapter 1 provides ESMF introduction that consists ESMF objectives, limitation and ESMF Structure. • Chapter 2 provides the project background, project objectives, project design, location, institutional and implementation management • Chapter 3 contents WB ESSs and GoI laws and regulations, and gap analysis. • Chapter 4 contents general assessment, profile of cities beneficiary, specific E&S risks and impact approach, and negative list. • Chapter 5 provides E&S management framework, including guidance on the screening of sub-projects and their activities, and a directory of tools provided in the ESMF. • Chapter 6 is contained keys stakeholder engagement and information disclosure proposed for the project and consultation. • Chapter 7 the Grievance Redress Mechanism (GRM). • Chapter 8 contents Capacity Building. • Annexes: Labor Management Procedures; Cities Profile; Procedure of SESA based on Indonesia Regulations and WB’s ESSs; TOR for SESA; Inputs for TOR for CIP; Environmental and Social Checklist; TOR for E&S Document Preparation; Outline for AMDAL; Content for UKL-UPL; TOR for Traffic Impact Assessment; Review Procedure of Feasibility Study Documents; Complaint Procedure through LAPOR; Indigenous Peoples Planning Framework (IPPF); Land Acquisition and Resettlement Planning Framework (LARPF); Chance Finds Procedure; Initial Sub-Project List. 3 2. PROJECT INTRODUCTION 2.1. Project Background Indonesia’s rapid urbanization has placed cities and their peripheries as a key driver of Indonesia’s economic growth. However, its benefit cannot be fully obtained due to the infrastructure investment gaps, lack of pollution management, and urban congestions. In addition, many urban areas suffer from frequent flooding, extensive land subsidence, and landslides due to insufficient development control that has allowed for development in unsuitable locations. Urban sprawls and expanded urban footprints within environmentally sensitive areas led to a significant loss of green urban infrastructure that negatively impacts urban biodiversity. Climate change further amplifies existing challenges to urban sustainability, which Indonesia is highly vulnerable to, such as flooding, drought, heat waves and associated incidents such as sea level rise and infectious diseases. To pursue sustainable urban development, Indonesian cities need to adopt an integrated approach to mainstream environmental and climate change considerations at the planning level and project level that address these considerations. At the planning level, there is still significant room to increase alignment between development visions and spatial planning through integrated approaches and to strengthen attention to spatial prioritization of infrastructure investments that also incorporate environmental and climate change considerations. At the project investment level, Indonesian cities need a mix of investments in physical infrastructure and nature-based solutions in key areas, such as circular economy and waste management, stormwater and wastewater management, energy efficiency and renewable energy, sustainable transport, and urban biodiversity, to deliver the environmental and climate benefits for cities. For these sub-projects to be of high quality, they need to identify better locations (such as areas which are less prone to disaster risks and align with key development priorities) and prepare high-quality subproject preparation documents (e.g. Masterplan, Pre FS, Feasibility Studies (FS), Detailed Engineering Design (DED), Urban Designs, Environmental and Social Impact Assessment (ESIA), etc.). To support the above initiative of the Government of Indonesia (GOI), the Global Environment Facility (GEF) and The World Bank will provide support for the Sustainable Cities Impact Project (SCIP) in Indonesia. 4 2.2. Project Objectives The Project Development Objective (PDO) is to integrate biodiversity and climate-smart management in the preparation of development plans and priority capital investments of participating cities, including financing modalities. 2.3. Project Design The Project’s design is based on three key building blocks that correspond to three main project components: i) integrated development planning, where area based and corridor-based approaches are used for spatial planning and identification of pipeline capital investments to boost climate change (mitigation and adaptation) and environmental outcomes, including those related to biodiversity, from urban development, ii) preparing investment sub-projects that are area-specific (based on the first building block result), tailored to city needs, and integrate nature-based solutions within the urban sustainability menu of investment options, iii) preparing a structured guidelines, credit assessment as well as capacity building on infrastructure financing to help cities identify innovative financing approaches to supplement public sector investment. The three building blocks are supported by two cross-cutting project components on policy dialogue and project management (Figure 1). Figure 1. Overall Relation of Project Components 5 Component 1: Integrated spatial planning and urban management: This component will promote integrated development planning at national and city levels: (i) At the national level will support urban development plans that are environmentally sound; (ii) At the city level will support to develop city-level and area/corridor level development plans that enhance the inclusion of environmental and climate change considerations. Activities financed under this component include Strategic Environmental and Social Assessments (SESA), capital investment plans for priority areas and corridors, and capacity building of local governments and local urban planners to utilize robust analytics, (such as carrying capacity analysis) and integrate community level planning tools and approaches in city-level and area/ corridor level development plans. Component 2: Catalysing integrated investment in priority areas: This component will support cities to prepare sub-projects within the priority corridors and areas identified in Component 1. Focus will be on projects that enhance environmental and climate change outcomes, including GEBs on mitigation and biodiversity. The sub-projects will focus on five sectors: circular economy and waste management, stormwater and wastewater management, energy efficiency and renewable energy, sustainable transport and urban biodiversity. The Component aims to identify investments specific to the needs of each city. The outputs that could be financed under this component include Feasibility Studies (FS), sectoral readiness criteria, Detailed Engineering Designs (DED), Urban Designs, Environmental and Social Impact Assessments (ESIA), project-level biodiversity reports, etc. There will be no physical downstream infrastructure activities financed as part of this Component. Component 3: Piloting innovative financing approaches and instruments: (i) provides support for identification of alternative and innovative financing modalities through a combination of loans, grants, and private sector involvement, such as public-private partnership (PPP) for projects within the priority corridors and areas identified in Component 2; (ii) capacity building of local governments to access alternative sources of finance for environmentally friendly financial investments beyond national transfers. Cities will receive support to identify detailed criteria and indicators for selecting suitable projects for private sector finance, and to identify and design of appropriate land-based, mechanisms, such as land value capture (LVC) instruments, marine-based mechanisms, such as municipal blue bonds, as well as grants applicable to the context of secondary cities in Indonesia; (iii) participating cities 6 will also be assisted to self-evaluate their credit risk, predict their ability to pay back obligations, and conduct an implicit assessment of their financial robustness. Component 4: Policy dialogue and knowledge management: This component will support the engagement of relevant stakeholders in series of policy dialogue and knowledge exchange events to promote environmentally friendly behavioral change in the public and urban transformation. The Inter-Ministerial Urban Steering Committee (namely, TKPPN) will also be leveraged to deepen the policy dialogue. Funding for the mandatory global knowledge sharing events that project cities and national governments will be expected to attend under GEF-7 is also included. Activities for community related behavior change will also be financed, for instance activities around the solid waste agenda. A collaborative process with stakeholders will be able to inspire recommendations and actions at local, national and regional levels to advance urban sustainability agenda. Materials developed through this project, such as technical manuals, will be shared with non-project cities to share knowledge, thus contributing to maximizing the impact of this project e.g. green investment strategy, project preparation, etc. This Component is also designed to promote knowledge sharing between Indonesian cities and link with the LCDI, as well as the GEF’s Global Platform for Sustainable Cities (GPSC). Component 5: Project management: The objective of this component is to ensure effective and efficient implementation of the project activities to achieve the PDO. To achieve this, the Component will support the Central Project Monitoring Unit (CPMU) and all Project Implementing Units (PIUs) on overall project management and implementation, including technical, fiduciary, procurement and environmental and social safeguards, and monitoring and evaluation, and reporting aspects. 2.4. Project Location This project will support the five cities of DKI Jakarta, Semarang (Central Java Province), Balikpapan (East Kalimantan Province), Palembang (South Sumatera Province), and Bitung (North Sulawesi Province) to mainstream environmental and climate change considerations in urban planning, capital investment prioritization, and financing of high-quality sub-projects. These cities, representing a combination of large, medium, and small-sized cities with diverse geographies and ecosystems and varying capacities, are facing critical challenges related to environmental management and climate change from limited use of integrated urban planning 7 approaches. These project’s activities are designed to build capacities of these cities to address the challenges through integrated approaches that bring transformational impacts in urban development and deliver Global Environmental Benefits (GEBs) on biodiversity and climate change. Based on the 2020 Population Census, Jakarta has the population of 10,562,088 inhabitants with the growth rate of 0,92% per year. The population density in Jakarta reached 16,000 people/km2 with Central Jakarta as the highest (20,000 people/km2) and followed by West Jakarta by 19,000 people/km2. About 83% of local workers work in services sector, particularly trade and transportation sector. A quarter of unemployed were high school graduates or equivalent. The unemployment rate in Jakarta in 2020 reached 10.95% with labor force participation rate reached 63.81%. The number of poor people of Jakarta in 2020 were 480,860 people, many are living in slums with basic utilities, lack of proprietary rights, inadequate access to clean water or sanitary facilities. Slums and informal settlements are commonly found along the river basin, railway, and in the northern part of the province where the Tanjung Priok Harbor is located. As the capital of Central Java province, Semarang attracts migrants from the surrounding areas and has population of 1,653,524 based on 2020 census. The number of poor people increases from 71,970 people in 2019 to 79,580 people in 2020 with the majority are living in the coastal area. Downtown Semarang were the most densely populated area with approximately 11,000 people per km2. In 2018, there were 121 km2 of slums area with limited access to basic services–access to clean water were mostly through groundwater which was scarce during dry season, and no proper waste disposal (most garbage were either thrown up in empty spaces or burned). Less than a third of slums dwellers have access to private latrines, while the rest depends only on communal latrines. Approximately 72% of local labors were employed in service industries. Unemployment reached 9.57% in 2020––nearly half of them were high school graduates, while a quarter of unemployed were university graduates. Bitung is located in North Sulawesi Province with total population of 225,134 people based on 2020 census, increased by 1.78% compared to 2019. Out of this number, 6.41% is living below poverty line. It is reported that 102,600 people or 61.73% of the population falls under working age category; however only 89.77% of these are working while the 10.23% are categorized as open unemployment. Two-thirds of local workforce work in service sector and a quarter of its resident is work in industrial processing. 8 Balikpapan is located on the southeastern coast of the island Borneo (Kalimantan) with a total area of 503 km2 and population of 688,318. Balikpapan will become a main hub for future Indonesia New Capital, which is located approximately 104 km to the north. Balikpapan is a center of industrial processing–particularly from the naturally-derived products. The positive population growth along with high economic growth contribute to rapid physical development in the city. With annual population growth rate of 2.06%, Balikpapan’s population is concentrated in Balikpapan Tengah which population density nearly reaches 10,000 people/km2 while city’s average is 1,368 people/km2. Slums area reached 267 ha in 2019 with lack of sanitation is prevalent due to limited space for communal WWTP. Lack of clean water provision is prevailing in Balikpapan due to limited water sources. The number of poor people were 17,020 (2.57% of population) and in 2017, the Gini Ratio of Balikpapan City was 0.32 which indicates that income inequality is low. Almost half of the local workforce in Balikpapan is only high school graduates and those with advanced degree were less than 17% of active workforce. In 2020, unemployment rate in Balikpapan increased to 9%. Despite industry sector dominates local economy, it only absorbed 21% of local labor. Palembang is located on the eastern lowland of southern Sumatera and covers an area of 370 km2 on both banks of Musi River with an estimated population of 1,668,848 people. Palembang is designated as metropolitan area in RPJMN 2020-2024 and includes parts of four administrative districts with a combined population of over 3.5 million people. Ilir Barat Dua, Seberang Ulu Satu, Ilir Timur Satu were the densest district with population density reached 10 to 11 thousand people per km2. Most of slums area are located in Musi riverbanks and its tributaries where crimes and drugs are rampant, and the dwellers comprise of migrants and daily laborers. The number of poor people fluctuates each year before increased to 182,000 people, which was nearly 11% of population and the unemployment rate reached 9.86 in 2020. Before the pandemic, Palembang’s economy steadily rose between 5-6% each year, and in 2020 the growth decreased to -0.25%. Although manufacturing and processing industry make up to a third of Palembang economy, almost 80% of local labor work in service industries. From all five cities, only Balikpapan and Bitung have major land use of protected areas, 52% and 42.67% respectively. Balikpapan is located between lowland primary rainforests and mangrove coastal areas, has major land use of forest with 52% of its area designated as protected areas. The forests in Balikpapan also host 61 protected vegetation species as well as 9 a number of fauna species listed in the IUCN Red List of Threatened Species, among others the critically endangered Bornean orangutan (Pongo pygmaeus) and endangered Müller's gibbon (Hylobates muelleri) and Bekantan (Nasalis larvatus). Similarly, almost half of the area of Bitung is designated as conservation areas. However, massive development of the city from Special Economic Zone (SEZ) status will need to be controlled to not reduce and destroy these biodiversity-rich conservation areas. In addition to the protected forests, nature reserve, natural tourism park and tourism forest areas, Bitung also has an important marine biodiversity since it is part of the Bunaken Marine protected areas management. Bitung coastal and marine areas host 86 species of fish including ancient and rare order species. Biodiversity and natural resources in Bitung are the main economic driver of the city, however, these are at risk due to destructive fishing, coastal and marine pollution from land, and degradation of coastal ecosystems due to mangrove area conversion for coastal development. Palembang and Semarang have similar land use characteristic with mostly built-up areas. Palembang is surrounded by peatlands, palm oil and rubber plantations, and secondary forests, however, it has 62% of built-up areas and is a center for agricultural-industrial processing. Limited protected area in Palembang covers natural reserve, designated protected area, cultural reserve, and natural disaster-prone area and are home of diverse aves family, including the endangered Java Sparrow (Lonchura oryzivora). Semarang land use is dominated by residential areas (44%), followed by the agricultural and industrial areas that are agglomerated in the northeast and northwest of the city. Semarang has a mixture of various ecosystems ranging from mountains and hills to flat land and sea, both urbanized and natural landscape, however, the biodiversity has not been well documented. Some globally significant species were found in Semarang in 2009 but disappear in 2019, for example the endangered Milky Stork (Mycteria cinerea). Both Palembang and Semarang are experiencing uncontrollable land use change and urban sprawl, development encroachment, and land degradation. Jakarta has a built-up urban areas fill over 95% of its provincial boundaries that extends into eight surrounding districts in two neighboring provinces. Jakarta land use is dominated by residential areas (85,6%) while forested areas only cover for 1,101 ha (1.66%), mostly located in East Jakarta with protection forest and conservation area centralized in the coastal area. Jakarta’s limited natural ecosystem has high number of biodiversity, with at least five types of natural ecosystems, including coral reef, seagrass bed, mangrove, coastal ecosystem, and riverine ecosystem, home of the critically 10 endangered sea turtle (Eretmocelys imbricata) and the black-winged starling bird (Acridotheres melanopterus). The above cities have inadequate waste management where most of the solid waste generated are uncollected, unhandled, nor untreated, and the wastewater are untreated and pollutes coastal areas. All participating cities are also prone to disaster, ranging from floods, tidal inundation, landslides, haze, earthquake, and rapid land subsidence. Each city government has green initiatives, such as zero waste, greenhouse gases/climate change regional action plan, smart city masterplan, drainage masterplan, single use-plastics ban, seawall infrastructure projects, and other initiatives. However, these development plans and programs often planned and implemented independently and not integrated with each other, therefore these cities will benefit from an integrated evidence-based spatial planning as well as its potential downstream investments supported and prepared by the project. Detail profile cities are written in the Annex 2. 2.5. Institutional and Implementation Arrangements Overall arrangements: BAPPENAS, represented by Deputy of Local Development and Deputy of Maritime and Natural Resources, is the Executing Agency and will act as the Central Project Management Unit (CPMU). The roles and responsibilities of the executing agency are as follows: hold regular meetings with Project Implementing Units (PIUs) to ensure on-target and on-schedule progress; implement E&S risk management in accordance with Bank policies; manage and report on the Monitoring and Evaluation Framework; and develop, utilize and update the Project Operations Manual (POM) in coordination with PIUs; provide direction to coordination teams at local levels to ensure that the implementation processes remain on track; and request special meetings in the event of implementation challenges that must be resolved at the inter-ministerial level. The existing inter-ministerial coordination committee under TKPPN will be utilized as the national coordination mechanism. The SK (Surat Keputusan, or decree) for the TKPPN states the involvement of 16 ministries of which 8 serve critical roles for urban issues. The TKPPN will convene regularly and provide strategic guidance on the technical aspects during implementation of GEF SCIP, if necessary. The project has several PIUs (e.g. PIU Integrated Planning, PIU Subproject Preparation, PIU Alternative Financing) composed of Echelon 1 levels also within BAPPENAS with their 11 respective directorates in charge of components. Deputy of Local Development, and Deputy of Maritime and Natural Resources will handle Components 1, 4, and 5. Deputy of Infrastructure and Facilities (Sarana Prasarana - Sapras) and Deputy of Financing (Pendanaan) will be responsible for Components 2 and 3, respectively. At the local level, the Local Development Planning Agency (BAPPEDA) and relevant Offices (e.g. Secretary to the City, Public Works, Human Settlements, and/or Environment Offices) will play the coordination role. The PIUs will support the CPMU to achieve the project objective by: ensuring that project activities are implemented according to strategic planning and implementation schedule; overseeing and monitoring the implementation of components and sub-components under the responsibility of each respective PIU; and coordinating sector policymaking with local governments. The PIUs will also ensure that the activity progress is in line with the work plans outlined in the POM and follow the Bank policies for financial, procurement, and environmental and social safeguards. During the implementation, BAPPENAS may form a working unit Secretariat across all PIUs to maintain project progress. Each PIU will be supported in their implementation role by technical consultants, who will be supervised by the PIU staff. The consultants will also be responsible for regularly coordinating with the PIUs on the status of specific packages under implementation. Each PIU will be responsible to procure and manage consultants that will be deployed to the participating cities for each respective activity, if any. Under this project, specific Commitment Making Officials will also be selected (PPK – Pejabat Pembuat Komitmen). Project implementation: The day-to-day project coordination will be managed by CPMU led by the Director of Local Government and Director of Environment both in BAPPENAS. To ensure project robustness in innovation and implementation, a Project Management Consultant (PMC) team will be established to support CPMU. The PMC will consist of professional experts related to urban planning, municipal finance, E&S aspects (e.g. biodiversity, climate resilience, community impact on livelihood, land acquisition and resettlement, workers/community health, etc.), infrastructure, etc. Each PIUs will be established with Echelon II level officials representing various Deputies. During the implementation, BAPPENAS may form a working unit Secretariat across all PIUs to maintain project progress. Each PIUs will be supported in their implementation role by technical consultants, who will be supervised by the PIU staff. The Consultant will also be 12 responsible for regularly coordinating with the PIUs on the status of specific packages under implementation. Each PIUs will be responsible to procure and manage consultants that will be deployed to the participating cities for each respective activity, if any. Under this project, specific Commitment Making Officials will also be selected (PPK – Pejabat Pembuat Komitmen). Details of PPK configuration will be provided in the POM. In terms of staffing, there will be focal points at the CPMU and each PIUs. These focal points will be financed through Component 5 (Project Management) and/or client’s budget. There will be at least four environmental and social focal points at the central level. Local implementation: At the local level, the Local Development Planning Agency (BAPPEDA)/Secretary to the City, as the lead, and relevant key members (e.g. Public Works, Human Settlements, Environment Offices, Finance Unit, etc.) will play the coordination role with CPMU and relevant PIUs at the central level A city coordination team will be established in each city through a Mayoral Decision Letter (Surat Keputusan – SK) and functions under the overall leadership of the City Secretary or BAPPEDA (Local Development Planning Agency), with key team members drawn from relevant offices (e.g. Public Works Office, Environment Office, Finance Unit, etc.). A Mayoral Decision letter will make sure that sufficient staffing and city budget is allocated for this coordination team. Vertical coordination between the five city coordination teams and the CPMU and PIUs will be structured through regular consultations to foster national-local coordination and monitor the implementation of project activities. The POM will detail out roles and responsibilities of the city coordination teams as well as their coordination protocols with the CPMU and other sectoral agencies within the cities. In essence, the city coordination team will provide intense support to CPMU, PIUs as well as project management consultant team (e.g. urban development specialist, municipal finance, environmental specialist, social safeguards, GRM specialist, etc.) to make sure smooth project implementation. Given relatively limited exposure to the Bank’s ESS, the Bank suggest the executing agency (i.e. Bappenas) to design a capacity building program to city officials. The project operation manual (POM) will also provide detail information on how the stakeholder management is documented, tracked and managed. 13 The organogram presented in the Figure 2 below illustrates the project’s institutional arrangements. 14 CPMU PMC PIU 2 PIU 3 PIU 4 PIU 1 Deputy Minister for Infrastructure of Deputy Minister for Development Funding Deputy Minister for Maritime and Natural Resources Deputy Mininster for Regional National Development Development Planning/BAPPENAS Ministry of National Developmen Ministry of National developmnet Planning/Bappenas Planning/BAPPENAS Planning/BAPPENAS Relevant PIC Relevant PIC Deputy Minister for Infrastrcuture Ministry of National Deputy Minister for Development Funding Development Planning/BAPPENAS Ministry of National Development Planning/BAPPENAS Figure 2. Project Institutional Arrangements 15 3. POLICIES AND REGULATORY FRAMEWORK Activities funded by SCIP will be implemented in accordance with the principles of sustainable development, including environmental, social, cultural, and economic considerations, meet to the GoI’s laws and regulations and comply with the applicable World Bank’s Environmental and Social Standards (ESSs), and specific provisions will be including in the ESMF to address any provisions in the World Bank ESSs that are not fully addressed under the Government’s laws and regulations. 3.1. The Government of Indonesia Legislation and Regulations This sub-section describes policies and regulations applicable in Indonesia at the time of ESMF preparation, highlighting those that serve as guidelines for managing E&S impacts relevant to the sectors supported by SCIP. Table 1. National Regulations Environmental Assessment and Permitting: The main laws and regulations governing environmental assessment and permitting in Indonesia include Law No 11/2020 on Job Creation. Environmental Management is written in Article 37 of Job Creation Law No. 11/2020, that article is like summarizing Article 36 of Law No. 32/2009 on AMDAL. Regarding AMDAL, UKL UPL and environmental licensing, the regulation describes the types of environmental management documents that are required to be prepared for different project sectors (Environmental Impact Analysis or “AMDAL”; Environmental Management Plan and Environmental Monitoring Plan or “UKL-UPL”). Other relevant regulations include: • Minister of the Environment Regulation No. 4/2021 on Businesses and/or Activities types that require an AMDAL, UKL-UPL, or SPPL. • Minister of the Environment Regulation No. 16/2012 on Environmental Document Preparation Guideline. • Minister of the Environment Regulation No. 17/2012 on Guideline for Community Involvement in the AMDAL and Environmental Permitting Process. • Minister of the Environment Regulation No. 5/2012 on Businesses and/or Activities types that require an AMDAL 16 • The others relevant Law/regulations are Spatial Planning Law 26/2007 on Spatial Planning and province/City level Law on spatial plans (RTRWs)/detailed spatial plans (RDTRs). Resource Efficiency and Pollution Prevention and Management: The main laws and regulations on pollution prevention in Indonesia include Law No. 32/2009 on Environmental Management and Protection and Law No. 18/2008 on Solid Waste Management. Other relevant regulations include: • Government Regulation No. 101/2014 on Management of Hazardous Waste of the regulation acknowledges waste containing asbestos materials as hazardous waste. • Government Regulation No. 81/2012 on Management of Household Waste and Waste • Government Regulation No. 82/2001 on Water Quality Management and Water • Pollution Management-Water quality standards by activity and utilization are described. • Government Regulation No. 41/1999 on Control of Air Pollution - specifies ambient air quality standards and emissions standards, as well as noise level standards. • Minister of the Environment Regulation No. 5/2014 on Wastewater Standards stipulates the limit or level of pollutants and/or amount of pollutants in wastewater that is discharged by businesses and/or development activities. Community Health and Safety: Law No. 32/2009 Concerning Environmental Protection and Management requires that potential risks and impacts of the project on community health, and relevant mitigation measures, are covered in environmental impact assessments. Other relevant laws and regulations include: • Law No. 22/2009 Concerning Road Traffic and Government regulation No. 32/2011 Concerning Management and Engineering, Impacts Analysis, and Traffic Needs Management requires that • Law No. 28/2002 Concerning Buildings regulates the requirements for fully functional buildings applicable to both public and private facilities—requiring consideration of technical aspects of buildings such as functionality, reliability, safety, health, comfort, ease of use, balance, and harmonization with surroundings • Government Regulation No. 36/2005 Concerning Buildings regulates the requirements for fully functional buildings applicable to both public and private facilities—requiring 17 consideration of technical aspects of buildings such as functionality, reliability, safety, health, comfort, ease of use, balance, and harmonization with surroundings. Biodiversity Conservation and Sustainable Management of Natural Resources: The article 36 of Law No. 11/2020 is like summarized of Law No. 41/1999 on Forestry. The GoI issued Government Regulation No. 23/2021 on Forestry; in Article 32 states that the utilize of forest areas for developing purposes other than forestry activities can only be carried out in production forest and protected forest “Hutan Lindung”; Article 53-70 that regulates procedure on change of forest designation, including the application process, measurement, determination and approval of changes/functions, permits, rights and responsibilities of the recipients of Business Licensing “Perizinan Berusaha”; Article 91 (para 1 and 2) mentions the criteria and types of permitted activities. The others regulations governing biodiversity conservation are outlined as follows: • Law No. 18/2013 on the Prevention and Eradication of Forest Degradation strengthens law enforcement by providing additional legal certainty and defining the penalties for those engaged in forest degradation. It clearly defines which activities are banned, with respect to individuals and organized groups that conduct logging activities, as well as organizations involved in the illegal timber trade and officials engaged in the falsification of permits; • Minister of Environment Regulation No. 29/2009 on Guidelines for Biodiversity Conservation at the Regional Level sets out the requirements for the sustainable planning, implementation, monitoring and supervision of biodiversity conservation, and controlling damage to biodiversity. Cultural Heritage: The following laws pertaining to the protection and preservation of cultural heritage in Indonesia: • Law No. 5/2017 on the Advancement of Culture mandates that the Government (at the national and subnational levels) to protect cultural heritage. Article 23 of the law stipulates that anyone who finds an object, building or site suspected to be of cultural value must report such a finding to an authorized cultural institution or related institution within 30 days. • Law No. 11/2010 on Cultural Conservation stipulates the establishment of a national registry of cultural heritage objects and their protection and prohibits their illicit 18 trafficking and export unless for research, promotional, or exhibition purposes. Article 59 requires that physical cultural resources at risk of being destroyed, eliminated or damaged should be relocated to a safer location under the supervision of conservation experts. • Law No. 5/1992 on Cultural Property governs the overall management of physical cultural resources, including criteria, protection measures in the event of discovery or ownership, use of cultural heritage, as well as legal penalties for infringement. • Presidential Decree No. 78/2007 on ratification the UNESCO Convention for Safeguarding of the Intangible Cultural Heritage (2003). Land Acquisition and Involuntary Resettlement: Omnibus Law (Law on Job Creation No 11/2020) Article no 121 and Law No. 2/2012 on Land Acquisition for the Development for Public Interest represents a governing regulation pertaining to land acquisition for the public interest. The objective of this Law is to accelerate land acquisition processes for infrastructure development, in consideration of the public interest. Other relevant law and regulations include: • Minister of Agrarian Affairs and Spatial Planning/National Land Agency Regulation No 20/2020 on ‘Handling for Social Impacts in Land Acquisition for the Public Interest’. The Ministry of Agrarian Affairs and Spatial Planning/National Land Agency (ATR/BPN) is preparing Technical Guidelines for Preparing a Land Acquisition Plan, which covers (among other aspects) approaches to compensate informal settlers, sharecroppers, or those who do not formally own land. • President Regulation no 71/2012 on Implementation Regulations provide for resettlement support for affected landowners and/or users. The law does not include transitional support and development assistance, such as land development, credit facilities, training, or employment opportunities. Stakeholder Engagement and Information Disclosure: The Law No. 32/2009 on Environmental Protection and Management states that “environmental protection and management shall be executed on the basis of … participation.” Other relevant laws and regulations include: • Law No. 14/2018 on Public Information Transparency, which guarantees the rights of citizens on public policy decisions and fosters public participation in such decision making. 19 • Law No. 32/2009 on Environmental Protection and Management also covers communities’ right to raise objections to proposed projects and the government’s obligation to develop and implement policies on the management of public complaints related to protecting and managing the environment. • Law No. 7/1984 on the Enactment of the Convention on the Elimination of All Forms of Discrimination Against Women. • Presidential Instruction No. 9/2000 on Gender Mainstreaming in National Development emphasizes women’s participation in development processes. • Minister of Environment Regulation No. 17/2012 on Guidelines for Public Participation in Environmental Impact Assessment and the Environmental Permit Process. • Minister of Environmental Regulation No. 9/2010, provides guidelines for handling community grievances caused by Environmental pollution and degradation. As a final recourse, Articles 84 and 85 of Law No. 32/2009 provide for citizen lawsuits with respect to environmental disputes resulting in court ordered or out-of-court settlements, including provisions for environmental restoration and compensation. 3.2. The World Bank Environmental and Social Standards Activities funded by SCIP will be implemented in accordance with the principles of sustainable development, including environmental, social, cultural, and economic considerations, meet to the GoI’s laws and regulations and comply with the following applicable World Bank’s Environmental and Social Standards (ESSs). Table 2. The World Bank Environmental and Social Standards (ESS) Standard Concerning Highlights ESS1 Assessment and ESS 1 sets out the Government’s responsibilities for Management of E&S assessing, managing and monitoring E&S risks and Risks and Impacts impacts associated with each stage of a project supported by the World Bank in order to achieve E&S outcomes consistent with the E&S Standards. ESS2 Labor and Working ESS 2 recognizes the importance of employment Conditions creation and income generation in the pursuit of poverty reduction and inclusive economic growth. The Government can promote sound worker- 20 Standard Concerning Highlights management relationships and enhance the development benefits of a project by treating workers in the project fairly and providing safe and healthy working conditions as encapsulated in the project’s labor management procedures. ESS3 Resource Efficiency Promote the sustainable use of resources, including and Pollution energy, water and nature based raw materials. The Prevention and ESS also strives to avoid or minimize adverse Management impacts on human health and the environment by avoiding or minimizing pollution from project activities; to avoid or minimize project-related emissions of short and long-lived climate pollutants and minimize generation of waste. ESS4 Community Health ESS 4 addresses the health, safety, and security risks and Safety and impacts on project-affected communities and the corresponding responsibility of the Government to avoid or minimize such risks and impacts, with particular attention to people who, because of their particular circumstances, may be vulnerable. Requirements related to project investments should take into account safety, climate change adaptation and universal access considerations where technically and financially feasible. ESS5 Land Acquisition, Applies to permanent or temporary physical and Restrictions on Land economic displacement resulting from different Use and Involuntary types of land acquisition and restrictions on access, Resettlement which requires community participation and consultation, disclosure of information and a grievance mechanism. Involuntary resettlement should be avoided. Where involuntary resettlement is unavoidable, it will be minimized and appropriate measures to mitigate adverse impacts on displaced persons (and on host communities receiving displaced persons), including timely compensation at replacement costs, grievance management, livelihoods restoration, and considerations of alternatives will be carefully planned and implemented ESS6 Biodiversity ESS 6 recognizes that protecting and conserving Conservation and biodiversity and sustainably managing living natural 21 Standard Concerning Highlights Sustainable resources are fundamental to sustainable Management of development and it recognizes the importance of Living Natural maintaining core ecological functions of habitats, Resources including forests, and the biodiversity they support. ESS 6 also addresses sustainable management of primary production and harvesting of living natural resources and recognizes the need to consider the livelihood of project-affected parties, including Indigenous Peoples, whose access to, or use of, biodiversity or living natural resources may be affected by project activities. ESS 6 sets requirements for management of modified habitats, natural habitats and critical habitats. ESS7 Indigenous Peoples Applies when the people are present or have a collective attachment to the land, whether they are affected positively or negatively and regardless of economic, political or social vulnerability, which requires meaningful consultation tailored to affected parties and accessible grievance mechanism. ESS 7 ensures that the development process fosters full respect for the human rights, dignity, aspirations, identity, culture, and natural resource-based livelihoods of Indigenous Peoples. ESS7 is also meant to avoid adverse impacts and enhance benefits of projects on Indigenous Peoples, or when avoidance is not possible, to minimize, mitigate and/or compensate for such impacts. ESS8 Cultural Heritage ESS 8 recognizes that cultural heritage provides continuity in tangible and intangible forms between the past, present and future. ESS8 sets out measures designed to protect both tangible and intangible cultural heritage throughout the project life-cycle. Tangible cultural heritage may be located in urban or rural settings, be above or below land or underwater, and includes natural features and landscapes; Intangible cultural heritage includes practices, representations, expressions, knowledge, and skills ESS9 Financial Not relevant Intermediaries 22 Standard Concerning Highlights ESS10 Stakeholder ESS 10 recognizes the importance of open and Engagement and transparent engagement between the Government Information and project stakeholders as an essential element of Disclosure in the good international practice. Effective stakeholder preparation of ESMF engagement can improve the E&S sustainability of for this project. projects, enhance project acceptance, and make a significant contribution to successful project design and implementation. ESS 10 requires stakeholder engagement throughout the project lifecycle, and preparation and implementation of a Stakeholder Engagement Plan (SEP). 3.3. Gap Analysis on National Policy and the World Bank Environmental and Social Framework The summary of the WB’s safeguards and its gap to the Indonesia regulations, and the role of ESMF in closing the identified gaps are described in the table below. Table 3. Summary of Gap Analysis on National Policy with World Bank Environmental and Social Framework ESS Topics Identified Gaps Measures to Mitigate ESS 1 – Assessment and Management of E&S Risks and Impacts. Generally, the relevant laws and regulations on the E&S risks and impacts assessment in Indonesia are aligned with the ESS. Identified minor gaps can be addressed directly in the project level. Strategic SESA/KLHS is not fully SESA/KLHS will act as the Environmental incorporating the World Bank’s main environmental and and Social ESS. social risk assessment Assessment instrument for the planning (SESA)/ Kajian process and will be guided by Lingkungan Hidup both national legislation and Strategis (KLHS) the Bank ESSs. In Indonesia country system, KLHS is focusing on regional environmental and social impact assessment and will assess biodiversity aspects, climate change resilience, social aspects, and environmental carrying capacity that supports and 23 ESS Topics Identified Gaps Measures to Mitigate feeds information to urban plans. Procedure for preparation and Term of Reference are included in Annexes of this ESMF. Environmental and AMDAL, UKL-UPL and/or SPPL The environmental and social Social Assessment are based on threshold value while impact assessment will be ESIA and EMP are based on risk prepared following the Bank assessment that takes into account requirements. The TOR for relevant issues, such as the type, preparation of environmental location, sensitivity, and scale of and social assessment the project; the nature and documents acceptable to the magnitude of potential Bank is provided in the environmental and social risks and ESMF. impacts.; and the capacity and commitment of the Borrower Relevant measures addressing (including any other entity social risks are included as responsible for the implementation part of the ESMF, which of the project) to manage the include capacity building on environmental and social risks and gender and Sexual impacts in a manner consistent Exploitation and Abuse/ with the ESSs. Sexual Harassment (SEA/SH) and Violence Against Children (VAC) awareness along with relevant good practice guidelines to the implementing agencies. Reference to legal Lack of reference to legal and Covered by the TOR for and administrative administrative framework such as preparation of environmental framework such as international environmental and social assessment international treaties, agreement, international documents in this ESMF. environmental standard policies etc. The current treaties, agreement, regulation only refers to “other international standard policies etc. data and information”. Project Area of Lack of analysis about project area Covered by the TOR for Influence of influence, associated facilities, preparation of environmental induced impacts and site selection and social assessment analysis. documents in this ESMF. Environmental Insufficient follow up, analysis, Covered by subproject Monitoring Data use of environmental monitoring environmental and social 24 ESS Topics Identified Gaps Measures to Mitigate data for evaluation and continual management and monitoring improvement. plan (RKL- RPL) acceptable The environmental monitoring to the Bank. The information program is not sufficient or is not can also be part of SESA. corresponding to the scale of the impact of the project. Capacity Required under the National For the overall E&S Development and Competitive Bidding (NCB) for management, budget for Training Construction-ESMP, however, institutional strengthening and budget allocation for capacity capacity building is included development and training for under the Component 5. SCIP ESMP implementation is often will require inclusion of fixed insufficient. budget for E&S management in the bidding documents in the Bill of Quantities (BoQs) or through provisional sums. ESS 2 – Labor and Working Conditions. Indonesia has ratified all core conventions of ILO labor and working conditions. No major gaps are identified between Indonesia laws and regulations with the requirements of the ESS 2. Grievance The national regulations provide The Project will develop a Mechanism an avenue to resolve work-related workers’ grievance issues including occupational mechanism accessible to all health and safety issues. However, workers involved in SCIP. the workers may not feel This procedure will be comfortable to report and resolve informed to the workers. All such issues through a formal or submitted grievances will be legal process. investigated and resolved in a fair and transparent manner. Use of forced/child The Government of Indonesia has Labor Management Procedure labor ratified the ILO convention on (LMP) has been prepared to Forced Labor and Abolition of manage the labor issues Forced Labor Convention. including the forced/child However, weak implementation is often observed in the field. labor in the project (Annex 1 of the ESMF). Community workers Not covered in Indonesia The SCIP will not involve and Primary legislation system; community workers/primary Suppliers Primary suppliers are required to suppliers. Labor Management introduce procedures and Procedure (LMP) has been mitigation measures to address prepared to manage the labor safety issues. issues including the forced/child labor in the 25 ESS Topics Identified Gaps Measures to Mitigate project (Annex 1 of the ESMF) ESS 3 – Resource Efficiency and Pollution Prevention and Management. GoI environmental laws and regulations on pollution prevention and management are quite comprehensive covering airshed management and emissions standards, management of hazardous and non-hazardous wastes, and water quality effluent discharge standards. These regulations consider ambient conditions, and through the engineering designs and ESIA, pollution prevention measures will be sought and built into the project. Efficient use of raw Not specifically covered in The project will incorporate materials Indonesian legislation system. into the design requirements for reuse and recycling of materials, wherever possible. Management of Note: Annex I of Government The ESMF negative list Asbestos Containing Regulation No. 101/2014 prohibits use of asbestos Wastes/Materials regarding Management of containing material in Hazardous Wastes acknowledges construction. wastes containing asbestos materials as hazardous wastes. Regulation does not specifically address how asbestos is to be handled/disposed. ESS 4 – Community Health and Safety. Potential risks and impacts as well as the mitigation measures to the community health and safety are assessed in the ESIA process and covered in the ESIA documents (AMDAL/UKL-UPL/SPPL). No major gaps are identified in the relevant laws and regulations. Infrastructure and There is no requirement under the Relevant requirements will be equipment design national regulation to involve provided in the ToR for and safety independent expert(s) to review the preparation of environmental high-risks structural elements’ and social assessment design, construction, operation, document for the relevant and decommissioning. activities. Security personnel Involvement of security personnel The project does not envisage is arranged only for national vital the use of security personnel. objects. Universal design No major gaps. The concept of The project will refer to universal design has been relevant existing regulations embodied in various ministerial and guidelines. Community regulations and technical views will also be sought on guidelines of the Ministry of matters pertaining to universal Public Works and Housing access and inclusive design. (MPWH). 26 ESS Topics Identified Gaps Measures to Mitigate Community National regulations have To comply with the exposure to health envisaged community health requirements of ESS1, the issues aspects, both physical and Project will provide TOR for psychosocial, as important in civil preparation of environmental works and disaster preparedness and social assessment activities. Community health document or review the aspects are included in the existing assessment AMDAL/UKL-UPL in accordance document. Any gaps, when with national regulation identified, will be addressed requirements. However, reporting through additional mitigation and enforcement of the mitigation measures to meet the measures may be constrained by requirements of the ESS. limited capacities of the local authorities. ESS 5 – Land Acquisition, Restrictions on Land Use and Involuntary Resettlement. Applicable laws and regulations in Indonesia have covered main topics of the ESS5 however, some gaps are identified in terms of detail explanations and arrangements of the issues, particularly with regards to compensation and livelihood restoration of affected individuals who do not have recognizable/legal land rights. Land acquisition is not anticipated under SCIP. However, downstream activity may require significant amount of land for construction. Sustainable Different modes of compensation This project will not directly development other than cash, particularly involve in land acquisition, program relocation and land-for-land, are restriction on land use and not sufficiently elaborated involuntary resettlement. Direct and indirect Adverse social and economic Relevant issues to ESS 5 as impacts impacts due to restrictions of the implication of the access and land use are not planning process will be explicitly covered under the Law assessed through various 2/2012 instruments e.g. SESA for Associated facilities Not covered Component 1 and ESIA for and legacy issues component 2. ToRs to Replacement costs No gaps. Independent appraisal develop these instruments are team determines compensation for available in the ESMF. In loss of physical and non-physical addition, the ESMF also assets and premium/solatium. provides TOR or procedure as Compensation for Legal provisions are deficient to guideline for the future loss of income recognize entitlements for loss of subprojects as the result of the sources or means of incomes and means of livelihood SCIP project, where land livelihood due to land acquisition, particularly acquisition, restriction on for informal land users/squatters. 27 ESS Topics Identified Gaps Measures to Mitigate Support for affected Perpres 62/2018 and Regulation of access to land use and persons who have no Ministry Land and Spatial involuntary resettlement is recognizable legal Planning No.20/2020 do require to unavoidable. The guidance is right or claim to the provide compensation and developed in accordance with land they are assistance for those who do not the GoI regulations and occupying own the land but have occupied or provisions of the ESS5. utilized the land with a set of The ESMF also provides ToR criteria. to develop LARAP for future Eligibility for Law 2/2012 and the subproject investment in vulnerable groups, Implementation Regulations compliance with ESS5 as including (Perpres 71/2012) provide criteria guidance for the future project Indigenous Peoples for Masyarakat Adat (Article 22). implementer with note that However, formal recognition is a the Project will not monitor requirement and there is no further the implementation as this is elaboration on special measures beyond the project’s scope. related to management of impacts on Masyarakat Adat, particularly on Free, Prior, and Informed Consent (FPIC). Forced eviction Not explicitly covered. Ownership rights to land and its associated properties will be relinquished upon compensation payments or court decisions. Host community Host communities are not explicitly covered in the Law 2/2012 and its Implementation Regulations (Perpres 71/2012). Resettlement Perpres 71/2012 on the Planning Implementation of Land Instruments Acquisition for Public Interest covers provisions related to the development of Land Acquisition Plans. The law requires socio- economic survey, social and environmental impact assessments, feasibility assessments, budget, land value, and timeframe (Article 6). Consultations with potentially affected people are required prior to the location determination (Penlok). 28 ESS Topics Identified Gaps Measures to Mitigate Costing Land acquisition planning covers costs for land acquisition and related compensation but does not cover costs related to resettlement and livelihoods restoration. Disclosure and Law 2/2012 and implementation engagement regulations require dissemination of information on affected land and other assets, and applicable compensation amounts to affected households. Public announcement of inventory results is required at the ward/village government offices, sub-district offices and at the place where land acquisition is conducted. However, such disclosure is often available at specific venues which may not be accessible to the wider audience. The Public Information Disclosure Law No. 14/2008 (UU Keterbukaan Informasi Publik) also requires government agencies to provide information required by the public, including planned activities, budget and spending, and other data relevant for public understanding. Grievance Provisions of the Law No. 2/2012 Mechanism and implementation regulations (Perpres 71/2012) have elaborate and time-bound procedures for filing complaints by affected households and processes to address complaints and grievances. It is however, does not explicitly require due documentation of grievances. Monitoring and The Law 2/2012 does not provide Evaluation for external monitoring of resettlement implementation and post-implementation evaluation to 29 ESS Topics Identified Gaps Measures to Mitigate assess whether the objectives of the resettlement plan have been achieved. Further it is deficient in providing details on objectives of evaluation. ESS 6 – Biodiversity Conservation and Sustainable Management of Living Natural Resources. GoI regulation on forestry and biodiversity conservation, in general, supports ESS6 for protecting biodiversity. The main gap is that GoI regulations do not recognize the requirements for assessing project impacts on natural and critical habitats. Classification, The regulations do not mention The negative list and E&S criteria for specifically about protection of risk checklist in the ESMF Significant natural and critical habitats as per will provide tools for conversion (loss) and ESS6. screening to identify degradation of government protected areas Critical and Natural and high biodiversity/ Habitat environmentally sensitive areas, including critical habitats of key species specified under the International Union for Conservation of Nature (IUCN) Red List of threatened species. ESS7 – Indigenous Peoples/Sub-Saharan African Historically Undeserved Traditional Local Communities. One major gap between ESS7 and relevant Indonesia laws and regulations related to the Indigenous Peoples is the requirement for the formal recognition of the IP communities as an eligibility criterion to be treated as Indigenous Peoples. No specific requirements for social assessments and preparation of Indigenous Peoples Plans (IPPs) across sectoral laws. Assessment and Masyarakat Adat may potentially The project is not expected to Consultation; face difficulties to obtaining legal create adverse impacts on Avoidance of recognition through the sub- Indigenous Peoples. adverse impacts; national and central government Circumstances whereby FPIC Mitigation and processes, is required are not envisaged development In addition, there are vulnerable under SCIP. The project will benefits; Meaningful communities that may not qualify treat communities possessing consultation under the GoI’s framework as characteristics as per ESS 7 as tailored to Masyarakat Hukum Adat but do Indigenous Peoples regardless indigenous meet the policy criteria under ESS of their legal recognition. peoples/ Sub- 7. Identification of these groups 30 ESS Topics Identified Gaps Measures to Mitigate Saharan African based on the identification historically criteria under ESS 7 will underserved continue as part of the traditional local screening and assessment communities processes during the project implementation. ESS 8 – Cultural Heritage. No specific regulations on intangible cultural heritage. The Project will develop a chance find procedure and provide relevant training for the construction workers. Protection of both Law 11/2010 does not cover SCIP is not expected to cause tangible and intangible cultural heritage, nor adverse impacts on both intangible cultural further elaborate on benefit sharing tangible and intangible heritage as part of and meaningful consultations, cultural heritage. Relevant sustainable including with Indigenous Peoples. issues to ESS 8 as the development, implication of the planning meaningful consultations and process will be assessed equitable sharing of through various instruments benefits e.g. SESA for Component 1 and ESIA for component 2. A chance find procedure is provided in the annex 7 that will be used to guide management of potential impacts on tangible cultural heritage from downstream impact. ESS9 – Financial Intermediaries. Not relevant for SCIP. ESS 10 – Stakeholder Engagement and Information Disclosure. Relevant laws and regulations of Indonesia have covered the requirements of the ESS 10. Engagement with Consultations are required under The Project develops and will stakeholders; environmental assessments and implement a Stakeholder Information land acquisition planning. Engagement Plan (SEP) disclosure; However, there is no specific throughout the project cycle. Grievance guideline for undertaking and Grievance mechanism has Mechanism requirements for consultations. been developed as part of this Furthermore, the quality of such ESMF and will be consultations often varies. implemented 31 4. ANTICIPATED ENVIRONMENTAL AND SOCIAL IMPACT 4.1. General Assessment The project is expected to have a positive impact through the provision of the future implementation of spatial plans and activity under the TA. Due to the substantial environmental risks and social risks and potential impacts associated with project implementation, the mitigation measures are needed to enhance project outcomes. The potential negative downstream impacts which may include air, soil, and water pollution during the construction, use of natural resources, public health risks from the occurrence of infectious pathogens and habitat for mosquitoes that come with increased biodiversity, disturbances to marine/riparian species, and work-related incidents. 4.2. Specific Risks and Impacts The project aims to build national and cities capacity to integrate environmental and climate change considerations into development plans, prioritization of capital investment, and financing. The activities across all components need strengthening planning, prioritization, and optimization of resource management, with multiple opportunities to increase attention to potential E&S impacts. It is important to note that the project will not involve physical construction activities. However, as an anticipation of future potential impacts, the ESMF provides guidance to avoid, reduce, and mitigate potential downstream risks and impacts of the activities. Issues and Findings Component 1, 2 and 4 will promote integrated development planning at national and city, catalyze subproject readiness and promote policy dialogue on various urban development and environments aspect levels. Activities for the three components are, for example, urban development plans, city and area/corridor development plans; support cities to prepare sub- projects within the priority corridors and areas identified in Component 1, enhance environmental and climate change outcomes, including GEBs on mitigation and biodiversity, with on five sectors i.e.: circular economy and waste management, stormwater and wastewater management, energy efficiency and renewable energy, sustainable transport and urban biodiversity; support the engagement of relevant stakeholders in series of policy dialogue and knowledge exchange events to promote environmentally friendly behavioral change in the 32 public and urban transformation. The E&S risks under these components are considered substantial. The risks will be associated with implementation of outputs from component 1 and 2. The key downstream environmental impacts from implementation of integrated plan in city- area level infrastructure include disposal of non-hazardous and hazardous wastes; increased noise during construction and operation, fugitive dust and mobile emissions; soil erosion and run off from excavations and disposal of spoils; loss of vegetation; social disturbance of traffic safety and mobility disruptions and loss of access e.g. to the services, resources, and livelihood opportunity. Project impacts as a result from component 1 and 2 can be mitigated in a predictable manner not only through a proper planning, designing, and tailoring risk management approach but also a series of public consultation and public disclosure. For component 1, SESA will be enhanced and/or prepared to lessen the negative E&S risks and impacts. The Strategic Environmental and Social Assessment (SESA/KLHS) will act as the main environmental and social risk assessment instrument for the planning process and will be guided by both national legislation and the Bank ESSs. The project potential impact of component 2 will be mitigated through the preparation of green detailed engineering designs and environmental and social assessments (AMDAL/UKL-UPL) and environmental and social management plans (ESMPs) following this ESMF guidance, as well as applying standard operating procedures (SOPs) and environmental codes of practices (ECOPs). The ESMF will also include necessary provisions to manage risks related to contracted workers as specified in the Labor Management Procedure (LMP) for the project. Component 3, piloting innovative financing approaches and instruments will provide support for identification of alternative and innovative financing modalities through a combination of loans, grants, and private sector involvement, such as public-private partnership (PPP) for projects within the priority corridors and area. Activities supported through this component are: i) preparation of strategic (green) financing guidelines to specific investment, (ii) creditworthiness assessment and (iii) capacity building on alternative financing. Some cities may receive assistance from Component 1 – 3 while others might only obtain support under component 3. If later case happened, there is a possibility that the quality of existing subproject documents is weak. As such, the Project will guide and assist the cities to enhance their documents as per requirements in the ESMF. The subproject supported through GEF SCIP 33 must also be incorporated in the City’s Medium-Term Plan (RPJMD) priority list. According to Indonesian Law, RPJMD has to be prepared based on series of public consultation from the neighborhood level. Management of Potential Risks and Impacts The following table present E&S risk and impact approach on each component under SCIP project. Table 4. Environmental & Social Risk and Impact Approach Project Component Expected E&S Risk and Mitigation Responsible and Activities Support Outputs Impact Approach Institution Component 1 1. Support urban National Inadequate Follow the relevant PIUs with development plans level plan E&S guidance and TORs support from that are and policy considerations/ in the ESMF to City environmentally mitigation in mainstream and Coordination sound at National the produced adequately address Team and Level planning E&S issues in the consultant documents produced planning team 2. Support to cities: Integrated documents; PIUs with prepare/review Detail Ensure capacity of support from integrated spatial Spatial the CPMU and PIUs City plans and capital Planning to incorporate Coordination investment planning (RDTR) appropriate E&S Team and City / considerations. consultant Reviewed team RDTR Kota 3. Prepare/Review Updated PIUs with SESA* SESA support from City Coordination Team and consultant team 4. Capacity building Training PIUs with support from City Coordination Team and consultant team Component 2 5. Prepare and/or update Appropriate Inadequate Follow the relevant PIUs with or enhance Feasibility FS E&S guidance and ToRs support from Studies (FS). considerations/ in the ESMF to City mitigation in mainstream and Coordination adequately address Team and 34 Project Component Expected E&S Risk and Mitigation Responsible and Activities Support Outputs Impact Approach Institution the produced E&S issues in the consultant report produced reports; team 6. Sectoral readiness Ensure capacity of PIUs with criteria the CPMU and PIUs support from to incorporate City appropriate E&S Coordination considerations; Team and Provide guidelines consultant for future team 7. Prepare and/or update Appropriate subprojects PIUs with or enhance DEDs, DEDs implementers to support from Urban Designs manage the City identified E&S risks Coordination and impacts. Team and consultant team Appropriate PIUs with Urban support from Designs City Coordination Team and consultant team 8. Prepare and/or update ESIA/AMD PIUs with or enhance AL/UKL- support from ESIA/AMDAL/UKL- UPL City UPL, Biodiversity Coordination reports, etc. Team and consultant team Biodiversity PIUs with Reports support from City Coordination Team and consultant team Component 3 9. Supporting financing Strategic Lack quality of Ensuring the PIUs with strategic and credit guideline subproject’s relevant TORs and support from rating document (FS, strategic guidelines City DED, E&S are followed and the Coordination document) E&S management Team and process set out in consultant this ESMF is team implemented. 35 Project Component Expected E&S Risk and Mitigation Responsible and Activities Support Outputs Impact Approach Institution Component 4 10. Policy Dialogue and Training/ Exclude the To be done in a CPMU and knowledge workshop affected/ participatory, PIUs management marginalized inclusive, and groups from transparent manner, the process. following the principles set out in the SEP. Component 5 11. Project Management Lack of Ensure that the CPMU with support CPMU and capacity selected PMC is support from PIUs: on meeting E&S Project implementation of experts’ Management technical, fiduciary, specifications Consultant procurement, E&S safeguards, monitoring- evaluation, and reporting. *Cities usually prepare SESA/KLHS but at the quality that requires improvements. There will probably be a case that KLHS has not been produced or updated upon the enactment of spatial plan regulations. 4.3. Negative list The SCIP project adheres to the World Bank ESSs and relevant GoI laws and regulations. This negative list is to be used as a preliminary screening process in preparation of the Capital Investment Plans (CIPs) under Component 1 and the selection of the proposed subprojects under Component 2, and to be applied on a site-by-site basis. Activities that may potentially cause significant environmental and/or social impacts will not meet the requirements, thus they are put in the Negative List. The negative list sets out activities that do not meet the requirements to be funded by this project, and includes but is not limited to1 1. Any activity converting natural forest to non-forest estate (like agricultural land, plantation, or housing complex) that is conducted within the state forest that functions as conservation, protected, or production forest; except for infrastructure development required on a minor scale (such as roads, irrigation system, or secretariat office). Even a minor scale of 1 Please take note that some of below negative list is more relevant to the potential risk generated from the downstream investment which is beyond the scope of the project. 36 infrastructure development should also not be considered, if it involves conversion of natural or critical habitat. 2 2. Any activity that destroys, disturbs, or relocates physical cultural resources unless evidenced by a comprehensive document of a negotiated agreement in line with the ESS 8 and ESMF. 3. Any activity that significantly reduces biodiversity or forest ecosystem or damages natural habitat. 4. Any activity with potential, significant negative E&S impacts which are complex, irreversible, and have never been conducted before, and requires complete environmental and social assessment to manage and mitigate the impact as stated in Regulation of Minister of Environment No. 5 of 2012, MPWH Regulation No. 10 of 2018. 5. Any activity that causes people to relocate unless evidenced by a comprehensive document of a negotiated agreement in line with the ESS 5 and ESMF. 6. Any activity that foreseeably leads to human rights violation. 7. Any activity that causes negative impacts on women and children, including involving child labor in any sub-project activity. 8. Any activity related to political campaigns and elections and/or related to elite capture (where elites utilize and or employ various public resources for their personal interests), like social forestry groups that rely on one or several elite groups. 9. Any activity involving hunting and/or trading of protected species and animals. 10. Activities that produce or use material or commodities that directly or indirectly disturbs human health, such as asbestos, tobacco, narcotics, and other substances as regulated by the Indonesian government. 2 The infrastructure development, even minor, should follow the requirements of ESS1 and ESS6 to be assessed prior to being supported. Examples may include access road upgrades, construction of small facilities to support enterprises, such as warehouse or work areas, storage or packing rooms, steps or rest points for eco-tourists. 37 5. MITIGATION MEASURES, APPROACHES, AND IMPLEMENTATION 5.1. Environmental and Social Management Framework Implementation The main strategy related to E&S risks under SCIP is mainstreaming and prevention of negative impacts through enhanced awareness, training, inputs into relevant TORs and strengthening E&S considerations in relevant statutory mechanisms and relevant regulations. Table 5 provides an overview of this approach and how the E&S safeguard mitigations are embedded in the development of this ESMF. Based on assessment of potential negative impacts, details of safeguard mitigation measure for each identified potential impacts from activities are included in the below table. Table 5. Environment and Social Mitigation Measure Availability Mitigation Measure SCIP’s Safeguard Analysis/ No of Existing Activities Instrument Review Tools Activities* Instrument Component 1 1 Support SESA Yes Review the Provide Process to urban (KLHS) gap on the addendum or review existing development existing supplement documents plans (Please see SESA in document for taking into Annex 3 pursuant with SESA account E&S and 4) the WB’s (KLHS) if considerations guidelines. needed Yes, on Review the Provide input Process to process gap in to improve a review existing pursuant with draft SESA documents the WB’s (KLHS) if taking into guidelines. needed account E&S considerations No Prepare Review the SESA as process of required in preparing the pursuant with document the WB’s taking into guidelines account E&S considerations National Yes Review the Robust level plan gap in analytics (e.g. National Various pursuant such as 2 Development documents with WB’s carrying Plan, guidelines capacity National analysis and 38 Availability Mitigation Measure SCIP’s Safeguard Analysis/ No of Existing Activities Instrument Review Tools Activities* Instrument Spatial Plan, urban National development Urban Policy, scenario Biodiversity modelling Policy) tools, SESA findings, and if needed specific environmenta l and social analysis for planning 3 Capital Review the Provide input Investment gap in to improve Input on TOR Plan pursuant CIP for preparation Yes with the incorporating of CIP and WB’s E&S SESA, as guidelines. consideration necessary s Prepare CIP Input on TOR incorporating for preparation No E&S of CIP and consideration SESA, as s necessary Component 2 4 Feasibility - Review the Provide Process to Study (FS) alignment addendum or review existing Document of the supplement documents existing FS document to taking into (proposed strengthen account E&S subproject the existing considerations design) document as with the needed Prepare the Local TOR for Developme review of FS nt Plan and E&S Yes - Review the document with gaps of the cities and carry existing FS out the with the monitoring to WB’s ensure guidelines compliance with ESMF during the preparation of document 39 Availability Mitigation Measure SCIP’s Safeguard Analysis/ No of Existing Activities Instrument Review Tools Activities* Instrument Prepare FS that incorporating WB Review the guidelines process of with preparing the interaction document No with the taking into process of account E&S E&S considerations assessment document preparation 5 Detail - Review the Provide Process to Engineering (Please see gaps of the supplement review existing Design Annex 8- existing or revision documents (DED) 10) DED with document to taking into document the strengthen account E&S developme the existing considerations nt planning documents and other Prepare the applicable TOR for regulation review of DED and E&S - Review the document with gaps of the cities and carry Yes design- out the related monitoring to measures in ensure the existing compliance E&S with ESMF document during the correspond preparation of ence in document pursuant with the with the WB’s guidelines Prepare DED Review the document process of No that preparing the incorporating document WB taking into 40 Availability Mitigation Measure SCIP’s Safeguard Analysis/ No of Existing Activities Instrument Review Tools Activities* Instrument guidelines account E&S (including the considerations design- related E&S Prepare the measures) TOR for DED and in line preparation with the with cities and ESIA that carry out the being monitoring to prepared ensure compliance with ESMF during the preparation of document 6 ESIA Yes Check the Provide Process to document AMDAL/U gaps existing addendum or review existing KL- E&S supplement documents UPL/SPPL document in document as taking into pursuant with needed. As account (Please see the WB’s minimum, an relevant E&S Annex 7- guidelines E&S considerations 10) management plan is Prepare the required. TOR for review of existing E&S document with SNG and carry out the monitoring to ensure compliance with ESMF during the preparation of document No Prepare E&S Prepare the document TOR for that preparation of incorporating E&S document WB with SNG and guidelines. carry out the As minimum, monitoring to an E&S ensure management compliance 41 Availability Mitigation Measure SCIP’s Safeguard Analysis/ No of Existing Activities Instrument Review Tools Activities* Instrument plan is with ESMF required. during the preparation of document 7 Project-level Yes Check the Provide Preparation of biodiversity gaps existing document an updated reports report in report as project-level pursuant needed biodiversity with the report will be Indonesia’s based on ESIA regulation results if and WB’s required, and guidelines to comply with Indonesia regulation and ESS 6 No Provide the Preparation of report project-level document biodiversity that report will be incorporating based on ESIA WB’s results if guidelines as required, and needed to comply with Indonesia regulation and ESS 6 Component 3 8 Financing Yes Review the Provide input Preparation of Strategic gaps the to improve strategic Guideline existing the existing guidelines and Credit strategic guideline incorporating Rating guideline E&S (outputs will (e.g. chapter corporations be a in FS, OBC, guidelines, FBC, credit rating RPJMD) in report, pursuant training, etc.) with the Indonesia’s regulation and WB’s guidelines 42 Availability Mitigation Measure SCIP’s Safeguard Analysis/ No of Existing Activities Instrument Review Tools Activities* Instrument No Prepare Preparation of strategic strategic guideline** guidelines that incorporating incorporating E&S WB’s considerations guidelines 9 Training Design training taking into account E&S considerations Component 4 Analyse the decision- making Public Training/ process and consultation by workshop/ involve the involving 10 public community communities consultation in the project and related planning and stakeholders implementati on Component 5 11 Project (Please see Prepare the Management Annex 1) TOR for E&S Support specialists Note: The responsible parties for implementation are: PIUs, city coordination team, and consultant team. TORs in the Annexes of this ESMF are generic and should be adjusted based on specific activity and risk identified during screening process. Separated project operation manual (POM) is currently under development. The POM will provide terms of reference templates to all relevant activities supported through SCIP. This ESMF is considered as one of the Volumes for the POM. *TORs are drafted ensuring that the advice and other support provided is consistent with ESSs 1 – 10. **Strategic guidelines is one of the outputs under Component 3 that will provide direction to the cities in exploring and executing alternative financing. 5.2. Environmental and Social Management Process Activities that will be supported or financed under the project are required to be screened to determine eligibility for financing and identify key E&S risks and potential impacts and determine the appropriate E&S instruments for assessing and managing these risks. Based on these screening processes, decisions will be made by the PMC E&S specialists in coordination with the CPMU E&S focal points with regards to the types and scope of the assessment and 43 instrument required for each sub-project investment/activity. E&S management plans will be applied to the preparation of Capital Investment Plan (CIP) under Component 1, and subproject documents (e.g. FS, DED, biodiversity report) under Component 2. As mentioned in the previous sub-section, activities under Component 1 will focus on preparation of spatial and development plan as well as SESA/KLHS. Moreover, Component 3 will focus on strategic guidelines for infrastructure financing considering E&S considerations. As described earlier, the strategic guidelines will provide direction to the city in exploring and executing alternative financing for specific investment. Therefore, the existing project documents for that investment will have to also consider the ESMF requirements. Project Management Consultant team will be hired under Component 5. The team will consist E&S specialists where the TORs are incorporated in the ESMF. The following figure outlines the key steps for all activities. Step 1 Eligibility Screening Step 2 Environmental and Social Risk Screening Step 3 Preparation of Environmental and Social Management Requirement Figure 3. The Environmental and Social Management Process Step 1: Eligibility Screening SCIP activities identified for Component 1 and 2 shall be screened based on both the available Menu Options and then, the Negative List as described in sub-chapter 4.3. Such a screening process is expected to ensure ineligible subproject activities will not be processed. The initial screening activity will be carried out by relevant PIUs. Step 2: Environmental and Social Risk Screening Once the activity and locations have been confirmed from Step 1, E&S risk screening will be conducted to determine the level of assessment and planning required for the eligible activity to the level of associated risks and potential impacts. This will take into account i) the type, location, sensitivity and scale of the activity; ii) the nature and magnitude of the potential E&S risks and impacts; iii) the capacity of the responsible cities to manage such risks and impacts 44 in a manner consistent with the ESSs; and iv) other areas of risk that may be relevant to the delivery of E&S mitigation measures and outcomes, depending on the specific activities and the context in which it is being developed. Step 3: Preparation of Environmental and Social Management Requirement CPMU will provide input to the existing documents as necessary. If the activity does not have E&S documents, E&S instruments will be prepared in accordance with the GoI’s environmental laws supplemented with the relevant WB ESS requirements. For activity that has a technical document (i.e. FS, DED), the CPMU will review compliance of the document with ESS requirements. If the technical document is not available, the CPMU will provide the TOR that includes ESS requirements associated with the potential risks and impacts as detailed out in the annexes. 5.3. Monitoring and Evaluation Monitoring and evaluation, and ESMF performance assessment will be conducted for all project activities financed under the SCIP. These will be jointly conducted by PIU, EA/CPMU E&S focal points, and E&S Specialists (consultants). Evaluation will focus on the quality of technical document in incorporating the E&S aspects that are required by the ESMF, including but not limited to: a. Records of stakeholders engagement during project planning and implementation phases, including evidence of local adaptation to conditions and preferences of marginal or vulnerable groups. b. Specific records related to women and other vulnerable groups engagement during the whole process. c. The quality of E&S assessment document to correspond to the requirements of the WB ESSs, i.e.: AMDAL, UKL-UPL, or The Statement of Assurance for Implementation of Environmental Management and Monitoring (SPPL) document (as minimum, an E&S management plan is required). d. Records of grievance received and the management process to completion, along with analysis of the grievance trends. 45 6. STAKEHOLDER AND INFORMATION DISCLOSURE The overall stakeholder engagement and information disclosure will be guided by the project SEP. The following summarizes key measures agreed as part of the overall project engagement. 6.1. Key Stakeholder A Central Project Management Unit (CPMU) will be established as the joint responsibility of DG of Regional Development (Directorate of Local Development) and DG Maritime and Natural Resource (Directorate of Environment). Conformation is needed on how the responsibility of CPMU tasks will be shared. The configuration of PIUs needs to be urgently finalized with the following proposed by BAPPENAS: Deputy of Regional Development and Deputy of Maritime and Natural Resources will handle Components 1, 4, and 5. Deputy of Infrastructure and Facilities (Directorate of Housing and Settlement, Directorate of Transportation, Directorate of Energy Sources, Mineral and Mining, and Directorate of Electricity, Telecommunication and Informatics) and Deputy of Maritime and Natural Resources (Directorate of Environment and Directorate of Forestry and Water Resources Conservation) will be responsible for Components 2, while Deputy of Funding (Directorate of Innovative Funding Engagement and Directorate for Planning of Development Funding) will be responsible for Component 3. Five SNGs are included such as DKI Jakarta, Semarang (Central Java), Balikpapan (East Kalimantan), Palembang (South Sumatera) and Bitung (North Sulawesi). At the local level, the Local Development Planning Agency (BAPPEDA) and relevant Offices (e.g. Secretary to the City, Public Works, Human Settlements, and/or Environmental Agency) will play the coordination role. 6.2. Stakeholder Engagement The project’s broader stakeholder engagement is guided by the SEP and will inform the project through: (a) consultations with local governments and representative of community during project implementation; (b) transparent feedback and grievance redress mechanisms; (c) communication campaigns and capacity building; and (d) development of risk management processes and engagement required under the World Bank’s ESF. 46 6.3. Information Disclosure and Public Consultation Integral to the project’s Stakeholder Engagement Plan (SEP), CPMU has disclosed the draft of the ESMF and conducted public consultation on the ESMF in order to seek for local governments and public’s feedback and facilitate any concerns related to E&S risks of activities under SCIP. 6.3.1. Information Disclosure In effort to promote accessibility and transparency, the draft the ESMF was disclosed in Bahasa Indonesia and English at few days prior to public consultation, and the confirmed/revised version will be disclosed for the public after receiving the World Bank’s “no objection” and prior to project effectiveness. These documents shall be updated and re-disclosed to reflect stakeholders’ views and concerns raised during the public consultation. Detailed consultation minutes and documentation must be provided as attachments of the documents. The ESMF will be disclosed by BAPPENAS as the executing agencies and local governments through the following platforms: • BAPPENAS website: www.bappenas.go.id • Local Government website: jakarta.go.id; palembang.go.id; balikpapan.go.id; semarangkota.go.id; bitungkota.go.id • Project Website: www.bappenas.go.id and https://lcdi-indonesia.id/ The project will conduct regular stakeholder engagement, in the form of public consultations, workshops and/or other approaches as appropriate throughout the project cycle to ensure that: 1) concerned/interested stakeholders are able to raise their concerns and feedback, 2) CPMU can inform interested stakeholders on the current status/updates on the project implementation. Public consultations will be undertaken in accessible venues (i.e. location, time, and facility) and use Bahasa Indonesia. Disclosure and information dissemination of relevant instruments will be assured prior to such public consultations in languages, formats and media accessible to stakeholders. All materials that are prepared for public consultation should be accessible to the broader public, including the availability of the documents in English and Bahasa Indonesia, and are published on the official website of the implementing agencies, official social media accounts of the CPMU, and in publicly accessible areas as appropriate (e.g., hardcopy of ESMF draft in BAPPENAS). Concerned, feedback, or complaints raised during public consultations and/or during project implementation shall be documented and reported 47 through GRM procedure. CPMU shall provide clear explanation of how, who, and when to follow up, including any decisions to not further process complaints and/or issues. 6.3.2. Public Consultation Public consultation was held on December 3, 2021 to ensure that the interests of stakeholders and community could be captured and considered as outlined in the SEP and provided information for project implementation. The public consultation activity was attended by 93 people which can be found in the Annex 17. By taking into account the ongoing COVID-19 pandemic situation, virtual public consultation was carried out to overcome the limitations in conducting direct interaction with stakeholders. The project public consultation on the ESMF documents was conducted through the virtual platform which proportional attendants/participants and distribute questionnaires regarding GEF-SCIP projects to obtain participants initial understanding of the project filled out during the consultation. The sustainability of the public consultation is documented in the form of invitation letter, list of participants, consultation minutes (summary of the consultation, ESMF update feedback and adjustment, report of the public consultation), and photos documentation. During the SCIP project implementation, consultations will be carried out continuously. The potential risks communicated/consulted transparently. Regarding the limitations during the COVID-19 pandemic, consultation and local government/community involvement encouraged to be conducted virtually. This is concerning Prevention and Regulation of COVID-19 Infection Prevention and Control (IPC) for Stakeholder Engagement, Community Based Activities and Constructions (The World Bank’s ESF/Safeguards Interim Note: COVID-19 Considerations). Prior to the public consultation, the draft of the ESMF being disclosed widely in the BAPPENAS (https://lcdi-indonesia.id/dokumenpublikasilainnya/) and WB website. Issues being discussed in the public consultation include: 1) ESMF scope and instrument changes; 2) changes in policies, laws, regulations and activities; 3) changes in potential negative environmental and social impacts. All of the inputs are being recorded and used to improve the ESMF document. 48 7. GRIEVANCE REDRESS MECHANISM The objective of the grievance redress mechanism is to ensure that all views/complaints/ grievances from individuals or groups or interested parties involved by the Project will be heard, accepted and handled in a timely manner. The Project provides a grievance redress mechanism for stakeholders who want to express their grievances/complaints during SCIP implementation, including complaints related to E&S aspects. CPMU will be the focal point that coordinates the GRM with agencies at the national level. The Project will continue the ongoing complaints handling process. CPMU will receive quarterly GRM reports from the city level. CPMU will establish a GRM team to receive and facilitate resolution of specific concerns of complainants not only limited to E&S issues, but other issues related to the project, using and building on existing GRM and LAPOR (https://lapor.go.id)3 as much as possible. The GRM will aim to resolve concerns promptly, in an impartial, understandable, and transparent process tailored to the specific community, and at no cost or without retribution to the complainants. The procedure complaint through LAPOR can be seen in Annex 13. In this Project, the PIU plans to assign one of its technical experts (for instance, the institutional expert) to manage complaints as part of its GRM team. With the assistance of the PMC, BAPPENAS will also develop a SOP for Complaint Handling that in detail will specify, among others: the responsible unit, development and maintenance of venues and media for complaints/follow-up, flows of complaint handling, standard service, assessment, verification process, procedures to receive and respond to complaints (including appeals), grievance log and documentation, socialization of the system, disclosures, and reporting. All grievances will be able to be filed through the official website of CPMU, a local contact point (phone number), or in person filing. The online GRM will operate with the mechanism as follows: o The public will submit complaints through a form on the CPMU/PIU website. o The complaint will be processed by the team formed by the CPMU/PIUs. o Relevant files will be forwarded by BAPPENAS to relevant Units of Organizations in the PIU within 5 working days, while irrelevant ones will be recorded. 3 LAPOR is canal of aspiration, complaint and information request provided by Indonesia Ombudsman 49 o Responses will be processed by the Team and to be announced on the CPMUs website. CPMU/PIU will inform the World Bank of complaints received and report on their resolution. CPMU will also inform the public on access to the World Bank’s Grievance Redress Systems. The WB is provided mechanism on how to submit complaints to the World Bank’s corporate Grievance Redress Service (GRS), please visit http://www.worldbank.org/en/projects- operations/products-and-services/grievance-redress-service and www.inspectionpanel.org 50 8. CAPACITY BUILDING AND FINANCING The institutional capacity risk is considered substantial before mitigation and moderate after mitigation. Having all PIUs at the national level within BAPPENAS simplifies project implementation arrangement and mitigates against risk from difficulties associated with multi- agency coordination. However, in Indonesia’s decentralized context, ensuring that local governments align their efforts with the central government is no easy task. The project’s implementation arrangement therefore presents a substantial risk if it is not sufficiently designed to ensure the meaningful involvement of LGs of the project cities. Rotation and transfer of officials at both national and LG levels also present a risk that needs to be taken into accounts when planning for project implementation continuity. The institutional capacity risk will be mitigated by the establishment of city coordination teams, comprising multiple key members, with clear role and responsibilities for vertical coordination with the CPMU and PIUs at the national level. The adoption of a project implementation plan that ensures meaningful and continuous participation of the city teams in all project phases is also key to mitigating the institutional capacity risk. The Project will execute capacity building and hand-on support approach at both the central and local level. In addition, the project will strengthen the overall management of E&S aspects through the provision of experts, supervision support and technical capacity building to relevant agencies and implementation units in the Cities. Capacity building on the E&S risks management will be part of the overall regular and thematic capacity building and workshops with government stakeholders. There will be several training sessions for E&S management, specifically for topics in the ESMF, to improve the capacity and understanding of all project implementation units and consultants that are involved. Initial identification of topics related to environmental and social capacity building plan for the project is listed in the table 6. This plan will be further revised during the first three semesters of project implementation. 51 Table 6. Initial Environmental and Social Topics for Capacity Building E & S Aspects Safeguards Training/Coaching for Guideline Training In Public Target ESMF Studies and Timeline for SESA Consultation Development of Awareness Approaches SCIP Steering yes Committee CPMU yes yes yes yes PIUs yes yes yes yes Local yes yes yes yes tbd Government (Bappeda/relevant Offices) SCIP financing will support implementation of this ESMF and related activities such as monitoring, evaluation, supervision, documentation, dissemination, and capacity building. Budget allocation for core E&S management at the project level will be sourced from Component 5. Budget allocation for sub-project E&S management will be embedded into project activities and is currently being detailed out through the Project Preparation Grant support. As mentioned before, there will be at least four E&S focal points from the CPMU and PIUs, combined. These focal points would be Bappenas’s civil servants and financed through their own budget. In addition, there will a PMC consisting of multidisciplinary expertise that will support CPMU, PIU and the coordination team at the city level. Budget allocation for preparation of sub-project E&S management instruments (i.e.: AMDAL, UKL-UPL, LARAP, IPP; additional TOR for technical assistance, Communication Strategy, GRM enhancements, Traffic Impact Assessment, etc.) at activity/sub-project preparation stage cannot be determined at this stage since the exact project footprints and whether such instruments are required will be determined during project implementation. The types of consultation/training/coaching, target group and costs related to the provisions of the ESMF will include Table 7 below. Table 7. Financial Plan Budget items Frequency Cost estimate Recruitment of E&S specialists under the Project tbd Management Consultant Team Training and refreshers of core E&S team, including relevant personnel and grievance focal tbd tbd points in the CPMU and PIUs 52 Budget items Frequency Cost estimate Training and refreshers of core E&S team, including relevant personnel and grievance focal tbd tbd points in the CPMU and PIUs on E&S instruments complied with WB’s ESS and GoI regulation Capacity building for the implementation and monitoring of E&S management for implementing tbd tbd agencies, sub-national governments, contractors, supervision engineers, etc. Monitoring and oversight of E&S aspects, covering operational costs, technical assistance, and tbd tbd reporting Consultants for GRM strengthening (technical tbd tbd assistance component) Total (estimate) tbd 53 ANNEXES 54 ANNEX 1: Labor Management Procedures (LMP) I. Introduction The Labor Management Procedures (or hereafter LMP) under SCIP sets out the Project’s approach to meeting national requirements as well as the World Bank’s Environmental and Social framework, particularly ESS 2 on Labor and Working Conditions. An initial E&S risk screening identified key risks and impacts associated with direct project workers as well as the contracted workers. This LMP has been prepared to guide the management of labor-related risks and working conditions as well as contractual arrangements of labor financed by the project. The scope of the LMP covers direct and contracted workers hired by the project for the purpose of project implementation. This does not cover labor management associated with downstream investments resulted from the TA activities supported by SCIP. Direct activities funded by the project will take place in the Capital of Jakarta and sub-national levels. The kind of activities could be workshops, consultations, studies, and surveys. Occupational Health and Safety (OHS) risks are low to negligible since such activities do not involve physical works, operation in, and exposure to hazardous work environments. Due to the COVID-19 pandemic, most activities will likely be carried out virtually during the initial phase until travel restrictions are lifted or hire local consultant to minimize the traveling to the field. II. Responsible Entity for LMP Implementation The Project will be led and coordinated by CPMU under the Ministry of National Development Planning/National Development Planning Agency (BAPPENAS). CPMU will be responsible for coordinating daily implementation and supervision of the LMP during the project period, including engagement and management project workers, monitoring compliance with occupational health and safety standards, training of workers, and ensuring that the grievance redress mechanism for project workers is established and implemented. III. Overview of Labor Use in the Project Types of Project Workers: All workers of this project will be hired under BAPPENAS that consists BAPPENAS’s staff and consultants/experts. Since the SCIP will not involve physical/ 55 construction works, the workers will be most likely office based, except for survey or field data collection. The LMP is determined based on of the type of employment relationship between the GoI and the project workers. The following categories of project workers are anticipated (see Table A1.1.) below. Table A1.1. Project Workers Type of Category Definition Expected Roles Workers BAPPENAS’s Staff Direct People employed Civil servants Provide day-to-day Workers or engaged directly by management of project activities the CPMU or PIUs to work specifically in relation to the project Consultants PMC Consultant firm hired by Consultant/ Provide supports and advices day- CPMU group of to-day as technical assistance and consultants oversight support to CPMU in the implementation of project. Contracted Individual Consultant/ Provide day-to-day on project workers consultant/firm hired by group of activities as Technical Assistance CPMU/PIUs to provide consultants and oversight support TA The timing of labor requirements will be based on the project timeline and direct workers will be employed in this project throughout the project’s duration. The length of engagement with the consultant team will depend on the timing of their recruitment during project implementation but are not expected to exceed beyond the project’s closing date. Number of Project Workers: The team members of CPMU and PIU are government civil servants currently work in several Deputies in BAPPENAS. As part of Component 5 on Project Management, the Project will hire a group of individual consultants (e.g. Project Manager, Fiduciary Specialist, Environmental Specialist, Social Specialist, Engineer, etc) to support implementation of the Project. Number of the project workers are yet to be determined and will be confirmed throughput project implementation. IV. Assessment of key Labor Risks The project focuses on the TA activities to support the government both at national and local to integrate environmental and climate change considerations in participating cities' 56 development plans and preparation of priority capital investments. No major OHS risks are envisaged as the project workers will be most likely office-based, with potential travels to the field subject to lifting of COVID-19 travel restrictions. All Bappenas staff are civil servants who operate under the national civil servant code, while the consultant team engaged in project activities will be hired following the national law and procurement guidelines under written contracts. Therefore, no vulnerable workers such as migrant workers or low-wage workers who may face discrimination including on the basis of gender or disability are expected to be hired. There are no physical or hazardous works for project workers under the project. There are no labor risks associated with child labor and minimum wages in this project. Workers in this project are expected to be over the age of 18 while the benefits and wages for the workers will follow national regulation of minimum wage for working. BAPPENAS will recruit the consultants/ experts through the procurement system that has been agreed upon between the Bappenas and the World Bank. Potential risks may stem from public health risks in the context of COVID-19 pandemic, especially for activities requiring face-to-face meetings and travels. Codes of Conduct for Gender-based Violence/Sexual Exploitation and Abuse and Violence Against Children (GBV/SEA and VAC) are incorporated in the LMP as a preventative measure. Protocols for travels and meetings for all project workers in the context of COVID-19 will follow the WHO guidance as well as the official direction from the national authorities and health facilities. V. Brief Overview of Labor Legislation: Terms and Conditions The Government of Indonesia has ratified several major ILO conventions and mainstreamed them in the national labor legislations. The ratified conventions include all eight fundamental conventions, two governance conventions, and ten technical conventions. In total, out of 20 conventions ratified by Indonesia, of which 19 are in force, 1 convention has been denounced. Ratified ILO fundamental conventions: a. Forced Labor Convention b. Freedom of Association and Protection of the Right to Organize Convention c. Right to Organize and Collective Bargaining Convention d. Equal Remuneration Convention e. Abolition of Forced Labor Convention 57 f. Discrimination (Employment and Occupation) Conventions g. Minimum Age Convention h. Worst Forms of Child Labor Convention Ratified ILO governance and technical conventions: a. Labor Inspection Convention b. Tripartite Consultation (International Labor Standards) Convention c. Equality of Treatment (Accident Compensation) Convention d. Marking of Weight (Packages Transport by Vessels) Convention e. Underground Work (Women) Convention f. Certification of Ships’ Cooks Convention (automatic denunciation by convention MLC) g. Employment Service Convention h. Weekly Rest (Commerce and Offices) Convention i. Hygiene (Commerce and Offices) Convention j. Seafarers’ Identity Documents Convention k. Maritime Labor Convention l. Promotional Framework for Occupational Safety and Health Convention The National Labor Legislation is then outlined in several regulations, including national laws, government regulations, presidential regulations, ministerial decree, and other derivative regulations. The primary reference regulation related to labor is Law No 13/ 2003 on Manpower, Law No. 40/2004 on the National Social Security System, Law No. 24/2011 on the National Social Security (BPJS), and Law No. 18/ 2007 on the Migrant Workers, with the latest amendments in the Omnibus Law No 11/ 2020. The labor legislation also links to Law No. 5/ 2014 on Civil Servants for government employees. The laws set out rules for the employment terms and conditions, including employment relationship, work placement, recruitment of foreign workers, employment protection and welfare, and employment termination. An employer with ten or more workers is required to establish an institution regulation. Work Agreements Based on the Law on Manpower and its amendments in the Omnibus Law, employers must have consensual work agreements with their workers in the form of a written contract signed by both parties. Work agreements are made for a definite period of employment or for an unspecified time. A work agreement for a definite employment period is based on the period 58 or completion of a certain job, which is determined based on the work contract. There is no specific permitted period of definite period employment in the latest amendment in Omnibus Law, including maximum limits of extension. Termination of employment A work agreement ends if the worker dies, the expiration of the working agreement period, completion of a certain job, there is a court decision and for a decision by an industrial relation disputes settlement institution that has permanent legal force, or there are certain circumstances or events that are stated in the work agreement or company regulations that can cause the work termination. Several additional requirements for work termination may be applied to government employees on the disciplinary violation according to Law on Civil Servants. When the work agreement for a specified period ends, the employer is obliged to provide compensation to the worker according to the work period. Under the latest Omnibus Law, the employer, workers, trade unions, and the Government must make efforts to prevent termination of employment. If employment termination is unavoidable, the employer must notify the purpose and reason for the termination of employment to the workers and labor union. If the worker/union does not agree with the termination, the employment termination settlement must be carried out through bipartite negotiations. If the negotiations do not reach an agreement, the matter will be processed according to the industrial dispute settlement mechanism under Law No. 2 of 2004 on Settlement of Industrial Relations Disputes. Labor rights on freedom of association and OHS In carrying out industrial relations, workers and labor unions have the function of carrying out work under their obligations, maintaining order for the continuity of production, democratically channeling aspirations, developing skills and expertise, and participating in advancing companies and fighting for the welfare of members and his family. On the provisions of workers' rights to organize, including rights to collective bargaining, workers have the freedom to choose how they are represented, and employers must not interfere in the process as mandated in Law No. 21/2000 on Labor Unions. The labor laws also protect workers from discrimination in the workplace. This encompasses entitlements to equal treatment and equal rights and responsibilities with no discrimination based on sex, ethnicity, race, religion, skin color, and political orientation. The laws also stipulate that every worker has a right to receive Occupational, Health, and Safety (OHS). 59 Every employer is under an obligation to apply 'an occupational safety and health management system that shall be integrated into the employer's management system.' Minimum Wages Related to wages, the laws acknowledge workers' rights to earn the same wages for work of the same value. Employers are required to pay wages in accordance with the work agreement, which should not be lower than the minimum wage. Minimum wage rates are formulated by the Provincial Governor and determined based on economic and employment conditions. A governor may also determine the minimum wage in certain regencies/cities within the province by taking into account the economic growth and inflation rate of the relevant regency/city. In the transition period of the Omnibus Law, the applicable minimum wage has been determined based on the implementing regulations of Law No 13/ 2003 on Manpower, which require employers who have provided wages higher than the minimum wage before the Omnibus law are prohibited from reducing the minimum wages. The workers are also entitled to receive religious holiday allowance on Religious Holiday Allowance. Working hours, overtime, leave Regular working hours are 40 working hours per week, which can be arranged into five or six working days as regulated in a work agreement. Employers must pay overtime compensation if the working hours exceed the above with written consent from the employees for all overtime work. In this case, the Omnibus Law extends the maximum overtime hours to maximum of four hours per day and/or 18 hours in a week. Employers are required to provide rest time and paid leave. The rest time includes rest between working hours, at least half an hour after working for 4 (four) continuous hours, and the break time does not include working hours; and weekly rest 1 (one) day for 6 (six) working days in 1 (one) week. Annual paid leave is given at least 12 (twelve) working days after the worker has continuously worked for 12 (twelve) months. In addition to the time off and leave, employers can provide long breaks as stipulated in work agreements, company regulations, or collective working agreements. Age of Employment Indonesia has ratified and mainstreamed the ILO Convention on Minimum Age for Admission to Employment and the ILO Convention on the Prohibition and Immediate Action for the 60 Elimination of the Worst Forms of Child Labor in the national laws. The national Law on Labor No.13/2003 stipulates that employer are not allowed to employ children under 18 years old and any hazardous work is prohibited to any persons under 18 years old. Exemption on the minimum age may be made for the employment of children aged between 13 and 15 years old for light work with certain conditions4.; and children between 15 and 18 years old can be employed but must not be exploited to perform the worst forms of works. Social Protection Based on Law on the National Social Security and System and its amendments in Omnibus Law, employers are required to register their employees/staff and participate in social security programs, which include healthcare, pension, work accidents, old age, and death insurance. Workers who experience employment termination are entitled to job loss insurance provided by the labor social security agency and the National Government. For government employees, articles about social security and OHS for civil servants are specified in Law No. 5/ 2014 on Civil Servants. Foreign Workers Related to foreign workers, every employer who employs foreign workers must obtain a Foreign Manpower Utilization Plan (known as Rencana Penggunaan Tenaga Kerja Asing or hereafter RPTKA) approved by National Government. RPTKA is not required for a foreign worker who is, among other things, engaged by a company in the type of production activity that has stopped due to emergencies, vocational, technology-based start-ups, on a business visit, or researching for a certain period. Foreign workers can be employed in Indonesia only in a working relationship for a particular position and for a specific time and have competence according to the position to be occupied. An employer of foreign workers must appoint Indonesian workers as companions for foreign workers to transfer technology and transfer skills from foreign workers; carry out work education and training for Indonesian workers following the qualifications of positions occupied by foreign workers, and repatriate foreign workers to their home countries after their employment period ends. 4 Certain conditions for employment for 13-15 years old are: a) The job does not disrupt their physical, mental or social development; b) Appropriate risk assessment has been conducted prior to commencement of any work; c) The employer signs a work agreement with the parents or guardians and obtains their written permission; d) They do not work longer than 3 hours per day; e) They only work during the daytime, without disruption to their schooling; and f) The employer ensures compliance with occupational safety and health requirements. 61 Further details regarding the procedures and arrangements on the implementation and administrative sanctions are regulated in the Government Regulation no. 35/2021 and other derivative regulations, including ministerial regulations which will be issued following the passage of the Omnibus Law. VI. Policy Gap and Relevance Between National Labor Legislation And World Bank Environmental And Social Standard (ESS 2) The World Bank Environmental and Social Standard stipulations related to labor are outlined in its ESS2 on Labor and Working Conditions5. Key objectives of the ESS 2 are to: • Provide project workers with contract terms and conditions. • Promote safety and health at work. • Promote the fair treatment, non-discrimination and equal opportunity of project workers • Secure protection of project workers, including vulnerable workers such as women, persons with disabilities, children (of working age, in accordance with this ESS) and migrant workers, contracted workers, community workers and primary supply workers, as appropriate. • Prevent the use of all forms of forced labor and child labor. • Support freedom of association and collective bargaining of project workers in a manner consistent with national law. • Provide project workers with accessible means to raise workplace concerns. ESS2 applies to project workers, including full-time, part-time, temporary, seasonal, and migrant workers. Where government civil servants are working in connection with the project, they will remain subject to the terms and conditions of their existing public sector employment agreement or arrangement unless there has been an effective legal transfer of their employment or engagement to the project. ESS2 will not apply to government civil servants, except child labor, forced labor, and occupational health and safety requirements. In this project, major requirements in ESS2 have been addressed in the Indonesia national labor legislations. Several gaps are identified related to the differences in the grievance mechanism, the classification of the category of workers, and the provision of detailed policies and 5More information of ESS 2 can be accessed at http://documents1.worldbank.org/curated/en/149761530216793411/ESF- Guidance-Note-2-Labor-andWorking-Conditions-English.pdf 62 procedures for OHS (see Table A1.2). Table A1.2. Gaps between national labor legislation and ESS 2 requirements No National labor Legislation ESS 2 Requirements 1 No classification of general workers. Specifies categories of workers: direct Government workers/ civil servants workers, contracted workers, primary categorized by the type of work workers, community workers, and agreement: permanent and contract. government workers/ civil servants. 2 Requirements for protecting workers and Requirements to protect workers, train training workers Detailed procedures workers, document incidents, emergency available in government derivative preparation, addressing issues; and monitor regulations. OHS performance. Detailed Procedure However, OHS procedures, forced labor required for every project provisions, and GBV / SEA provisions are not yet available in detail 3 Grievance mechanism for employer is GRM should be in place for direct workers through bipartite and tripartite and contracted workers. Measures will be put institutions that act as communication in place to make the grievance mechanism forums. Detailed procedure available in easily accessible to all such project workers. government derivative regulations. To address the gaps, CPMU develops labor-management procedures in accordance with the requirements of national law and the ESS 2. Classification for project workers has been specified in part 3 above on the overview of labor use on the project. This LMP will address how this ESS will apply to different categories of project workers, including direct workers and contracted workers. Additional policies and procedures in part 9 are adjusted for this project to be applied for all project workers, including policies and procedures on non-discrimination and equal opportunity, forced labor, OHS, code of ethics and behavior, and GBV/ SEA and VAC. CPMU will develop FGRM for all workers through the existing institution’s grievance mechanism channel and make it accessible for direct and contracted workers. VII. Terms And Conditions Since the CMPU will run this project, the LMP refers to and follow terms and conditions within national labor legislation and government policies to determine wages, working hours, rest and leaves, and employment termination for all project workers, particularly for direct workers who operate under the national civil servant code. Those terms and conditions should be in line with the additional policies and procedures within this LMP. Project workers will be provided with clear information and documentation pertaining to their terms and conditions of employment that will set out their rights under national labor laws and 63 this LMP. All direct workers will have individual contracts and/or appointment letters with fixed monthly wages and allowance according to the Indonesian labor legislation. For consultants, the recruitment process will follow the procurement system that has been agreed upon between CPMU and the World Bank and follow national procurement of government good and services standard by National Public Procurement Agencies (Lembaga Pengadaan Barang dan Jasa Pemerintah/ LPKP). On working hours, based on the national labor law (Law Number 11/ 2020), maximum regular working hours are 40 working hours per week, which can be arranged into five or six working days. The terms and conditions of contracted workers (i.e., firm consultants delivering and/or supporting core functions of the project) will be determined based on individual contracts mutually agreed between the CPMU and third-party service provider. These terms and conditions will be in line, at a minimum, with the LMP and the national labor law, and specified in the standard contracts to be used by the consulting firm(s) under the project. Under this project, disputes between workers and employers should be resolved based on mutual agreement. If the settlement is not reached, the labor disputes should be solved as regulated in the labor legislation. For consultants, any dispute arising out of work agreement/contract, which cannot be amicably settled between the parties, shall be referred to adjudication/arbitration process(es) in accordance with the national law. In the case of a contract entered into with a foreign consultant, any dispute shall be settled by arbitration in accordance with the United Nations Commission on International Trade Law (or hereafter UNCITRAL) Arbitration Rules. Further elaboration on WISE and the person in charge for managing disputes is provided in the Grievance Mechanism section. VIII. Age of Employment This project sets the age of employment based on the national labor laws and regulations. Given the nature of work and the scope of the project, only skilled workers will be engaged. It is not envisaged that underage project workers below 18 years old will be employed under the project. CPMU will be required to verify the identity and age of all workers through official documentation, such as national ID card, passport, etc. IX. Additional Policies And Procedures The terms and conditions of employment as per-the national law outlined in Section 4 will be 64 applicable to workers engaged by the project. All workers under the project will be provided with information and documentation that is clear and understandable regarding their terms and conditions of employment. The information and documentation will set out their rights under the national labor and employment law, as applicable. These include the rights related to hours of work, wages, overtime, compensation, benefits and collective agreements as applicable. Such information will be provided at the beginning of the working relationship in a contract and when any material changes, to the terms or conditions of their employment. In addition to employment terms and conditions as established in the LMP, the following additional provisions shall also apply: Non-discrimination and equal opportunity Decisions relating to the employment or treatment of project workers will not be made on the basis of personal characteristics unrelated to inherent job requirements. The employment of project workers will be based on the principle of equal opportunity and fair treatment and there will be no discrimination with respect to any aspects of the employment relationship, such as recruitment and hiring, compensation (including wages and benefits), working conditions and terms of employment, access to training, job assignment, promotion, termination of employment or retirement or disciplinary practices. The project will identify and provide measures that support equal opportunities for women and men, including measures to prevent harassment of project workers, including sexual harassment. Relevant measures that address working conditions, accessibility of the built environment, and communication of information for project workers with disabilities, such as provision of wheelchair ramps or elevators and/or alternative formats of communication shall also be identified as relevant to ensure accessibility and equality of opportunities for all project workers. Forced Labor CPMU and all project workers involved in this project are prohibited to engage forced labor, which includes the practice of the following: a. bonded /indentured labor (working against an impossible debt). b. excessive limitations of freedom of movement. c. excessive notice periods. d. retaining the worker’s identity or other government-issued documents or personal 65 belonging. e. imposition of recruitment or employment fees payable at the commencement of employment. f. loss or delay of wages that impede the workers’ right to end employment within their legal rights. g. substantial or inappropriate fine. h. physical punishment. i. use of security or other personnel to force or extract work from project workers, or other restrictions that compel a project worker to work in a non-voluntary basis. Occupational Health and Safety In line with national labor legislation, the employer and all project workers must follow OHS standards, including putting a serious concern on COVID-19 protocols. Related to that, the project is committed to: a. Complying with applicable laws and regulations related to potential occupational health and safety risks and impacts, including potential public health risks associated with COVID-19 for project workers. b. Maintaining healthy and safe working conditions. This also includes ensuring safety of project travels (by air, land and/or water related travels) and protection of GBV/SEA/VAC. c. Applying general safety tips for travel include: • Share your travel itinerary with other project personnel. Provide daily “check-ins” to the project office/colleagues when deemed necessary • Carry with you, your personal emergency contact numbers • Identify and take note the local emergency medical services and contact numbers at site • Pack a basic first aid kit, including any personal prescribed and/or non-prescribed medications • Avoid traveling at night unless there is no other feasible option • Prioritize traveling on more reliable airlines acknowledged for their safety standards and performance (Garuda Indonesia and/or Citilink) • Adequately assess and select options for air versus land travel. Generally, air travels 66 have lower likelihood of an accident but higher severity when compared to land travels • Identify and engage trusted third-party sources for vehicle rentals and/or boat rentals (Trac and/or Bluebird group rentals) • Ensure cars/vehicles are equipped with safety equipment such as seat belts (all seats), fire extinguishers etc, and is in good operating condition for land travel • Driver shall not use nor talk on mobile phones while driving • Avoid traveling on motorbikes whenever possible (most road accidents are related to motorbikes) • Ensure to wear a lifevest whenever travelling on water d. Enabling active participation in OHS risks elimination through the promotion of appropriate skills, knowledge and attitudes towards hazards. e. Ensuring all workers are competent to do their tasks and giving them adequate training. f. Providing adequate control of health and safety risks arising from all work activities at all circumstances. g. Continually improving the OHS management system and performance. h. Communicating this policy statement to all persons working under the control of the PWYP with emphasis on individual OHS responsibilities. i. Availing this policy statement to all parties at all sites. j. Implementing health and safety protocols related COVID-19 constraints, refer to section XI. COVID-19 Protocols. Code of Ethic and Behavior All government employees, both permanent civil servants (ASN) and government employees with a work agreement (PPPK) are bound by the national civil servant code of ethic and behavior as stipulated in Law No. 5/2014 on Civil Servants. The same code of ethics and behavior shall be applied to contracted workers in this project where relevant and can be attached in the work agreement. a. Carry out duties honestly, responsibly, and with high integrity b. Carry out duties with care and discipline c. Serve with respect, courtesy, and without pressure d. Carry out duties in accordance with the provisions of laws and regulations e. Carry out duties in accordance with orders from supervisors or competent officers as long 67 as they do not conflict with the provisions of laws and regulations and government ethics f. Maintain confidentiality concerning state policies g. Use state property and assets responsibly, effectively, and efficiently h. To prevent conflicts of interest in carrying out their duties i. Provide true and not misleading information to other parties who need information related to official interest j. Not misuse internal state information, duties, status, power and position to obtain or seek self-profit or benefit or for others k. Uphold the basic values of civil servant and always maintain the reputation and integrity of civil servant l. Implement the provisions of laws and regulations regarding the discipline of government employees Gender-based Violence/Sexual Exploitation and Abuse and Violence Against Children (GBV/SEA and VAC): As part of OHS measures, the project seeks to prevent any misconduct and/or practices (both verbal and physical) that constitute forms of GBV/SEA and VAC. GBV/SEA refers to any act that is perpetrated against a person's will and is based on gender norms and unequal power relationships. It includes physical, emotional, or psychological and sexual violence and denial of resources or access to services. Violence includes threats of violence and coercion and inflicts harm on women, girls, men, boys, and people of diverse gender identities. VAC is defined as physical, sexual, emotional, and/or psychological harm, neglect, or negligent treatment of minor children (i.e., under the age of 18), including exposure to such harm that results in actual or potential harm to the child's health, survival, development or dignity in the context of a relationship of responsibility, trust or power. This includes using children for profit, labor, sexual gratification, or other personal or financial advantages. There are several national legal frameworks that relevant to the prevention on response to GBV/SEA and VAC, including: 1. Law No. 7/1984 on Ratification of the Convention on the Elimination of All Forms of 2. Discrimination against Women 3. Law No. 39/1999 on Human Rights 4. Law No 23/2002 on Child Protection and its amendments in Law No 35/2014 5. Law No. 23 /2004 on the Elimination of Domestic Violence 68 6. Law No. 21 /2007 on the Eradication of the Crime of Trafficking in Persons 7. Law No. 44 /2008 on Pornography 8. Law No. 13 /2006 on Protection of Witnesses and Victims of Violence 9. Presidential Decree No. 9 /2008 on Integrated Service Procedures and Mechanisms for 10. Witnesses and / or Victims of Human Trafficking 11. Presidential Decree No. 4 /2006 on the Implementation and Cooperation for Victim Recovery To prevent GBV/ SEA and VAC in this project, the LMP has incorporated additional Codes of Conduct (COCs) on GBV/SEA and VAC (Sub-annex 1.1-1.3). All project workers are required to understand and sign the COCs as a part of the code of ethics and behavior prior to employment. All project workers are also required to participate in the regular training on GBV/SEA and VAC, including COCs, to ensure the project workers implements the CoC requirements in their work. A key element of the COCs include relevant sanctions applicable to project workers in the event of violations. Subject to investigation of allegations, disciplinary measures may be applied as stipulated in Government Regulation No. 53/2010 on Discipline of Civil Servants and the national law. X. Feedback and Grievance Mechanism All project workers in SCIP, including direct contracted workers should have access to the GRM. In principles, GRM for project workers is similar to the general guideline as above mentioned. The BAPPENAS/CPMU has person in charge for complaint handling for workers, the government (ombudsman) also established canal for complaint and request information (https://lapor.go.id). The SCIP will set up the GRM project structure, with the overall GRM organizational structure can be seen in Figure 1. Related to the implementation of project the CPMU will provide tool for GRM as below: GRM Organizational Structure The GRM for project workers will be elaborated once specific contractors have been procured. As such, the project implementation/contractor should develop or strengthen the existing complaint handling mechanism and conduct monitoring and evaluation on a regular basis. GRM for project workers should protect confidentiality to ensure workers safety and security, and to avoid retaliation that will pose risk to worker rights. 69 The grievance mechanism will not impede access to other judicial or administrative remedies as stipulated in the Law No. 13 of 2003 on Manpower, especially under articles 137 – 145. The Law protects freedom of expression and freedom to unite or make association, and through existing arbitration procedures, or substitute for grievance mechanisms provided through collective agreements. Thus, these legal procedures remain available for project workers as a means to complain, and the project implementation should respect worker rights in this regard. XI. COVID-19 Protocol The following protocol on COVID-19 prevention serves as an operational guidance on addressing public health measures for the prevention and management of COVID-19 risks for project workers in public settings. This protocol is in line with the WHO guidance on COVID- 19 infection prevention and control and will be disseminated and applied to all project workers. In implementing project activities and stakeholder engagement, all project workers are required to follow the following measures, including: • CPMU needs to assign focal point who will be responsible for coordinating preparation on project activities and ensuring that the COVID-19 prevention measures are communicated to all participants. It is also advisable to designate co-focal point as back-up person; in case the main focal point becomes ill. At this stage of project preparation, virtual consultations are the preferred approach to the extent feasible. • Adjust meeting and consultation approaches based on public health risk assessments which may include: o Conducting virtual meeting as much as possible and implementing physical distancing for direct meetings and field works. o Decreasing the size of and/or limiting the number of consultation participants at any one time. o Provision of Personal Protective Equipment (PPE) to prevent COVID-19, using masks at minimum. o Continuing with the usual environmental and social management trainings, adding self- hygiene and COVID-19 related trainings as appropriate. o Assess the extent to which consultation and field work schedule needs to be adjusted 70 (or stopped) to reflect prudent work practices, potential exposure of both project workers and community to public health risks. Consider availability of Infection Prevention and Control PPE supplies, taking into account Government advice and instructions. • General hygiene should be communicated and monitored, to include: o Training all project workers on site on the signs and symptoms of COVID-19, how it is spread, how to protect themselves (including regular hand washing and social distancing) and what to do if they or other people have symptoms6 o Placing posters and signs around the site, with images and text in local languages. o Ensuring handwashing facilities supplied with soap, disposable paper towels and closed waste bins exist at key places throughout site, including at entrances/exits to work areas; where there is a toilet, food distribution, or provision of drinking water; at waste stations; at stores; and in common spaces. Alcohol based sanitizer (60-95% alcohol) can also be used. • Regular cleaning and waste disposal. Conduct regular and thorough cleaning of all site facilities and provide project workers deployed to the field with adequate cleaning facilities (such as soap, hand sanitizers, disinfectants, etc.). Disposable PPEs should be collected safely in designated containers or bags and disposed of following relevant requirements (e.g., national, WHO)7. In the case where COVID-19 cases are reported on site, extensive cleaning with high-alcohol content disinfectant should be undertaken in the area where consultations activities are undertaken, prior to any further activities being undertaken in the same venue. • Identify accessible local medical facilities. Preparation for this includes: o Obtaining information on resources and capacity of local medical services and 6 WHO recommends contact, droplet, and airborne precautions (including PPEs) to be applied during care for patients with suspected, probable, and confirmed COVID-19 and aerosol generating procedures. WHO does not recommend PPE reuse (donning of a used PPE item without decontamination/ reprocessing), use of gloves in settings where they are not needed, wearing a medical mask over a respirator, or the use of non-medical masks as an alternative to medical masks or respirators. For further information, refer to WHO interim guidance on rational use of personal protective equipment (PPE) for COVID-19. 7 Based on WHO guidelines, best practices for safely managing healthcare waste (including PPEs) should be followed, including assigning responsibility and sufficient human and material resources to segregate, recycle and dispose of waste safely. Waste should be packed in strong bags and closed completely before disposal and eventual collection by municipal waste services. After such disposal, correct hand hygiene should be performed. Finally, those tasked with collecting waste should wear PPE and have facilities for regularly conducting hand hygiene. For further information see WHO interim guidance on water, sanitation and waste management for COVID-19 71 selecting which medical facilities to be referred to for specific level of illness. o Discuss with specific medical facilities, to agree what should be done in the event of ill project workers and people involved in consultations needing to be referred, and method of transport for sick workers. o Establishing an agreed protocol for communications with local emergency/medical services. o Agreeing with the local medical services/specific medical facilities the scope of services to be provided, the procedure for in-take of patients and (where relevant) any costs or payments that may be involved. o If testing for COVID-19 is available, project workers with COVID-19 symptoms should be tested on site. If a test is not available at site, the worker should be transported to the local health facilities to be tested (if available). o An emergency response procedure should also be prepared for when a project worker ill with COVID-19 dies, in coordination with relevant local authorities, including any reporting or other requirements under national law. • If community meetings are envisaged, communication and contact with the community should be carefully managed. The following good practice should be considered: o o Communications should be clear, regular, based on fact and designed to be easily understood by community members through forms of communication other than face- to-face, posters, pamphlets, radio, text message, electronic meetings. The means of communication used should take into account the ability of different members of the community to access them. o Existing grievance redress mechanism should be utilized to manage feedback and grievances from the communities. o The community should be made aware of all measures being implemented to limit contact between project workers and amongst community members themselves, procedure for social distancing measures, the training being given to project workers and the procedure that will be followed by the project if a worker or consultation participant becomes sick. o If project workers are interacting with the community, they should practice social distancing and follow other COVID-19 guidance issued by relevant authorities, both by national and international agencies (e.g. WHO). 72 • Standard protocol in the office and during travel should be carefully managed and facilitated by CPMU and followed by project workers who need to work from the office. The following good practice should be considered: o Prioritize those who have received COVID-19 vaccination if travels and office-based work are required. o Make sure workplaces are clean and hygienic, and wipe and disinfectant surfaces regularly (e.g. desks and tables) and objects (e.g. telephones, keyboards). o Promote regular and thorough handwashing or display posters promoting handwashing. o Provide sanitizing hand rub dispensers in prominent places around the workplace. Make sure these dispensers are regularly refilled. o Combine this with other communication measures such as offering guidance from relevant health authorities, briefings at meetings, etc. o Make sure that project workers have access to places where they can wash their hands with soap and water. o Display posters promoting respiratory hygiene and other communication measures such as offering guidance from relevant health authorities, briefing at meetings, etc. o Ensure that face masks and/or paper tissues are available at workplaces, for those who develop a runny nose or cough at work, along with closed bins for hygienic disposal. o Advise project workers to consult national travel advice before going on business trips. Ensure the latest information on areas where COVID-19 is spreading. Based on the latest information, assess the benefits and risks related to upcoming travel plans. o Brief all people in the office and require anyone with even a mild cough or low-grade fever (37.3 C or more) needs to stay at home. They should also stay home (or work from home) if they have taken simple medications, such as paracetamol /acetaminophen, ibuprofen or aspirin, which may mask symptoms of infection. o Avoid sending team members who may be at higher risk of serious illness (e.g. older employees and those with medical conditions such as diabetes, heart and lung disease) for travels. o Make sure project workers travelling are briefed by a qualified professional. o Provide project workers who are about to travel with small bottles (under 100 CL) of alcohol-based hand rub. This can facilitate regular handwashing. 73 o Ensure project workers know what to do and who to contact if they feel ill while traveling. o Ensure that project workers comply with instructions from local authorities where they are traveling. All project workers should comply with any local restrictions on travel, movement or large gatherings. o Project workers who have returned from an area where COVID-19 is spreading should monitor themselves for symptoms for 14 days and take their temperature twice a day. If any project workers develop even a mild cough or low-grade fever (i.e. a temperature of 37.3o C or more), they should stay at home and self-isolate. This means avoiding close contact (one meter or nearer) with other people, including family members. They should also telephone their healthcare provider or the local public health department, giving them details of their recent travel and symptom. 74 Sub-ANNEX 1.1 : Project Code of Conduct Preventing Gender Based Violence/ Sexual Exploitation and Abuse (GBV/SEA) and Violence Against Children (VAC) Company/Firm Code of Conduct Preventing Gender Based Violence/ Sexual Exploitation and Abuse and Violence Against Children The company (name) is also committed to creating and maintaining an environment in which Gender- based Violence/Sexual Exploitation and Abuse (GBV/SEA) and Violence against Children (VAC) have no place, and where they will not be tolerated by any employees engaged by the company. Therefore, to ensure that all those engaged in the project are aware of this commitment, the company commits to the following core principles and minimum standards of behavior that will apply to all company employees, associates, and representatives without exception: General 1. The company – and therefore all employees, associates, and representatives – commit to complying with all relevant national laws, rules and regulations. 2. The company commit to treating women, children (persons under the age of 18), and men with respect regardless of race, color, language, religion, political or other opinion, national, ethnic or social origin, property, disability, births or other status. Acts of SEA/GBV and VAC are in violation of this commitment. 3. The company shall ensure that interactions with peers and other project workers are done with respect and non-discrimination. 4. Demeaning, threatening, harassing, abusive, culturally inappropriate, or sexually provocative language and behavior are prohibited among all company employees, associates, and representatives. 5. The company will follow all reasonable work instructions in line with the national law and the Labor Management Procedure (LMP) for the project. Gender Based Violence and Violence Against Children 1. Acts of GBV/SEA or VAC constitute gross misconduct and are therefore grounds for sanctions, which may include penalties and/or termination of employment, and if appropriate referral to the Police for further action. 2. All forms of GBV/SEA and VAC, including grooming, are unacceptable, regardless of whether they take place on the work site, the work site’s surroundings, at workers’ camps or within the local community. i. Sexual Harassment – for instance, making unwelcome sexual advances, requests for sexual favours, and other verbal or physical conduct, of a sexual nature, including subtle acts of such behavior – is prohibited. ii. Sexual favors – for instance, making promises or favourable treatment dependent on sexual acts – or other forms of humiliating, degrading or exploitative behavior, are prohibited. iii. Sexual contact or activity with children under 18 – including through digital media – is prohibited. Mistaken belief regarding the age of a child is not a defense. Consent from the child is also not a defense or excuse. Unless there is full consent8 by all parties involved in the sexual act, sexual interactions between the company’s employees (at any level) and members of the communities surrounding the workplace are prohibited. This includes relationships involving the withholding/promise of actual provision of benefit (monetary or non-monetary) to community members in exchange for sex—such sexual activity is considered “non-consensual” within the scope of this Code. 3. In addition to company sanctions, legal prosecution of those who commit acts of GBV/SEA or VAC will be pursued if appropriate. 4. All employees, including volunteers and sub-contractors are highly encouraged to report suspected or actual acts of GBV/SEA and/or VAC by a fellow worker, whether in the same company or not. Reports must be made in accordance with project’s GBV and VAC Allegation Procedures. 5. Managers are required to report and act to address suspected or actual acts of GBV/SEA and VAC as they have a responsibility to uphold company commitments and hold their direct reports responsible. Implementation To ensure that the above principles are implemented effectively the contractors commit to ensuring that: 1. All managers sign the Project’s ‘Manager’s Code of Conduct’ detailing their responsibilities for implementing the company’s commitments and enforcing the responsibilities in the ‘Individual Code of Conduct’. 2. All employees sign the project’s ‘Individual Code of Conduct’ confirming their agreement to comply with OHS standards, and not to engage in activities resulting in GBV/SEA or VAC. 3. Displaying the Company and Individual Codes of Conduct prominently and in clear view. 4. Ensure that posted and distributed copies of the Company and Individual Codes of Conduct 8 Consent is defined as the informed choice underlying an individual’s free and voluntary intention, acceptance or agreement to do something. No consent can be found when such acceptance or agreement is obtained using threats, force or other forms of coercion, abduction, fraud, deception, or misrepresentation. In accordance with the United Nations Convention on the Rights of the Child, the World Bank considers that consent cannot be given by children under the age of 18, even if national legislation of the country into which the code of conduct is introduced has a lower age. Mistaken belief regarding the age of the child and consent from the child is not defense. are translated into the appropriate language as well as for any international staff in their native language. 5. An appropriate person is nominated as the company’s ‘Focal Point’ for addressing GBV/SEA and VAC issues. 6. Ensuring that the GBV/SEA and VAC Codes of Conduct are effectively implemented and revised as needed. 7. That the company/firm effectively implement the agreed final GBV/SEA and VAC Codes of Conduct, providing feedback to the CPMU Director or other function(s) as applicable for improvements and updates as appropriate. 8. All employees attend an induction-training course prior to mobilization to ensure they are familiar with the Project’s GBV/SEA and VAC Codes of Conduct as well as refresher training as relevant. I do hereby acknowledge that I have read the foregoing Company/Firm Code of Conduct, and on behalf of the company agree to comply with the standards contained therein. I understand my role and responsibilities to prevent and respond to GBV/SEA and VAC. I understand that any action inconsistent with this Company/Firm Code of Conduct or failure to act mandated by this Code of Conduct may result in disciplinary action. Company name: Signature: Printed Name: Title: Date: Sub-ANNEX 1.2: Individual Code of Conduct Preventing Gender Based Violence/ Sexual Exploitation and Abuse (GBV/SEA) and Violence Against Children (VAC) Individual Code of Conduct Preventing Gender Based Violence/ Sexual Exploitation and Abuse and Violence Against Children I,________________, acknowledge that adhering to environmental and social standards, following the Project’s Code of Conduct for the prevention of Gender-based Violence/ Sexual Exploitation and Abuse (GBV/SEA) and violence against children (VAC) at the workplace is important. The contractor ( ) considers failure to follow OHS standards, or to commit GBV/SEA or VAC—be it on the work site, the work site’s surroundings, at workers’ camps, in workers’ homes, or the surrounding communities—to be gross misconduct and grounds for sanctions, penalties or potential termination of employment. Prosecution by the police of those who commit GBV/SEA or VAC may be pursued if appropriate. I agree that while working on the Project I will: 1. Attend and actively participate in training courses related to ESS, GBV/SEA and VAC as requested by my employer. 2. Not drink alcohol or use narcotics or other substances, which can impair faculties before or during work activities. 3. Consent to a police background check. 4. Treat women, children (persons under the age of 18), and men with respect regardless of race, color, language, religion, political or other opinion, national, ethnic or social origin, property, disability, birth or other status. 5. Not use language or behavior towards women, children or men that is inappropriate, harassing, abusive, sexually provocative, demeaning or culturally inappropriate. 6. Not engage in sexual harassment—for instance, making unwelcome sexual advances, requests for sexual favors, and other verbal or physical conduct, of a sexual nature, including subtle acts of such behavior (e.g. looking somebody up and down; kissing, howling or smacking sounds; hanging around somebody; whistling and catcalls; giving personal gifts; making comments about somebody’s sex life; etc.) 7. Not engage in sexual favors—for instance, making promises of favorable treatment dependent on sexual acts—or other forms of humiliating, degrading or exploitative behavior. 8. Not participate in sexual contact or activity with children—including grooming or contact through digital media. Mistaken belief regarding the age of a child is not a defense. Consent members of the surrounding communities. This includes relationships involving the withholding or promise of actual provision of benefits (monetary or non-monetary) to community members in exchange for sex – such sexual activity is considered “non- consensual” within the scope of this Code. 10. Report through the FGRM or to my manager any suspected or actual GBV/SEA or VAC by a fellow worker, whether employed by my company or not, or any breaches of this Code of Conduct. With regard to children under the age of 18, I will: 1. Wherever possible, ensure that another adult is present when working in the proximity of children. 2. Not invite unaccompanied children unrelated to my family into my home, unless they are at immediate risk of injury or in physical danger. 3. Not use any computers, mobile phones, video and digital cameras or any other medium to exploit or harass children or to access child pornography (see also “Use of children's images for work related purposes” below). 4. Refrain from physical punishment or discipline of children. 5. Refrain from hiring children for domestic or other labor below the minimum age of 14 unless national law specifies a higher age, or which places them at significant risk of injury. 6. Comply with all relevant local legislation, including labor laws in relation to child labor and the World Bank’s safeguard policies on child labor and minimum age. 7. Take appropriate caution when photographing or filming children. Use of children's images for work related purposes When photographing or filming a child for work related purposes, I must: 1. Before photographing or filming a child, assess and comply with local traditions or restrictions for reproducing personal images. 2. Before photographing or filming a child, obtain informed consent from the child and a parent or guardian of the child. As part of this I must explain how the photograph or film will be used. 3. Ensure photographs, films, videos and DVDs present children in a dignified and respectful manner and not in a vulnerable or submissive manner. Children should be adequately clothed and not in poses that could be seen as sexually suggestive. 4. Ensure images are honest representations of the context and the facts. 5. Ensure file labels do not reveal identifying information about a child when sending images electronically. Sanctions I understand that if I breach this Individual Code of Conduct, my employer will take 1. Informal warning. 2. Formal warning. 3. Additional Training. 4. Loss of up to one week’s salary. 5. Suspension of employment (without payment of salary), for a minimum period of 1 month up to a maximum of 6 months. 6. Termination of employment. 7. Report to the Police if warranted. I will avoid actions or behaviors that could be construed as GBV/SEA or VAC. Any such actions will be a breach this Individual Code of Conduct. I do hereby acknowledge that I have read the foregoing Individual Code of Conduct, agree to comply with the standards contained therein and understand my roles and responsibilities to prevent and respond to GBV/SEA and VAC issues. I understand that any action inconsistent with this Individual Code of Conduct or failure to act mandated by this Individual Code of Conduct may result in disciplinary action and may affect my ongoing employment. Signature: Printed Name: Title: Date: Sub-ANNEX 1.3: Manager Code of Conduct Preventing Gender Based Violence/ Sexual Exploitation and Abuse (GBV/SEA) and Violence Against Children (VAC) Manager’s Code of Conduct Preventing Gender Based Violence/ Sexual Exploitation and Abuse and Violence Against Children Managers at all levels have a responsibility to uphold the company’s commitment to preventing and addressing GBV/SEA and VAC. This means that managers have an acute responsibility to create and maintain an environment that respects these standards and prevents GBV/SEA and VAC. Managers need to support and promote the implementation of the Company Code of Conduct. To that end, managers must adhere to this Manager’s Code of Conduct and sign the Individual Code of Conduct. This commits them to supporting the implementation of the OHS Plan and developing systems that facilitate the implementation of the GBV/SEA and VAC Action Plan. They need to maintain a safe workplace, as well as a GBV/SEA-free and VAC-free environment at the workplace and in the local community. These responsibilities include but are not limited to: Implementation 1. To ensure maximum effectiveness of the Company/Firm and Individual Codes of Conduct: i. Prominently displaying the Company/Firm and Individual Codes of Conduct in clear view at the workspace. ii. Ensuring all posted and distributed copies of the Company/Firm and Individual Codes of Conduct are translated into the appropriate language as well as for any international staff in their native language as applicable. 2. Verbally and in writing explain the Company/Firm and Individual Codes of Conduct to all employees within the firm. 3. Ensure that: i. All direct reports sign the ‘Individual Code of Conduct’, including acknowledgment that they have read and agree with the Code of Conduct. ii. Signed copies of the Individual Code of Conduct are provided to all consultants hired by the firm. 72 iii. Participate in training and ensure that staff also participate as outlined below. iv. Put in place a mechanism for staff to confidentially report GBV/SEA or VAC incidents through the Grievance Redress Mechanism (GRM) v. Consultants are encouraged to report suspected or actual GBV/SEA or VAC issues, emphasizing their responsibility to the Company/Firm and emphasizing the respect for confidentiality. 4. In compliance with applicable laws and to the best of your abilities, prevent perpetrators of sexual exploitation and abuse from being hired, re-hired or deployed. Use background and criminal reference checks for all employees. 5. Ensure that when engaging a partnership, sub-contractor or similar agreements, these agreements: i. Incorporate the GBV/SEA and VAC Codes of Conduct as an attachment. ii. Include the appropriate language requiring such contracting entities and individuals, and their employees and volunteers, to comply with the Individual Codes of Conduct. iii. Expressly state that the failure of those entities or individuals, as appropriate, to take preventive measures against GBV/SEA and VAC, to investigate allegations thereof, or to take corrective actions when GBV/SEA or VAC has occurred, shall not only constitute grounds for sanctions and penalties in accordance with the Individual Codes of Conduct but also termination of agreements to work on or supply the project. 6. Provide support and resources to the CPMU to create and disseminate internal sensitization initiatives through the awareness-raising strategy for GBV/SEA and VAC issues. 7. Ensure that any GBV/SEA or VAC issue warranting police action is reported to the police, the CPMU and the World Bank immediately. 8. Report and act according to the response protocol any suspected or actual acts of GBV/SEA and/or VAC, as managers have a responsibility to uphold company/firm’s commitments and hold their direct reports responsible. Training 1. All managers are required to attend an induction training course on GBV/SEA and VAC elements of these Codes of Conduct. 73 2. Managers are required to attend and assist with the project-facilitated training courses for all consultants employed by the firm. Managers will be required to introduce the training including collecting satisfaction surveys to evaluate training experiences and provide advice on improving the effectiveness of training. 3. Ensure that time is provided during work hours and that staff prior to mobilization attend the mandatory project facilitated induction training on GBV/SEA and VAC Codes of Conduct. Response 1. With regard to GBV/SEA and VAC: i. Provide input to the GBV/SEA and VAC sensitization as needed. ii. Once Codes of Conduct are signed, managers will uphold the measures set out in the GBV/SEA and VAC Codes of Conduct to maintain the confidentiality of all persons who report or (allegedly) perpetrate incidences of GBV/SEA and VAC (unless a breach of confidentiality is required to protect persons or property from serious harm or where required by law). iii. If a manager develops concerns or suspicions regarding any form of GBV/SEA or VAC by one of their direct reports, or by any staff involved in the project, they are required to report the case using the FGRM channel and/or other applicable mechanism(s). iv. Once a sanction has been determined, the relevant manager(s) is/are expected to be personally responsible for ensuring that the measure is effectively enforced, within a maximum timeframe of 14 days from the date on which the decision to sanction was made. v. If a Manager has a conflict of interest due to personal or familial relationships with the survivor and/or perpetrator, they must notify the respective CPMU director or other function(s) as applicable. The /Firm will be required to appoint another manager without a conflict of interest to respond to complaints. vi. Ensure that any GBV/SEA or VAC issue warranting police action is reported to the police, CPMU and the World Bank immediately 2. Managers failing to report or comply with the GBV/SEA and VAC provisions may be subject to disciplinary measures, to be determined and enacted by the company’s CEO, Managing Director or equivalent highest-ranking manager. Those measures may 74 include: i. Informal warning ii. Formal warning iii. Additional training iv. Loss of up to one week's salary v. Suspension of employment (without payment of salary), for a minimum period of 1 month up to a maximum of 6 months vi. Termination of employment 3. Ultimately, failure to effectively respond to GBV/SEA and VAC cases on the work site by the company’s managers or CEO may provide grounds for legal actions by authorities. I do hereby acknowledge that I have read the foregoing Manager’s Code of Conduct, do agree to comply with the standards contained therein and understand my roles and responsibilities to prevent and respond to GBV/SEA and VAC requirements. I understand that any action inconsistent with this Manager’s Code of Conduct or failure to act mandated by this Manager’s Code of Conduct may result in disciplinary action. Signature: Printed Name: Title: Date: 75 ANNEX 2 : Cities Profile Table A2.1. Summary of city profile Balikpapan Bitung DKI Palembang Semarang Jakarta Population 688,318 225,134 10,562,088 1,668,848 1,653,524 size Population 1,368/km2 743/km2 15,955/km2 4,510/km2 4,421/km2 density Economic Mainly Processing Services & Processing Manufacture overview processing industries & manufacture industries & & industry agriculture construction construction fisheries services (SEZ) Land use 52% for 42.67% 90% built- 62% built up 44% protected protected up area area residential area area area Biodiversity Coral reefs Coral reefs Mostly in Tree cover 7 migratory degradation are damaged Kep. Seribu loss is birds, (sediment), (14%-37% or accelerating 3 globally Protected: 61 alive) Mangrove, significant floras & 158 27% of species are faunas, coral reefs no longer Endangered: are found dolphin damaged Environmen River Mangrove Polluted Moderately Polluted tal condition pollution, area rivers and polluted rivers, sea sedimentatio conversion, groundwate rivers, river water n, and marine and r, unhealthy sedimentatio intrusion to erosion; coastal level of air n, groundwater uncontrolled pollution quality degradation land clearing; of water mangrove drainage degradation from swamp Disaster risk Floods, Landslides Floods & Haze, floods Rapid land landslides, and floods, tidal, land due to land subsidence, haze earthquake subsidence conversion tidal (swamp into inundation, built-up floods in areas) rainy season Wastewater Untreated Lack of Untreated n/a Wastewater wastewater environment wastewater pollutes -friendly coastal area Solid waste Unhandled waste Uncollected n/a Unhandled waste treatment solid waste waste Transportati Limited n/a Traffic n/a Traffic on coverage of congestion congestion 76 Balikpapan Bitung DKI Palembang Semarang Jakarta public transport Fiscal Very high Low Very high Very high Very high capacity Key RPJMD RPJMD RPJMD RPJMD RPJMD planning 2016-2021 2016-2021 2017-2022 2018-2023 2016-2021 documents (new RPJMD (new (new RTRW (new under RPJMD RPJMD 2012-2032 RPJMD formulation) under under (under under RTRW 2012- formulation) formulation revision) formulation) 2032 (under RTRW ) No RTDR RTRW revision) 2013-2033 RTRW 2011-2031 No RTDR (under 2030 (under revision) RTDR and revision) No RTDR Zoning No RTDR regulations RTBL of (under Old Town revision) area Government Zero waste Greenhouse Rail-based n/a PPP scheme ’s initiatives and zero gases public for sediment; regional transport infrastructur green action plan (LRT, e project industry at province- MRT); (seawall); Greenhouse level Single- Drainage gases plastics ban; master plan, regional Giant waste action plan; seawall master plan, Smart city (NCICD) climate masterplan change regional action plan, SDGs action plan Other World n/a n/a 100 Smart World initiatives Bank’s CPL Cities Bank’s and NUDP movement, CPL, World NUDP, Bank’s pilot RIDF, of National NSUP, Solid Waste Integrated Management Infrastructur and NUDP e for National Tourism Strategic Area. KOTAKU, 77 Balikpapan Bitung DKI Palembang Semarang Jakarta 100 Resilient Cities, Water as Leverage. 78 BALIKPAPAN Overview Balikpapan is located on the south eastern coast of the island Borneo (Kalimantan) with a total area of 503 km2 and has a population of 688,318. As a capital of East Kalimantan Province, it also becomes a main hub for future Indonesia New Capital, which is located approximately 104 km to the north. The built-up urban area is entirely within the municipal boundaries with less than half of the municipal territory being densely built up. The city is located between lowland primary rainforests and mangrove coastal areas, hosts two oil refineries, and is a gateway for eco-tourism. Brief Socioeconomic Profile Balikpapan is a centre of industrial processing – for the logging industry, including illegal logging, as well as for petroleum, paper, fertilizer, palm oil, and other naturally-derived products. The industrial processing category makes up more than half of GRDP within the city’s administrative boundaries. However, in 2020 Balikpapan took a sharp decline of economic growth by -0.69% compared to 4.6% annual growth between 2016-2019, with sectors that received the greatest hit including transportation and storage (-12%) as well as accommodation and food services (-10.6%).9 The population growth rate between 2010-2020 is 2.06% on average, which was mostly caused by migration factor (70%) than natural factor (30%). The positive population growth along with high economic growth contribute to rapid physical development in the city. With annual population growth rate of 2.06 percent, Balikpapan’s population is concentrated in Balikpapan Tengah which population density nearly reaches 10,000 people/km2 while city’s average is 1,368 people/km2. Slums area reached 267 ha in 2019 with lack of sanitation is prevalent due to limited space for communal WWTP. Lack of clean water provision is prevailing in Balikpapan due to limited water sources. The number of poor people were 17,020 (2.57 percent of population) and in 2017, the Gene Ratio of Balikpapan City was 0.32 which indicates that income inequality is low. While the HDI of Balikpapan in 2020 reached 80.01 which is considered as “Very High”, almost half of the local workforce only has high school degree and the ones who have advanced degree were less than 17 percent of active workforce. In 2020, 9 Balikpapan Municipality in Figures, 2021 79 unemployment rate in Balikpapan increased to 9%. Despite industry sector dominates local economy, it only absorbed 21 percent of local labor. Approximately 77 percent of residents relied heavily on service industries which most of them worked for trade, restaurant, and accommodation services sector. Land Use In general, the city has generally a hilly contour (85%) with an altitude between 0 and more than 100 meters above sea level while the other 15% is a coastal area. Most of the soil types in Balikpapan are red-yellow podzolic, alluvial, and quartz sand that are easily eroded. Balikpapan city major land use is for forest, which covers 14,213.10 ha of the area, while the rest are 10,580.31 ha of dry land, 5,666.52 ha of non-agriculture, 2.524.30 ha of estate/plantation/farm, 537.94 ha of water body and 115 ha of rice fields. Spatially wise, the west part of the city is an area of industry and forest, the central part is residence, and the eastern part is agricultural land. Areas that are designated for protected areas are Wain River protected forest (11,182.8 ha, with 309.22 ha as botanical garden), Manggar River protected forest (6,169.40 ha), and city forest (132.55 ha). Each of the protected areas faces their own threats. Wain River protected forest is bordering with coal mining concession of the neighbouring district of Kutai Kartanegara, Wain River protected forest is degraded due to shifting cultivation, forest fire, and encroachment, while the city forest is threatened by land conversion for non-conservation uses. Water bodies in Balikpapan are divided into rivers and dams. Rivers in Balikpapan are categorized as small and are not being used due to river flow that is influenced by tides. There are 43 rivers flowing in the city, and there are 25 dams. 80 Figure A2.1. The map of Balikpapan existing land use The population growth rate between 2010-2020 is 2.06% on average, which was mostly caused by migration factor (70%) than natural factor (30%). The positive population growth along with high economic growth contribute to rapid physical development in the city. However, many physical developments are occurred in the hilly areas which are prone to sedimentation and landslide problems due to limited land area that is relatively flat. There are also discrepancies between existing land use and planning documents (12%) e.g., commercial zone turns into residential. Urban slums and squatter settlements are prevalent as well. To control the development, Balikpapan’s spatial plan allocates 52% of total area for protected areas and 48% of them for development. The city's current spatial plan also indicates a rapid expansion of residential land area during the period to 2032 – the official projection is over 21 million square meters of new land conversion. The projected land area per residential unit indicates a dominance of single-story home development. 81 Balikpapan targets to finish 3 regulations by 2021, including revised spatial plan (RTRW), detailed spatial plan (RDTR), and incentives and disincentives. The RDTR will accommodate investment opportunities due to Indonesia New Capital development. Biodiversity profile The coastal ecosystem in Balikpapan is categorized into natural (coral reef, mangrove forest, seagrass beds, sandy beach, rocky beach, pescaprae formation, barringtonia, estuaria, lagoon, delta, and small islands ecosystem) and man-made (fishponds, tidal fields, tourism areas, industrial areas, and residential areas). Forest Area in Balikpapan consist of 14,781 ha of protected forest, 3,552 ha of conservation production forest, 1,559 ha of production forest, 444 ha of ecotourism park, 295 ha of nature reserve, 225 ha of city forest, and 4 ha of wildlife reserve. Outside the Forest Area, the city hosts 36.490 ha of protected area. Areas that are designated for protected areas are Wain River protected forest (11,182.8 ha, with 309.22 ha as botanical garden), Manggar River protected forest (6,169.40 ha), and city forest (132.55 ha). 82 Figure A2.2. The map of natural habitat and green infrastructure in Balikpapan City Balikpapan’s biodiversity is dominated by vegetation (68,23%), while the GoI protected species reached 158 species of faunas (76,58%).10 Most of the vegetation type in Balikpapan is from tree species (207 species), which is characterized by tropical rainforest, and 61 of the species are protected, including Nephentes ampullaria, Nephenthes mirabilis, Coelogyne pandurata, Borassodendron borneensis, and Etlingera balikpapanensis. Most of these species could be found in Wain River protected forest. While the protected faunas of Balikpapan, includes Presbytis frontata (VU), Presbytis rubicunda (VU), Hylobates muelleri (EN), Pongo Pygmaeus (CR), Nycticebus menagensis (VU), Nasalis larvatus (EN), Neofelis diardi (VU), and Helarctos malayanus (VU). These faunas utilized the Wain River protected forest as a corridor to the Mangrove of Balikpapan Bay. There are 21 species of coral reefs inhabiting the coastal zone of Balikpapan, including Callyspongia, Favia, Faviidae, GalaxeaGalaxea, Lobophila, and Menella. Most of the coral 10 Balikpapan Regional Environmental Status, 2015 83 reefs are degraded, with 50% of them in the area of Berenge River and Tempadung River estuary. Coral reef degradation is mostly caused by the increasing sediment that goes into the ocean, therefore the city government committed for zero waste and zero sediment program. Irrawaddy dolphin (Orcaella brevirostris) – an endangered species on the IUCN Red List, the decline of its population was noted between 2000 and 2015 in Balikpapan Bay11. Mangrove forests in Balikpapan are spread across Balikpapan Bay until the East Balikpapan coast, which covers 3,031.95 ha. 2,160 ha of the mangrove forests are still pristine, while 34.75 ha of the forests are considered to be degraded. Generally, the common mangrove species to be found are from genus of Avicennia, Xylocarpus, Bruguiera, Ceriops, Rhizophora, Sonneratia, Scyphiphora, Lumnitzero and Nypa.2 In the past 15 years there has been a reduction of 95.06 ha in the mangrove area.12 Oil spill in Balikpapan Bay in March 2019 also contributed to mangrove degradation. Environmental quality The deterioration of river water quality becomes environmental issues in Balikpapan due to domestic and non-domestic wastewater pollution, in which 83% of industries do not have a wastewater disposal permit.13 From 9 out of 12 main rivers in Balikpapan are moderately polluted from upstream to downstream. It is estimated 411.32 tons of waste are produced from the settlements along the watershed. Unhandled waste reached 22.14% in 2019. Municipal oversight of waste management is a key function in protecting vulnerable habitats, especially coastal and river habitats. The city’s mangrove area of 2,422 ha is also threatened by change of water quality due to land use change and land clearing that produces erosion and sedimentation. The groundwater in Balikpapan, even though it was not polluted, has lower pH than Ministry of Health (MOH) requirement due to type of soil (alluvial). The sea water both in coastal area and in the sea meets Ministry of Environment and Forestry (MOEF) standard. The largest contributor to emissions in Balikpapan was manufacturing sector by 68.7%, then transportation by 11.7%. Oil refining activity from Pertamina Refinery Unit IV produced 11 https://www.marinemammalhabitat.org/portfolio-item/balikpapan-adang-apar-bays/ accessed on Feb 2021. 12 Balikpapan City Technocratic Design of RPJMD 2021-2026 13 Environmental Management Performance Information Document of Balikpapan City, 2018 84 1,976,220 tons CO2e in 2010 and made up to 66.85% of total emission in Balikpapan. The overall air quality in Balikpapan is at a good level. Disaster risk N/a Figure A2.3. Natural disaster vulnerability map of Balikpapan City Heavy rainfalls and sedimentation on waterways and drainage systems contribute to floods and landslides in Balikpapan. In 2017, there were 63 landslides due to heavy rainfall and in 2019, there were 30 flood locations that the water level could reach 1-2 meters. Soil types in Balikpapan are prone to erosion. Balikpapan experienced an increase of forest and land fires in the past few years due to land clearing as well as coal seam burning. The fires from within Balikpapan and/or surrounding areas sent thick haze to the city. Infrastructure services 85 The decrease of infrastructure service provision satisfaction rate in Balikpapan, particularly in transportation, provision of roads and bridges, clean water infrastructure, sewage and drainage management was noted in 2019. Power outages often occur and are complained about by the locals. The available transport mode in Balikpapan has limited coverage and decent public transport is in short supply. 15.7% of roads have potholes, while the officials response is often slow. Lack of footbridge is complained by the public and only 14.98% of sidewalks meet the standards. The drainage master plan of Balikpapan has regulated the drainage dimension and the flood control dam construction plan in several locations. However, 51.2% of drainage often does not work and many of them are clogged with rubbish. Sedimentation causes high operational and maintenance costs of the drainage given the type of soil in Balikpapan that is easy to fall off (sand). The existing drainage also does not fully flow into the city drainage due to unmet standards. Housing construction also exacerbates this condition, where most of the land clearing is not done gradually to avoid sedimentation. The incomplete land acquisition for river normalization and drainage widening activities have become obstacles to resolve flood issues. Clean water by PDAM is not evenly distributed throughout the city with leakage reaches 31.5%. Moreover, it often has unstable water flow and small water discharge, and it frequently goes out and the water is dirty. According to the Master Plan of Drinking Water Supply, the demand for clean water in the city reaches 2,097 liters/second in 2021. A shortage of clean water is projected to be 572 liters/second by 2021.4 Balikpapan has two systems of wastewater infrastructure – centralized and localized system. The centralized system, regional Wastewater Treatment Plant (WWTP) in Margasari district serves 2,076 house connections. This capacity has increased almost twice after receiving funding from the SAIIG wastewater grant in 2016-2018. Balikpapan has 53 units of communal WWTP which serves 2,603 house connections that are managed independently by the community. In 2018, the Balikpapan Government built 450 individual septic tanks in 2018 funded by local wastewater grant and special allocation funds. The city owns one landfill TPA Manggar, 410 temporary waste disposal sites (TPS), 69 waste banks in good condition, and 56 damaged waste banks, and 1 Material Recovery Facility (MRF). Balikpapan has launched the waste sorting program through the 3R concept since 2014 86 with Gunung Bahagia district as a pilot and supported by providing facilities such as MRF, ITF, garbage stops, scheduled waste transportation, outreach and coaching. However, the program is yet to show an optimal result to achieve “zero waste to landfill” agenda due to the waste sorting not being utilized optimally and there are numerous inactive waste banks. The city has not had the Recycling Center to reduce the volume of incoming trash to landfill and to control the market price of waste banks. Other program needs to be improved is waste management through waste bank that the provision is currently far from ideal.4 On-going initiatives The development of Balikpapan City is directed towards Green Industry which is supported by the concepts of zero waste and zero sediment. In addition to reforestation, the application of this concept, any industrial business that uses space in industrial areas are obliged to process the waste produced using the 3R (reduce, reuse and recycle) initiatives. The local government supports 3R through development of Material Recovery Facilities (MRF) as sorting facilities for inorganic waste with a capacity of 30 tons/day. Beside MRF, the local government through the Ministry of Public Works and Housing built Intermediate Treatment Facilities (ITF) with capacity of 10 ton/day to support on-going program of “Zero Waste to Landfill”.5 The city also has a landfill with a total area of 44.8 ha. The Balikpapan government will collaborate with PT. Pupuk Indonesia to process organic waste into organic fertilizer. As an implementation of the green industry, several companies have implemented rooftop gardens, vertical gardens, utilizing domestic wastewater that has been obtained for use as watering plants or cleaning roads, utilizing rainwater to meet clean water needs, making biopores and absorption wells to increase water absorption to reduce the volume of surface water and indirectly overcome flooding. Companies located in coastal areas also carry out mangrove conservation to increase green open spaces. Balikpapan municipal regulation No 5 of 2013 mandates every business development/activity application is required to allocate a detention pool 4% of total land area with a depth of 3 meters in the form of site plan and environmental permit to control sedimentation and flood in the surrounding areas. 87 In order to fulfil the clean water demand, the Balikpapan government has finished the construction of Teritip Reservoir with a capacity of 250 liters/second. In 2019, the construction of the Aji Raden retention basin with capacity of 150 liters/second was started through Ministry of Public Works for Public Housing (MPWH) as well as the auction process for the construction of the Sea Water Reverse Osmosis (SWRO) system with capacity of 50 liters/second through the Public Private Partnership (PPP) scheme. Several sources of clean water are also managed by private companies, such as the Water Treatment Plan (WTP) from Wain River which is managed by Pertamina. Another company, PT. DKI uses seawater as a source of clean water for production purposes and employee housing. One of the requirements for private housing estates in Balikpapan is to provide clean water to meet their demand. Most of the housing estates apply for permits for deep wells that are equipped with WTP as well. Balikpapan government has formulated Regional Action Plan Greenhouse Gases to achieve low carbon development in the city and targeted to reduce emission up to 19.26% in 2020. The city also has enacted a local law to reduce single-use plastics through local regulation no 1 of 2019. The city developed Smart City Masterplan through 6 thematic areas i.e. Smart Governance, Smart Branding, Smart Economy, Smart Living, Smart Society, and Smart Environment. Under the Smart Environment program, there are 3 sub-pillars including protection, waste, and energy. One of the action plans on the protection sub-pillar is to prepare regulation on city resilience through RTRW/RDTR and the issuance of Mayoral Regulations related to city resilience against climate change and disasters. Under waste and energy sub-pillars current action plans are to 1) develop waste banks application, 2) garbage transportation tracking system application, 3) explore the use of methane gas as alternative energy source from the final waste processing site, 4) create 10 units and 10 sectors of waste bank, 5) exchange plastic waste as transport costs alternative, 5) explore CSR collaboration to increase the production of organic and inorganic processing products with 3 companies. At both technical and political levels, the city has demonstrated commitment to sustainable development, as evidenced by sustained commitment to the World Bank's City Planning Labs (CPL) initiative and National Urban Development Project (NUDP), and allocation of budget 88 resources to developing internal capacity for evidence-driven spatial planning and sustainable capital investment planning. Financial-wise, Balikpapan also has a very high fiscal capacity.14 City’s priority issues The city’s priority issues include 1) uncontrolled land clearing, 2) decline in river quality, 3) mangrove degradation.5 The development of Indonesia New Capital which will affect the surrounding areas including Balikpapan also becomes one of the priority issues for the new mid-term development plan (RPJMD) under formulation, e.g., Balikpapan Bay ecosystem degradation, decrease in land cover, microclimate change, lesser catchment area, and threat to natural habitat. 14 Ministry of Finance regulation No.120 of 2020 about Regional Fiscal Capacity Mapping 89 BITUNG Overview Bitung is located at the northern coast of Sulawesi Island with a total area of 313 km2 and population size of 225,134. The administrative region of Bitung covers the foothills of Mount Dua Saudara and, across a narrow strait, the island of Lembeh, which is a popular tourist destination. The city is still at a nascent stage of urban development, and public transport options are limited. However, it is important to get the physical measures or spatial patterns right. Arterial roads and rights-of-way must also be planned considering future population growth. Brief Socioeconomic Profile Bitung was designated as one of the Special Economic Zones (SEZ) in 2014 with priority sectors in the area of logistics, industrial sector and export processing which include herbal pharmacy, fish processing and coconut processing. The processing industries contribute to 33% of GRDP while agriculture/fisheries make up 20.5% of GRDP.15 A new toll road has been built to connect Bitung and Manado (North Sulawesi’s capital) to provide easier access to Bitung international port, which will be a trade hub to eastern part of Indonesia. Almost half of the area of Bitung is devoted as a conservation area. The massive development of the city from SEZ status will need to be controlled to not reduce and destroy the biodiversity-rich conservation area. The city however, has a low fiscal capacity, suggesting dependency on transfer funds due to low local revenue.6 Based on 2020 population census, 6.41% of Bitung population is living below poverty line. Bitung has low population density with average of 0.32 people per square km. It is reported that 102,600 people or 61.73% of the population falls under working age category; however only 89.77% of these are working while the 10.23% are categorized as open unemployment. Two-thirds of local workforce work in service sector and a quarter of its citizens work in industrial processing. From 2016-2020, the economic structure of Bitung is dominated by five main sectors namely manufacturing; plantation, forestry and fishing; transportation and warehouse; construction; wholesale and retail trade. 15 Bitung Municipality in Figures, 2021 90 Land use 42.67% of total area of Bitung city (13,378 ha) is dedicated as protected area in the form of protected forest, nature reserve, natural tourism park and tourism forest, and the rest is cultivation area (17,972 ha/57.33%).16 While the water body of the city covers 43,980 ha. The total Forest Area in Bitung is 15,051.58 ha, divided into 9,106.2 ha of nature reserve, 21.5 ha of tourism forest, 4,611.5 ha of protected forest, and 1,312.38 nature tourism park.17, 18 Figure A2.4. The map of existing land use of Bitung Biodiversity profile Bitung has an important value of marine biodiversity. It is part of the Bunaken Marine Protected Area. The Bitung marine conservation area consists of coral reefs, seagrass bed (± 1,300 ha), mangrove (933 ha), Echinodermata, Mollusca and Crustacea. Bitung coastal and marine area 16 Environmental status report of the North Sulawesi Province, 2007 17 https://www.globalforestwatch.org 18 Statistics Bureau of Bitung City 91 host 86 species of fish including ancient and rare order species. It is home to 10 at-risk species including blue swimming crab and dolphins. This biodiversity and natural resources, which are the main economic driver of the city, is at risk due to destructive fishing, coastal and marine pollution from land and degradation of coastal ecosystems because of mangrove area conversion for coastal development. Lambe Strait in Bitung is one of the marine tourism destinations in eastern Indonesia, due to its unique coral reef ecosystem, with seabed that is dominated by black-grey volcanic sand deposits. The most dominant species of coral is Acropora Sp, which unfortunately most of these corals are damaged due to ship docking industries and fishing boat transportation lines (14.6% - 26.1% alive). Further from the mainland, the coral reefs ecosystem is dominated by Acropora cervicornis with better condition (37% alive). The northern part of this Lembeh Straits is a habitat that is dominated the following species of fish, they are Myripritis prolina (49.29%), Abudefduf saxatilis (25.59%), and Amphirion percula (14.45%). Endemic species of Bitung are Tarsius spectrum, Macaca nigra, Rhyticeros cassidix.19 Environmental quality Industrial waste becomes a major concern for the built-environment in Bitung due to lack of enforcement on environment-friendly waste treatment. The city also has a budget deficit on waste management and now the budget is decreasing due to a shift of budget for COVID-19 measures. Disaster risk Landslides and floods with 40-100 cm water level have occurred in Bitung. The geographical location of the entire city makes it prone to earthquakes. Last year, Bitung experienced 84 earthquakes with a magnitude greater than 1.5. The latest earthquake in 2021 records a magnitude of 6.1. The city is also at risk of tidal waves and tsunamis in the coastal area. Infrastructure services n/a 19 Arbi, Ucu Y. The population and distribution of protected mollusk species in the waters of the Lembeh Strait, Bitung City, North Sulawesi. Journal of Tropical Biodiversity and Biotechnology, 2016. 92 On-going initiatives North Sulawesi Province has issued a Greenhouse Gases Regional Action Plan. City’s priority issues Bitung’s priorities issues are, to name a few: (i) mitigate issues on the Special Economic Zone (SEZ) with regards to biodiversity-rich conservation areas; (ii) In addition to the protected forests, nature reserve, natural tourism park and tourism forest areas, Bitung also has an important marine biodiversity since it is part of the Bunaken Marine protected areas management. 93 DKI JAKARTA Overview The Special Capital Region of Jakarta has a total land area of 662 km2 with Jakarta’s built-up urban area fills over 95 percent of its provincial boundaries and extends into eight surrounding districts in two provinces. Only 37 percent of the total urban area lies within provincial boundaries. Jakarta's population reaches 10.5 million people, while the Greater Jakarta Area has an estimated population of around 30 million people. DKI Jakarta includes 110 islands with varied size, and 6,977.5 km2 of oceans.20 Brief Socioeconomic Profile The population of Jakarta in 2020 based on the 2020 Population Census population was 10.562.088 inhabitants with the population growth rate of 0,92 percent per year. The minimum wage of Jakarta in 2020 was IDR 4.267.349, increased 8,28 percent compared to 2019. Human development index (HDI) of DKI Jakarta in 2020 was 80,77percent, the highest of all provinces in Indonesia. The unemployment rate in Jakarta in 2020 reached 10,95 per cent while the labor force participation rate reached 63,81 percent. The number of poor people of DKI Jakarta in 2020 were 480,86 thousand people, many are living in slums with basic utilities, lack of proprietary rights, inadequate access to clean water or sanitary facilities. The Jakarta economy, which is dominated by services, trade, manufacturing industry, and construction services, contributes the most to Indonesia's GDP (18%).21 The city also has very high fiscal capacity. 20 Governor of DKI Jakarta Province Decree No 171 of 2007 21 Jakarta Province in Figures, 2021 94 Land Use Figure A2.5 The map of existing land use of DKI Jakarta Land use in Jakarta is dominated by residentials that reach 85.64% of land areas (56,725 ha), while forested areas only cover for 1,101 ha (1.66%) and wetlands (swamp, river, floodway). Most of the city forest are located in East Jakarta, a region bordering with West Java, while protection forest as well as conservation area is centralized in the coastal, at Angke’s area, with its vast coverage of Mangrove.22 Built-up land area increased by 5,673 ha since 2009 to 60,089 ha in 2019 and non-built-up area decreased by 6,674 ha to 4,118 ha in 2019. It was recorded that in 2017-2018 there was a decrease in the area of agricultural land from 587 ha to 584 ha.23 Current detailed spatial plan (RDTR) allocates 12.12% of total area for green spaces. 22 Jakarta Province Biodiversity Profile, 2018 23 Environmental Management Performance Information Document of DKI Jakarta, 2020 95 Biodiversity profile Jakarta is an urban area dominated by an artificial ecosystem and only possesses a limited natural ecosystem, however, it has a high number of biodiversity. At least there are 5 types of natural ecosystems, including coral reef, seagrass bed, mangrove, coastal ecosystem, and riverine ecosystem, as well as artificial ecosystems, including green open space (RTH) such as city park and city forest, and agroecosystem. These ecosystems contain at least 62 reef genus, 11 species of seagrass, and 651 floras, including 17 species of mangroves. Faunas that could be found in these ecosystems includes 208 species of reef fish, 58 avifauna in the artificial ecosystem, and 133 avifauna in conservation area and protected forest, 8 species of mammals, 17 herpetofauna in artificial ecosystem and 10 in conservation and protection forest.12 This biodiversity is excluding to those in the ex-situ conservation sites. Land use in Jakarta is dominated by residentials that reach 85.64% of land areas (56,725 ha), while forested areas only cover for 1,101 ha (1.66%) and wetlands (swamp, river, floodway) is 1,130 ha (0.64%). Biodiversity of an area is strongly connected to the spatial plan of the area. Urban environments such as Jakarta, the biodiversity is centered in green and blue open space, as the habitat of flora and fauna. According to Jakarta spatial plan, the center of biodiversity is in the conservation area, protected forest, riverbank protected area, and city forest or city park. Most conservation areas in Jakarta are located in the delta and oceans, for example the delta of Muara Angke is a wildlife reserve, nature tourism park (TWA), and protected forest. While most of the forest city is in East Jakarta (15), which is adjacent to West Java Province, a satellite region for Jakarta. The seagrass beds are located in the shallow waters of the Kepulauan Seribu (94.7 ha). The seagrass beds are known to have several functions i.e., water stabilizers on ocean floor, providing a substrate for epiphytes on the waterbed, as a place to live and lay eggs for fish, shrimp and other invertebrates.15 Jakarta is home to various species that are categorized as endangered (EN), critically endangered (CR), vulnerable (VU) and near threatened (NT) according to the IUCN Red List. Among them are: - Reef fish: A. batunai (VU), Bolbometopon Muricatum (VU), S. hypselopterus (NT). - Coral reef: Heliofungia (VU), Heliopora (VU), Tubipora (NT) - Trees: Microcros tomentosa (EN), Bentincikia nicobarica (EN), Swietenia macrophylla (EN), Veitchia meriliii (NT), Diospyros blancio (VU), Santalum album (VU), Pinus 96 merkusii (VU), Pterocarpus indicus (VU), Diospyros celebica Bakh. (VU), Intsia bijuga (VU), Chrysalidocarpus lutescens (NT) - Birds: Mycteria cinerea (EN), Psittacula alexandri (NT), Charadrius javanicus (NT), Anas gibberifrons (NT), Acridotheres javanicus (VU), Anhinga melanogaster (NT), Centropus nigrorufus (VU), Ahliaeetus ichthyaetus (NT), Acridotheres melanopterus (CR), Cacatua sulphurea citrinocristata (EN), Pavo muticus (EN), Aonyx cinerea (VU). - Sea Turtle: Eretmocelys imbricata (CR) It was reported that 27% of coral reefs in Kepulauan Seribu are damaged.15 Environmental quality Land surface temperature in Jakarta raised by 5oC since 2009 due to the decrease of green spaces and increase of energy consumption for air conditioning from both vehicles and buildings. Solid waste management is a major challenge—the city generates over 2200 tons of unhandled waste per day, much of which is discarded in rivers and canals. It makes Ciliwung River among the most polluted rivers in the world. This exacerbates already severe flood risk and has rendered most of the city’s waterways uninhabitable for many native species. Ten percent of the population disposes of fecal matter directly into waterways, 65% of septic tanks are not properly maintained, and only 4 percent of the population are serviced by a piped sewerage system. Production of wastewater is also released directly to the river or open channel, in which 75% is untreated waste. River quality ranges from moderately polluted to heavily polluted. Pluit reservoir, the largest reservoir in Jakarta, is polluted from domestic waste and home industries in the surrounding area. 50% of groundwater is lightly polluted, however, groundwater in North and Central Jakarta has been reported as heavily polluted. Land subsidence due to over extraction of groundwater up to 18 cm per year causing decrease in groundwater quantity. Estuary and sea are mostly lightly polluted, however, 5% of the monitored estuary is heavily polluted. The pollution level in Jakarta reached a level of ‘unhealthy for sensitive groups’ with an average of PM2.5 reaching 49.4 µg/m³. The worst level of pollution was recorded in May to October with the highest level of PM2.5 touching 67.2 µg/m³ and putting it on the ‘unhealthy’ 97 level.24 The source of pollution mainly comes from industries, power plants, and vehicle emissions. Disaster risk DKI Jakarta Province is located in a lowland area with an average of 8 meters above sea level, while about 40 percent of the DKI Jakarta Province land surface is 1-1.5 meters below the high tide with the majority of slope level is 0-3 percent that exacerbate its vulnerability to floods and tidal. The city sits across a delta region including 13 rivers, where flooding and land subsidence driven by groundwater extraction are major risks, outpacing sea-level rise by a factor of over 25 in some northern areas of the city. Jakarta is surrounded by active fault lines which makes it vulnerable to earthquakes. There are two megathrust zones that threaten Jakarta – in the south of West Java and south of the Sunda Strait. Even though the earthquake epicentrum is distant, Jakarta’s soil composition enables it to amplify shocks during earthquakes. Urban Infrastructure Jakarta ranks as one of the cities with the worst traffic, where gridlock often happens during the rush hours. The public transport modes include MRT, LRT, KRL Commuter line, BRT TransJakarta, and angkot (micro bus public transport). The LRT for Greater Jakarta is still under construction as well as Jakarta MRT second phase. Clean water only covers 60% of residents, in which 44% of the distribution network has a leakage. The wastewater treatment plant in DKI Jakarta Province is only able to manage 4% of the total wastewater generated every day. On-going initiatives Transport masterplan for Greater Jakarta has been enacted through Presidential Regulation 55 of 2018. Currently, Jakarta LRT phase 2 is being proposed for support to the central government. 24 iqair.com accessed on Feb 2021 98 Jakarta built a Domestic Wastewater Management System (SPALD) in 9 locations with capacity ranging from 80 to 600 m3/day. DKI Jakarta in collaboration with the Government's Committee for the Acceleration of Infrastructure Provision (KPPIP) through the Jakarta Sewerage System (JSS) project will handle domestic waste treatment in 15 zones with initial development in Zone 1 and Zone 6 , which aims to cover 75% of wastewater services by 2022. Attempts to overcome solid waste including, 1) single-use plastics ban effective per July 1, 202025, and 2) procurement of Intermediate Treatment Facility26, 3) 2000 waste banks, 4) the larva of the Black Soldier Fly to process inorganic waste, 5) pilot project landfill mining, and 6) Solid Waste Power Plant (PLTSa) pilot project.15 Giant seawall project under National Capital Integrated Coastal Development (NCICD) aims to revitalize coastal area as well as to mitigate tidal floods. 4.83 km has been built since 2014 by the Ministry of Public Works and Housing. City’s priority issues Jakarta’s priority on environmental issues includes 1) floods and tidal floods, 2) environmental governance, 3) waste management, 4) land use, and 5) water resources pollution.15 25 DKI Jakarta Governor Regulation 142 of 2019 26 DKI Jakarta Governor decree 264 of 2019 99 PALEMBANG Overview Palembang is located on the eastern lowland of southern Sumatra and covers an area of 370 km2 on both banks of Musi River. Palembang is the principal municipality in a designated metropolitan area in RPJMN 2020-2024 that includes parts of four administrative districts with a combined population of over 3.5 million people. Palembang’s influence on the urban planning and investment strategies of the surrounding districts is significant, with potential to strengthen further. The city is surrounded by peatlands, palm oil and rubber plantations, and secondary forests. It is a center for agricultural-industrial processing. Processing industries and construction services makes up 48.5% of GRDP.27 The city has very high fiscal capacity.6 Brief Socioeconomic Profile The estimated population of Palembang is 1,668,848 people. Ilir Barat Dua, Seberang Ulu Satu, Ilir Timur Satu were the most dense districts with population density reached 10 to 11 thousand people per km2. Most of slums area are located in Musi riverbanks and its tributaries where crimes and drugs are rampant, and the dwellers comprise of migrants and daily laborers. The number of poor people fluctuates each year before increased to 182 thousand people, which was nearly 11 percent of population and the unemployment rate reached 9.86 in 2020. Approximately, 78 percent of local workforce didn’t hold university degree. Before the pandemic, Palembang’s economy steadily rose between 5-6 percent each year, and in 2020 the growth decreased to -0.25 percent. Despite manufacturing and processing industry make up to a third of Palembang economy, followed by trades and construction services, almost 80 percent of local labor work in service industries. 27 Palembang Municipality in Figures, 2021 100 Land Use Figure A2.6. Palembang City existing land use map Pelembang City is located in an area with relatively flat typography, divided by Musi River, Ogan River, and Komering River. Land conversion from agricultural and non-agricultural swamp into residential, offices, industry, hotel/restaurant, and other development projects are the main threat to the ecosystem. Since 2001 there has been a net loss of over 1300 hectares of tree cover within Palembang’s municipal boundaries. This is driven both by agricultural conversion and by expansion of urban settlements. Rubber and palm oil plantations cover about 12 percent of Palembang’s land area, and tree cover loss appears to be accelerating.9 CO2 emissions from biomass loss have doubled since 2008. Current development in Palembang is focused on the southern part of the Musi river. The central government via the Ministry of Public Works and Housing has begun sitting for an ambitious urban development project in an area covering three sub-districts between the Musi 101 River and the Jakabaring sports complex. Each of the subdistricts is intended to be redeveloped according to its own theme—tourism, heritage, and sports. This represents a surge of investment within an area that still has significant acreage of open green land, and a strategic opportunity for sustainable urban planning and design. Biodiversity profile Figure A2.7. The map of natural habitat in Palembang According to the 2012-2032 spatial plan of Palembang, protected area in the city covers natural reserve, designated protected area, cultural reserve, and natural disaster-prone area. Forest related land cover in the plan is the natural reserve, in the form of the Natural Tourism Park (TWA) of Punti kayu. While the designated protected area covers conservation swamp and cultivation swamp area, riverbank, retention ponds banks, and green open space. City forests of Palembang are located in Karya Baru sub-district (40 ha), Jakabaring area (30 ha), Gandus sub-district (20 ha), Siguntang hill area (7 ha), Karang Anyar sub-district (5 ha, and Ogan ponds area (8 ha). 102 Biodiversity from Aves family in Palembang represented by the following species, which is found in the riparian areas: Hirundo tahitica, Lonchura oryzivora (EN), G. striata, H.indus, Nectarinia jugularis, Acridotheres javanicus (VU), Orthotomaus sutorius, Ketupa ketupu, Pycnonotus bimaculatus (NT), Copsychus saularis, Daiceum trochileum, and Lonchura punctulata. Environmental quality Water drainage provided by the swamp soil structure was degraded and caused floods during the rainy season, in addition to sedimentation of the rivers. Small rivers in Palembang city are functioning as water catchment areas, however, many of them have been converted into other land uses with the rate of 6% per year. Palembang often faces hazes from forest fires which occur annually in the surrounding agricultural areas that affect its air quality. The main pollutants produced are PM2.5 and PM10, soot or black carbon (BC) which is potentially carcinogenic. In addition, wood-burning also produces nitrogen oxide (NO) and carbon monoxide (CO). Disaster risk There is no major disaster in Palembang, apart from floods which occasionally happen due to wetlands conversion to residential areas. To manage floods, the city has installed several pumping stations and built retention ponds. Haze from open burning in neighboring areas often affects Palembang and the city also experienced forest fires 401 ha (0.09%) in 2019.28 28 Regional Environmental Management Performance Information, South Sumatra Province, 2019 103 Figure A2.8. Map of green infrastructure and flood location in Palembang Infrastructure services In the years leading up to the 2018 Asian Games, Palembang rebranded itself as a “Sports City,” investing heavily in public sports facilities but also in supporting infrastructure, including a light rail transit system, an airport along with connecting toll roads, bridges, and flyovers. It is estimated that Palembang generates waste 931.28 ton/day. On-going initiatives Palembang is a member of the 100 Smart Cities Movement organized by the Ministry of Communication and Information. Palembang is one of three urban areas participating in the pilot phase of the World Bank’s National Solid Waste Management project and listed as one of the National Urban Development Project’s cities phase 2 or 3. City’s priority issues Several priorities of the City are: (i) improve urban transportation through sustainable urban transports; (ii) mitigate forest fire surrounded the city; (iii) enhance solid waste and waste- water management by coordinating with neighboring local governments. 104 SEMARANG Overview Semarang city is known as a coastal city with a total area of 374 km2, however, it has a varied topography from 0 to 126 m MSL. As the capital of Central Java Province, Semarang’s population has reached 1.65 million people. The city’s built-up urban area extends well beyond the municipal boundaries however the municipal boundaries also include significant rural and unsettled areas. The center of economic activity consists of the old city’s center, the center of government offices, and trade area located in Semarang Bawah. Current population density is concentrated in the downtown area with potential increase of density is also shown in the southern part of the city i.e., Banyumanik and Gunungpati. Brief Socioeconomic Profile As the biggest city in Central Java, Semarang attracts migrants from the surrounding areas. The number of poor people increases from 71.97 thousand people in 2019 to 79.58 thousand people in 2020 with the majority are living in the coastal area. Four districts in downtown Semarang were the most densely populated area with approximately 11 thousand people per km2. In 2018, there were 121 km2 of slums area which have limited access to basic services––access to clean water were mostly through groundwater which was scarce during dry season and there was no proper waste disposal (most garbage were either thrown up in empty spaces or burned). Less than a third of slums dwellers have access to private latrines, while the rest depends only on communal latrines. Semarang city has a built-up area due to the development of industrial areas in the north and that of housing in the south and east. The urban fringed area experienced a population growth rate above 30% since 2006. Economic structure in Semarang city is dominated by five sectors include Manufacturing Industry; Construction; Wholesale and Retail Trade, Repair of Vehicles and Motorcycles; Information and Communication; and Financial and Insurance Activities. Approximately 72% of local labors were employed in service industries. Unemployment reached 9.57% in 2020––nearly half of them were high school graduates, while a quarter of unemployed were university graduates. In the past few years, Semarang economy growth was above national and provincial growth. Manufacturing industries, construction services, and services and trade contribute to 75% of the city's GRDP. Mining industries growth is the highest among other sectors followed by transportation and storage. However, during COVID pandemic, the city’s economy decreased 105 to -1.61% with the transportation and storage sector taking the greatest hit (-39.43%), while the information and communication sector increased by 20.31%.29 Land Use Semarang existing land use is dominated by the residential area (44%) followed by the agricultural area Industrial areas are agglomerated in the northeast and northwest of the city. Protected Areas in Semarang City consist of several types of land cover, including water infiltration areas (433 ha), coastline (175 ha), riverbank (641), lake (122 ha), and forest park (8,447 ha). Adjacent district of Semarang hosts the Forest Area that is divided into Protected Forest that covers 1,899.96 hectares of the area, 2,325.15 hectares of Permanent Production Forest, and 6,676.41 hectares of Convertible Production Forest. Together with the water body, it covers 10,901.52 hectares. Since Semarang is a delta city that is influenced by the river flow from the upstream, the conservation of forest cover as water infiltration areas is important. Within the city itself, the government is rehabilitating 0.05 ha of areas with risk of landslide and spring water source. The discrepancies between current land use and spatial plan were found – violations reached 828 cases in 2019 and approximately 5% of area are not in accordance with the current spatial plan.30 The urban slums area in the city reached 0.23% of total area in 2019, while 32% of the city’s riverbanks have illegal settlements/buildings. 29 Semarang Municipality in Figures, 2021 30 Semarang City Technocratic Design of Development Plan (RPJMD) 2021-2025 106 Figure A2.9. Semarang spatial plan 2011-2031 Biodiversity profile The city of Semarang is a mixture of various ecosystems ranging from mountains and hills to flat land and sea, both urbanized and natural landscape; therefore, resulting in a high number of biodiversity in Semarang. Unfortunately, the biodiversity has not been well documented. Development has both positive and negative impacts, one of them is loss of biodiversity. According to a project published by peer-reviewed scientific journal in the field of urban studies and development in Semarang City, on biodiversity database and information, mainly on organism that can be used to indicate certain environmental condition by applying principle Visual Encounter Survey (VEW) in line transect method and point count method, 10 species of Mammals, 78 species of Birds, 26 species of Herpetofauna, 86 species of Insects, and 19 species of fish were found.31 31 Semarang Biodiversity Profile, 2017 107 According to project observation, some globally significant species were found in 2009 but disappear in 2019, for example Mycteria cinerea (EN), Ciconia episcopus (VU), Centropus nigrorufus (VU). Seven migratory birds were found in the coastal and forest area of Semarang, including mangrove, beach, rivers, ecotourism forest, and production forest. These birds are: Accipiter soloensis, Numenius phaeopus, Merops philippinus, Pernis ptilorhynchus, Glareola maldivarum, Tringa brevipes (NT), and Actitis hypoleucos. Even though most of these birds are least concerned species according to the IUCN red list, it indicates that a well-preserved ecosystem provides support for biodiversity. Environmental degradation in Semarang could be divided into the following issues, which affecting the city’s biodiversity: ● Uncontrollable land use change of green open space ● Forest Area degradation due to land use change to residential, which is not supported by strong forest use monitoring. ● Degraded coastal area due to solid waste and floods, which is ironic since the coastal area in Semarang is a stop by place for migratory birds. ● Poorly managed forest city ● Infrastructure development in Semarang tends to degrade the ecosystem and drive away the fauna. ● Development policy is not synergized yet with the biodiversity issue in the city. 108 Figure A2.10. Map of natural habitat in Semarang City Environmental quality The city sits on a large fluvial area comprising the deltas of dozens of rivers, many of which are heavily polluted with both industrial and consumer waste. Poor solid waste management and lack of sanitation in riverfront slums, causing extensive degradation of riverfront areas. River deltas are both rich in biodiversity and more vulnerable on average to biodiversity loss than inland regions. Semarang generates an estimated 300 tons of unhandled waste per day (21.7 percent of total generation), much of which is disposed of in waterways. Pollution from industrial activities and domestic waste in rivers are the main causes of low water quality where water quality pollution status is already at a score of 60. It is also shown in water quality index (IKA) that reached 48.75 in 2019, while the national index was 52.62.19 The city experiences water intrusion into groundwater that potentially increases by 0.575 km2/years.32 The groundwater itself has been one of the sources of water for 19 percent of the households. 32 Suhartono, E., Purwanto, P., & Suripin, S. Seawater Intrusion Modeling on Groundwater Confined Aquifer in Semarang. 109 In the past years, records show Semarang experienced fluctuation in pollution levels on a daily basis with a fairly wide variety of readings, with highs of 44.6 μg/m³ being recorded in late November of 2020, which put it on the ‘unhealthy for specific groups’ rating, and lows of 13.6 μg/m³ being recorded in early December.16 There were only 40% of industries/activities that comply with the requirements and techniques for preventing air pollution.19 The environmental quality index (IKLH) in 2019 was 62.88, which is lower than the national index. The land cover quality index (IKTL) reached 56.51, also lower than the national index that was 60.74. It was due to there are areas (44%) that are prone to landslides and water sources areas that have not been covered by reforestation as well as low control over land conversion, especially the development trend in conservation areas in upper Semarang. The overall environment condition in Semarang is still worrisome considering the low result from IKLH, IKA, and IKTL that were below Central Java province and national achievements. Disaster risk Semarang faces various environmental issues related to coastal and ocean dynamics such as tidal inundation, land subsidence, and floods in the rainy season. It is reported that 4.05% of Semarang area was affected by flood and tidal in 2019. Rapid land subsidence up to 10 cm/year due to groundwater extraction and load of buildings threatens communities in a large section of low-lying areas in the northeast of the city. It also makes Semarang more vulnerable to inundation due to sea level rise. Sea level rise is estimated to reach 20 cm in 2040 with an average increase of 0.2 mm/year.19 Currently, tolls and seawalls connecting Semarang and Demak are being built in the coastal area with the hope to mitigate floods, tidal floods and land subsidence. However, the development of seawall can possibly affect marine biodiversity in the mangrove areas. The city also has a high risk for flash floods due to 21 rivers that flow across Semarang and it is exacerbated by poor drainage, environmental degradation upstream, sedimentation downstream, as well as heavy rainfalls. Beside the floods, the city also has risk for landslides and land movement. Areas prone to land movement due to geological conditions are scattered Procedia Environmental Sciences 23 (2015): 110-115. 110 in Gunungpati and Banyumanik districts. Semarang also has active fault areas, which is highly potential for ground movement to occur. Figure A2.11. Flood and land subsidence map of Semarang City Infrastructure services Urban transportation in the City of Semarang includes angkot, buses, and Bus Rapid Transit (BRT). However, in term of number of fleets, service coverage throughout regions, and integration of modes, the public transportation management in the city is still far from effective. Only 62.65 percent of angkot routes that are optimal due to lack of fleets and there are four areas that are prone to congestion. The fleets and the bus stops also often are not in a good condition. The provision and maintenance of the road network and its facilities are substandard e.g 21.4 percent of the roads are yet to be paved. Even though, the city has been quite successful in increasing the number of public transport passengers each year, particularly BRT, it is also accompanied by the increase of private vehicles by 5 percent. At least, 981 locations of on- street parking have been found in the city. Urban sprawl also becomes one of the main challenges for transportation provision. 111 In the regional perspective, Semarang is designated as a regional public transport system hub for passengers and goods, and also hubs for international and national air transportation as well as national sea transportation.33 The provision and maintenance of drainage and sanitation are subpar – 35.5 percent of drainage that were clogged in 2019 and 22 percent of urban irrigation that were in unfavorable condition. The same goes as well for clean water provision – 4.6 percent of households have no access to safe drinking water and there is threat of drought in 5 districts. The waste management is also substandard – only 2,602 m3 of waste were collected out of the 6,189 m3 total waste generation. The number of waste banks also decreased to 34.19 The city has fulfilled its energy needs by 100 percent through 9 electrical substations from Java-Bali national electricity network and Steam Power Plant (PLTU) in Tambak Lorok, North Semarang. The non-renewable energy is still predominantly used in the city which could accelerate the increase of emissions. Energy consumption also contributed to the increase in greenhouse gas emissions (GHG), which is predicted to rise to 74.69 percent. On-going initiatives On-going sectoral and non-sectoral plans in Semarang include drainage master plan, waste management master plan, drinking water provision masterplan, Regional Action Plan on Climate Change Adaptation and Mitigation, and SDGs Regional Action Plan. Semarang has a very high fiscal capacity6 and the fiscal independence index is 0.45 with rating “towards independence” as 54.75 percent of its revenue came from locally-generated revenue (PAD) which shows the ability of the city to towards self-finance without depending on assistances, particularly transfer funds from the Central Government. The city has actively proposed a Public Private Partnership (PPP) scheme as alternative infrastructure financing in Semarang. The Semarang-Demak toll road and seawall project has two core functions which are 1) solve traffic congestion in north coast, and 2) tidal floods mitigation.34 It connects Semarang City 33 Presidential Regulation 78 of 2017 on Spatial Plan for Kendal, Demak, Ungaran, Salatiga, Semarang, and Purwodadi Urban Areas 34 Regulation of the Minister of Public Works and Housing No 355/KPTS/M 112 with Demak Regency with a total length of road 27 kilometers, while the seawall will be built 6.65 meters above sea level and supported with several retention ponds in Terboyo, Semarang and Sriwulan, Demak Regency. The project is planned to finish construction by 2024 and it is financed through PPP scheme. The city plans to build BRT dedicated line in 2021-202535 and Light Rapid Transit (LRT)19 through PPP scheme as means to overcome traffic congestion. As part to mitigate GHG, the Semarang’s government also installed a BRT gas converter to lower vehicle emissions and make it more environmentally friendly. The operating cost is also cheaper due to fuel efficient and durable vehicle engines. The study of renewable energy development in 2019, examine several possibilities to divert energy use to renewable sources through several pilot projects including the Waste Power Plant (PLTSa) at the Jatibarang landfill, Biogas in Sumurejo, Cepoko, and Kedungpane, as well as the installation of on-grid Solar Power Plants (PLTS) in several government buildings. The Waste Processing into Electrical Energy (PSEL) in Jatibarang is one of the National Strategic Projects36 to resolve waste issues when the Jatibarang landfill capacity reaches its peak through PPP Design, Build, Finance, Operate, Maintain, and Transfer (DBFOMT). The West Semarang Drinking Water Supply System (SPAM) project is one of the national strategic projects that is aimed to solve the clean water crisis problem and land subsidence due to groundwater use. The SPAM construction will provide drinking water for 311 Kelurahans in 3 Kecamatan with an estimated 60,000 unserved households. Since the project has low economic return, the government supports it through viability gap fund (VGF), where the government contributes to a portion of construction costs (38%). Semarang is one of the partner cities of the World Bank's City Planning Labs (CPL) initiative and first phase city of the National Urban Development Project (NUDP). The World Bank’s Regional Infrastructure Development Fund (RIDF) provides assistance on project preparation and capacity building in Semarang. Other World Bank’s financed projects implemented in Semarang include Indonesia National Slum Upgrading Project (NSUP) and Integrated 35 Presidential Regulation 79 of 2019 on Accelerating the Development in Central Java 36 Presidential Regulation 35 of 2018 on Accelerating the Development of Waste Processing Installation into Electrical Energy based on Environmentally-friendly Technology 113 Infrastructure Development for National Tourism Strategic Areas. The city is also a member of the Rockefeller Foundation’s 100 Resilient Cities initiative, ACCCRN (Asian Cities Climate Change Resilience Network), and Water as Leverage initiative. The city government continues to run several programs such as Cities Without Slums (KOTAKU) with financial assistance from the Director General of Human Settlements, MPWH and several foreign entities. City’s priority issues Infrastructure and environment strategic issues under RPJMD (under formulation): 1. Provision of good quality urban infrastructure and services, including: - Urban utilities and services - Urban public transport - Development continuity, which has been halted due to COVID affecting logistical issues. 2. Sustainable land use and environment, including: - Land use discrepancy - Low environmental quality - Slums and urban sprawl 114 ANNEX 3: Procedure of SESA based on Indonesia Regulations and WB’s ESSs 1. The preparation of SESA must be in accordance with the Regulation of the Minister of Environment No.69/2017 concerning the strategic environmental assessment implementation procedure, the MOHA Regulation No.7/2018 on Guidelines for Implementation of Strategic Environmental Assessments in the Preparation or Evaluation of Urban Development Plans, and additional provisions included in this ESMF. 2. The formulation and implementation of the SESA is done through the following mechanism: A study on the impact of prepared urban spatial and development plans to the environment and sustainable development; refined alternatives of relevant plans; recommendations for decision making in the urban plans that integrates the principles of sustainable development. 3. The following steps must be taken in the process of creating the SESA: I. Formation of a team consisting of at least one member who is competent, holds a bachelor degree, and has experience in formulating a SESA document prior to the Project. The team will be responsible for planning the TOR, carry out public consultations, formulate and implement the SESA accordingly, integrating the SESA into the FS/DED, SESA quality control and documentation; II. Preparation of resources, including the background of study, objectives, scope of activities, expected outcomes, methodology, work plans, amount of human resources needed, and budgeting plans; III. Identifying sustainable development issues, which is done through public consultation, and prioritizing them by considering at least the regional characteristics, the level of risks and impacts, accordance with project, the content of the environmental protection and management plan, etc.; IV. Conducting a study on the potential E&S impact of the FS/DED that contains at least the capacity and carrying capacity of the environment for development, the impacts and risks for the environment and social aspects, ecosystem services, efficiency of natural resources utilization, measures of the vulnerability and capacity to climate change, and vulnerability of biodiversity; V. Devising refined alternatives that will be chosen based on the greater benefits, lower risks, security and welfare of vulnerable affected person(s), and a more effective risk mitigation; 115 VI. Recommendations for decision making necessary for the FS/ DED that integrate with the principles of sustainable development that should include materials for FS/DED revisions and information on the type of activities that has exceeded the capacity and carrying capacity of the environment and its follow ups. 4. Quality control of a SESA document will be done by the CPMU through coordination with Ministry of Environment and Forestry. The Draft SESA will be shared to the World Bank for review and clearance. 5. The results of the SESA will be documented in the SESA report. 6. The SESA report is an inseparable supporting document to the development plans that are accessible for the public. 7. Once the draft SESA is cleared by the World Bank, validation of the assessed SESA document will be done by the governor/mayor through the head of the regional/local government agency. Letter of request, development plans, the SESA report along with prove of quality check and proof of experts’ competency standards. 8. SESA monitoring and evaluation will be done by the city mayor through local government agencies in charge of the environment. The monitoring and evaluation will be executed through the process of formulation and implementation of SESA and the implementation of recommendations. This activity must be documented in the form of a written report periodically at the end of every year. Furthermore, the ESS suggests that SESA has to also cover among others: 1. evaluates and compares the impacts against those of alternative options of the proposed intervention; 2. assesses legal and institutional aspects relevant to the risks, impacts and issues; and 3. recommends broad measures to strengthen environmental and social management in the region. SESA pays particular attention to potential cumulative risks and impacts of multiple activities in a region but may not include the site-specific analyses of a specific project, in which case the Borrower must develop supplemental information, such as ESMP. 116 ANNEX 4 : TOR for SESA/KLHS Component 1 under Sustainable Cities Impact Project (SCIP) on integrated spatial planning and urban management will promote integrated development planning at national and city levels: (i) At the national level will support urban development plans that are environmentally sound; (ii) At the city level will support to develop city-level and area/corridor level development plans that enhance the inclusion of environmental and climate change considerations. Activities financed under this component include preparation of integrated evidence-based spatial planning to promote low carbon and climate-resilient development while ensuring biodiversity aspects and environment carrying capacity, preparation of capital investment plans for priority areas and corridors, and capacity building of local governments and local urban planners to utilize robust analytics, (such as carrying capacity analysis) and integrate community level planning tools and approaches in city-level and area/ corridor level development plans. This component will also finance preparation of Strategic Environmental and Social Assessments (SESA) or referred to as Kajian Lingkungan Hidup Strategis (KLHS) in Indonesia country system, that will need to be developed for preparation for new or revision of policy, regulations, and development plans. a) Background and Concept A Strategic Environmental and Social Assessment (SESA) is a necessary step for the preparation of strategies and activities to inform project design. SESA findings are used to analyze the current Environmental and Social conditions, potential risks and impacts associated with the proposed city planning and gauge potential opportunities to improve social outcomes such as social inclusion and participation of the vulnerable such as but not limited to the poor, landless, and marginalized community groups, including Indigenous Peoples and Local Communities (IPLCs). The SESA is an environmental and social analysis that is the responsibility of the city governments during the planning stage. The SESA will be presented as a standalone document and will complement and support studies and analysis of spatial planning documents (RTRW and RDTR) being undertaken as part of preparation activities. The concept of SESA will combine E&S analysis and participatory approaches done in parallel. Analytical components aim to enhance understanding of E&S issues related to city planning. 117 Participatory approaches aim to integrate E&S concerns as considerations in strategic decision making. b) SESA Team Composition and Required Qualifications The team/agency responsible for the making of SESA, which can be a focused team from City Governments or SESA consultants, shall assign a Team Leader to be responsible for the delivery of outputs and overseeing the work of other members. The team leader shall prepare a work plan and allocation of tasks and responsibilities for each member. The size of the team shall be determined depending on the coverage, diversity and complexity of issues to be covered and needs to consider gender proportion. The team is required to have past experience working on similar assignments and good understanding of socio-economic and political issues related to land administration, social forestry and community-based resource management. The team must be able to provide samples of previous work relevant to the assignment and include female field team members. The Team Leader must possess, as a minimum, the following qualifications: ● An advanced degree in social science (Master or PhD Degree), particularly anthropology or sociology or related disciplines from the environmental sciences; ● Proven experience in conducting and leading participatory action research, with a minimum of ten-years of experience and an emphasis on environmental and social analysis; ● Experience working on SESA document in Indonesia, particularly in the areas of land administration, land use mapping, community-based natural resource management and working with marginalized groups, including IPs, the poor and landless, women, minorities, etc.; ● Experience and understanding of participatory approaches including strong engagement skills; ● Experience in data analysis, both qualitative and quantitative, is essential; ● Demonstrated ability to manage and train a group of researchers and assistant researchers; ● Proven track record in drafting concise analytical reports both in English and Bahasa Indonesia; 118 ● Ability to speak and write fluently in Bahasa Indonesia and English, ability to speak local languages is an advantage; ● A proven team-player, experienced in working collaboratively in a broad range of cultural and social contexts. Other team members should possess, as a minimum, a composition of the following qualifications: ͞ ● University degree in social science and environmental science (preferably Masters Degrees), which includes social and environmental science research methodologies; ● Minimum of five-years ͞ experience conducting social and environmental assessments preferably using participatory approaches; ● Experience and understanding of participatory approaches processes including strong engagement skills will be an advantage; ● Experience working on SESA document in Indonesia, particularly in the areas of land administration, land use mapping, social forestry or community-based natural resource management and working with marginalized groups, including IPs, the poor and landless, women, minorities, etc.; ● Ability to write and speak in English and Bahasa Indonesia; ● Experience in drafting analytical reports both in English and Bahasa Indonesia; ● Proven team-players, experienced in working collaboratively in a broad range of cultural and social contexts. 119 c) Scope Tasks in formulating the SESA includes: Environmental Aspects a. An outline of the contents, main objectives of the plan and relationship with other relevant plans; b. The relevant aspects of the current state of the environment, climate change, and the likely evolution thereof without implementation of the plan; c. The environmental characteristics of areas likely to be significantly affected; d. Any existing environmental problems which are relevant to the plan including, in particular, those relating to any areas of a particular environmental importance; e. The environmental protection objectives, established at international, country level, which are relevant to the plan and the way those objectives and any environmental considerations have been taken into account during its preparation; f. The likely significant effects on the environment, including on issues such as biodiversity, population, human health, fauna, flora, soil, water, air, climatic factors, material assets, cultural heritage including architectural and archaeological heritage, landscape and the interrelationship between the above factors; These effects should include secondary, cumulative, short, medium and long-term permanent and temporary, positive and negative effects; g. The measures envisaged to prevent, reduce and as fully as possible offset any significant adverse effects on the environment of implementing the plan; h. An outline of the reasons for selecting the alternatives dealt with, and a description of how the assessment was undertaken; i. A description of the measures envisaged concerning monitoring. Social Aspects a. Analyses of existing legal, political and procedural frameworks pertaining to urban planning processes and how they affect land tenure and property rights, rights of the vulnerable including IPs (Indigenous Peoples/Masyarakat Adat), landless, and illegal occupants of state/private lands, and the role of relevant government agencies, particularly at the city levels; 120 b. Identification and analysis of possibility social and environmental impacts of the activities that may (1) involve of cultural heritage, (2) involve of natural resources, (3) disrupt the environmental carrying capacity, (4) damage sensitive or protected areas. The analysis needs to include various impact for key stakeholders to participate in this process and current level of support from target cities in this project. This needs to be conducted through consultations with relevant stakeholders, assessing their interests, needs and aspirations regarding the Project, and identifying stakeholders who may affect and influence Project outcomes– both positively and negatively. The assessment team needs to identify communication and information dissemination methods to prevent negative impacts and identify measures to avoid or mitigate such impacts in alignment with the city planning program. Awareness of gender bias and challenges particularly to groups such as women, landless peoples including those living in slums and other informal settlements, indigenous or minority groups must also be considered; c. Overview and analysis of patterns and variation in city demographics in cities target, including citizen relationships with land and resources, land use and formal and informal tenure patterns, socio-economic characteristics and livelihood patterns of sampled communities/households and access to land services. The analysis needs to understand conceptual linkages between access to lands to improvements in access to livelihoods and how they can be enhanced. The analysis should also take gender and ethnicity differentiation into account; d. Institutional and stakeholder analysis, including identification and mapping of key formal and informal institutions and stakeholders operating at city levels and assess their roles, skills and capacities in community mobilization and decision-making processes which may affect proposed project activities. This includes identification of vulnerable and marginalized groups for example the citizen living in slums or other informal settlement areas. The analysis should take into account local political systems and leadership patterns governing land and resources, decision-making systems, mechanism for inter- and intra-citizen conflict resolution, gender roles, and political representation of marginalized groups, including women, IPs, and other minorities and interactions between ethnic groups pertaining to control and access to land and resources. Analysis of gender and social inclusion dimensions shall be incorporated, highlighting key constraints and local practices to foster participation of vulnerable groups in project activities and land ownership/entitlements; 121 e. Review of current approaches and similar projects and programs in Indonesia and possibly in the region for good practices, with an emphasis on institutional set-up and efficiency, participation and outreach to marginalized groups. This includes analysis of resources both in terms of quality and quantity, timeline, and methodology required for land-use mapping exercises in a manner that is participatory, across communities and regions by taking into account variety of environmental, socio-economic, cultural, and geographical characteristics to identify added value opportunities in refining participatory processes and mechanisms; f. Analysis of existing mechanisms to address land-related grievances and disputes, and assessment of local capacity to handle such grievances, and how these can be better managed to strengthen grievance processes, including considering the role of traditional and non-formal institutions and access of the vulnerable, including women to grievance redress processes; j. Identification of project implications on habitats and physical cultural resources (more specifically on improvements in the management, protection and land use planning initiatives, (if any). The identification and assessment of physical cultural resources should include not only the tangible cultural resources, but also intangible cultural heritage. Tangible cultural heritage includes movable or immovable objects, sites, structures, groups of structures, and natural features and landscapes that have archaeological, paleontological, historical, architectural, religious, aesthetic, or other cultural significance. Tangible cultural heritage may be located in urban or rural settings, and may be above or below land or under the water. Intangible cultural heritage includes practices, representations, expressions, knowledge, skills—as well as the instruments, objects, artifacts and cultural spaces associated therewith— that communities and groups recognize as part of their cultural heritage, as transmitted from generation to generation and constantly recreated by them in response to their environment, their interaction with nature and their history. If applicable, the recommendations to address the management of intangible heritage (e.g. timing of works for festivals, intangible/spiritual value of natural resources, relocation of family shrines) need to be incorporated; k. Based on the analysis above, recommendations to address key E&S impacts, and for addressing institutional and governance weaknesses, including analysis of resource requirements that need to be considered by the project design. 122 d) Methods The team/agency will make use of qualitative and quantitative instruments to collect information methods when conducting the SESA, including but not limited to: ● Comprehensive desk review of existing studies, literature, analyses, and data pertinent to environmental sensitive areas and natural habitats, land administration, and community-depended/linked to the land/resources; ● Participatory and qualitative action approaches with a broad range of stakeholders, including vulnerable groups; ● The team will prepare guidelines to collect information from other means such as semi- structured interviews and focus groups discussions; ● Consultations (formal and informal) with key stakeholders at the national and sub- national levels (including relevant government agencies, donors, NGOs, Indigenous Peoples- if relevant, community members and other community leaders and academics); ● Preparation of a beneficiary map indicating all the stakeholders included in the research classified as institutional (central-regional and local) – organizations (NGOs, indigenous organizations) private sector, academia etc; ● Use of a questionnaire to consistently collect general information from all stakeholders through a survey. The team shall provide their professional judgement with regards to the number and coverage of survey respondents and will prepare criteria to identify the sample and software to manage data collation and analysis. 123 ANNEX 5: Inputs for TOR for CIP a) Background and Concept CIP is a multi-year rolling plan for capital investment projects (including retrofitting and maintenance), prioritized by year, with anticipated beginning and completion dates, annual estimated costs, proposed financing methods, and identification of the financing gap. Under the CIP approach proposed under this Project, a city will move beyond a general wish-list of investment priorities towards investments within strategic areas of investments, spatially directed via the SDF and identified within SAFs. In addition, there may be limited earmarked investments based on social imperative/need or other priorities that can be mandated to be reflected within CIPs. The proposed CIP framework ensures effective operationalization of plans by prioritizing city investments within available budgets and by tracking implementation progress and reviewing annually. Prioritization of the long list of projects (all captured within a database prior to filtering) is based on pre-agreed objective criteria, which can vary from city to city. In the context of this project, investment prioritization scores will be spatially enabled by linking them with the direction given by the SDF, adjusted by the articulated mayoral visions, and including parameters such as environmental-socio-economic impacts of investments, potential contribution to low-carbon and climate-resilient urban development, etc. b) Prioritization Criteria and Scoring Prioritization will be done based on established criteria and indicators agreed upon City Government Officials which may vary in between cities. Consultations with project cities will be held to select from the eligible investments. The following preliminary set of selection criteria was developed for cities to further prioritize among different no-regret investments. Score 3 Score 2 Score 1 Criteria 1 Significantly contribute Moderately No to minimal The ability to to reduced GHG contribute to reduced contribution to produce significant emissions and/or GHG emissions reduced GHG and sustained GEBs enhanced state of and/or enhanced emissions and/or biodiversity in the city enhanced state of 124 Score 3 Score 2 Score 1 state of biodiversity biodiversity in the in the city city Criteria 2 Clear Potential No relation to Complementarities complementarities exist complementarities ongoing initiatives/ with ongoing and the initiative will may exist which can has overlap with initiatives in the cities support a broader city be investigated ongoing initiatives and alignment with priority agenda further macro policy strategy Criteria 3 Immediately applicable Potentially Not applicable Technical applicable given applicability of certain preconditions solution against city’s are met existing conditions Criteria 4 Environmental, Environmental, Not cost effective in Cost effectiveness of economic and social economic and social light of investment solution benefits are clear and benefits are cost needed for the exceed investment cost potentially solution of the solution exceeding investment cost of the solution Criteria 5 City has capacity to City can implement Highly challenging City implementation implement the solution the solution with for City to capacity support through the implement the GEF-SCIP project solution Criteria 6 Clear indication of Potential local need No local need and Local need and local need and demand and demand may demand demand (indicated in plans, exist which can be voiced in meetings, investigated further etc.) It is also important to include environmental and social aspects in planning and prioritization considerations, thus at this stage, environmental considerations in cities can be developed as part of the objective criteria of CIP. Please see below for some examples of environmental and social aspects and customizable scoring indicators that the firm can respond to within design: 125 Weighting Factor Environmental and Social Considerations Environmental Capacity Ground water scarcity, environmental pollution Biodiversity and Cultural Values Natural habitats (e.g. city parks, forests, preserved areas, etc.) Indigenous People Presence of indigenous peoples Physical Cultural Resources Presence of cultural sites or sacred use areas (official or unofficially known) Land Status Claimed areas, Recreation spaces (current users and potential needs) Demography Presence of slum settlements, ethnic enclaves, minority pockets or locations where vulnerable groups Resilience Disaster and climate change resilience Urban Development Planning towards public transportation Others 126 ANNEX 6: TOR for E&S Document Preparation Introduction The SCIP requires preparation of environmental and social assessment document along with preparation of Feasibility Study (FS) for the proposed investment subproject under Component 2. This annex provides a simple framework that will help project implementers to conduct a environmental and social assessment and mainstream environmental and social considerations early in the project. The framework includes a screening mechanism and form, relevant environmental and social legislation, a TOR for the E&S assessment, as well as general environmental and social considerations for the infrastructure sector. The assessment will be carried out with reference to Indonesia laws and regulations and the World Bank ESSs requirements, therefore it is important to maintain good coordination with local environment agency to determine the type of E&S assessment document need to be prepared to obtain the environmental approval during investment and physical construction phase (AMDAL/UKL- UPL/SPPL). The environmental and social assessment will reflect the environmental and social impacts that may be associated with the proposed investment subproject including the associated facilities as well as suggest the appropriate mitigation measures. In the case where the formal environmental and social assessment could not be identified nor started during project implementation, an Environmental and Social Impact Assessment (ESIA) will be financed by the project to ensure that E&S consideration is taken into account in the design of the proposed subproject in particular during the Feasibility Study preparation. Additionally, an environmental and social management plan (ESMP) will be prepared based on the ESIA results. The following is a template of TOR for AMDAL/ESIA that may be used and tailored based on the subproject requirement. A. Background Based on the background based on the subproject. B. Purpose The purpose of this ToR is to ensure the sub-project is in accordance with the standards that have been adopted in the ESMF document and (good international industry practice, as well as the prevailing laws and regulations as follows: 127 a. Fulfillment of legal aspects: 1. Law No. 11 of 2021 on Job Creation 2. Law No. 32 of 2009 on Environmental Protection and Management; 3. Law No. 2 of 2012 on Land Procurement for Development for the Public Benefit 4. Law No.23 of 2003 on Employment 5. Law No.1/1970 on Occupational Safety 6. Law No.10 of 2010 on Cultural Heritage 7. Law No. 2 of 2012 on Land Procurement for Development for the Public Benefit 8. Government Regulation No. 27 of 2012 on Environmental Permits; 9. Government Regulation No. 22 of 2021 on Implementation of Environmental Protection and Management; 10. Presidential Regulation No. 71/2012, 40/2014, 99/2014, 30/2015: on The Implementation of Land Procurement for Development for the Public Benefit; 11. Presidential Regulation No. 62 of 2018 on Handling Social Impacts in the Framework of Land Provision for National Development 12. Regulation of Minister of Environment and Forestry No. 3 of 2021 on Business Activities Standard on the Implementation of Risks Based Permit in Environment and Forestry Sector; 13. Regulation of Minister of Environment and Forestry No. 4 of 2021 on List of Business and/or Activities that are Mandatory to Have AMDAL, UKL-UPL or SPPL; 14. Regulation of the Minister of State for Environment No.38 of 2019 on Types of Business Plans/Activities That Must Have An Analysis on Environmental Impacts; 15. Regulation of the Minister of State for the Environment No. 16 of 2012 on the Preparation of Environmental Documents; 16. Regulation of the Minister of Environment and Forestry of the Republic of Indonesia Number P.50/Menlhk/Setjen/Kum.1/6/2016 concerning Guidelines for Borrowing and Use of Forest Areas; 17. Regulation of the Minister of Public Works No. 10/PRT/M/2008 on Determination of Types of Business Plans and/or Activities in the Field of Public Works That Must Be Completed with AMDAL and; 18. Relevant Local Regulations. 128 b. Detailed assessment of the proposed subproject, takes into account relevant issues, such as the type, location, sensitivity, and scale of the project; the nature and magnitude of the potential environmental and social risks and impacts; and the capacity and commitment of the project implementer and other relevant parties to manage the environmental and social risks and impacts in a manner consistent with the national regulations and the Environmental and Social Standards (ESSs). The following screening questions may help the initial assessment of the potential E&S risks and impacts of the proposed subproject and identification of the relevant ESSs. Detailed assessment should be conducted as outlined in part C (scope of works). Table A6.1 Environmental Screening List Potential Environmental Impacts Yes No Provide details to justify the answer 1. Will the intervention involve civil works including new construction, expansion, upgrading or rehabilitation of public facilities? 2. Will the intervention associate with any external public infrastructure in the areas? 3. Is there a sound regulatory framework and institutional capacity in place for potential environmental impacts management? 4. Will the intervention have an adequate system in place (capacity, processes and management) to address potential environmental impacts? 5. Will the intervention have appropriate OHS procedures in place, and an adequate supply of PPE (where necessary)? 6. Are there any sensitive natural habitat (forest, riverine, coastal, peat land) areas or threatened species that could be adversely affected by the intervention? 7. Will the intervention locate within or in the vicinity of any ecologically sensitive areas? 8. Are there any cultural or historical value in the intervention area and that they potentially will potentially be affected its value and existence? 9. Will the intervention located within or in the vicinity of any known cultural heritage sites? 10. Will the intervention have major/significant impact to the environment (changes on landscape, clearing of natural vegetation, major 129 Potential Environmental Impacts Yes No Provide details to justify the answer engineering work – river diversion, dam, potential environmental contamination, the use of hazardous materials)? 11. Will the intervention involve small dam/large dam, dam extension construction (such as for water supply)? 12. Will the intervention create the impacts to a large area, including its area of influence (ancillary facilities and associated facilities)? 13. Will the intervention create cumulative impacts? 14. Will the intervention have any irreversible impacts? Table A6.2 Social Screening List Provide details to justify the Potential Social Impacts Yes No answer 1. Will the intervention include new physical construction work? 2. Does the intervention include upgrading or rehabilitation of existing facilities? 3. Is the intervention likely to cause any permanent damage to or loss of housing, other assets, resource use? 4. Is the site chosen for this work free from encumbrances and is in possession of the Public/government/community land? 5. Is this sub-project intervention requiring private land acquisitions? 6. Is the land required for sub-project were already acquired? 7. The acquired lands were duly transferred and no litigation/legacy (pending for title transfer, compensation payment, ownership disputes etc.) issue 8. Are there any complaints/unresolved cases of already acquired lands? 9. If the land parcel has to be acquired, is the actual plot size and ownership status known? 10. If new land is required and the site is privately owned, can this land be purchased through Willing Buyer–Willing Seller agreement? 11. Does the sub-project cause any access restriction 130 Provide details to justify the Potential Social Impacts Yes No answer to the commuters/pedestrians/ business and trades? 12. Is land for material mobilization or transport for the civil work available within the existing plot/Right of Way? 13. Are there any formal / informal users or non- titled people who are utilizing (inhabiting/doing business or using for other purposes etc.) the proposed site/project locations that will be used for civil work? If yes, please provide how many and for what purposes. 14. Is any temporary impact likely? 15. Is there any possibility to move out, close of business/commercial/livelihood activities of persons during constructions? 16. Is there any case of temporary or permanent physical displacement of persons due to project works? 17. Does this project involve resettlement (physical displacement) of any persons? If yes, give details. 18. Will there be loss of/damage to productive trees, fruit plants or crops that generate livelihood income for the households? 19. Will there be loss of incomes and livelihoods for anyone due to project intervention? 20. Will people permanently or temporarily lose access to facilities, services, or natural resources? 21. Will project cause loss of employments/jobs? 22. Will project generate excessive labor influx as a result of new constructions? 23. Does construction activities require additional/skilled labor from outside the locality? 24. Will sub-project/construction activities cause destruction/disturbance to host community living? 25. Will construction of new buildings, drainage lines, powerlines create any degradation/disturbances for public buildings/resources/ adjacent houses, wells, lands, Burial places, children parks, schools etc.? 131 Provide details to justify the Potential Social Impacts Yes No answer 26. Will this intervention generate downsize in current labor force (retrenchments) of the agency? 27. Are project works likely to cause unintended consequences such as accidents/damages to adjacent buildings? 28. Are there any vulnerable groups who may be affected adversely (including indigenous people) due to the project intervention? C. Scope of Work An AMDAL/ ESIA report acceptable to the Bank focuses on the significant environmental issues of a project. The report’s scope and level of detail should be commensurate with the project’s potential impacts. The report submitted to the Bank is prepared in English and the executive summary in English, but the disclosure should be in both English and local language. The AMDAL/ESIA report should include the following items (not necessarily in the order shown): a) Executive summary. Concisely discusses significant findings and recommended actions. b) Policy, legal, and administrative framework. Discusses the policy, legal, and administrative framework within which the impact assessment is carried out. Explains the environmental and social requirements of any co-financiers. Identifies relevant international environmental agreements to which the country is a party. The impact assessment should be carried out in line with GoI regulations and Bank policies. c) Project description. A brief description of the project area and salient features of the proposed location such as geographic location, climate, rainfall, soil profile, wind direction, existing drainage system, demographics, etc. should be given. Concisely describes the proposed project and its geographic, ecological, social, and temporal context, including any offsite investments that may be required (e.g., quarry, workforce camps, asphalt mixing plant, etc.). Indicates the need for any resettlement plan or Indigenous Peoples development plan (see also sub-para. (h)(v) below). Normally includes a map showing the project site and the project’s area of influence. d) Baseline data. Assesses the dimensions of the study area and describes relevant physical, biological, and socioeconomic conditions, including any changes anticipated 132 before the project commences. Also takes into account current and proposed development activities within the project area but not directly connected to the project. Data should be relevant to decisions about project location, design, operation, or mitigation measures. The section indicates the accuracy, reliability, and sources of the data. e) Environmental and social impacts. Predicts and assesses the project’s likely positive and negative impacts, in quantitative terms to the extent possible. Identifies mitigation measures and any residual negative impacts that cannot be mitigated. Explores opportunities for environmental and social enhancement. Identifies and estimates the extent and quality of available data, key data gaps, and uncertainties associated with predictions, and specifies topics that do not require further attention. The assessment should also be based on the review of various earlier studies such as feasibility and detailed project reports, etc., of the project and understand all related aspects. This will provide a base to formulate the environmental and social surveys necessary for the project and assessing its impact. If any climate change impact is envisaged in project implementation or during operation, then relevant information should be collected to appraise that impact. Furthermore, the impact assessment should be carried out in a consultative manner through stakeholder consultations, at various stages, with the affected communities, NGOs, selected government agencies and other stakeholders. f) Analysis of alternatives. Systematically compares feasible alternatives to the proposed project site, technology, design, and operation—including the "without project" situation--in terms of their potential environmental and social impacts; the feasibility of mitigating these impacts; their capital and recurrent costs; their suitability under local conditions; and their institutional, training, and monitoring requirements. For each of the alternatives, quantifies the environmental and social impacts to the extent possible, and attaches economic values where feasible. States the basis for selecting the particular project design proposed and justifies recommended emission levels and approaches to pollution prevention and abatement. g) Stakeholder consultation. The consultant should be held with the purpose to (a) collect baseline information, (b) obtain a better understanding of the potential impact (c) appreciate the perspectives/concerns of the stakeholders, and (d) secure their active involvement during subsequent stages of the project as appropriate. Consultations should be preceded by a systematic stakeholder analysis that would (a) identify the individual or stakeholder groups relevant to the project and to environmental and social 133 issues, (b) include expert opinion and inputs, (c) determine the nature and scope of consultation with each type of stakeholders, and (d) determine the tools to be used in contacting and consulting each type of stakeholder. A systematic consultation plan with attendant schedules should be prepared for subsequent stages of project preparation as well as implementation and operation, as required. Where community consensus is required in respect of proposed mitigation measures for impact on community and public assets including water bodies, places of worships etc., specific plan for modification/relocation etc. have to be disclosed and consensus obtained. h) Environmental and social management plan (ESMP). Covers mitigation measures, monitoring, and institutional strengthening; see outline below. i) Annexes: • List of ESIA report preparers--individuals and organizations. • References--written materials both published and unpublished, used in study preparation. • Record of interagency and consultation meetings, including consultations for obtaining the informed views of the affected people and local non-governmental organizations (NGOs). The record specifies any means other than consultations (e.g., surveys) that were used to obtain the views of affected groups and local NGOs. • Tables presenting the relevant data referred to or summarized in the main text. • List of associated reports (e.g., resettlement plan or indigenous people development plan). The consultant shall ensure that preparation of the AMDAL/ ESIA document is in accordance with the administrative procedure set by the Government of Indonesia based on Permen LH No.38/2019 on Guidelines for The Preparation of Environmental Documents. In summary, the process includes the following activities: 1. Initial Survey, Scoping, Preparation of Public Consultation 2. Announcement and Implementation of Public Consultation with reference to Permen LH No. 17 of 2012 on Guidelines for Community Involvement in the AMDAL Process and Environmental Permits. The implementation of public consultation should be open, conform to local cultural customs and include vulnerable groups and pay attention to gender aspects. The provisions of public consultation in the ESMF must also be followed. 134 3. Preparation of AMDAL TOR indicating the initial potential impacts of the subproject which further results in hypothetical and summary important impacts, maps of the boundaries of the study area, methods of study and summary, bibliography, and attachments. Consultants may be required to assist the subproject proponent to obtain formal evidence of the suitability of the project site plan with the City and/or Provincial spatial planning, if it is not yet available. Consultants must provide evidence of community involvement, among others, in the form of proof of announcement of activity plans, Event News, attendance lists, photos, and other supporting evidence. 4. The Consultant involves the Parties in the review process of the drafting of the AMDAL TOR with the following details: - Consultant submits draft AMDAL TOR in the form of softcopy to the Parties for review no later than 7 (seven) calendar days before it is submitted to the secretariat of the KPA (AMDAL Assessor Commission); - The Consultant incorporates the results of the review provided by the Parties into the draft AMDAL TOR before the approval of the competent authorities; - Consultants involve the Initiator in activities related to the preparation of the TOR when needed. 5. Terms of References (TOR) - The consultant submits to the subproject proponent a copy of the proof of receipt of the TOR which is the day and date of receipt of the TOR; - Consultant assists the subproject proponent in the administration management of the Meeting of the Technical Team of the TOR, including costs related to the meeting; - The Consultant submits the revised TOR for approval; - The Consultant submits to the Parties a copy of the approved TOR document along with the Letter of Approval of the TOR Agreement no later than 7 (seven) working days after the letter is received by the consultant. 6. Laboratory Surveys and Analysis Supporting equipment for this activity is provided by consultants who include but are not limited to sampling equipment (field measuring equipment, computers, etc.), laboratory equipment, personal protective equipment, GPS, photo cameras, video cameras, computers and stationery, transportation, and accommodation. 135 i. Field Data Collection and Surveying Field data collection in the project site area and surrounding areas includes but is not limited to surface water and groundwater quality, air quality, soil, biological components (flora, fauna, ecosystems, habitats, and endemic species), social, economic, cultural, public health. Primary data is taken for 1 season and comes with secondary data for other seasons. The survey also includes descriptions of land use in study areas and descriptions of sensitive areas (protected natural areas, areas of ecological value, sensitive receptors such as schools, hospitals, places of worship, public/sacred cemeteries etc.) identified in the map according to scale. ii. Laboratory Analysis - Consultants conduct sample testing for primary data in KAN-accredited and still valid environmental laboratories, as evidenced by submitting a copy of the accreditation certificate to the Parties; - The KAN logo is included in the laboratory analysis certificate. 7. Preparation of ANDAL, RKL-RPL and AMDAL Executive Summary Consultants compile Reliable, RKL-RPL based on the TOR that has been issued approval. i. Environmental Setting Study Activities (subproject names) will have an impact on each stage of the activity. A review was conducted on the impact on the pre-construction, construction, operational, and post-operational stages. Jobs include but are not limited to: - Measurement of geo-physical-chemical aspects include quantity of surface water and groundwater, noise, etc.; - Laboratory examination of the samples taken; - Collection and analysis of relevant secondary data. ii. Impact Forecast Incorporating aspects of impact that include but are not limited to surface water, groundwater, drainage, air quality, physiography and geology, hydrology and hydrogeology, soil, land and aquatic biology, social, economic, cultural, public health. iii. Supporting Procedures and Documents Consultants assist project initiators in obtaining or compiling (when not yet available) procedures and supporting documents related to environmental 136 management and are included in the AMDAL documents, including but not limited to: - Emergency preparedness and response procedures; - Occupational safety and health procedures and the safety of affected workers and communities; - Construction and operational labor recruitment procedures applying the principles of non-discrimination, fair opportunity, not hiring children and forced labor, provisions on layoffs and mechanisms for handling worker complaints. In addition, it is also necessary to study the possibility of cultural vulnerability due to input of workers from outside the region including the potential for violence that can be caused by migrant workers; - Wastewater management procedures, hazardous and non-hazardous solid waste, and air emissions/quality incurred during construction and operational phases; - Monitoring, review and reporting plans and procedures in environmental and social management; - Description of management programs, organizational capacity and competence, plans, and provisions on environmental and social aspects, including institutional arrangements and capacity building to carry out environmental management and monitoring; - Estimated costs required and parties responsible for implementing environmental and social management and monitoring plans; - Mechanism of handling community complaints against project activities. iv. The Consultant involves the Parties in the review process of the preparation of the AMDAL document with the following details: - The Consultant submits the draft TOR, Reliable, and RKL-RPL to the Parties for review before the approval process by the authorized officials, - The Consultant incorporates the results of the review provided by the Parties into the draft AMDAL document prior to approval from the competent authorities; 8. ANDAL Assessment and RKL- RPL i. Technical Team Meetings and KPA Meetings Consultants assist the initiator of the project in organizing Technical Meetings and KPA Meetings, including the submission of invitations, the provision of accommodation and the management of meeting-related costs. 137 ii. Assistance and Revision of ANDAL, RKL, and RPL Consultants assist project initiators in assisting and revising Reliable and RKL-RPL. The consultant informs each assistance result to the initiator. iii. Preparation of Executive Summary Consultants compile executive summaries of approved Andal and RKL-RPL. 9. Announcement and issuance of Environmental Permits Consultants assist project initiators in preparing the application for Environmental Permits to authorized officials through the KPA secretariat. The work is deemed completed if the Parties have received the AMDAL documents, the Executive Summary, and the Environmental Permit/Approval. D. Timeline It is expected that this work will begin on: [Add period of service] The consultant starts the work after the agreement/contract is issued. The working period is (__) working days with the following usage details: No. Activity Description and/or Output 1 The consultant submits to the Initiator a Preliminary Report containing methodology, work plan, survey plan, and expert team. 2 The consultant submits to the Initiator of the Monthly Report in the form of a summary of the work progress report that has been carried out every month, progress of work, delays and causes, suggestions and recommendations and actions that have been done including the results of the review and work plan the following month. 3 Initial survey, preparation of public consultation, and scoping 4 Announcement and implementation of public consultation 5 Preparation of TOR documents 6 TOR Assessment 7 Surveys, laboratory analysis 8 Reliable Preparation, RKL-RPL, and Executive Summary 9 Reliable Assessment and RKL- RPL 10 Reliable assistance and revision and RKL- RPL 11 Announcement and issuance of Environmental Permits 12 Project initiator obtains Environmental Permit/Approval 138 E. Expert List The needs of experts in this activity must meet the minimum criteria that have been required in the preparation of the AMDAL as follows: 1. Peer reviewer Minimum qualifications are as follows: - Minimum post-graduate education (S2) - More than 15 years in Compiling Environmental documents - Has completed the preparation of the AMDAL more than 10 times - Have experience applying international standards in environmental and social studies such as World Bank Safeguards, IFC Performance Standards, and/or ADB Safeguard Policy Statement. 2. Team Leader of the AMDAL Development Team and Environmental and Social Safeguards Assessment Study - Minimum Bachelor's Degree (S-1); - Have a valid certificate of competence of the Chairman of the AMDAL Building Team (KTPA); - 7 (seven) years of experience in the preparation of AMDAL documents; - Experienced in the preparation of AMDAL documents / UKL-UPL urban infrastructure development projects (such as waste, wastewater, drainage, road and bridge construction projects. - Have experience applying international standards in the preparation of environmental and social studies such as World Bank Safeguards, IFC Performance Standards, and/or ADB Safeguard Policy Statement. 3. Member of AMDAL Team and E&S Safeguards Assessment Study At least 2 (two) members of the AMDAL Team have a valid AMDAL Team (ATPA) certificate and experience in the preparation of AMDAL/UKL-UPL Urban infrastructures/public works construction projects. The number of AMDAL Team Members who have a valid AMDAL Team (ATPA) certificate can be taken into account by the Experts as described in the next point. Preferably members of the Consultant Team who have experience applying international standards in the preparation of environmental and social studies such as World Bank Safeguards, IFC Performance Standards, and/or ADB Safeguard Policy Statement. 4. Experts at least consist of: 4.1. Hydrology/Hydrogeology 139 Minimum bachelor's degree (S-1) with a background in Civil Engineering/ Environmental Engineering / Geology with at least 5 (five) years working experience as a Hydrologist / Hydrogeologist in the preparation of AMDAL. 4.2. Environmentalist Minimum Bachelor's Degree (S-1) with a background in Environmental Engineering / Environmental Science / Biology / Microbiology / Chemistry / Chemical Engineering with a minimum of 5 (five) years working experience as an Environmental Expert in the preparation of AMDAL documents. 4.3. Biologists/Biodiversity Minimum Bachelor's Degree (S-1) with a background in Biology education with at least 5 (five) years of experience as a Biologist in the preparation of AMDAL documents. 4.4. Forestry Experts Minimum Bachelor's degree (S-1) with forestry background with at least 5 (five) years of experience as a forest management expert in the preparation of AMDAL documents 4.5. Socioeconomic and Cultural Experts Minimum Bachelor's Degree (S-1) with a social education background with at least 5 (five) years of experience as a Socio-Economic and Cultural Expert in the preparation of AMDAL documents and has experience in work-workers or research on Indigenous Peoples, especially Indigenous Peoples. 5. Support personnel needed include: 5.1. AMDAL Building Assistant Minimum Bachelor's Degree (S-1), has attended and passed the training of AMDAL preparation in LPK that has been accredited in KLHK. 5.2. Surveyor Minimum D3 education, preferably local / local community, experienced as a surveyor. 5.3. Drafter Minimum education D3, experienced as a drafter. 5.4. Administrative Staff Minimum high school education. 140 F. Activity Location The location of the activity is in Kabupaten / Kota XXX, Province XXX. (map and coordinate points) 141 ANNEX 7: Outline for AMDAL EIA (AMDAL) document consists of executive summary, Environmental Impact Analysis (ANDAL), Environmental Management Plan (RKL) and Environmental Monitoring Plan (RPL). The following matrices provide the outlines for the AMDAL (ESIA), RKL-RPL and UKL-UPL (ESMP) and SPPL that are acceptable to the Bank. These outlines build upon the GoI requirements specified by the national regulations.37 Table A7.1 AMDAL/ESIA) Outline Acceptable to the Bank AMDAL outline (GoI AMDAL outline acceptable to the Bank requirements) (incorporating ANDAL and ESS 1 requirements) Introduction: summary of the business Refer to AMDAL and add: and/or activity plan, hypothetical - Executing Summary prior to the significant impact, limits of study area introduction section and study time limit based on scoping in - Legal and institutional framework in the the terms of references (including any introduction section available alternatives). Detailed description of the initial Refer to AMDAL and add: environmental setting (baseline data): - Discussion on accuracy, quality, contains a description of the reliability, sources of data, key data gaps, environmental setting in detail at the and any uncertainties proposed business and/or activity - Description of current and future location which consists of: developments in and around the project environmental components affected by area significant impact caused by proposed - Description of natural, modified and activities, businesses and/or activities critical habitats, protected areas and key around the proposed activity location species in the area - Analysis of alternatives: systematically compares feasible alternatives to the proposed project site, technology, design and operation including the without project situation, quantifies the environmental and social impacts for each alternative, and assessment of alternatives feasibility of mitigating environmental and social impacts - Design measures or basis of design: basis for selecting the particular project design 37 An AMDAL package comprises of the ANDAL (ESIA) and RKL-RPL (ESMP) documents, while a UKL-UPL package contains a summary of activities and potential impacts, and an ESMP. 142 AMDAL outline (GoI AMDAL outline acceptable to the Bank requirements) (incorporating ANDAL and ESS 1 requirements) - Reference to any relevant legal and administrative frameworks such as international environmental treaties/agreement/standards/policies Hypothetical significant impact: Refer AMDAL and add: produce information on the scale and - Information on valued environmental characteristic of significant impact for components each hypothetical significant impact that - Assessment of indirect and cumulative was studied impacts Holistic evaluation of environmental - Assessment of impacts from associated impact: describe the result of evaluation facilities38 of the relationship and interaction - Assessment of any foreseen residual between hypothetical significant impacts impacts to determine the characteristic of the total environmental impact caused by the proposed business and/or activity Bibliography/references: important data Refer AMDAL, no additions required. and information which must be supported by updated literature which is listed in a bibliography using standard bibliographical format. Appendix: Terms of Reference Refer AMDAL, no additions required. Agreement or Terms of Reference Administrative Completeness Statement, records of consultations, detailed data and information on the environmental setting (tables, graphs, and photos of the environment if needed), summary of basic theories, assumptions, procedures, processes, and calculations used to forecast impact, summary of theories, assumptions, procedures, processes, and calculations used to holistically evaluate environmental impact, other relevant data and information, laboratory data/results. 38 Associated facilities are facilities or activities that are not funded as part of the project and, in the judgment of the Bank, are: (a) directly and significantly related to the project; (b) carried out, or planned to be carried out, contemporaneously with the project; and (c) necessary for the project to be viable and would not have been constructed or expanded if the project did not exist. 143 A RKL-RPL (ESMP) outline acceptable to the Bank: A sub-project’s environmental and social management plan (ESMP) consists of the set of mitigation, monitoring, and institutional measures to be taken during implementation and operation to eliminate adverse environmental and social impacts, offset them, or reduce them to acceptable levels. The plan also includes the actions needed to implement these measures. To prepare an ESMP, project proponent will (a) identify the set of responses to potentially adverse impacts; (b) determine requirements for ensuring that those responses are made effectively and in a timely manner; and (c) describe the means for meeting those requirements. More specifically, the ESMP will include the following components. Mitigation The ESMP identifies feasible and cost-effective measures that may reduce potentially significant adverse environmental and social impacts to acceptable levels. The plan includes compensatory measures if mitigation measures are not feasible, cost-effective, or sufficient. Specifically, the ESMP: • identifies and summarizes all anticipated significant adverse environmental and social impacts (including those involving indigenous people or involuntary resettlement); • describes--with technical details--each mitigation measure, including the type of impact to which it relates and the conditions under which it is required (e.g., continuously or in the event of contingencies), together with designs, equipment descriptions, and operating procedures, as appropriate; • estimates any potential environmental and social impacts of these measures; and • provides linkage with any other mitigation plans (e.g., for involuntary resettlement, Indigenous Peoples, or cultural property) required for the project. Monitoring Environmental and social impact monitoring during project implementation provides information about key environmental and social aspects of the project, particularly the environmental and social impacts of the project and the effectiveness of mitigation measures. Such information enables the borrower and the Bank to evaluate the success of mitigation as part of project supervision and allows corrective action to be taken when needed. Therefore, the ESMP identifies monitoring objectives and specifies the type of monitoring, with linkages to the impacts assessed in the ESIA report and the mitigation measures described in the ESMP. Specifically, the monitoring section of the ESMP provides: 144 • a specific description, and technical details, of monitoring measures, including the parameters to be measured, methods to be used, sampling locations, frequency of measurements, detection limits (where appropriate), and definition of thresholds that will signal the need for corrective actions; and • monitoring and reporting procedures to (i) ensure early detection of conditions that necessitate particular mitigation measures, and (ii) furnish information on the progress and results of mitigation. Capacity Development and Training To support timely and effective implementation of environmental and social project components and mitigation measures, the ESMP draws on the ESIA’s assessment of the existence, role, and capability of environmental and social units on site or at the agency and ministry level. If necessary, the ESMP recommends the establishment or expansion of such units, and the training of staff, to allow implementation of ESIA recommendations. Specifically, the ESMP provides a specific description of institutional arrangements--who is responsible for carrying out the mitigation and monitoring measures (e.g., for operation, supervision, enforcement, monitoring of implementation, remedial action, financing, reporting, and staff training). To strengthen environmental and social management capability in the agencies responsible for implementation, most ESMPs cover one or more of the following additional topics: (a) technical assistance programs, (b) procurement of equipment and supplies, and (c) organizational changes. Implementation Schedule and Cost Estimates For all three aspects (mitigation, monitoring, and capacity development), the ESMP provides (a) an implementation schedule for measures that must be carried out as part of the project, showing phasing and coordination with overall project implementation plans; and (b) the capital and recurrent cost estimates and sources of funds for implementing the ESMP. These figures are also integrated into the total project cost tables. Integration of ESMP with the Project ESMP should be specific in its description of the individual mitigation and monitoring measures and its assignment of institutional responsibilities, and it must be integrated into the project's overall planning, design, budget, and implementation. Such integration is achieved by 145 establishing the EMP within the project so that the plan will receive funding and supervision along with the other components. Table below presents the outline of ESMP acceptable to the Bank RKL-RPL outline acceptable to the Bank RKL-RPL outline (GoI requirements) (incorporating RKL-RPL and ESS1 requirements) Introduction: RKL-RPL implementation objective Refer RKL-RPL, no additions required. in general and clear statement. This statement must be systematically, simple and clear. Environmental Management Plan (RKL): describe Refer RKL-RPL and add: the forms of environmental management to - Grievance handling action avoiding, preventing, minimizing and/or - Cost estimates for each controlling the negative impact and improving management action and sources of positive impact, implementation schedules, funds duration/period, responsible party to implement the - Capacity building and training action, reporting/enforcement party plans for project owner and contractors - Institutional arrangements Environmental monitoring plan (RPL): describe Refer RKL-RPL and add: the monitoring plan in matrix or table form for - Grievance monitoring caused impact, implementation schedules, - Cost estimates for each monitoring duration/period, responsible party to implement the action action, reporting/enforcement party - Monitoring on capacity building and training Institutional arrangements Number and types of required environmental Refer RKL-RPL, no additions required. protection and monitoring permits (PPLH): in the case of proposed business and/or activities required PPLH permit, accordingly describe identification and formulation of required number and types of environmental permit list and environmental management based on environmental management plan. Statement of proponent’s commitment to conduct Refer RKL-RPL, no additions required. provisions in RKL-RPL: consist of proponent’s statement to conduct RKL-RPL signed in stamped paper. Bibliography: in this part, informs data source and Refer RKL-RPL, no additions required. information used for RKL-RPL development, either books, magazine, essay or scientific research report. All literatures must be written accordingly to literature writing guidance. Appendix: significant and relevant data and Refer RKL-RPL, no additions required. information 146 ANNEX 8: Content for UKL-UPL The following matrices provide the outlines for the UKL-UPL that are acceptable to the Bank. These outlines build upon the GoI requirements specified by the national regulations. Table A8.1 UKL-UPL (ESMP) Outline Acceptable to the Bank UKL-UPL outline acceptable to the Bank UKL-UPL outline (GoI (incorporating UKL-UPL and ESS1 requirements) requirements) Identity of Initiator: Initiator Refer UKL-UPL, no additions required. name, business address, postal code, telephone number, fax number and email Project description/ activity Refer UKL-UPL and add: plan: name of project/ activity, - Description of environmental setting at the project map that is built in accordance site with cartography rules and/or - Summary of alternative sites, technology an adequate illustration of the considered and assessment location, scale/size of of E&S impacts of each alternative project/business activity, - Land acquisition requirements (refer to Annex 7) outline of components of the - Identification of associated facilities, if any project/business activity - Summary of current and future developments - Basis of design for the project - Consultations with potentially impacted communities and how emerging views are reflected in the design and decision making processes Assessment of the legal framework relevant the proposed investment in view of E&S risk management Environmental impact and Refer UKL-UPL and add: environmental management - Social impact assessments, OHS and community, and monitoring plan/effort health and safety risks, Indigenous Peoples, and matrix: source of impact, type vulnerable groups and appropriate engagement of impact, scale of impact, and risk mitigation measures environmental management - Land acquisition impacts (refer to Annex 7) and (activity, location, and proposed mitigation Measures duration/ timing), - Assessment of indirect impacts, both E&S, environmental monitoring community, health impacts (activity, location, - Assessment of impacts from associated duration/timing), facilities 147 UKL-UPL outline acceptable to the Bank UKL-UPL outline (GoI (incorporating UKL-UPL and ESS1 requirements) requirements) institution/person in charge, - Grievance handling processes Cost estimates for remarks. each management and monitoring action and sources of funds - Capacity building and training plans for project owner and contractors - Institutional arrangements - Consultation processes and plans Statement of assurance for Statement of assurance for UKL-UPL implementation UKL-UPL implementation 148 ANNEX 9: Format for SPPL The following are format for SPPL that are acceptable to the Bank. These outlines build upon the GoI requirements specified by the national regulations. Format for the “Statement of Commitment to Implement Environmental Management and Monitoring” (SPPL) (For activity plan not requiring any UKL/UPL) We, the undersigned below Name : Job position : Address : Phone Number : As party in charge of the environmental management of: Name of Company/Business : Address Company/Business : Phone Number of the company : Type of business : Production capacity : Permit already obtained : Purpose : Amount of capital : Hereinafter, we confirm that we are capable and committed to implementing the environmental and social action plans as follows: 1. ……… 2. ……… 3. ……… 4. etc. This SPPL shall be effective from the date of its issuance, up to the completion of our business and/or project activity. If the project undergoes any change of location, design, process, type of raw materials and/or supporting materials, this SPPL must be revised. Registry Number from the local environmental agency Date Receiver Attachment of the SPPL: Environmental and Social Management and Monitoring Plan Matrix 149 ANNEX 10: TOR for Traffic Impact Assessment The following is an example template of TOR for Traffic Impact Assessment that may be used and adjusted based on the subproject requirement. A. Explanation and Scope of The Project (Description and Project Scope) B. Consultant Works Objective The purpose of the consultant's work is to prepare a reliable Traffic Impact Analysis Document (Andalalin) in order to achieve sustainable project goals. The preparation of the Andalalin refers to the prevailing laws and regulations from the central level to the local level. Therefore, in the process of preparing the consultant must be able to analyze in detail, including conducting discussions, consultations, and coordination with each stakeholder related either directly or indirectly on the project, at least covering the following: • Formulate a traffic impact analysis plan and methodology. • Conducting an analysis of existing traffic and road freight conditions. • Conducting an analysis of the rise and pull of traffic and road transport (trip generation and trip attraction) due to development and development based on the technical rules of transportation. • Perform a trip distribution analysis. • Perform a moda selection analysis (Moda split). • Perform a travel loading analysis (trip assignment). • Conducting traffic modeling on the traffic impact analysis. C. Scope of Work Consultant (Consultant Scope of Works) In accordance with the purpose of the work as previously listed, this work includes the preparation of Andalalin documents, location overview and traffic handling overview. Broadly speaking, the stages of activities in this work are as follows: 1. The preparation of traffic impact analysis document as the basis in the application of Traffic Engineering Management includes; a. Origin-destination (O-D) matrix (Bounce and traffic attraction); 150 b. Volume of traffic. c. Traffic speed. d. Traffic density. e. Queues at intersections. f. Snooze at the intersection. 2. Andalalin Document Analysis Methods that include: • Planning and methodology of traffic impact analysis. • Analysis of traffic and road transport conditions currently. • Analysis of the rise /pull of traffic and road transport due to development. • Analysis of travel distribution. • Analysis of mode selection. • Analysis of travel loading. • Simulation of traffic performance on the traffic impact analysis document. • Recommendations and impact management implementation plans include recommendations for improvement of segment and stack performance. 3. An overview of the location to be built/developed. 4. Technical drawings of traffic impact handling. D. Consultant Team Qualification (Describes the experts needs) E. Output and Reporting The expected output on this assignment is as follows, but not limited to: No. Output 1. Preliminary Report 2. Survey Report and Final Draft 3. Andalalin Final Report, consisting of • Andalalin Documents • Drawing of Traffic Engineering Management 151 ANNEX 11: Review Procedure of Feasibility Study Documents In the review of document, the following are the minimum contains that should be presented in the feasibility study document: a. Technical Aspects Assessment of the feasibility of technical aspects obtained from the selection of alternatives presented by the technical team and selected based on the best alternative criteria. Selected alternatives are the best alternatives reviewed from several aspects that influenced the location of the planning area, including: • Potentials Supplies and Demands; • Demographics; • Operations and services. • Concept of system design; • Systems and other needs. Those aspects can be adjusted based on the nature and scale of subprojects b. Environmental Aspects Environmental feasibility assessment conducted by considers the community activities and the whole local conditions to determine the feasibility of environmental factors in the implementation of subprojects. Feasibility assessment of environmental aspects is carried out through the preparation of AMDAL (ESIA) documents/UKL-UPL/SPPL, and environmental permits in accordance with applicable laws and regulations. c. Social, Cultural, and Economic Aspects Assessment of social, cultural, and economic aspects includes, the availability of general facilities, an overview of the social, economic, and cultural levels of regions and communities, as well as an overview of the role of society. Legal and Institutional Aspects Assessment of institutional aspects is carried out on legislation, the concept of cooperation agreements, Human Resources, Education Level, and Quality. Organizational structure and 152 work placement according to their educational background refers to the prevailing laws and regulations. d. Risk and Mitigation Aspects Assessment of aspects of risk allocation and mitigation includes performance, and political, and financial risks. Risk is managed based on the principle of adequate risk allocation by allocating risk to the party most capable of controlling risk in order to ensure efficiency and effectiveness in the provision of infrastructure. Risk management is determined in accordance with applicable regulations. 153 ANNEX 12: Complaint Procedure through LAPOR 1. Click: LAPOR! - Layanan Aspirasi dan Pengaduan Online Rakyat (https://www.lapor.go.id) 2. Register 3. Fill up the form as below 4. Send. 154 ANNEX 13: Indigenous Peoples Planning Framework (IPPF) Objective The presence of Indigenous Peoples as per ESS 7 be assessed once specific locations for Components 1 and 2 have been confirmed. The project is not expected to create adverse impacts on Indigenous Peoples. Circumstances whereby FPIC is required are not envisaged under SCIP. The project will treat communities possessing characteristics as per ESS 7 as Indigenous Peoples regardless of their legal recognition. Identification of these groups based on the identification criteria under ESS 7 will continue as part of the screening and assessment processes during the project implementation i.e during preparation the SESA and ESA. ESS 7 is being applied also to ensure that the development process planning (through SESA and ESA) fosters full respect for the human rights, dignity, aspirations, identity, culture, and natural resource-based livelihoods of Indigenous Peoples. The project is required to avoid adverse impacts of projects on Indigenous Peoples or when avoidance is not possible, to minimize, mitigate and/or compensate for such impacts. ESS 7 also promotes sustainable development benefits and opportunities for Indigenous Peoples in a manner that is accessible, culturally appropriate and inclusive. This IPPF is prepared by the project to guide the subproject implementer in managing IP issues in the future downstream investment. Legal Framework and Gap Analysis In the context of Indonesia, Indigenous Peoples are known as Masyarakat Adat. In Indonesia legal context, Indigenous Peoples area referred as Masyarakat Hukum Adat (MHA) and governed by various laws. The latter term, emphasizing the distinct customary laws of such communities, is mostly used in laws and government regulations, including the Indonesian Constitution. Indonesian law defines MHA as these groups as having a collective attachment to a territory due to the ties to the origin of ancestors, strong relationships with the environment, and the existence of a customary normative system that regulates economic, political, social and legal institutions. The existence of MHA is generally recognized by other groups through the acceptance and respect for the existence, and all the rights and identities attached to them. However, formal recognition by the state as MHA is required before their tenure and other 155 associated rights are recognized. Law No. 41/1999 on Forestry recognizes the existence of customary forests and identifies indigenous peoples as the collective owners of such forests. The law states that the state recognizes the existence of Indigenous Peoples as long as they still exist. customary forests shall be released from the state forest when their collective owners still exist and are legally recognized by their local government. Law No. 32/2009 on Environmental Protection and Management defines Masyarakat Adat as community groups that have traditionally settled in certain geographical areas due to ties to ancestral origins, strong relationships with the environment, and the existence of a value system that determines economic, political, social, and legal institutions. This law also stipulates a procedure for the determination of a Masyarakat Adat. Law No. 6/2014 on Village Government stated that establishment of village government should consider local adat systems and provide the possibilities for villages to register as Adat village. The establishment of a village government must respect the socio-cultural values and customs and maintain and preserve traditional values. Law No. 23/2014 on Local Government defined Masyarakat Adat as a group of people who have long settled in certain geographical areas of Indonesia and have collective ties to ancestral origins, strong relationships with land, territory, natural resources, customary government institutions, and customary law in its customary territory in accordance with the provisions of the legislation. The government through the City Regulations (Perda) may provide legal recognition to Indigenous Peoples as MHA provided that these communities meet the government criteria as above. The process to obtain legal recognition requires identification, verification, validation, and defining of a specific community. The consequences of this legal recognition include recognition of customary rights; including land rights, economic and social rights. Scope of Application The IPPF covers all Indigenous Peoples and vulnerable communities as characterized by the ESS 7, irrespective of formal recognition by the GoI. The scope of the measures required under the IPPF is defined based on the nature of risks and impacts and specific provisions may be required depending on the nature of the anticipated impacts. These 156 are described in the following sections: Identification Criteria In the context of Indonesia, Indigenous Peoples are often referred to as Masyarakat Adat (Customary Communities) and MHA (Customary Law Communities) for those who have obtained legal recognition. The application of the ESS 7 will equally apply to other vulnerable groups who may not necessarily identify themselves and/or meet the requirements of Masyarakat Adat under the GoI’s framework but qualify for policy coverage under ESS 7. Such a rationale was adopted to recognize the diversity and complexity of socio, cultural, and traditional characteristics, vulnerability, and relationships with land and resources amongst communities in local areas, where Components 1 and 2 will be undertaken. Under ESS 7, the term “Indigenous Peoples” is used in a generic sense to refer exclusively to a distinct social and cultural group possessing the following characteristics in varying degrees: ● Self-identification as members of a distinct indigenous social and cultural group and recognition of this identity by others; ● Collective attachment to geographically distinct habitats, ancestral territories, or areas of seasonal use or occupation, as well as to the natural resources in these areas; ● Customary cultural, economic, social, or political institutions that are distinct or separate from those of the mainstream society or culture; and ● A distinct language or dialect, often different from the official language or languages of the country or region in which they reside. The IPPF also applies to communities or groups of Indigenous Peoples who, during the lifetime of members of the community or group, have lost collective attachment to distinct habitats or ancestral territories in the project area, because of forced severance, conflict, government resettlement programs, dispossession of their land, natural disasters, or incorporation of such territories into an urban area. This IPPF also applies to forest dwellers, hunter-gatherers, pastoralists or other nomadic groups, subject to satisfaction of the criteria established in this framework. 157 Site Screening Site screening will commence in consultations with community representatives, local organizations, including Adat organizations or other community organizations, relevant government agencies, academics, etc. of affected Indigenous Peoples and Masyarakat Adat, their leaders and recognized institutions. Site screening will refer to the identification criteria and be led by relevant social specialists in the CPMU, assisted by facilitators and other expert consultants. This screening will inform further engagement processes, including consultation approaches which seek to promote participation of women, youth and other vulnerable members of the affected communities. Consultations and Engagement On the basis of screening, project implementers with assistance from the CPMUs and/or expert consultants will engage in a process of meaningful consultations with affected Indigenous Peoples /Masyarakat Adat. Such engagement is expected to be an iterative process until common-understanding has been reached, including involvement of Indigenous people’s knowledge in disaster mitigation and emergency response, and participation and consultation if shelter built on and nearby Indigenous land. The extent, frequency and degree of engagement required by the consultation process should be commensurate with the identified potential risks and concerns raised by respective Indigenous Peoples/Masyarakat Adat. Meaningful consultations are built on mutually accepted processes by community representatives and their legitimate leaders. These consultations serve at least two purposes: ▪ Provide a platform to enable community participation to express their concerns, views on the project’s benefits, risks, impacts, and mitigation measures and explore ways to ensure project implementation is culturally and socially acceptable; and ▪ Enable decision making processes based on local/customary mechanisms. Community involve needs to be based on gender-sensitive and inter-generationally inclusive approaches. Effective consultations are built upon a two-way process that should: ▪ Involve members of affected communities and their recognized representative bodies and organizations in good faith; 158 ▪ Capture the views and concerns of men, women and vulnerable community segments including the elderly, youth, displaced persons, children, people with special needs, etc., about impacts, mitigation mechanisms, and benefits where appropriate. If necessary, separate forums or engagements need to be conducted based on their preferences; ▪ Begin early in the process of identification of E&S risks and impacts and continue on an ongoing basis as risks and impacts arise; ▪ Be based upon the prior disclosure and dissemination/socialization of relevant, transparent, objective, meaningful, and easily accessible information that is in a culturally appropriate language(s) and format and is understandable for affected communities. In designing consultation methods and use of media, special attention needs to be paid to include the concerns of Indigenous women, youth, and children and their access to development opportunities and benefits; ▪ Place greater emphasis on inclusive engagement for people directly affected by the project, rather than people affected indirectly; ▪ Ensure that the consultation processes are free of external manipulation, interference, coercion and/or intimidation. The consultations’ design should create enabling environments for \meaningful participation, where applicable. In addition to the language(s) and media used, the timing, venues, participation composition need to be carefully thought through to ensure everyone could express their views without repercussions; and ▪ Be documented. Social Assessment Commensurate with the potential risks and impacts, social assessments will be required as part of the environmental instrument process to identify the presence and understand the nature of project’s impacts on Indigenous Peoples/Masyarakat Adat. A standalone assessment may not be required, unless there is a further notice regarding the locations of the shelter development on or nearby Indigenous land, which will restrict Indigenous people access to land or water. The assessment is expected to provide a more informed understanding and analysis of risks as well as opportunities through which mitigation measures can be tailored to 159 specific contexts and needs. In this circumstance, both qualitative and quantitative data will inform the assessment, including baseline information on the demographic, social, cultural, and political characteristics of the affected Indigenous Peoples/Masyarakat Adat, the land and territories that they have traditionally owned or customarily used or occupied, and the natural resources on which they depend. Main areas to be covered include: ● Nature of vulnerability and attachments to land and natural resources; ● Specific risks and potential adverse impacts as a result of project and/or sub-project implementation; ● Level of community acceptance to the activities and/or initiatives supported by the project and/or sub-project activities; ● Analysis of relevant stakeholders, either who will be impacted or who have interest to the activities in question and the elaboration of a culturally appropriate process for consulting with the Indigenous Peoples/Masyarakat Adat at each stage of activity preparation and implementation; ● Opportunities to enhance participation of the communities concerned as well as benefit sharing arrangements; and ● Approach to participation, including specific measures to promote participation and inclusion of vulnerable groups in risk management and overall project implementation. Indigenous Peoples Plan (IPP) In case that IPs communities are present in the future subproject downstream investments, an Indigenous Peoples Plan (IPP) will be developed to mitigate the potential risks and impacts of the subproject to IPs communities and to enhance benefits and opportunities for Indigenous Peoples in a manner that is accessible, culturally appropriate and inclusive. Outline of an Indigenous Peoples Plan In circumstances where Indigenous Peoples/Masyarakat Adat benefit from project and/subproject activities and/or minor impacts are envisaged, elements of an IPP can be integrated in other instruments such as Land Acquisition and Relocation Plans or Environmental and Social Management Plans (ESMPs). These elements include: 160 a. IPP Executive Summary will concisely describes the critical facts, significant findings, and recommended actions; b. Assessments of project and/or sub-project activities with impacts on Indigenous Peoples /Masyarakat Adat. This section provides analysis of the nature and scale of such impacts e.g: i. Review the legal and institutional framework applicable to Indigenous Peoples /Masyarakat Adat in the project context. ii. Provide baseline information on the demographic, social, cultural, and political characteristics of the affected communities; the land and territories that they have traditionally owned or customarily used or occupied; and the resources on which they depend. iii. Identify key project stakeholders and elaborate a culturally appropriate and gender-sensitive process for meaningful consultation with Indigenous Peoples / Masyarakat Adat at each stage of project preparation and implementation, taking the review and baseline information into account. iv. Assess, based on meaningful consultation with the affected communities, the potential adverse and positive effects of the project and sub-project activities. Critical to the determination of potential adverse impacts is a gender-sensitive analysis of the relative vulnerability of, and risks to, the affected Indigenous Peoples / Masyarakat Adat, given their circumstances and close ties to land and natural resources, as well as their lack of access to opportunities relative to those available to other social groups in the communities, regions, or national societies in which they live. v. Include a gender-sensitive assessment of the affected Indigenous Peoples/ Masyarakat Adat’s perceptions about the project and its impact on their social, economic, and cultural status. vi. Identify and recommend, based on meaningful consultation with the affected communities, the measures necessary to avoid adverse effects or, if such measures are not possible, identify measures to minimize, mitigate, and/or compensate for such effects and to ensure that Indigenous Peoples/ Masyarakat Adat receive culturally appropriate benefits under the project. c. Assessments of circumstances requiring FPIC and alternative project design/siting to avoid adverse impacts (refer to the Section on Free, Prior and Informed Consent). 161 d. Information disclosure, consultation, and participation. This section will contents: i. Describes the information disclosure, consultation and participation process with the affected communities that can be carried out during project preparation; ii. Summarize their comments on the results of the social impact assessment and identify concerns raised during consultation and how these have been addressed in project design; iii. In the case of project activities requiring FPIC, document the process and outcome of consultations with affected communities and any agreement resulting from such consultations for the project activities and risk management measures addressing the impacts of such activities; iv. Describe consultation and participation mechanisms to be used during implementation to ensure Indigenous Peoples/Masyarakat Adat participation during implementation; and v. Confirm disclosure of the draft and final documents to the affected Indigenous Peoples/Masyarakat Adat; e. Benefit sharing arrangements. This section specifies the measures to ensure that the affected communities receive social and economic benefits that are culturally appropriate, and gender responsive. f. Mitigation measures. This section specifies the measures to avoid adverse impacts on Indigenous Peoples /Masyarakat Adat; and where the avoidance is impossible, specifies the measures to minimize, mitigate and compensate for identified unavoidable adverse impacts for each affected community. g. Capacity building. this section contents measures to strengthen the social, legal, and technical capabilities of (a) government institutions to address Indigenous Peoples/Masyarakat Adat’s issues in the project area; and (b) affected communities’ organizations in the project area to enable them to represent their communities more effectively and participate in the management of risks and impacts. h. Grievance Redress Mechanism. This section describes the procedures to redress grievances by affected Indigenous Peoples / Masyarakat Adat communities. It also explains how the procedures are accessible to Indigenous Peoples and/or Masyarakat Adat’ and culturally appropriate and gender sensitive. i. Monitoring, reporting and evaluation. This section describes the mechanisms and benchmarks appropriate to the project for monitoring and evaluating the 162 implementation of the IPP. It also specifies arrangements for participation of affected Indigenous Peoples/Masyarakat Adat in the preparation and validation of monitoring, and evaluation reports. j. Institutional arrangements. This section describes institutional arrangement responsibilities and mechanisms for carrying out the various mitigation measures in the IPP. It also describes the process of including relevant local organizations and/or NGOs in carrying out the measures of the IPP. k. Budget and financing. This section provides an itemized budget for all activities described in the IPP. 163 ANNEX 14: Land Acquisition and Resettlement Planning Framework (LARPF) Land acquisition is not anticipated under SCIP. However, downstream investment may require significant amount of land for construction. The LARPF is prepared to guide the future subproject implementers in conducting land acquisition and resettlement. The World Bank ESS 5 as requirements and standards for land acquisition will also cover management of risks related to restrictions on land use and involuntary resettlement. The physical displacement and livelihood displacement e.g.: relocation, loss of houses/structures land, or loss of shelter, loss of land, assets or access to assets leading to loss of income sources. The term “involuntary resettlement” refers to these impacts. Under ESS 5, resettlement is considered involuntary when project affected persons/ communities do not have the right to refuse land acquisition or restrictions on land use that result in displacement. Physical displacement constitutes loss of shelter and residential land and subsequent physical relocation and loss of livelihoods as a result of land acquisition. Prior land due diligence for existing government land will confirm the likelihood of potential physical displacement risks, and on the basis of such due diligence, potential sites where such risks are anticipated will not be further processed. The Land Acquisition and Resettlement Planning Framework (LARPF) will be prepared to guide project implementation requiring land for project activities. The Resettlement Planning Framework aspects under LARPF will guide the management of risks and impacts related to informal land users/occupants of the land or parts of the land being proposed for construction, particularly those being provided by local governments. The LARPF also establishes a mechanism to undertake monitoring and evaluation as well as reporting of land acquisition internally within the implementing agencies. A GRM process that is accessible to landowners, land users and potentially affected persons/communities will be provided. Land Acquisition Principles Any land acquisition will be conducted in a manner consistent with relevant national laws and provisions of ESS5 and in compliance with basic principles of due process (including the provision of adequate advance notice, meaningful opportunities to lodge grievances and appeals, and avoidance of the use of unnecessary, disproportionate, or excessive force). Land acquisition under the project is acceptable when: a. Efforts have been made to avoid involuntary resettlement risks, including forced eviction. Even though the additional land requirements are expected to be small, less than five Ha, negotiated settlement or willing-buyer-willing-seller approaches will be preferred wherever appropriate with the PAPs to avoid administrative or consignment or judicial delays for acquisition using eminent domain, and to the extent possible to reduce the impact on the PAPs.; b. Project Affected People (PAP) are well-informed on their entitlements, including fair prices (nilai penggantian wajar) based on the assessment of an independent/ licensed appraiser; c. In the event of economic displacement, affected households will be assisted in their efforts during the transition, including in their efforts to improve their livelihoods and standards of living where necessary; d. PAPs receive timely compensation for loss of assets at replacement costs and are assisted to improve/restore their livelihood where necessary; e. Selection of location of the land required will carefully consider accessibility, public safety, environmental impacts, and environmental sustainability considerations, socio economic impacts of the people. f. Potentially affected individuals, groups, or communities are meaningfully consulted, informed of their rights, and provided reliable information concerning the consequence of their decisions; g. PAPs are enabled to negotiate the options of compensation; h. Grievance redress mechanisms are put in place; and i. Terms and conditions of the transfer are transparent, and mechanisms are put in place for monitoring compliance with agreed terms and conditions. Scope of Application The subproject will to the extent possible utilize the existing government land through usufruct permits (pinjam pakai) or grant scheme (hibah) from the Local Governments (Pemerintah Daerah). If new footprints will be acquired, three primary schemes for land acquisition include: a. Direct purchase from landowners through voluntary transactions (willing-buyer and willing seller) b. Voluntary land donation 165 c. Under more limited circumstances, negotiated settlements may be pursued in the event that the above options cannot be exercised and/or there are no feasible alternatives for siting for specific investments (i.e. installation of instrumentation for disaster prevention) ESS 5 does not apply to voluntary market transactions where landowners have the options or are able to refuse to sell, without the threat or coercion to sell (point a). Under point b., in some circumstances, it may be proposed that part or all of the land to be used by the project is donated on a voluntary basis without payment of full compensation. Subject to prior Bank approval, this may be acceptable providing the PIUs demonstrates that: a) the land donator has been appropriately informed and consulted about the project and the choices available to them; b) land donator is aware that refusal is an option, and have confirmed in writing their willingness to proceed with the donation; c) the size of land being donated is minor and will not reduce the donor’s remaining land area below that required to maintain the donor’s livelihood at current levels; d) no household relocation; e) the donator is expected to benefit directly from the project; and f) for community or collective land, donation can only occur with the consent of individuals using or occupying the land. The PIUs will maintain a transparent record of all consultations and agreements reached. In limited circumstances where the subproject requires specific locations for establishment of facilities or installation of instrumentation due to locational advantage (i.e., PIUs and/or sub- national governments requiring land may opt for negotiated settlements (point c). This refers to situations where PIUs and/or sub-national governments need to acquire specific land or restrict its use for project purposes, but rather than doing so through an expropriation proceeding, PIUs and/or sub-national governments try to arrive at a mutually agreeable negotiated settlement with the landowner and/or user with the full judicial or administrative process of expropriation or compulsory acquisition as governed under Law No. 2/2012 on Land Acquisition for Public Interest. However, such likelihood is low in the case of SCIP due to the nature and small-scale construction being funded by the project, hence the framework for negotiated settlements under the LARPF serves as a precautionary measure. 166 Since the potential sites for construction are yet to be assessed and confirmed, a framework- level approach has been adopted. Sub-project land acquisition plans will be developed once potential sites have been identified and a land acquisition scheme has been determined for the land in question. The land acquisition schemes will be subject to prior land due diligence to demonstrate the clean and clear status of the proposed land. If negotiated settlements are selected as an approach for land acquisition, Implementing Agencies and/or sub-project proponents shall prepare a Land Acquisition and Resettlement Action Plan (LARAP). The detail of which, including the scope of assessments will be proportionate to the scale and level of risks. The LARPF provides a guideline on the content of LARAP. Any adverse impacts on informal land users will be mitigated on the basis of the entitlement matrix as established under this LARPF. The LARPF also applies to associated facilities, which by definition fall under the following criteria: a. Directly and significantly related to the SCIP sub project; b. Necessary to achieve the objectives of the subproject; and c. Carried out, or planned to be carried out contemporaneously with the subproject As outlined in the negative list, the project does not finance any land acquisition resulting in forced eviction. In line with the ESS 5, “Forced eviction” is defined as the permanent or temporary removal against the will of individuals, families, and/or communities from the homes and/or land which they occupy without the provision of, and access to, appropriate forms of legal and other protection, including all applicable procedures and principles in ESS 5. National Legislation and Policies The Indonesian Agrarian Law No. 5/1960 and prevailing regulations in Indonesia stipulate several types of land titles applicable in Indonesia. As the basic principles of Agrarian affairs, soil, water and resources contained therein within the territory of the Republic of Indonesia are owned by the Indonesian Nation and shall be for the interest and welfare of the nation and people of Indonesia. Land sale and transfer in the context of voluntary land transactions is regulated under Government Regulation No. 24/1997 (Article 37). Such voluntary land transactions can only be undertaken and registered by land certificate issuing authority/notaries (PPAT), who provides legitimacy and due-diligence of legal and administration aspects of land 167 transactions. However, ground-truthing of actual land uses and actual land claims may not be required as part of the land transfer and registration processes. While the procedure of voluntary land donation is not specifically regulated under this regulation, requirements for land registration apply, similar to land transactions. Since the regulation does not require formal ground truthing, land due diligence will be required as part of the LARPF to address the gaps and remedial measures will be required in line with the ESS 5. Negotiated settlements will be governed under Law No. 2/2012 on Land Acquisition for the Development for Public Interests. The Law confers the state (the government) the right to exercise eminent domain for land acquisition for national strategic projects considered to serve the public interests. The objective of this Law is to accelerate land acquisition process for the infrastructure development for the public interests. The law specifies types of public purpose development, implementation stages and arrangements for land acquisition, requirements, process and institutional arrangements during the planning, preparation, implementation and handover of the results of land acquisition with focus on reducing the time for completion of each stage of activities as well as for processing appeals from landowners. The law also provides clarity on eligible affected persons, affected assets, land/asset valuation procedures, compensation options, consultation, complaints, financing, and release of the compensated land/assets. The Law mandates the use of independent appraisers for the purpose of land and asset valuation, which is further governed under the Assessment Standard 306 (hereafter SPI 306). Relevant valuation variables include both physical and non-physical losses. The former covers land, structures, crops and plants, objects attached to the land, and other calculable losses. Non-physical losses cover job or livelihood losses, emotional attachment, transactional costs, transitional costs, other damages, including compensation to remaining land that is no longer viable for use. The basis of valuation is replacement costs based on the prevailing market prices and/or productivity. These variables have been assessed to address ESS 5 requirements on replacement costs39. 39 Replacement cost” is defined as a method of valuation yielding compensation sufficient to replace assets, plus necessary transaction costs associated with asset replacement. Where functioning markets exist, replacement cost is the market value as established through independent and competent real estate valuation, plus transaction costs. Where functioning markets do not exist, replacement cost may be determined through alternative means, such as calculation of output value for land or productive assets, or the undepreciated value of replacement material and labour for construction of structures or other fixed assets, plus transaction costs. In all instances where physical displacement results in loss of shelter, replacement cost must at least be sufficient to enable purchase or construction of housing that meets acceptable minimum community standards of quality and safety. The valuation method for determining replacement cost should be documented and included in relevant resettlement planning documents. Transaction costs include administrative charges, registration or title fees, reasonable moving expenses, and any similar costs imposed on affected persons. To ensure compensation at replacement cost, planned compensation rates may require updating in project areas where inflation is high or the period of time between calculation of compensation rates and delivery of compensation is extensive. 168 Livelihood restoration is not specifically regulated under the Law. However, Article 11 of the International Covenant on Economic, Social and Cultural Rights—which has been ratified by Indonesia in Law 11 of 2005—stipulates that the government must provide adequate livelihood to its citizens in order to comply with the Covenant. In addition, there is no regulatory framework addressing restrictions to land use and hence, the relevant provisions in the Process Framework will prevail in the event of such risks being anticipated. Presidential Regulation No. 62/2018 on the management of social impacts in the context of land acquisition provides further provisions concerning land and asset compensation for unrecognized land owners/users and squatters, who meet the following requirements: a) possessing valid IDs or civil documentation, b) having occupied the land in question over ten years consecutively, c) being sanctioned/recognized by heads of villages/wards and land owners. However, the regulation is silent in terms of replacement costs for these groups. In addition, timeframe requirements of at least ten years may limit eligibility of some groups. Under LARPF, all parties will be eligible for compensation entitlements provided that their claims can be validated prior to cut-off dates. Law 2/2012, Implementation Regulations (Perpres 71/2012), and the technical guideline (ATR/BPN Ministerial Regulation No. 6/2015) stipulates that land acquisition planning will be the responsibility of project proponents. For land acquisition below five hectares, project proponents may execute land acquisition themselves following location determination by the Governor as governed by Presidential Regulation No. 40/2014. For land acquisition above five hectares, the Land Agency (ATR/BPN) is mandated to execute land acquisition and procure an independent appraiser provide for resettlement support which is limited to support for housing and settlement area development and moving cost, but does not include transitional support and development assistance, such as land development, credit facilities, training, or employment opportunities. Gap Analysis The article 121 of Job Creation Law no 11/2020 is not changed the meant of Law No 2/2012 on Land Acquisition for Developing Infrastructure for Public Interest. The Table below provides the identification of gaps between the GoI Policies related to land acquisition and resettlement and the World Bank ESS5. 169 Table A14.1 Gap Analysis GoI Policies and the World Bank ESS5 ESS 5. Applicable laws and regulations in Indonesia have covered main topics of the ESS5 however, some gaps are identified in terms of detail explanations and arrangements of the issues. Theme Assessments Proposed Gap-filling Measures Sustainable Different modes of compensation Details on entitlements and development other than cash, particularly compensation options at replacement program relocation and land-for-land and costs consistent with ESS 5. livelihood restoration, are not sufficiently elaborated Direct and Adverse social and economic Provisions of addressing impacts due indirect impacts due to restrictions of to restrictions on land use and access impacts access and land use are not to natural resources. explicitly covered under the Law Indirect impacts due to land 2/2012 acquisition will be covered by the Environment and Social Management Plan (in this case ANDAL/UKL-UPL) for the project. Associated Not covered Legacy issues and Due Diligence on facilities and the process of land acquisition of legacy issues associated facilities need to be carried out in accordance with the applicability and procedures in line with ESS5. Replacement No gaps. Independent appraisal LARPF provides an entitlement costs team determines compensation matrix for the PAPs in the case land for loss of physical and non- is acquired through negotiated physical assets and settlements. Compensation will be premium/solatium (for emotional provided at replacement costs based attachment) at replacement costs. on independent appraiser valuation, using prevailing market prices and/or land productivity (in the case of agricultural land) and without depreciation. Livelihoods The Law 2/2012 and Minister Project authorities will be required to Restoration Spatial Planning and Land. Its provide sufficient resources for implementing regulations do not planning and implementation of elaborate the option and livelihood restoration measures such implementation of assistance and as: skill training, credit or micro- livelihood restoration; finance facilities for small businesses, short-term project generated employment, etc. to ensure that affected people are able to improve, or at least restore, their livelihoods and levels of income. Assistance to Assistance to displaced LARPF includes details on the type Physically households due to land of resettlement assistance to Displaced acquisition are not covered by displaced households. 170 ESS 5. Applicable laws and regulations in Indonesia have covered main topics of the ESS5 however, some gaps are identified in terms of detail explanations and arrangements of the issues. Theme Assessments Proposed Gap-filling Measures Law 2/2012 and its implementation regulations (Perpres 71/2012) Compensation Legal provisions are deficient to LARPF provides entitlements for for loss of recognize entitlements for loss of compensation for temporary income incomes and means of livelihood livelihood losses. sources or due to land acquisition. means of livelihood Support for Perpres 62/2018 does require to LARPF specifies eligibility criteria affected provide compensation and and entitlement for each category of persons who assistance for those who do not PAPs, including the informal have no own the land but have occupied occupiers in conjunction with ESS 5. recognizable or utilized the land with a set of legal right or criteria claim to the land they are occupying Land for land Law 2/2012 and Implementation LARPF elaborates requirements for Regulations (Perpres 71/2012) do resettlement /land-for-land option not provide details on the including the completion of procedures for replacement land. relocation arrangements prior to Further, the provisions in Para 5, PAPs displacement. Article 77 and Para 4 of Article 78 (Perpres 71/2012) are in contradiction of Bank’s Policy 4.12 that requires completion of relocation arrangements before affected households are displaced. Compensation Provision of replacement land is Provisions in the LARPF provide options not sufficiently elaborated. requirements of compensation options, eligibility criteria, and entitlements for different PAP categories. Eligibility for Law 2/2012 does not specify any The LARAP document should Indigenous groups including IPs. The include provisions on eligibility for Peoples Implementation Regulations Indigenous Peoples with reference to (Perpres 71/2012) do not specify ESS 5 and ESS7 of the WB ESF. any requirement of conducting social assessment and consultation with IP communities and FPIC. Forced Not explicitly covered. The LARAP document should eviction include provisions on avoidance of 171 ESS 5. Applicable laws and regulations in Indonesia have covered main topics of the ESS5 however, some gaps are identified in terms of detail explanations and arrangements of the issues. Theme Assessments Proposed Gap-filling Measures Ownership rights to land and its forced eviction in accordance with associated properties will be the ESS 5. relinquished upon compensation payments or court decisions. Host Host communities are not The LARAP document should community explicitly covered in the Law include provisions on management 2/2012 and its Implementation impacts to hist communities in Regulations (Perpres 71/2012). accordance with the ESS 5. Resettlement The scope of the Land The format and contents of the Land Planning Acquisition Plan does not clearly Acquisition Plan consistent with ESS Instruments include the need for social- 5 has been provided as a sub-annex economic survey, identification to the LARPF. of vulnerable groups, public consultation and participation, and monitoring and evaluation requirements. Further, the Plan does not include relocation assistance and livelihood restoration, where necessary. The Land Acquisition Plan does not fully cover elements and details of those in the LARAP. Timing of the preparation of the Land Acquisition Plan with results of inventory of affected land plots should be advanced to the planning stage. Costing Local laws do not specify Overall land acquisition costs, resettlement costs to be part of including livelihoods assistance will the total project cost. be established as part of land acquisition planning as guided by the LARPF. Disclosure and There is Public Information All documents will need to be engagement Disclosure Law (UU KIP) yet disclosed and consulted to the public there is no clarity on the how-to, in suitable form. Community especially when dealing with engagement will form part of project ‘ghost NGOs’ or ‘ghost media’ implementation. Grievance Provisions of the Law No. Ensuring that GRM is in place and Mechanism 2/2012 and implementation accessible to the relevant regulations (Perpres 71/2012) stakeholders. The GRM should be have elaborated and time-bound presented in the LARAP document. procedures for filing complaints by affected households and processes to address complaints and grievances. It is, however, 172 ESS 5. Applicable laws and regulations in Indonesia have covered main topics of the ESS5 however, some gaps are identified in terms of detail explanations and arrangements of the issues. Theme Assessments Proposed Gap-filling Measures not clear whether documentation of grievances is provided for. Monitoring The Law 2/2012 does not The LARAP document will include and Evaluation provide for external monitoring specific requirements of monitoring of resettlement implementation of the implementation of land and post-implementation acquisition and land due diligence evaluation to assess whether the activities, preparation and objectives of the resettlement submission of periodic monitoring plan have been achieved. Further reports and post-implementation it is deficient in providing details evaluation. on objectives of evaluation. Eligibility The provisions in the LARPF apply to people and communities affected by land acquisition (hereafter referred to as Project Affected Persons/PAPs). Identification of the PAPs will be undertaken during the preparation of LARAP through the census survey. This framework anticipates that there would be three general categories of PAPs: a. Persons affected by the acquisition of privately-owned land. They have formal legal rights to land or assets are those who have formal documentation under national law to prove their rights or are specifically recognized in national law as not requiring documentation. In the simplest case, an area is registered in the name of individuals or communities. In other cases, persons may have a lease on the land and therefore have legal rights. b. Persons affected who have lived on the government’s (state or local government) land but do not own the occupied land. This consists of six types of PAPs: (1) persons who own and occupy dwellings and other structures built on state or government land without any recognizable legal right or claim to the land they occupy; (2) sharecroppers; (3) squatters; (4) renters of dwellings and other structures built on state or government land without any recognizable legal right or claim to the land they occupy; (5) encroachers, i.e., persons who extend their personal holdings by encroaching adjacent state or government land; (6) squatter landlords, i.e. persons who derive illegal rents from structures built on state or government land, but do not occupy such structures. c. Persons who occupy private lands, such as renters or informal land users, who, due to land acquisition, will need to relocate their livelihoods or dwelling. 173 PAPs eligible for compensation for the affected assets will be identified when the subproject location has been formally determined. Land Acquisition Plans covers land acquisition planning, depending on land acquisition schemes being adopted. Such plans will also cover land due diligence if land has already been acquired for the proposed activities. Where it has been identified that the subproject may cause some degree of physical or economic displacement, or loss of assets or access to assets for instance, in the case of pre-existing illegal occupation in government land, this guideline will guide the preparation and implementation of a Land Acquisition and Relocation Plan (LARAP). Physical displacement of land owners/users will be avoided. Land Due Diligence Form (refer Section C below) will be used to document the legal transfer of land for subproject activities (and associated facilities if necessary40) as well as “ground-truthing” to identify actual land uses and any claims. Cut-Off Date Cut-off date is the date when such location determination has been formally communicated to land owners and users at the time of the census and/or identification/inventory of affected people and assets. Land users include informal land users, who by the cut-off date, are able to provide evidence of their land claims and/or use in the selected site. Further details on entitlement packages for the above categories of PAPs are presented in the entitlement matrix. Land Due Diligence In case sub-national governments has acquired land or decided to use existing government land for construction, the project implementer will be required to carry out a due diligence process to ensure that the proposed land is safe and technically feasible for settlement areas and public facilities (refer Sub-Annex14.1), legal transfer processes are complete, potential risks related to informal land use and occupation are identified and mitigated to ensure compliance of the relevant provisions in the LARPF, as per the national legislation and ESS 5. This assessment focuses on both the legal and actual “ground-truthing” of the proposed locations to be financed under the project and will also be applicable to land acquired through voluntary transactions. 40 Associated facilities are facilities or activities that are not funded as part of the project and, in the judgment of the Bank, are: (a) directly and significantly related to the project; (b) carried out, or planned to be carried out, contemporaneously with the project; and (c) necessary for the project to be viable and would not have been constructed or expanded if the project did not exist. 174 Entitlement Matrix Local Government will assess means to provide, or facilitate access to, similar resources elsewhere, taking into account potential impacts and considerations of alternatives. Compensation for lost assets due to land acquisition is calculated at replacement cost based on an independent appraiser’s valuation, which has been assessed to be in line with ESS 5. The process used for determining compensation values should be transparent and easily comprehensible to project-affected persons. With regard to land and assets, the calculation of replacement costs takes into account the following principles in line with the valuation standard SPI 306 to be adopted by independent appraisers as a reference for their valuation process: a. Agricultural (including fallow) land or pastureland: land of equal productive use or potential, located in the vicinity of the affected land or the new housing site, plus the cost of preparation to levels similar to or better than those of the affected land, and transaction costs such as registration and transfer taxes or customary fees. b. Land in urban areas: the market value of land of equivalent area and use, with similar or improved infrastructure and services, preferably located in the vicinity of the affected land, plus transaction costs such as registration and transfer taxes. c. Houses and other structures (including public structures such as schools, clinics, and religious buildings): the cost of purchasing or building a replacement structure, with an area, quality, and location similar to or better than those of the affected structure; or of repairing a partially affected structure, including Labor and contractors’ fees; and transaction costs, such as registration, transfer taxes, and moving costs. d. Loss of access to natural resources: the market value of the natural resources, which may include, among others, wild medicinal plants, firewood, and other non-timber forest products, meat, or fish. However, cash compensation is seldom an effective way of compensating for lost access to natural resources. Compensation and/or mitigation measures as a result of access restrictions to land use will be further guided by the Process Framework in this document. Such compensation and/or mitigation measures will be mutually arrived at and agreed between affected parties and implementing agencies/project proponents through a consultative process and consensus. Compensation entitlements will address relevant provisions along the lines of restoration or improvement of livelihoods. Compensation standards for categories of land and fixed assets will be disclosed and applied consistently. Compensation rates may be subject to upward 175 adjustment where negotiation strategies are employed, on the basis of recommended valuation by independent appraisers. In all cases, a clear basis for calculation of compensation will be documented, and compensation distributed in accordance with transparent procedures. The Entitlements Matrix for Project Affected Persons is shown in Table A14.2 below: Table A14.2. Entitlements for Project Affected Persons Project Affected Persons Entitlements Land/asset owners who lose land Compensation for loss of land and other assets and/or other assets (including attached to the lost land, based on value assessment buildings, structures, utilities, trees, carried out by licensed independent appraisers etc.) and loss of income. consistent with replacement cost principles outlined in SPI 306, which is consistent with ESS 5. Land/asset owners who lose Compensation for the loss of sources of income or temporarily or permanently their livelihoods based on the value assessment for non- sources of income or livelihoods. physical aspects carried out by licensed appraisers and facilitation for livelihood restoration. Persons who own and occupy Compensation for loss of dwellings and other dwellings and other structures built structure, for income sources or livelihoods and on state or government land without resettlement assistance, based on the assessment of any recognizable legal right or claim the licensed appraisers.41 to the land they occupy. Renters of dwellings and other The project provides sufficient time (at least 2 structures built on state or months from the cut-off date/at the time of census government land without any survey) for the renters to find another place or other recognizable legal right or claim to assistance agreed by renters and agency/entity the land they occupy. which may include moving allowance and transition allowance and livelihood assistance. Sharecroppers Assistance to livelihood restoration Encroachers, i.e., persons who Compensation for building and structures. aggrandize or extend their personal Assistance to livelihood restoration and facilitation holdings by encroaching adjacent to access public housing and transition and moving state or government land allowance as well as improvement to site. Squatters Compensation for building and structures. Assistance to livelihood restoration and facilitation to access public housing and transition and moving allowance as well as improvement to site. Encroachers who entered the project Not entitled to any compensation area after the publicly announced cut-off date 41 There was an issuance of Presidential Regulation 56/2017 (May 31, 2017) on “Handling Social Impacts for the Provision of Land for National Strategic Projects”, compensation for those occupying government and state land, recognized having occupied such land for continuously at least ten years, compensation includes cost for dismantling houses, mobilization, house rent and support for income loss, and they are defined based on valuation of an independent party. 176 Forms of compensation. Compensation may take several forms: (a) cash; (b) land replacement/swap; (c) resettlement to other site; (d) shares ownership; or (e) other forms of compensation that are agreed both by land owners/land users and the agency requiring the land. Compensation forms depend on the preference of the land owners/land users and compensation may take combination of these depending on the agreements between the land owners/land users and the agency requiring the land. Methods of valuing the affected assets As required by Law No. 2/2012 and its implementation regulations, values of affected assets will be assessed by licensed appraisers in accordance with national procurement regulations. The values defined by the licensed appraisers will be used as a basis for negotiation with the land owners and land users (refer Table A15.2). Types and compensation levels will be defined based on the negotiation results between the implementing entity proposing the investment (who needs the land for the subproject) and the land/property owners. Value assessments will be carried out on a per affected land plot basis, which includes land, the space above and beneath land, buildings or structures, plants, things that relate to the affected land, and/or other losses that can be valued (e.g. non-physical loss that can be equivalent with monetary value, loss of jobs or income earning sources, cost for moving, cost for change of profession, and value for remaining property). The remaining property that is no longer physically or economically viable/habitable/usable, can be compensated if the owners prefer to do so. Land valuation/appraisal by the licensed appraisers will be carried out based on the MAPPI42 Standards as specified in MAPPI Guidelines, also known as SPI 30643. Compensation is comprised of market price plus transaction costs and other costs plus premium, as detailed below: ● Physical assets: land, buildings, structures, facilities, plants, and other things related to the land acquired to restore to the owner a property of at least the same quality as that owned prior to the land acquisition; 42 Indonesian Society of Appraisers (ISA) 43 Indonesian Valuation Standard (SPI) 306 which also refers to International Standards 177 ● Non-physical assets: loss of jobs, loss of on-going businesses (business interruption), conversion of profession, emotional loss (solatium), transaction costs, moving costs, other losses of special nature, subjective and difficult to calculate aspects. ● Premium/solatium: payment over and above the total. An additional sum in respect of the landowners' physiological attachment or injured feelings due to the unilateral action of the acquiring authority in acquiring or expropriating the land. A premium/solatium is awarded as a percentage of the compensation. In principle, the details of physical and non-physical valuation methods undertaken by the licensed independent appraisers are presented in Table A14.3. below. Table A14.3. Valuation Methods Object Basis for Valuation Land Market price and/or income lost Building The cost of reconstruction with no depreciation Plant Market price based on the prevailing standards, the total input costs and labor for replanting or value of one cycle of harvests whichever is higher Transaction costs Moving costs, taxation, notarial costs, labor Waiting compensation Bank interest Unviable remaining parcels Market price Other damage Recovery costs at replacement value Land Acquisition Schemes The land can be acquired via several schemes including voluntary transaction and land donation. Use of public/government land will adhere to the due diligence process as outlined in sub-annex 15.1. All expenses for land acquisition, including compensation to land-owners and land users shall be financed under the government budget. Voluntary Transaction (Willing-Buyer Willing-Seller) Land requirements are expected to be small (an example: 10 x 10 meters) and the nature of civil works allows considerations of siting alternatives. To the extent possible, the subproject location determination should allow a room for negotiation by landowners, including choice for refusal in the event of no mutually agreed terms. Hence, willing-buyer and seller is appropriate for this purpose and is preferred compared to voluntary land donation to enable a level playing field for negotiation with landowners. Furthermore, the small-scale land 178 requirements do not justify a process of land acquisition for public interest (eminent domain) under Law No. 2/2012. In applying such a scheme, special care must be taken to ensure: (a) that all tenure rights and claims (including those of customary and informal users) affecting the land in question are systematically and impartially identified; (b) that potentially affected individuals, groups or communities are meaningfully consulted, informed of their rights, and provided reliable information concerning environmental, economic, social and food security impacts of the proposed investment; (c) that community stakeholders are enabled to negotiate fair value and appropriate conditions for the transfer; (d) initial price offers will need to reflect the prevailing market prices for similar land plots in the same area. Where functioning markets do not exist, replacement cost may be determined through alternative means, such as calculation of output value for land; (e) that appropriate compensation, benefit sharing and grievance redress mechanisms are put in place; (f) that terms and conditions of the transfer are transparent; and (g) mechanisms are put in place for monitoring compliance with those terms and conditions. All proceedings will be documented, and a final agreement will be signed by the negotiating parties in the presence of a notary. Documents for land transaction and changes of ownership shall be supported by “akta jual beli” (deed of sale and purchase) endorsed by a notary or a “Pejabat Pembuat Akta Tanah” (PPAT). Land legal status will have to be confirmed by certification and the project should facilitate the process. Timing for the payment of the agreed amount should be agreed by the negotiating parties during the negotiation. A sample format for documentation of voluntary transactions is presented in Sub-Annex 15.2. Voluntary Land Donation Voluntary donation of land for a subproject means that there is a transfer of ownership rights from the land donor(s) to subproject proponents (beneficiaries, community group, local government, or others, depending on the agreement between the land donor and the project). Voluntary in this context means the donation or granting of land and other assets with the full knowledge of the purposes for which the asset is being made available and the economic, social and legal consequences that such an act would have on the person providing the asset. Furthermore, the act must be exercised freely and voluntarily, without any type of coercion. Land acquired by voluntary donation should be supported by donation letters (or akta hibah) endorsed by a notary or a PPAT. 179 Voluntary land donation for a subproject will be an acceptable option if: ● Consent from landowners and their spouse and eligible heirs; ● The land donor has been informed clearly of their right to compensation at a public meeting prior to the decision on contributing the land voluntarily, but nevertheless he or she is still willing to donate his/her land without any pressure; ● There is an option to adjust the subproject design or location in the case that the landowners refuse to donate their land; ● The land is identified by beneficiary communities and confirmed by technical staff to be suitable for the subproject and free from any environmental or health risks; ● The impact on the landowners is insignificant and does not result in displacement of households, or cause loss of households’ incomes and livelihoods; ● The donated land is free from any ownership disputes or any other encumbrances; ● Consultations with the land donors or beneficiaries are conducted in a well-informed, free and transparent manner in the presence of community leaders and facilitators, and they are willing to donate the land without pressure; and ● Land donors have the right to refuse to donate their land and therefore there should be alternative sites for subprojects. Procedures and requirements of VLD The process of obtaining land through voluntary land contribution is as follows: ● Sub-project proponents submit a proposal/work plan to the PIUs. One item included in the proposal is the identification of the land needed and how the land will be obtained. In the case that sub-project proponents recommend land through voluntary contribution, the proposal should provide information on potential donors and necessary documentation indicating land donors’ consent. Supplemental documentation will be required following approval of the proposal. Project proponents and sub-national governments perform field verification and ensure that: ● The required criteria for voluntary land documentation have been met, with required documentation and evidence of compliance to the LARPF. ● Land donors have voluntarily agreed to donate his/her/their land for the proposed sub- project. They also need to ensure that land contribution decision was made by both spouses (husband and wife) or heirs and through participatory mechanisms; 180 ● The proposal includes a statement letter signed by the community member(s) who are donating the land (signed by both spouses or heirs as relevant) and witnessed by the chairperson of the community (“kepala dusun/RT/RW”) or head of wards/village and signed by heirs and other witnesses. The letter contains, among others, name and address of land contributor(s); current use, location and size of the donated land; the purpose of land donation; map of the location of the land; specification whether part of the land rights are donated or permit for use or permit for passage. Once a subproject proposal is approved by the facilitator, the land owner who contributes the land identifies on the ground the donated land and site where shelter for geophysics devices would be built. ● There is clear information on to whom the land is donated, and the project should follow- up on the legal process of the status of the donated land as necessary. If part of the land rights are donated to the village or government, the project should facilitate the follow-up on the legal processing of the status of the donated land. If the land is donated to the community, the facilitator should consult with the village administration on how to record this to ensure that the donated land has legal status. ● Processes and results of consultation meetings, grievances and actions taken to address such grievances should be properly documented. ● Donated land should be well recorded and documented in the project document (in the subproject proposal and/or in the site development plan). ● The originals of the donation letter should be kept both by the project (in the sub-project proposal and/or in the site development plan) and by the land donor. Key information that should be included in the donation letter is presented in Sub-Annex 6.2 Example of format for documentation for Land Donation Negotiated Settlements The amendment of Presidential Regulation No. 71/2012 on Land Acquisition (Presidential Regulation No. 40/2014) permits land acquisition for an area less than 5 Ha to be carried out directly by the agency requiring the land based on negotiated settlement principles agreed by both parties (buyers and sellers). In this case, the required land should be located in areas/zones that have been declared as safe for development and can be obtained in one fiscal year. The entity requiring the land has to use licensed, independent appraisers to assess the affected assets and other losses. 181 If land acquisition is carried out by the sub-national governments through the use of Law No. 2/2012, provided that the investments fall under the category of national strategic investments, the process, requirements, procedures and institutional arrangements for land acquisition will to the extent possible adopt negotiated settlement processes. Negotiated settlements refer to situations where sub-national governments and/or project proponents need to acquire specific land or restrict its use for SCIP purposes, but rather than doing so through an expropriation proceeding, sub-national governments and/or project proponents first try to arrive at a mutually agreeable negotiated settlement the land owner. Although under Law No. 2/2012, sub-national governments and/or project proponents are authorized to proceed with expropriation or other compulsory procedures, a consensual approach will be first explored and to the extent possible, adopted. No land acquisition with physical displacement risks will be allowed under SCIP. Land acquisition using a negotiated settlement scheme will only be permitted if there are no technically feasible sites due to their locational advantage. Under this scheme, the project should pay special attention to and ensures that land acquisition takes into account the following: ● Includes options of compensation (not only cash compensation) including land to land with clear procedures and timeline. Based on agreements reached during negotiations, Project Affected Persons can choose to receive cash compensation, resettlement, or other options. Other options include serviced sites, land [swap] of equal size or equal productive capacity. In all cases, the amount of compensation and/or other options must be sufficient to achieve the objectives of ESS 5, including livelihood improvements and production capacity of the Project Affected Persons; ● Sub-national governments and/or project proponents acquiring the land need to compensate squatters and encroaches, if any, as the result of the land taking in conjunction with the entitlement matrix as per ESS 5. Livelihoods assistance in lieu of compensation for land to help improve or at least restore their livelihoods may be warranted; ● The acquired land needs to be in line with the Regional Spatial Plans (RTRW) and/or Detailed Spatial Development Plan (RDTR) if available; ● Ensure that Project Affected Persons receive: (i) prompt compensation at full replacement costs for loss of assets attributable to the project; (ii) livelihoods assistance, depending on the extent of impacts as required, (iii) prior consultations and sufficient time to negotiate, involving not only direct land users/owners, but also other family members, including spouses and children, (iv) information on land and asset valuation based on independent 182 appraisers’ valuation, including the approach and/or methodology used in a manner accessible to project affected persons; ● Consultations and Complaint procedures: grievance mechanisms should take into account accessibility and availability of judicial resources and community and traditional dispute settlement mechanisms; ● Land Acquisition Plans will need to be prepared by sub-national governments and project proponents should adopt the following measures to ensure that project affected people are: a. Informed about their options and rights pertaining to land acquisition and/or entitlements, b. Consulted on, offered choices among, and provided with technically and economically feasible compensation alternatives, and c. Provided prompt and effective compensation at full replacement costs for losses of assets attributable directly to the project, d. Offered livelihood assistance support during a transition period, based on a reasonable estimate of the time likely to be needed to restore and improve their livelihood and standards of living. Indicative outline of Land Acquisition and Resettlement Action Plan 1. Description of the project. General description of the project and identification of the project area. 2. Potential impacts. Identification of (i) the subproject component or activities that will require land acquisition; and (ii) the zone of impact of such component or activities. 3. Census of Project Affected Persons (PAPs) and inventory of affected assets. The results of the census and the inventory of assets, including (i) a list of PAPs, distinguishing between PAPs with land rights and land users without such rights; and (ii) an inventory of plots and structures affected. The information generated by the census should be summarized in a table (see suggested format in Annexes C1 and C2). 4. Legal analysis. Descriptions of legal steps to ensure the effective implementation of land acquisition under the subproject, including, as appropriate, a process for recognizing claims to legal rights to land--including claims that derive from customary law and traditional usage. 183 5. Eligibility. Identification of the PAPs who will be eligible for compensation and explanation of the criteria used to determine eligibility. 6. Valuation of assets and calculation of compensation for losses. A description of the procedures that will be followed to determine the form and amount of compensation to be offered to PAPs. 7. Consultations with persons who lose land and other assets. A description of the activities carried out to (1) inform PAPs about the impacts of the project and the compensation procedures and options and (2) give the PAPs opportunities to express their concerns. 8. Brief description of the land acquisition method that will be carried out for private land and forestry land. 9. Organizational responsibilities. A brief description of the organizational framework for implementing land acquisition. 10. Implementation schedule. An implementation schedule covering land acquisition, including target dates for the delivery of compensation. The schedule should indicate how the land acquisition activities are linked to the implementation of the overall project. 11. Costs and budget. Cost estimates for land acquisition for the subproject. 12. Grievance procedures. Affordable and accessible procedures for third-party settlement of disputes arising from land acquisition; such grievance mechanisms should take into account the availability of judicial recourse and community and traditional dispute settlement mechanisms. 13. Monitoring. Arrangements for monitoring land acquisition activities and the delivery of compensation to PAPs. Process Framework to Address Access Restrictions The purpose of the Process Framework (PF) is to establish a process by which members of potentially affected communities participate in the design of activities causing restrictions to land and water use, determination of measures necessary to achieve the objective of ESS 5 and implementation and monitoring of relevant project activities through a process of informed and meaningful consultations. 184 As the result of the document planning supported by SCIP, construction of hazard monitoring instrumentation and associated enclosures (under Component 2) may restrict communities access to forests and water-use where certain buffer zones will be established and agreed with communities for protection purposes. Impacts on livelihoods are not expected to be significant. The Process Framework was prepared to provide guidance to implementing agencies to undertake consultations and reach mutually agreeable terms and consensus with affected communities during subproject implementation. Community consensus is a requirement prior to any imposition of land and water use restrictions since the project seeks to also promote community ownership with hazard monitoring instrumentation installed in their areas. Scope Under this Process Framework, restrictions on land and water uses are only those that are “directly introduced and put into effect as part of the subproject”. Eligibility Communities and individuals under the Process Framework include those whose livelihoods may be adversely impacted due to project actions and/or investments which lead to restrictions to land and water use. These communities and individuals may experience economic/livelihood impacts although their land and asset ownership is not affected. Informal occupants are eligible under this Process Framework. The PF does not apply to restrictions of access to natural resources under community-based natural resource management initiatives, i.e., where the community using the resources collectively decides to restrict access to these resources, provided that an assessment satisfactory to the World Bank establishes that the community decision-making process is adequate and reflects voluntary, informed consensus, and that appropriate measures have been agreed and put in place to mitigate adverse impacts, if any, on the vulnerable members of the community. Plan of Action (PoA) The PF provides a guideline for the development of Plan of Action (PoA) during project implementation that: 185 a. Define access restrictions to land and water use; b. Define criteria of eligibility of affected persons; c. Outline consultative processes, including approaches and measures to ensure inclusive participation of project affected communities; d. Identify and quantify the impacts that access restrictions may have on different segments of the local communities, including vulnerable groups; e. Identify and agree on measures to assist affected communities and households in the efforts to improve their livelihoods and restore them, while maintaining the sustainability of the investments. The PoA will identify methods and procedures by which communities identify and choose potential mitigating or compensating measures to be provided to those adversely affected and measures by which affected community members will decide amongst the options available to them; f. Provide grievance redress mechanisms in order to resolve any issues that may arise due to restrictions of access to land and water use over the course of the project and; g. Define institutional responsibilities, administrative procedures, financing and monitoring arrangements for the implementation of measures as proposed in PoA. Roles and Responsibilities Sub-national governments and/or project proponents of activities with access restriction risks will be responsible to prepare a PoA containing elements of the above in consultation with affected communities and individuals. Financing will be sourced from Component 3, sub- national government budget (APBD) or activity implementation budget, depending on the choices and forms of mitigation measures agreed in PoAs. Consultation and Disclosure Consultations and disclosures for LARPF start from the planning, preparation, and implementation phase. In brief, these consultations should be carried out in the following activities: ● For the planning stage, the plan of the location of physical investments, purpose of the development, steps and time frame for land acquisition, roles of licensed appraisers in the asset valuation, forms of incentives or compensation that would be provided for the PAPs, eligible assets or objects for compensation (physical and non-physical including premiums), compensation for community facilities, and responsibility and rights of the 186 eligible PAPs. Consultations will use public meetings, media, and information in the closest villages/neighborhoods. Consultations will adopt a dialogue approach, and can take place more than one time, depending on the need and agreement reached. The agreement will be put in writing. The defined physical investment location requiring land will be disclosed to the public in the media, websites of the provincial and city government as well as in the website of the agency requiring the land. ● For the land due diligence, sub-national governments/project proponents and PIUs will consult with the owners of the asset during the inventory and the identification of the potential affected assets. Results of the inventory will be disclosed in the village/kelurahan (urban ward) and kecamatan (sub-district) offices for 14 days to receive complaints. ● For land acquisition described in this guideline, results of asset valuation done by the licensed appraisers will be provided to the PAPs and used as the basis for negotiations. ● Prior to any civil works with impacts on agricultural land, consultations with affected landowners and/or tillers must be undertaken. Affected individuals will be given reasonable time to harvest crops to minimize livelihood impacts. ● Draft and final Land Acquisition Plans will be disclosed in the subproject sites requiring land, in the closest kelurahan/village where the subproject requiring land acquisition is located, in the websites of the local agency and/or the implementing agency’s website. ● Documentation of the land donation and direct purchase will be available for the public in the wards/village office. The landowners who donate and sell their land for the subprojects will have a copy of the documentation of land transfers or transactions. Grievance Redress Mechanism The overall project approach in enabling transparency and consultation should allow solutions to local problems locally, quickly, and effectively. If any affected persons or other community members have a complaint regarding the framework or its application in practice, the subproject will strengthen established systems in the relevant authorities that address complaint handling, with dedicated staff in charge of handling and following up on complaints. The LARAP should include a clear grievance redress mechanism for land owners and users, as well as communities surrounding the proposed sites. The GRM should specify the contact and/or venue(s) to file complaints, service standards to respond to complaints, and documentation and ensure that the proposed mechanism is widely disseminated. 187 Reporting and Monitoring The subproject shall monitor and measure the progress of implementation of its land acquisition process. The extent of monitoring activities will be commensurate with the subproject’s risks and impacts. In addition to recording the progress in compensation payment and other resettlement activities, the project will prepare monitoring reports to ensure that the implementation of the resettlement plan has produced the desired outcomes. External independent experts will be engaged in the subproject to advise on the overall process. If any significant relocation issues are identified, a corrective action plan will be prepared to address such issues. Until such planning documents are formulated, disclosed and approved, the subproject will not proceed with implementing the specific activities for which adverse impacts are identified. The purpose of monitoring and reporting is to: (a) comply with national regulation and World Bank’s ESS 5; (b) determine effectiveness of institutional arrangements; (c) identify problems and remedial actions if any; (d) identify methods of responding immediately to resolve or mitigate problems; (e) verify if the standard of living of displaced persons are restored or improved; (f) assess sustainability of income restoration program; and (g) determine if human and financial resources allocated are adequate and effective. Monitoring of the land acquisition and relocation planning implementation will typically focus on the following aspects: ● Verification of compliance of implementation; ● Effectiveness of GRM processes; ● Any pending issues: complaints and/or non-compliance issues. The Project will prepare a semi-annual monitoring report that describes the progress of the implementation of resettlement activities and any compliance issues and livelihood restoration of the relocated households and PAPs affected by land acquisition. Implementation of LARAP will be monitored based on indicators as specified in the approved plans, which includes among others: (a) consultation process; (b) eligible PAPs; (c) follow-up on the legal process of the acquired land/remaining land; (d) the effectiveness of complaint handling mechanisms; (e) disclosures of the plans and transparency during the process of land acquisition; etc. 188 Sub-Annex 14.1: Land Due Diligence The following provides main criteria which need to be covered as part of the overall land due diligence processes: Applicability Assessment Document Information Criteria (Y/N) references Source Legal aspects a. Status of land release and registration of the proposed land b. Legal evidence of land transfer processes c. Legal status of the land prior to acquisition (i.e. legal encumbrances, certification, etc.) d. Overlapping claims and/or land disputes (including status of resolution) e. In the case of willing buyer and willing seller, records of negotiation/consultation with land owners, land transaction and payments/compensation Physical land uses and ownership f. Informal/illegal land uses/ownership (i.e. sharecroppers, cultivators, etc.) g. Economic/livelihoods impacts as a result of land acquisition processes h. Presence of conflicts/land disputes i. Presence of emerging land use activities following location announcement (i.e. opportunistic land users/claimants) j. Restrictions of access and land use Required Processes k. Consultations with land owners, including with 189 Applicability Assessment Document Information Criteria (Y/N) references Source informal/illegal land users l. Information disclosure and dissemination, including sufficient lead time for transition to new locations, including harvesting of productive crops m. Compensations paid to landowners/claimants, including informal land users such as sharecroppers, quarry operators, etc. n. Level of satisfaction amongst land owners/users with the compensations provided and/or negotiation processes o. Implementation of livelihoods restoration measures to address livelihoods displacement and resettlement p. In the case of willing buyer and willing seller, ability of land owners and users to negotiate in good faith (no coercion) q. Legal administrative processes on the remaining of the acquired land parcel for the land owners 190 Sub-Annex 14.2: Sample of format for documentation for Land Donation Name of sub-project proponent (local government, community group, or other, please specify): 1. Brief description of sub-project acquiring land: 2. Size, existing use, and location (with map or sketch) of donated land (ensuring that the land donated is under 10 percent of the overall ownership of productive land): 3. Name and identity of land donor(s): 4. Date of the donation: 5. Map/site plan of the donated land: 6. Type of use (for the sub-project) of the donated land: 7. Date and signing of the form: (by the sub-project proponent—or authorized representatives in the case of a community group—who received the donated land; land donor; head of village, representative(s) of community, heirs of the land donor, and witnesses—at least three people). The land donor should put his/her signature on a legal stamp (materai). 8. Attachment of: a. Minutes of consultations, signed by subproject proponent or authorized representatives in the case of a community group, witnesses (NGOs, civil society and/or community leaders), landowners, and consultant; b. Attendance list; c. A copy of hibah agreement or donation Statement between the PIU/Project and Donator, knowledge by Head of Village/Head of Sub District and witness. 9. Certification of the donated land and the remaining land: 191 Sub-annex 14.3: Sample Format for Obtaining Land through Voluntary Transaction (Willing Buyer, Willing-Seller) 1. Name of sub-project proponent (local government/community group, please specify): 2. Brief description of sub-project acquiring land: 3. Size, existing use, and location (with map or sketch) of land acquired: 4. Name and identity of landowner(s)/seller(s): 5. Name and identity of land buyer(s): 6. Type of use (sub-project) of the acquired land: 7. Date of land purchase: 8. Land price: 9. Date of payment: 10. Scheme of payment (cash, and/or cash transfers, instalment, etc. as applicable): 11. Recipient of payment: 12. Date and signatures of the land owner, representatives of community groups requiring the land, head of village, and PIU representative): 13. Attachment of (a) minutes of negotiation, signed by subproject proponent or authorized representatives in the case of community groups/witnesses (NGOs, civil society and/or community leaders), and land owner(s); (b) attendance list; (c) receipts of payment; and, (d) a copy of akta jual beli/deed of sale and purchase issued by a notary or PPAT. 14. Certification of the purchased land and the remaining land. 192 Sub-annex 14.4: Land Acquisition Plan and Resettlement Action Plan (LARAP) Outline under Negotiated Settlements The scope of requirements and level of detail of the LARAP vary with the magnitude and complexity of land acquisition and potential livelihoods impacts. The plan is based on up-to- date and reliable information about (a) the proposed project and its potential impacts on the displaced persons and other adversely affected groups, (b) appropriate and feasible mitigation measures, and (c) the legal and institutional arrangements required for effective implementation of resettlement measures. At a minimum, a LARAP shall consist of: a. Description of the project. General description of the project and identification of the project area. b. Potential impacts. Identification of: ● The project components or activities that require land acquisition using a negotiated settlement scheme, explaining why the selected land must be acquired for use within the time frame of the project; ● The zone of impact of such components or activities; ● The scope and scale of land acquisition and impacts on structures and other fixed assets; ● Any project-imposed restrictions on use of, or access to, land or natural resources; ● Alternatives considered to avoid or minimize displacement and why those were rejected; and; ● The mechanisms established to minimize displacement, to the extent possible, during project implementation. c. Objectives. The main objectives of the resettlement program. d. Socioeconomic assessments. Depending on the extent of potential impacts, the assessment may cover the following aspects: ● Characteristics of displaced households, including a description of production systems, Labor, and household organization; and baseline information on livelihoods (including, as relevant, production levels and income derived from both formal and informal economic activities) and standards of living (including health status) of the land owners/users; 193 ● Information on vulnerable groups or persons for whom special provisions may have to be made; ● In conjunction with establishment of a cut-off date, providing a basis for excluding ineligible people from compensation and livelihoods assistance; and ● Establishing baseline conditions for monitoring and evaluation purposes. ● Land tenure and transfer systems, including an inventory of common property natural resources from which people derive their livelihoods and sustenance, non- title-based usufruct systems (including fishing, grazing, or use of forest areas) governed by local recognized land allocation mechanisms, and any issues raised by different tenure systems in the project area; ● The patterns of social interaction in the affected communities, including social networks and social support systems, and how they will be affected by the project; e. Legal framework, covering: ● The scope of the power of compulsory acquisition and imposition of land use restriction and the nature of compensation associated with it, in terms of both the valuation methodology and the timing of payment; ● The applicable legal and administrative procedures, including a description of the remedies available to land and asset owners in the judicial process and the normal time frame for such procedures, and any available grievance redress mechanisms that may be relevant to the project; ● Laws and regulations relating to the agencies responsible for implementing land acquisition; and ● Gaps, if any, between local laws and practices covering compulsory acquisition, imposition of land use restrictions and provision of resettlement measures and ESS 5, and the mechanisms to bridge such gaps. f. Institutional framework: roles and responsibilities for land acquisition and livelihoods assistance. g. Eligibility. Definition of displaced persons and criteria for determining their eligibility for compensation and other resettlement assistance, including relevant cut-off dates as per the LARPF. h. Valuation of and compensation for losses. The methodology and recommendations of the independent appraisers of any land and assets lost due to land acquisition in conjunction with the LARPF 194 i. Community participation. Involvement of land owners and users, including a description of the strategy for consultation with, and participation of, and grievance mechanism of land owners and users in the overall planning and implementation of LARAPs. j. Implementation schedule. An implementation schedule providing anticipated dates for land acquisition, compensation dates, legal transfer. k. Costs and budget. Tables showing categorized cost estimates for compensation in line with the compensation matrix in the LARPF; timetables for expenditures; sources of funds; and arrangements for timely flow of funds. l. Grievance redress mechanism. The plan describes available feedback and grievance mechanisms, including affordable and accessible procedures for third-party settlement of disputes arising from land acquisition and the availability of judicial recourse and community and traditional dispute settlement mechanisms. m. Monitoring and evaluation. Arrangements for monitoring of land acquisition and implementation of livelihoods assistance and involvement of project affected people in the monitoring process. 195 ANNEX 15: Chance Finds Procedure This Chance Find Procedure is prepared to guide the future subproject implementer to manage issues related to potential archaeological, historical, cultural, or remaining material, encountered unexpectedly during project construction or operation. Definition: a chance find is an archaeological, historical, cultural, or remaining material, encountered unexpectedly during project construction or operation. A chance find procedure is a project-specific procedure that will be followed if previously unknown cultural heritage is encountered during project activities. This type of procedure generally includes a requirement to notify relevant authorities of found objects or sites by cultural heritage experts; fence off the area of finds or sites to avoid further disturbance; conduct an assessment of found objects or sites by cultural heritage experts; to identify and implement actions consistent with the requirements of the World Bank and Indonesian law; and to train project personnel and project workers on chance find procedures. I. Objectives ● To protect physical cultural resources from the adverse impacts of project activities and support their preservation. ● To promote the equitable sharing of benefits from the use of PCR. II. Procedure If there is a discovery of archeological sites, historical sites, remains and/or objects, including graveyards and/or individual graves during excavation or construction, due to sub-project activities, the sub-project shall: 1. Halt the construction activities in the area of the chance find. 2. Delineate and fence the discovered site or area. 3. Secure the site to prevent any damage or loss of removable objects. In cases of removable antiquities or sensitive remains, a night guard shall be arranged until the responsible local authorities or the District/Provincial Department of Culture, or the local Institute of Archaeology, if available, can take over. 4. Forbid any taking of the objects by the workers or other parties. 196 5. Notify all subproject personnel of the finding and take preliminary precautions of protection. 6. Record the chance to find objects and the preliminary actions. 7. Notify the responsible local authorities and the relevant Institute of Archaeology immediately (within 24 hours or less). 8. Responsible local authorities should be in charge of protecting and preserving the site before deciding on subsequent appropriate procedures. This would require a preliminary evaluation of the findings to be performed by the local Institute of Archaeology. The significance and importance of the findings should be assessed according to the various criteria relevant to cultural heritage, including the aesthetic, historic, scientific or research, social and economic values. 9. Decisions on how to handle the finding shall be taken by the responsible authorities. This could include changes in the subproject layout (such as when finding an irremovable remains of cultural or archeological importance) conservation, preservation, restoration and salvage. 10. Implementation of the authority decision concerning the management of the findings shall be communicated in writing by relevant local authorities. 11. The mitigation measures could include changing the subproject design/layout, protection, conservation, restoration, and/or preservation of the sites and/or objects. 12. Construction work at the site can resume only after permission is given from the responsible local authorities concerning safeguarding the heritage. 13. The subproject proponents are responsible for cooperating with the relevant local authorities to monitor all construction activities and ensure the adequate preservation actions already taken and hence the heritage sites are protected. 197 ANNEX 16: Initial Sub-Project List The following are the initial sub-project list for the five priority thematic areas of investments in Component 2.: 1) circular economy and waste management, 2) stormwater and wastewater management, 3) energy efficiency and renewable energy, 4) sustainable transport and 5) urban biodiversity. 1. Circular Economy and Waste Management Subsector Name List of Approaches and Solutions Evidence(data)-based policy making ● Visualization with waste mapping ● Waste mapping helps LGUs to plan, arrange, monitor and evaluate the waste collection service. Upgrading waste management and ● Waste littering survey (e.g. Literati) recycling system using Apps ● Plastic Bank business model ● Collecting valuables with Apps (e.g. Plastic Pay) ● Incentive system for collecting valuables (e.g. Bus) Extended Producer Responsibility ● Baseline survey to understand material flow, (EPR)-based policy for sharing the costs market situation and stakeholder involvement of plastic waste collection/recycling for collection and treatment of target waste. ● Organizing a technical committee to discuss the implementation mechanism ● Pilot implementation based on voluntary take- back and recycling targeting large manufacturers/importers/brand owners ● Legislation including SMEs ● Integration of informal sector ● Creation of the market for recycled materials by introducing green public procurement and standard for recycled materials. 2. Storm water and waste water management Subsector Name List of Approaches and Solutions Green streets ● Water absorbing landscape (bio-swales, bio retention areas, rain gardens) ● Water absorbing tree pits ● Permeable pavement ● Infiltration basins Detention/retention storage of ● Floodable parks/plazas stormwater ● Detention boulevard 198 Subsector Name List of Approaches and Solutions ● Detention basins/retarding basins/detention in swamps ● Retention basins & rainwater harvesting ● Infiltration basins & groundwater recharge ● Gross pollutant traps at outlet (reduce ocean plastics) Wastewater treatment/dry weather flow ● Constructed Wetlands (free surface, treatment/river water quality subsurface, floating) improvement ● Facultative treatment ponds 3. Energy efficiency and renewable energy Subsector Name List of Approaches and Solutions Green building program ● Assessments for green building potential ● Green building regulation/ordinance targeting newly constructed building (e.g. The Governor Regulation No.38/2012 in DKI Jakarta) ● Green building certificate with rating system ● Incentive mechanism (e.g. Green Building Awareness Award, ESCO, reduction of VAT, etc.) Renewable energy potential assessment ● FS on zero emission initiatives ● Identifying the area/sectors of RE potential - Renewable Energy Potential Assessment (REPOS) - Solar power and heart potential mapping Energy saving potential assessment ● Monitoring and reporting energy and water consumption (and an inclusion of GHG emissions) ● Extending a service of Energy Saving Diagnosis provided by PT. Energy Management Indonesia (ESDM) Incentive system to promote energy ● Incentive system to promote energy saving and RE saving and RE (e.g. ESCO fund, lease model, revolving fund for RE projects, direct subsidy, tax incentives) 199 4. Sustainable transport Subsector Name List of Approaches and Solutions Public transport infrastructure ● FS on rapid transit mode assessment/ selection, including traffic demand analysis, defining alignment alternatives, station area selection, etc. ● Pedestrian friendly design of transit nodes Environmentally friendly vehicles and ● Electric and hybrid buses non-motorized transport (NMT) ● E-BRT systems ● Separated bicycle lanes linked to green corridors for NMT to ensure comfort and safety of users ● Integrated bicycle network with the existing public transport as the solution to the first-mile last-mile travel problem Enabling environment for TOD ● Distance to public transport, connectivity of public transport node ● Area/ corridor-based TOD zoning code development (TOD supportive zoning frameworks) ● Area/ corridor-based TOD road safety assessments ● Population and employment density analysis to allow high-quality public transport system, including inclusive and reliable designs, such as universal accessibility design codes ● Park and Ride systems in city peripheries ● Parking capacity assessments in dense urban areas 5. Urban biodiversity Subsector Name List of Approaches and Solutions n/a n/a 200 ANNEX 17: Public Consultation for ESMF Annex 17.1: Summary of Public Consultation for Environmental and Social Management Framework (ESMF) Document Preparation Dated : Friday, 3rd December 2021 Place : Zoom Meeting ID: 830 2070 5486 Time : 09.00 – 11.30 WIB Chair : Erik Armundito Participants : Ministry of National Development Planning/BAPPENAS, Ministry of Home Affairs, Ministry of Environment and Forestry, Ministry of Public Works and Public Housing, Ministry of Agrarian Affairs and Spatial Planning/ National Land Agency, Ministry of Transportation, Ministry of Finance, Ministry of Energy and Mineral Resources, Coordinating Ministry For Economic Affairs, Local Governments, Non- Government Organizations, Research Institution, Universities 1. The public consultation was led by Erik Armundito, Directorate of the Environmental Affair, Ministry of National Development Planning/ BAPPENAS as the Executing Agency, with a moderator by Idham Khalik. The public consultation activity was attended by 93 participants (with only 34 people filled out the attendance list) consisting of Ministry of National Development Planning/ BAPPENAS, Ministry of Home Affairs, Ministry of Environment and Forestry, Ministry of Public Works and Public Housing, Ministry of Agrarian Affairs and Spatial Planning/ National Land Agency, Ministry of Transportation, Ministry of Finance, Ministry of Energy and Mineral Resources, Coordinating Ministry For Economic Affairs, Local Governments, Non-Government Organizations, Research Institution, Universities. 2. The objectives of the public consultation are to: 1) Explain the purpose of ESMF document; 2) Explain Sustainable Cities Impact Project (SCIP) design; 3) Provide information about 201 the possibility of environmental and social impacts that occurred due to the SCIP project along with some strategies and mitigation measurements, in order to get feedback from stakeholders to improve ESMF GEF-SCIP draft document to obtain approval from the World Bank. 3. The discussion begins with an opening remark and explanation about the scope of public consultation activity by the Directorate of Environmental Affair as the executing agency of SCIP, followed by a project design presentation presented by Zaharatul Hasanah on the project background, project locations, project overview and project components. The project design presentation then continued by Anna Amalia with explaining the purpose of ESMF document, environmental and social risk impact approach, general assessment of anticipated impacts, anticipated specific risk and impacts, the impact of identified environmental and social risks, and environmental and social mitigation measures. After the presentation, then followed by a public discussion with getting feedbacks from Universities, Local Governments, NGOs, the Directorate of Spatial Planning and Disaster Management BAPPENAS, and the Ministry of Home Affairs. Public consultation ended with a conclusion to improve the ESMF document within one week with all of the feedbacks and conducting Focus Group Discussion to discuss project design further with each Local Government. 4. Points of presented presentation of project design are as followed: a. Exposure 1: Presented by Zaharatul Hasanah, Directorate of Local Development, Ministry of National Development Planning/BAPPENAS i. Background of the project is Indonesia’s rapid urbanisation that encouraged the need to improve the city’s planning by incorporating environmental and sustainable development aspects. ii. Selected cities as the pilot project locations are including the Capital City of Jakarta, Semarang, Balikpapan, Bitung and Palembang which expected can be the best practice example for other cities in the future. iii. Project overview: will be conducted within 5 years timeframe starting from 2022- 2026. The project preparation phase is from 2021 until September 2022. iv. In general, the goal of the project is to support cities in mainstreaming environmental and climate change aspects within the city’s planning and development, modal investment priority and preparation to high-quality sub-project including the financing scheme 202 v. The execution of this project is supporting the implementation of Indonesia Strategic Planning (Renstra) and National Mid-term Development Plan (RPJMN), specifically PN 2 KP 3 Urban Area Development, PN 6 PP 3 Low Carbon Development and RPJMN Major Project 2020 - 20224 vi. Project components are described as followed: 1) integrated spatial planning and city development; 2) catalyze integrated investment in priority areas; 3) trials of approaches and instruments of innovative financing; 4) policy dialogue and knowledge management for relevant stakeholders; 5) project management. b. Exposure II: Presented by Anna Amalia, Directorate of Environmental Affair, Ministry of National Development Planning/BAPPENAS i. The purposes of ESMF are to: 1) outline the processes, procedures and necessary steps, as well as supporting mechanisms so that SCIP funded activities are well designed and implemented by avoiding, minimizing and mitigating potential adverse risks and impacts; 2) ensure that all activities and mitigation measures comply with GoI regulations and the Environmental and Social Framework (ESMF) ii. Environmental and social risk impact approach iii. General assessment of anticipated impacts include: 1. Positive impact through providing implementation of future spatial plans and activities through Technical Assistance (TA) 2. Due to the substantial environmental and social risks and potential impacts associated with project implementation, mitigation measures are required to improve project outcomes 3. Potential negative impacts downstream can be in the form of air, soil, and water pollution during construction, exploitation use of natural resources, public health risks due to the emergence of infectious pathogens and the emergence of mosquito habitats accompanied by an increase in biodiversity, disturbance to marine/river species, and work-related incidents iv. Anticipated specific risks and impacts include: 1. The project aims to increase national and cities capacity to incorporate environmental and climate change considerations into development plans, modal investment priority, and financing 203 2. Activities in all components require strengthening planning, prioritizing, and optimizing resource management with various opportunities to raise attention to potential environmental and social impacts v. Impact of identified environmental and social risks, for instance: insufficient environmental and social consideration/mitigation measures within the final planning document; insufficient environmental and social consideration/mitigation measures within the final report; lack of quality on the sub-project documents (environment and social documents, FS, DED); exclude affected/not benefitted groups from the process; lack of management support capacity vi. Environmental and social mitigation measures 5. Questions and feedbacks obtained from public consultation participants are: a. Relevant policies, laws and regulations i. ESMF needs to include strategic guidelines for innovative and collaborative financing that are in line with the policy direction to increase blended finance ii. Suggestions for an additional chapter for the format of aligning integrated development in the RPJMD document iii. Suggestion to incorporating private sectors contribution on the development to the RPJMD document b. Mitigation of social-environmental impacts i. Important to consider the environmental aspect when conducting the project ii. There is a need to collaborate and involve surrounding cities which facing the same- cross region environmental problem in developing the master plan iii. Taking into account biodiversity and environmental aspect in the project implementation iv. Each project will have different impacts based on the project location due to the distinctive city’s characteristics, there is a need to provide instruments based on project and city in identify specific risks v. Important to involve citizens in the project design vi. Knowledge management is important to be conducted vii. Emphasize the importance of citizen participation with the role of the national government to support the local government, and encourage its citizens to participate in the development c. Other environmental and social protection instruments 204 i. Expecting that this project could help to improve city’s economy ii. There is a need for additional guideline to help the local government determine the sub-project activity to be conducted based on each city’s development priority iii. There is a need to provide additional instruments for projects with different focuses 6. Responses to the feedbacks and questions include: a. Feedback about improving the Regional Mid-Term Development Planning Document to create an additional chapter for integrated development between Public Sector Finance and Private Sector Finance cannot be accommodated since it is not the objective of the project to change the structure of the document, but it is a very important input for local government to improve the substantial of the document by incorporate it into the document. b. One-on-one Focus Group Discussion with each selected local government will be conducted soon. c. Cross-regional issues to be proposed as one of the sub-project should be identified first for the possibility to be conducted d. One-on-one FGD with each city is expected will increase citizens participation since it is encouraged to invite any development stakeholders within the city, that include citizen e. A guideline to identify risks for each project is already provided in the ESMF document section 2. Specific risks will be identified further during sub-project implementation and discussed in the Project Operation Manual f. Offline feedbacks are still welcomed by the project team until next week 7. Conclusion on the results of the public consultation: a. The project design will be improved in accordance with the inputs and feedbacks from this public consultation or by the offline feedback that the team receive within the next week b. Series Focus Group Discussion with every local government (Province/Cities pilot) will be conducted through virtual media on 20-22 December as part of the follow-up from this public consultation. 205 Documentation of the Public Consultation for Environmental and Social Management Framework (ESMF) Document Preparation Presentation Session on the Project Public Consultation Attendes Component Public Consultation Attendes Public Consultation Attendes Public Consultation Attendees 206 List of Attendes of the Public Consultation for Environmental and Social Management Framework (ESMF) Document Preparation No Name Agency/Institution 1 Idham Khalik Dit. PD Bappenas 2 Astrid Amalia Setditjen PSLB3, KLHK 3 Maulid Hestu Pambudhi Kementerian Perhubungan 4 Wiwandari Handayani Departemen Perencanaan Wilayah dan Kota 5 Muslim Annur, SH., M.Si Setditjen PPI-KLHK 6 Warzali Bappeda Litbang Kota Palembang 7 Dr. Arum Setiawan, M.Si Universitas Sriwijaya 8 Diah Lenggogeni Direktorat Tata Ruang dan Penanganan Bencana 9 Tarina Iqlima Kementerian PPN/Bappenas 10 Ir. Isri Ronald Mangangka, Prodi Teknik Lingkungan Unsrat M.Eng., Ph.D 11 Dr. Ratna Siahaan, M.Si Jurusan Biologi Universitas Sam Ratulangi 12 Dea M BPIW Kementerian PUPR 13 Safrinal Sofaniadi Bappeda Kota Semarang 14 Patar Heryanto Bappeda Kota Bitung 15 Abdul Wasi’ Bappenas 16 Efrian Muharrom World Bank 17 Rif Abrar Raflis Kementerian ATR/BPN 18 Kindy R Syahrir DJPK Kemenkeu 19 Suryani Amin ICLEI 20 Noni Eko Rahayu Kementerian LHK 21 Emmanuel Azhar Bappeda Litbang Kota Balikpapan 22 Aan Prianto DJPK Kemenkeu 23 Dr. Rooije R.H. Rumende Program Studi Biologi FMIPA UNSRAT S.Si., M.Kes Manado 24 Nina Nurrahmawati World Bank 207 No Name Agency/Institution 25 Adha Nur Kholif Pratama Environmental Consultant 26 Bagus P BPIW, Kementerian PUPR 27 Sari Kusumaningsih Bappenas 28 Supartien Komaladewi Keasdepan Penguata Daya Saing Kawasan 29 Angga Ardiyansyah Kementerian Agraria dan Tata Ruang 30 Zainuddin Direktorat Jenderal Perimbangan Keuangan - Kementerian Keuangan 31 Helmi Abidin UCLG ASPAC 32 Ratna Kartikasari Direktorat PPU, Ditjen PPKL, KLHK 33 Baru Wirawan URDI 34 Vergina Hapsari BPIW, Kementerian PUPR 208 Annex 17.2: ESMF Update Feedback and Adjustment No Issues Input Feedback/Adjustment 1. Relevant policies, laws There is a need for strategic This issue is relevant to the and regulations guidelines for innovative and ESMF and is already collaborative financing that accommodated in the ESMF are in line with the policy document section 2.3 Project direction to increase blended Design. Component 3 is used to finance identify alternative and innovative funding modalities and it is important to focus on private sector finance. ESMF adjustment: No adjustment is made Suggestion for an additional This issue is less relevant to the chapter for the format of ESMF because the objective of aligning integrated this project is will not changing development in the local the structure of RPJMD development planning document. However, the input is document (RPJMD) important and will be considered as additional substantial on the RPJMD document ESMF adjustment: No adjustment is made The existing local This issue is less relevant to the development planning ESMF because the objective of document (RPJMD) does not this project is will not changing take into account private the structure of RPJMD sector contribution to the document. However, the input is development important and will be considered as additional substantial on the RPJMD document ESMF adjustment: No adjustment is made 2. Mitigation of social- There is a need to consider This issue is relevant to the environmental impacts the environmental aspect of ESMF and is already the project for instance accommodated in the ESMF taking into account the waste document section 2.4 Project management, conserving Location. This issue is used as mangrove ecosystems and the basis for pilot project including climate change location mitigation on the project 209 No Issues Input Feedback/Adjustment design, especially on the ESMF adjustment: project near the conservation No adjustment is made area There is a need to collaborate This issue is relevant to the and involve surrounding ESMF and is already cities which facing the same accommodated in the ESMF cross-region environmental document section 2.4 Project problem Location. This issue is used as the basis for pilot project location ESMF adjustment: No adjustment is made Taking into account This issue is relevant to the biodiversity and ESMF document and already environmental aspect in accommodated in the ESMF project implementation among others in Section 5 Mitigation Approaches ESMF update: No adjustment is made Each project will have This issue is relevant to the different impacts due to the ESMF and is already distinctive city’s accommodated in the ESMF characteristics, there is a document section 2.4 Project need to provide instruments Location. This issue is used as based on project and city the basis for pilot project location ESMF adjustment: No adjustment is made It is important to involve This issue is relevant to the citizens in the project design ESMF and is already accommodated in the ESMF document section 5 Mitigation Approaches and Implementation Steps. Policy dialogue will not only be conducted on the national level but also on the city level with expectation will intensively increase citizens participation ESMF adjustment: 210 No Issues Input Feedback/Adjustment There is additional input referred to in the ESMF update by adding training/workshop/public consultation activities into SCIP’s activity, component 4 (refer to Table 5) Knowledge management is This issue is relevant to the important to be conducted ESMF and is already accommodated on the ESMF document section 2.3 Project Design. Knowledge management is one of the components to support stakeholders to encourage changes in environmentally friendly behavior ESMF adjustment: No adjustment is made Emphasizes the importance This issue is relevant to the of citizen participation with ESMF and is already the role of the national accommodated on the ESMF government to support the document section 2.3 Project local government, and Design encourage its citizens to participate in the ESMF adjustment: development No adjustment is made 3. Other environmental Expectation this project This issue is less relevant to the and social protection could help to improve city’s ESMF but will be taken into instruments economy consideration in project implementation, especially in designing urban planning ESMF adjustment: No adjustment is made There is a need for additional This issue is relevant to the instrument to help the local ESMF and followed up with government to determine conducting one-on-one FGD priority activity to be with local governments proposed as the sub-project ESMF adjustment: No adjustment is made 211 No Issues Input Feedback/Adjustment There is a need to provide This issue is relevant to the additional instruments for ESMF and is already provided projects with different on the ESMF document section 5 focuses Mitigation Approaches and Implementation Steps ESMF adjustment: No adjustment is made Annex 17.3 : Report of the Public Consultation Background 1. Indonesia will organize the Sustainable Cities Impact Project (SCIP) which is a grant from the Global Environment Facility (GEF) through the World Bank. The SCIP project has the main objective of integrating biodiversity and climate-smart management in the preparation of development plans and priority capital investment of participating cities, including financing modalities. This project is planned to be implemented in five cities, namely Balikpapan (East Kalimantan), Bitung (North Sulawesi), Jakarta (DKI Jakarta), Palembang (South Sumatra), and Semarang (Central Java). 2. Following up with the SCIP project plan, one of the requirements that need to be fulfilled is the preparation of the Environmental and Social Management Framework Document (ESMF). The ESMF outlines the principles and relevant policies in managing environmental and social impacts, the applicability or relevance of the World Bank’s Environmental and Social Framework (ESF) and detailed procedures, institutional arrangements, implementation timeline, capacity building plans, and budget to screen, assess, prepare and implement safeguards instruments to ensure that the preparation and implementation of project activities do not cause, or can minimize adverse environmental and social impacts. The ESMF document aims to guide and ensure project implementers in establishing, improving and mainstreaming the process of implementing activities financed by SCIP is inclusive, sustainable, and reflects local context and needs. 3. The Ministry of PPN/BAPPENAS as the Executing Agency (EA) considers it necessary to carry out public consultations as a participatory process to receive input from 212 stakeholders, namely related Ministries/Agencies, relevant Local Governments, associations, and academics. This process is part of efforts to improve the ESMF document which will serve as a guide in implementing the environmental and social aspects of SCIP management. Objective 4. The objectives of the public consultation are to: 1) Explain the purpose of ESMF document; 2) Explain Sustainable Cities Impact Project (SCIP) design; 3) Provide information about the possibility of environmental and social impacts that occurred due to the SCIP project along with some strategies and mitigation measurements, in order to get feedback from stakeholders to improve ESMF GEF-SCIP draft document to obtain approval from the World Bank. Participant 5. The public consultation was led by Erik Armundito, Directorate of Environmental Affair, Ministry of National Development Planning/ BAPPENAS as the Executing Agency, with a moderator by Idham Khalik, Directorate of Local Development, BAPPENAS. The public consultation activity was attended by 93 participants (with only 34 people filled out the attendance list) consisting of Ministry of National Development Planning/ BAPPENAS, Ministry of Home Affairs, Ministry of Environment and Forestry, Ministry of Public Works and Public Housing, Ministry of Agrarian Affairs and Spatial Planning/ National Land Agency, Ministry of Transportation, Ministry of Finance, Ministry of Energy and Mineral Resources, Coordinating Ministry For Economic Affairs, Local Governments, Non-Government Organizations, Research Institution, Universities. The Context of Environment and Social Management Framework 6. The SCIP Project is a grant category from World Bank on fiscal year 2022-2027 in the amount of US$ 15.87 million. 7. Public consultation issues include: 1) changes in policies, laws, regulations and activities; 2) changes in potential negative environmental and social impacts; 3) ESMF scope and instrument changes. 213 Public Response and Discussion 8. The discussion begins with an opening remark and explanation about the scope of public consultation activity by the Director of Environmental Affair as the executing agency of SCIP, followed by a project design presentation presented by Zaharatul Hasanah on the project background, project locations, project overview and project components. The project design presentation was then continued by Anna Amalia with explaining the purpose of ESMF document, environmental and social risk impact approach, general assessment of anticipated impacts, anticipated specific risk and impacts, the impact of identified environmental and social risks, and environmental and social mitigation measures. After the presentation, then followed by a public discussion with getting feedbacks from Universities, Local Governments, NGOs, the Directorate of Spatial Planning and Disaster Management BAPPENAS, and the Ministry of Home Affairs. At the end of the public consultation, the result of the public consultation were presented. Policies, Laws, and Regulation 9. ESMF needs to include strategic guidelines for innovative and collaborative financing that are in line with the policy direction to increase blended finance 10. It is necessary to increase access to information on environmental protection frameworks and its update at the local governments level. 11. There is a need to collaborate and involve surrounding cities which facing the same cross-region environmental problem Potential negative impacts 12. The ESMF document should be given more extra attention as it needs to also include citizens in the public dialogue. In the current document, the key stakeholders on the public dialogue component just mention government people. This project should be directed to the partnership project that emphasizes citizens contribution to policy making. 13. There is a need to collaborate and involve surrounding cities which facing the same cross-region environmental problem 214 Mitigation of Social Environment Impact 14. Held public discussions and FGDs to capture local government needs. The FGD also invited various stakeholders such as Local Development Planning Agency, Environmental Agency, Settlements Agency. Environmental and Social Protection Instrument 15. Several other issues in the aspects of Mitigation of Social Environmental Impacts: a. Taking into account biodiversity and environmental aspect in project implementation b. Involving cities around the pilot project site in the project implementation c. There is a need to provide instruments for projects with different focuses in each city in accordance with the city’s characteristics d. Knowledge management is one of the components to support stakeholders to encourage changes in environmentally friendly behavior Conclusion 16. The project design will be improved in accordance with the inputs and feedbacks from this public consultation or by the offline feedback that the team receive within the next week. 17. Series Focus Group Discussion with every local governments (province/cities pilot) will be conducted as part of the follow-up from this public consultation on 20-22 December 2021 through virtual media. 215