40023 E1654 v.3 Authorized Pontianak Landfill Gas Flaring Project Disclosure Public Social Assessment Due Diligence Report Authorized Disclosure Public Authorized Disclosure Public Date: May 25th 2007 Authorized PT GIKOKO KOGYO INDONESIA Pulogadung Industrial Estate Jl. Pulokambing Kav II i/9 Disclosure Jakarta 13930, Indonesia Public &217(176 ([HFXWLYH 6XPPDU\ $ /DQG $FTXLVLWLRQ ,VVXHV % &RPPXQLW\ ,VVXHV & &RPPXQLW\ 'HYHORSPHQW 3ODQ ' 5HIHUHQFHV /LVW RI )LJXUH Figure 1: Batulayang Landfill Figure 2: Structure of formal leader Figure 3: Structure of informal leader /LVW RI 7DEOH Table 1: Summary of Land Acquisition Process Table 2: Summary of land acquisition and compensation in 2006 Table 3: Neighboring settlements around the landfill area Table 4: Consultation Process Table 5: Information on representation of groups Table 6: Community Development Plan 1 3RQWLDQDN /DQGILOO *DV )ODULQJ 3URMHFW ([HFXWLYH 6XPPDU\ · The City of Pontianak is conducting the fifth phases to acquire the land for the landfill. The ongoing program has required 26.6 ha of land and according to the final plan of Government of Pontianak City the total area of Batulayang Landfill will be 30 ha. However, the Government of Pontianak City has not yet any clear plan when they will acquire the remaining land of 3.4 ha area except the 0.5 ha area will be acquired this year (see Table 1) · The completed phases, ongoing and planned land acquisition process is in line with the city planning design of Pontianak city. Presidential Decree Nr.55/1993, 36/2005 and Nr.65/2006 are the applicable Indonesia law for conducting land acquisition for public purpose. · There are no buildings on the earmarked land for acquisition and the condition of land is peat land. · Madurese, Dayak and Javanese are ethnic communities, which living or working in and around the landfill. They are not original inhabitants but as a migrants. · This ethnic Dayak is not displaced people as OP 4.12. This group of peoples is not original inhabitants and subsist from natural resources as definition of indigenous people as OP 4.10 but it recognized as ethnic dayak. · The existing communities in and around landfill consist of two RTs from two urban villages, namely Batulayang urban village and Siantan Hilir urban village. · The scavengers clearly depend on the landfill as an economic resource. Municipal agency employees (DKP), who live in and around the landfill has also dependence on landfill operation. · The consultation process with the local communities, local government officials and local journalists has been performed four times. · The local communities are supporting the project as long as it will bring no harm and benefits to them. Project owner and local government are fully aware of this trust so that good communication should be maintained. · Relating to Corporate Social Responsibility Gikoko plans to leverage its engineering and manufacturing capability to implement Community Development program. · Gikoko's priority for community development is to assist with improving the safety and occupational hygiene standards of the working parents and provision of alternative activities for their children to keep them away from exposure to substances harmful to help and to aid children's development. · Gikoko shall concentrate on three main fields; Improve Occupational Hygiene for Scavengers, Economic development of recycling activities, Children's development program and Monitoring and evaluation. 2 $ /DQG $FTXLVLWLRQ ,VVXHV Table 1: Summary of Land Acquisition Process UvvtÃsÃyhqÃhpvvvÃsÃurà à ÆÃsÃhssrprqÃhrà yhqsvyyÃvpyqvtÃqhvhtrÃxà à issrÃrÃrpà 6yvphiyrÃyhÃÃrtyhvà 8yrrqà DÃÃtrà à GhqÃuhà qhrÃsà pyrv4à Phase 1: 1995 complete Presidential Decree Nr.55/1993 5.4398 Phase 2: 1996 complete Presidential Decree Nr.55/1993 4.1196 Phase 3: 1998 complete Presidential Decree Nr.55/1993 3.2581 Phase 4: 2001 complete Presidential Decree Nr.55/1993 3.3274 Pontianak's Mayorial Decree Nr.328/2004 Phase 5: Presidential Decree Nr.55/1993 10.4685 negotiation in 2005 1.3034 but the payment in complete Regional Regulation Nr. 12/2004 2006 In 2007 On going Presidential Decree Nr.36/2005 & 65/2006 0.5 Note: Mayor Decree No 328 of 2004 determines total size of Batulayang Landfill is 30ha The Pontianak Mayor's decree reinforces the Presidential decree and they do not contradict one another. The City of Pontianak Government Administrations ("3HPNRW·) has to present day conducted five phases to obtain the land for the landfill (see Table 1). First phase was completed in year 1995, second phase in 1996, third phase in 1998 and fourth phase in 2001. The present phase is the fifth phase is still in progress which requires 26.6 ha. According to the final plan of Government of Pontianak City the total area of Batulayang Landfill will be 30 ha. However, the Pontianak City is still in the process of the acquisition of the remaining 2.9 ha. Whilest waiting for budget from the local government. Within fiscal year the Pontianak city will require land of 0.5 ha and the budget for this land acquisition has been allocated. Gikoko's LFG project will only use the passive cell and drainage work is planned to be carried out using the central government's department of Public Works budget which is already approved for implementation in the coming months of the year 2007. 3 Picture 1: Batulayang Landfill New acquired Land Current Landfill Area 4 The completed phases, ongoing and planned land acquisition process is in line with the city planning of Pontianak city. Before 2006 the City of Pontianak used Presidential Decree No. 55 of 1993 as the basic regulation for land acquisition. Although the new presidential decree had been issued in 2005 but since most of local government as well as the City of Pontianak was not familiar with PerPres then they still used Keppres No. 55 of 1993. However, the remaining land of 0.5 ha will be used PrePres No 36/2005 and 65/2006 as the applicable Indonesia laws for conducting land acquisition for public purpose. The last procedure of land acquisition of 10,5 ha (10 owners of land) has been paid in the beginning of 2006 based on the negotiation in 2005 (see Table 2). The land committee had been established to acquire the land from the community. The land value of compensation based on the negotiation between the committee and the project affected people that NJOP can not be used as basic price for compensation but NJOP and market price used as reference for negotiation. The following procedures are in process: a) Target of acquisition by the city shall have no existing settlement and shall not be in proximity of permanent human settlement. b) The acquisition is carried out by the Local Government of Finance & Asset Institution based on local budget. c) A team of local government will approach local people who owned the land and negotiate for the price. d) If the price has agreed then the team will pay cash to them and then shall proceed with legal administration of ownership transfer from former owner to local government. e) The local government then will register the new area as their asset. Gikoko shall in the future mine the compost and produce Residue Derived Fuel after methane gas is exhausted from a closed cell and free the space to receive more fresh waste, reducing need for continuous expansion and demand for acquisition of new land. Since the first phase of land acquisition there was only grassland/peatland and no buildings/housings. The area was uninhabited from the start of construction of the landfill. The landowners had been compensated fully by the local government (see Table 1). Table 2. Summary of land acquisition and compensation in 2006 IhrÃsÃGhqà 8rhvÃsÃurÃhssrprqÃyhqà Prà 6ssrprqà 8rhvÃà 9hrà yhqÃuhà hvqà 1. Sahnah 1.4273 Rp 178,412,500 2nd Quartal of 2006 2. Sadenan 1.3747 Rp 171,837,500 2nd Quartal of 2006 3. Summah 1.4608 Rp 182,600,000 2nd Quartal of 2006 4. Habiyah 1.5878 Rp 198,475,000 2nd Quartal of 2006 5. Fitri 1.4904 Rp 176,300,000 2nd Quartal of 2006 6. H. Satrawi 0.5373 Rp 67,162,500 2nd Quartal of 2006 7. H. Maskur 0.5162 Rp 64,525,000 2nd Quartal of 2006 8. Marullah 0.5107 Rp 63,837,500 2nd Quartal of 2006 9. Muhammad 0.5463 Rp 68,287,500 2nd Quartal of 2006 Dewi 10. Saden 1.0170 Rp 127,125,000 2nd Quartal of 2006 Takel 5 % &RPPXQLW\ ,VVXHV The communities living or working in and around the landfill are from distinct ethnicity; Dayak, Madurese and Javanese. Table 3: Neighboring settlements around the landfill area IhrÃsÃryrrà ÆÃsÃAhvyÃvà 9vhprà @uvpÃvqrvà 6ÃryhvÃÃyhqsvyyà ryrrà à @yrrÃsÃ9FQÃà Tphrtrà yhqsvyyà Batulayang 76 (556 0.52 km Madurese, 5 Families 74 adults (RT05/RW04) peoples) Javanese, Dayak (Madurese/Javanese) and 50 children (<15 years) Siantan Hilir 13 (52 0.43 km Madurese 5 Families 27 adults (RT05/RW15) peoples) (Madurese) and 15 children (<15 years) *(Distance to Landfill denotes distance of boundary of HH settlement to the landfill's main gate)      Dayaks are migrants from within two hundred kilometers of the landfill. The Dayaks scavengers came to the landfill from Sanggau and Pontinak neighbouring district in West Kalimantan who came to looking for economic opportunities. However, they are working on informal sector not subsist to the natural resources and not original inhabitants. According to the definition of OP 4.12 Dayaks at Batulayang Landfill are not displaced people and they are not affected in any of the ways described in paragraph 3 of OP 4.12. This group of peoples is not indigenous people as OP 4.10 but it recognized they are ethnic Dayak. Dayaks are native population of Kalimantan populate principally in the interior of Kalimantan. The term of "Dayak" refers to a generic term that encompasses a broad range of very distinct people. It is believed that the Dayak population range is estimated to be around f our million in Kalimantan. The seven sub-ethnic groups of Dayaks are: · Iban, · Bidayuh, · Kayan-Kenyah · Maloh, · Barito, · Kelabit-Lun Bawang group, · Kadazan-Dusun-Murut group. Some Dayak people once lived mostly in massive communal structures known as longhouses. These might reach up to 12 m in height, at times bringing more than 100 families under one roof, affording safety from attacks during times of tribal warfare Inside, families lived in separate apartments arranged along a central corridor, which served as a communal area. While some groups still live in longhouses, many have abandoned this system in favour of individual houses. Traditionally, Dayak agriculture was based on swidden rice cultivation (use of by traditional forest clearing). Agricultural land is used and defined primarily in terms of hill rice farming, ODGDQJ (garden), and KXWDQ (forest). Dayaks organized their labour in terms of traditionally based land holding groups which determined who owned rights to land and how it was to be used. The "green revolution" in the 1950s, spurred on the planting of new varieties of wetland rice amongst Dayak tribes. 6 Melayu people are believed to have originated in Kalimantan and then migrated to Sumatra and later to Malay Peninsula, numbering approximately 22 million. The term Malay can refer to the ethnic group who live in the Malay peninsula and east Sumatra as well as the cultural sphere that encompass a large part of the archipelago. The Malay ethnic group is the majority in Malaysia and Brunei and a sizable minority in Singapore and Indonesia. Javanese live on the most fertile land with rich cultural heritage and hold key positions in government and the military. Jave people is the largest ethnic group on the island of Java and approximately 45% of the population of Indonesia is ethnically Javanese. Javanese language, spoken by more than 71 million people, belongs to the Austronesian (Malayo-Polynesian) family, as do those of neighbouring but different groups such as the Sundanese of west Java and the Madurese of northeast Java. Madurese build the ethnic majority of these communities. Most of them came to Pontianak as Internal Displaced Person because of ethnic conflict between Dayak and Madurenese in Sambas in1997. Initially they built temporary settlement in someone's land or government's land. Slowly they can recommencement their life. They are hard worker as scavengers, daily labour and farmer so that they can buy land to build their house on their own land. The Madura island lies northeastern coast of java. Madura is administered as part of the East Java province. It is one of the poorest regions of the East Java province. The soil is not fertile enough to make it a major agricultural producer. Lack of economic opportunities on their native land prompted migration to other parts of Indonesian. These factors have lead to long-term emigration from the island, such that most ethnically Madurese people do not now live on Madura. People from Madura were some of the most numerous participants in government transmigration program, moving to other parts of Indonesia. The Madurese were transmigrants who settled in the farmland around Sambas area over twenty years ago and their diligence and relative economic success became target of envy of indigenous Dayaks and the social friction due to lack of assimilation lead to bloody violence leading to internal displacement of thousands of Madurese to the fringes of the City of Pontianak. Madurese ethnic community were internal displaced and had to flee Sambas in north east area of Tayan area in West Kalimantan near the Malaysia border in 1997. The bitter experience of the conflict taught the Madurese to form strong solidarity among their own community and attempt to form a better relationship with other ethnic groups. There are two community organizational structures in and around the landfill. Firstly is the formal leader structure (see chart 1), which consists of local government employees. Secondly is the non formal leader structure (see chart 2), which define by community figures. 7 Figure 2: Structure of formal leader Figure 3: Structure of informal leader Head of Urban Communities Formal Leaders Village Figures (Lurah) Local Communities Head of RW Local Communities Head of RT : Responsibility Function : Coordination Function Note: RW is the Community Unit and RT is Neighbourhood Unit; Indonesian terms assigned to identify the formal organization heads representing the residents living in the designated locations. The existing communities in and around landfill consist of two RTs from two urban villages, namely Batulayang urban village and Siantan Hilir urban village. It is one RT (RT05/RW04) in Batulayang urban village, which Mr. Sahri acts as head of RT05/RW04 community. RT05/RW04 has 556 residents (76 HH), which the occupational composition is following; 186 people as farmer, 186 people as labour, 124 people as scavenger and 60 people as daily government agency employee (DKP). It means that more than 33% of resident of RT05/RW04 derive their livelihood from landfill. In this community Madurese are the ethnic majority. The average daily income level in this community is approximately Rp 15,000 ­ Rp 26,000 or US$ 1.65 ­ US$ 2.86. Scavengers from RT05/RW04 have an daily income of approximately Rp 10,000 ­ Rp 20,000 or US$ 1.10 - US$ 2.20. They start working at 6 AM until 5 PM. And they have a rest at midday for an hour. They collect recyclable waste, which they can sell to waste collector merchants (e.g. plastic bag, plastic bottle, milk can, used iron, old tire). They bring their children to help them. The children are in the age range of 6 - 15 years old. The children work 3 hours daily. Hours spent by children with their parents engaged in waste picking activities. The level education in RT05/RW04 is low, not even completed Elementary School (50%), completed Elementary School (30%), finished junior high school (10%) and completed high school (10%). The nearest elementary school is located 3 kilometer from the perimeter of the landfill where the families live. A junior high school and high school are located more than 5 km from the landfill. The other community is RT05/RW15 in Siantan Hilir urban village. According to Mr. Ilyas, the informal leader from RT05/RW15 community, RT05/RW15 has 52 residents. The occupational proportion is; farmer 5 residents; daily government agency employee (DKP) 5 residents and 42 residents as a scavengers. More than 90% of RT05/RW15 resident depends their life on landfill. The daily income of this community is approximately Rp15,000 ­ Rp 24,000 or US$ 1.65 - US$ 2.64. 8 Most of scavengers are Madurese. They start to work in landfill at 3 AM till 11 AM. They receive a daily income of approximately Rp. 10,000 ­ Rp. 20,000 or US$ 1.10 - US$ 2.20. Scavengers bring also their children to help them. They are 6-15 years old. Total number of children who works as a scavenger number approximately twenty. 20. Sometimes the children under 5 years old play in landfill to wait for their parents. The level education in RT05/RW15 is also low, not even completed Elementary School (55%), completed Elementary School (25%), finished junior high school (10%) and completed high school (10%). The nearest elementary school is located 3 kilometer from the perimeter of the landfill where the families live. A junior high school and high school are located more than 5 km from the landfill. There is no public transportation around landfill. If they want to go outside the area they have to take a ride on the waste truck or using a rented motorcycle taxi system called RMHN. Children and adults would pick up any foodstuff contained in the freshly delivered municipal waste such as dried fish, discarded fruits, cooked leftover fast food etc., and eat them. Gikoko' social studies consultants observed and gathered information through interviews with the communities direct that children work on the landfill do not interfere with the schooling hours and therefore do not contravene the principles of the guiding principles of International Labour Organization (ILO) on Child Labour. (Conventions no .138 and no. 182). Long working hour on the landfill waste picking activity that would prevent children participating activities conducive to full development would contravene the conventions Generally landfills in Indonesia have a disease vector like flies, mosquito, mice etc. Children risk exposing themselves to substances harmful to health and to accidents through contacts with landfill operational heavy equipment such as bulldozers and excavators. The landfill area should be classified as a "hazardous area". The participation of children in waste picking activities in the are is undesirable and morally unacceptable. Scavengers have high occupational health risks. They need to wear protective gear, particularly gloves, rubber boot, sun hat and face masks. The residents around the landfill surrounding area do not often complain of illness caused by air or water pollution nor are official data available. Occasionally they have prevalence of Influenza flu infection and health skin problem (skin itching). Leachate overflow into the river where they bath may be the cause of dermatological problems Most occupational health and injury problems could be minimized by simple safety procedures that cost little; and most environmental impacts could be minimized by closing open dumps. Disposal sites need proper control of contaminated leachate. Landfill operation has an socio-economic impacts on communities, specially those who their livelihood derive from landfill. Scavengers earn money for their life through the collection of waste. They collect recyclable waste, which they can sell to waste collector merchants (e.g. plastic bag, plastic bottle, milk can, used iron, old 9 tire). They receive payment based on the weight of their waste collection. The scavengers clearly depend on the landfill as an economic resource. Municipal agency employees (DKP), who live in and around the landfill has also dependence on landfill operation. For them landfill is the source of their livelihoods. Scavengers derive their livelihood from extracting aluminum cans, carton boxes and PET drinking water containers and the remaining Municipal Solid Waste are landfilled. Landfill gas collection and control system is to be installed on passive or closed cell, and there should not cause loss of livelihood to the scavengers nor affect the employment of the municipal agency employees. Four other CDM landfill methane gas abatement projects are being implemented in Indonesia, namely Makassar, Bekasi, Padang and Bali (Denpasar) but information from the Public Works department indicate Pontianak looks set the become the first system to be constructed in time for the National Mayor's Association meeting in mid June of 2007 to be held at the City of Pontianak and the Mayor is scheduled to give a presentation to the assembled mayors from throughout Indonesia the demonstrative value of this CDM project towards sustainable development benefits and how a Public Private Partnership is designed to help the poor living around landfill through Community Development program funded by the share of CER. Already the Public Works Department has approved budget to drain the landfill and rehabilitate the leachate treatment plant, which shall directly benefit the local community in prevention of overflow of leachate into the river and the surrounding area. Waste collection and recycling of commercially valuable scrap steels and other material shunned by other communities provide economic opportunities for the Madurese throughout Indonesia. The landfill provide livelihood of the last resort for many families who have lost all other means of earning a living. Expansion of the landfill and increased recyclable waste should mean increased opportunities for economic development and Gikoko plans to implement its Community Development program to aid this process in consultation with the community leaders. The consultation process with the local communities, local government officials and local journalists has been performed several times since signing of Memorandum of Understanding between Gikoko and the local government on July 28 2006. (see Table 4). Table 4: Consultation Process @rà 9hrà AÃhqà Qhvpvhà Drà Bvrhprà Qprà Stakeholder 27th - Public - Local people Socialization of project Local residents Meeting December Consultation - Local have asked yphyà 2006 - Interactive government trr to Program (Q&A official take more care Session, - Local during the Comments journalist transportation Session) - PT Gikoko of waste by - Questionnaire giving a proper cover (canvas fabric) to the dump trucks. Stakeholder 13th - Consultation - Local Presentation of work plan for the Meeting January - Discussion government LFG flaring Project 2007 official - PT Gikoko 10 - Local Legislative Assembly Member Stakeholder 31st - Public - Local people Socialization and consultation of Local residents Meeting January Consultation - Local project asked if the 2007 - Interactive government project can Program (Q&A official provide fresh Session, - PT Gikoko water supply, Comments and improve Session) their health and education facilities to their settlement. Gikoko's 8th ­ 12th - Interview -Consultant Collecting more data on the Social March session with (Ms. Lestari) community's social condition and Studies 2007 local -Local they response to the LFG Flaring communities communities Project and scavengers - Site Observation - Depth Interview These grievances had been addressed properly. Most of dump trucks now have used a proper canvas fabric cover to minimize the spilled of Waste. The local government has addressed the grievances with regards to closing the truck to prevent the smells since 20th January 2007. The access road condition to Batulayang Landfill site had been improved. Clean Water is provided by truck delivery every two weeks by the local water service company (Perusahaan Daerah Air Minum) free of charge to the residents. And local government will provide the fresh water supply starting 2008. The community development programs will also provide the health and education issues. The local government Puskemas health clinic program has started to provide free health service since February 2007. And the project at the construction phase is employing over thirty local residents for a period of over five to six months. Information regarding representation of groups consulted in terms of ethnicity, gender, age is listed below (see Table 5). 11 Table 5: Information on representation of groups Ià Ihrà Qvvpphvà @uvpà Brqrà 6trÃrhà Dqrvà 1 Rajii Head of RW 04 Batu Layang Madurese Male 50 Secretary of LPM Batu Javanese Male 43 2 Muliansyah Layang 3 Rusni Head of LPM Batu Layang Dayak Male 50 4 Tebung Community figure Dayak Male 55 5 Jumadin Community figure Madurese Male 53 6 Ilyas Community figure Dayak Male 51 7 Syamsul Community figure Madurese Male 50 8 Sumli Community member Madureese Male 30 9 Suyatmin Head of RT 03/RW 03 Javanese Male 36 10 Sahri Head of RT 05/RW 04 Dayak Male 40 Batu Layang landfill Javanese Male 27 11 Subagiyo resident 12 Tata S. Member of LPM Batu Layang Dayak Male 40 13 Gaputo Member of LPM Batu Layang Dayak Male 37 Head of FKPPPI Pontianak Madurese Male 52 14 Nanang Utara 15 M. Ali Batu Layang landfill resident Madurese Male 60 16 Sutisno S. Head of RT 04/RW 04 Javanese Male 35 Ustad Abdul Kholiq Javanese Male 49 17 As. Head of RT 05/RW 15 18 Pak Toto Head of RT 05/RW 15 Javanese Male 40 19 Matrawi Head of RT 04/RW 01 Madurese Male 40 20 Sarifah Batu Layang landfill resident Madurese Female 33 21 Arifin M. Head of RT 01/RW 04 Dayak Male 35 22 Eddy Mulyadi Head of RT 07/RW 04 Javaneese Male 44 23 H. Zaiki resident Madurese Male 27 24 Minon Head of RT 07/RW 04 Dayak Male 33 25 I Wayan Rena Babinkamtib Balinese Male 43 26 Lina Batu Layang landfill resident Madurese Female 20 27 U. Benty Intensification team Dayak Male 46 28 Riza Batu Layang landfill resident Madueese Male 38 29 Satijah Batu Layang landfill resident madurese Female 55 30 Maruli Batu Layang landfill resident Madurese Male 63 Stakeholder meeting was already conducted twice before the project started. In both meeting there were some comments from local communities. The Pontianak Government agreed that they will follow trough on these comments. The comments are as follows: · Secure the dump trucks to prevent spilled of municipal solid waste (MSW) during transportation · The access road need improvements · Leachate from TPA often flows to nearby settlement drainage area · The project should give more job opportunity to local people 12 Pontianak Government has done a significant improvement regarding these comments such as: · Most of dump trucks now have used a proper canvas fabric cover to minimize the spilled of MSW. · Improved of access road condition to Batulayang Landfill site · Improving the ditches along the access road and landfill site · The project at the construction phase are employing over thirty local residents for a period of over five to six months The community's leaders have stated their support for the project and the local government and recognize that the project should bring no harm to them and should not have detrimental effect on their income. And social issues are summarized in table 6. Gikoko and Pontianak government shall continue to maintain good communication with the local communities. 13 & &RPPXQLW\ 'HYHORSPHQW 3ODQ Gikoko plans to leverage its engineering and manufacturing capability to implement its Community Development program, relating to Corporate Social Responsibility Contribution Strategy in order to maximize the magnitude of beneficial social development effect for the local community. For an example, for potable water facility, Gikoko's engineers would be able to apply design expertise and utilize waste heat from the gas flares to sterilize rain water and fabricate the equipment in house without seeking profit contribution in order to stretch out the Community Development budget from contribution of CER. In the MOA it is stated that a tripartite Community Development (CD) program team with representatives from the local communities, the local government and PT Gikoko Kogyo Indonesia is to be formed to plan and implant the programs. The scope of CD program are the local community requirement regarding environmental safeguards, community economic development, socio-cultural development for the children, and capacity building for the occupational health and safety issues of communities living near the landfill. The funding for the program derives from contribution of 7% CERs which is written on The MOA between Pontianak government and PT Gikoko Kogyo Indonesia, Number: MOA/01/I.18/GKI/2007, article 12 sentence 3. Pontianak government and private enterprise wishing to participate in the CD program as part of CSR and philanthropy activities may also augment the funding with cash or contributions in kind. Implementation of CD program is based on self-capacity building and has a long- sustainable term. Planning, implementation, controlled and benefit, which are transparent for public, is to be done from local communities and for local communities. Pontianak Government and PT Gikoko Kogyo Indonesia role are as motivator, facilitator and supervisor of the program. Communities trough its representative are given a major role in this CD program, this is intentionally delivered so that it can empower the local community. At the consultative process there were some issues raised such as fresh water supply, public health improvement, and public education improvement. Gikoko's priority for community development is to assist with improving the safety and occupational hygiene standards of the working parents and provision of alternative activities for their children to keep them away from exposure to substances harmful to help and to aid children's development. Gikoko is certified to IS0 18000 for Occupational Health and Safety Standards and its core business is providing safer working conditions in manufacturing industry with design and manufacture of air quality and dust control systems. Gikoko's recommendation to the CD program team shall concentrate on three main fields: A) Improve the environment of scavengers B) Economic development of recycling activities C) Children's development program D) Monitoring and Evaluation 14 The objectives of the CD programs are therefore to implement appropriate solutions that bring about real, measurable and sustainable improvements in "quality of life", education, income earning opportunity and specific focus on children of the scavenger community. Additional comments Many children drop out of primary school to help the parents economically and Mr Sugeng the Head of the Sanitary department at Pontianak stress the importance of provision of informal education to be provided by the Community Development would be of high social impacts Australian Business Volunteer, ABV, an Australian Aid agency has signed and MOU with Government of Indonesia `s director of informal education and Gikoko is in the process of making application for specialist to design, plan and implement childrens information education programs. A) Improve the environment of scavengers Expertise in these fields shall be applied to control: A.1) Injury risk with the landfill waste delivery truck and operational heavy equipment and risk A.2) Contacts with substances hazardous to health, such as fecal and other potential contaminants that may be contained in left over food delivered by the truck. CD programs should provide of protective gears such as safety boots, nasal masks, thick gloves, goggles and sun hat. Budget for inoculation against hepatitis, tetanus, and influenza shall be planned and provided for. A.3) Installation of washing and hygeine station for the scavengers. Gikoko's engineering capability could be applied to design use of waste heat from the flares to provide warm water dispensing service. Five public water tab and sanitation development will also be provided. A.4) Design and installation of segregated safe waste separation area Function of the Safe area is to keep out scavenger when trucks deliver the waste, prevent heavy equipment from scavenger whiles they take away recyclable material to ensure safe conditions. Design will take some and resources to coordination and consultative works with the local government and the community leaders. Unauthorized personnel should be prevented from entering hazardous or restricted areas. A.5) Dissemination of information to the scavengers and workers regarding occupational health and safety standard · Explain the health and injury risks to scavengers and workers. · Show which protective gear and measures to minimize risks. · State the requirements for use of protective gear and measures. B) Economic development aid Aiding economic development of recycling activities such as provision of press tools compact aluminum cans. At present, small girls squat on the road side and use club to reduce the bulk of the aluminum cans. Gikoko plans to provide ergonomic press tools to aid with compacting aluminum. 15 C) Childrens' development program Small garden patch shall be set aside to supervise children to plant ornamental plants and flowers around the buffer zones. D) Monitoring and Evaluation Monitoring arrangements have been determine in addressing community development plan: o Program evaluation shall be made every quarter of the year for the public record. Plans and progress shall be made transparent in order to gain public accountability on its implementation. o The monitoring and evaluation details will be conducted by all tripartite stakeholders, the Pontianak Government ,Gikoko and the leader of local community that forms Community Development team. o A recognized independent Civil Society shall be invited to annually evaluate the CD programs. Gikoko shall leverage its memberships in the CSR network and chambers of trade to invite corporations to participate in some of the CD programs to provide wider scope of services and activities to supplement the 7% contribution of CERs. All this Community Development Plan are summarized in table 6. Table 6: Community Development Plan 16 Drà Hrhrà UvrAhrà 6trpÃuà 8à Irà rviyrà Improve of the · Individual ***- Each HH Environment of sanitation to 2nd Quarter of 30% of will be supplied Scavengers 33HH*** 2009 available with cement · 5 public water Municipality Fund*,** and closet for tab*** Waste Agency sanitation · Provide shelter of Pontianak development for temporary ***- Public tab waste collection will be 6x20m executed by the · Provide peoples inoculation against hepatitis 2nd Quarter of and tetanus. 2010 · Provide washing station for the 2nd Quarter of scavengers 2009 · Dissemination of information to PT Gikoko the scavengers 1st Quarter of Kogyo and workers 2008 Indonesia regarding occupational health and safety standard (see A5. page 15) · Provide a 2nd Quarter of segregated safe 2010 waste separation Municipality area Waste Agency of Pontianak Limit hours of work Immediately: - Noise and Vibration adjacent to house bulldozers (1 Person complain) next to landfill. work for only None HhÃhssÃuhrà once for 2-3 rhpurqÃhà hours qrhqvtÃvuà urÃpprrqà rvqrà à à 3 years (on at - Unhealthy location Relocation for time a new Municipality Rp 150,000,000 of dormitory better situation expansion of Waste Agency = US$ 16,000 new cell) of Pontianak (According to Mr. Sugeng Head of Municipality Waste Agency of Pontianak ) Economic · Provide 1st Quarter of PT Gikoko development of ergonomic press 2008 Kogyo recycling activities tools Indonesia 20% of · Provide free seed available of vegetables, Municipality Fund* agriculture tools Waste Agency (mattock, grass of Pontianak knife) and fertilizer to 33HH Children's · Provide non- development formal education programs equal to primary Municipality school (Paket A Education for around 50 Agency children) 30% of · Provide non- available formal education Fund* equal to yunior high school (Paket B for around 30 17 children) · Provide small garden patch to supervise 2nd Quarter of PT Gikoko children to plant 2010 Kogyo flowers and Indonesia ornamental plants Social · Renovate/upgrade Municipality - Renovation of Mosque (Surau) Waste Agency the Mosque · Hiring good of Pontianak will be facilitators, at executed by the least 2 facilitators community alone - Facilitators should be non- government official. Monitoring & · Monitoring and Municipality Evaluation evaluation will be Waste Agency 20% of reported every of Pontianak available quarterly assisted by PT Fund* Gikoko Note: *7% contribution of CERs and Regional Government Budget of Pontianak (APBD). **It is estimate that it takes 2-3 years to build up collection capability to maximum (35,000 ton per year x US$7 x 7% = US$ 17,150, before applicable tax deductions if any). Therefore for the first year it may be 30% of the average or US$5145, so only enough to do training. Based on the interview with Head of Municipality Waste Agency of Pontianak the implementation of this plan should be facilitated by capable facilitator. The facilitator is to bridge communication between the local government and the community and also to encourage willingness of the people to participate actively in this program. ' 5HIHUHQFHV 1. Anonym, (2007); Perjanjian Kerjasama antara Pemerintah Kota Pontianak dengan PT Gikoko Kogyo Indonesia. 2. Cointreau, S., (2006); The World Bank Group: Occupational and Environmental Health Issues of Solid Waste Management Special Emphasis on Middle- and Lower-Income Countries 3. Kantor Pertanahan Kota Pontianak, (2006); Rencana Perluasan Lokasi TPA 4. Pemerintah Kota Pontianak, (2006); Laporan Utama Analisis Dampak Lingkungan (ANDAL) 5. PT Gikoko Kogyo Indonesia, (2007); Laporan Kajian Sosial Masyarakat di sekitar TPA Batulayang Kecamatan Pontianak Utara ­ Kota Pontianak. 6. PT Gikoko Kogyo Indonesia, (2007); Stakeholder Meeting Report, December 27th 2006 7. PT Gikoko Kogyo Indonesia, (2007); Stakeholder Meeting Report, January 31st 2006 8. The World Bank, (2001); Operational Policies 4.12 9. The World Bank, (2001); Operational Policies 4.10 18 19