Environmental and Social Impact Assessment · KA-ANDAL Kerangka Acuan Analisis Dampak Lingkungan...
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Environmental and Social Impact Assessment
Supplementary ESIA (NIL-E1) – Vol III Social Impact Assessment May 2018
INO: Sarulla Geothermal Power Prepared by Mott MacDonald for the Sarulla Operations Limited and the Asian Development Bank. This environmental and social impact assessment is a document of the borrower. The views expressed herein do not necessarily represent those of ADB's Board of Directors, Management, or staff, and may be preliminary in nature. In preparing any country program or strategy, financing any project, or by making any designation of or reference to a particular territory or geographic area in this document, the Asian Development Bank does not intend to make any judgments as to the legal or other status of any territory or area.
Sarulla Geothermal Power Project - Supplementary
ESIA (NIL-E1)
Volume III- Social Impact Assessment
May 2018
Sarulla Operations Ltd
351208 PWR PHR 33 B
Volume III - Social Impact Assessment
21 December 2016
Sarulla Geothermal Power - Supplementary ESIA (NIL-E1)
Volume III- Social Impact Assessment
Sarulla Geothermal Power Project - Supplementary ESIA (NIL-E1)
Volume III- Social Impact Assessment
May 2018
Sarulla Operations Ltd
The Energy 50th Floor SCBD Lot 11A Jl.Jend.Sudirman Kav 52-53, Jakarta 12190 - Indonesia
Mott MacDonald, Orchard Building, 1 Grange Road, #07-01, Singapore, 239693
T+65 6293 1900 F +65 6293 1911 W www.mottmac.com
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Revision Date Originator Checker Approver Description A 21 October 2016 T Streather
P Gouws K Murnane K Haymon
M Lupton K Haymon Draft issue – for client review
B 23 December 2016 K Haymon B Lim K Haymon Final report
C 3 April 2018 D Pu S Arora B Lim Third issue
D 15 May 2018 D Pu B Lim B Lim Fourth issue Note that commercially sensitive details have been removed from this document for disclosure purposes.
Issue and revision record
Information class: Secure
This document is issued for the party which commissioned it and for specific purposes connected with the above-captioned project only. It should not be relied upon by any other party or used for any other purpose.
We accept no responsibility for the consequences of this document being relied upon by any other party, or being used for any other purpose, or containing any error or omission which is due to an error or omission in data supplied to us by other parties.
This document contains confidential information and proprietary intellectual property. It should not be shown to other parties without consent from us and from the party which commissioned it.
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Chapter Title Page
Acronyms and abbreviations i
1 Introduction 1 1.1 Overview __________________________________________________________________________ 1 1.2 Objectives _________________________________________________________________________ 2 1.3 Overall ESIA structure ________________________________________________________________ 2 1.4 Document structure __________________________________________________________________ 1
2 Project description 2 2.1 Project overview ____________________________________________________________________ 2 2.2 Project location _____________________________________________________________________ 3 2.3 Project components __________________________________________________________________ 4 2.4 NIL-E1 Scope ______________________________________________________________________ 6
3 Social impact assessment 9 3.1 Overview __________________________________________________________________________ 9 3.2 Data sources _______________________________________________________________________ 9 3.3 Spatial scope of assessment ___________________________________________________________ 9
4 Socioeconomic baseline 11 4.1 Overview _________________________________________________________________________ 11 4.2 Demographic overview ______________________________________________________________ 11 4.3 Ethnicity and religion ________________________________________________________________ 13 4.4 Economy and employment ___________________________________________________________ 15 4.5 Agricultural economy ________________________________________________________________ 17 4.6 Education and skills _________________________________________________________________ 17 4.7 Access to community services and infrastructure __________________________________________ 18 4.8 Ecosystem services _________________________________________________________________ 21 4.9 Gender relations ___________________________________________________________________ 21 4.10 Cultural Heritage ___________________________________________________________________ 22 4.11 Poverty, deprivation and vulnerable groups ______________________________________________ 22
5 Impact assessment 24 5.1 Overview _________________________________________________________________________ 24 5.2 Determining significance of impacts ____________________________________________________ 24 5.3 Receptor sensitivity methodology ______________________________________________________ 25 5.4 Livelihoods ________________________________________________________________________ 26 5.5 Labour and working conditions ________________________________________________________ 26
6 Project risks and opportunities 28
Contents
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6.1 Overview _________________________________________________________________________ 28
7 Mitigation and enhancement measures 30 7.1 Occupational health and safety management plan _________________________________________ 30 7.2 Community health and safety plan _____________________________________________________ 30 7.3 Security management plan ___________________________________________________________ 32 7.4 Labour management plan ____________________________________________________________ 33 7.5 Resettlement plan __________________________________________________________________ 33 7.6 Integrated social program ____________________________________________________________ 34
8 Residual impacts 36 8.1 Cumulative impacts _________________________________________________________________ 36
9 Information disclosure, consultation and participation 38 9.1 Overview _________________________________________________________________________ 38 9.2 Principles of consultation _____________________________________________________________ 38 9.3 Consultation requirements ___________________________________________________________ 38 9.4 Stakeholder engagement ____________________________________________________________ 42 9.5 Consultation activities and outcomes ___________________________________________________ 43 9.6 Consultation outcomes ______________________________________________________________ 44 9.7 Grievance mechanism _______________________________________________________________ 45
10 Summary 46
Appendices 47 Appendix A. Households affected by land acquisition _________________________________________________ 48
Tables
Table 3.1: Overview of geographical and administrative areas included within each Projects local AoI _________ 10 Table 4.1: Demographic overview of local AoI _____________________________________________________ 12 Table 4.2: Sub-district growth rates _____________________________________________________________ 13 Table 4.3: Unemployment statistics for Indonesia __________________________________________________ 15 Table 4.4: Main employment sectors in Indonesia between 2012-2014 _________________________________ 15 Table 4.5: Percentage of population aged over 15 by employment status _______________________________ 16 Table 4.6: Percentage of employment by industry sector in regional AoI ________________________________ 16 Table 4.7: Main crops in the regional and local AoI _________________________________________________ 17 Table 4.8: Indonesia net enrolment rates from primary to tertiary education ______________________________ 17 Table 4.9: Schools in the local AoI ______________________________________________________________ 18 Table 4.10: Number of households with access to electricity in the local AoI ______________________________ 20 Table 4.11: Road conditions in the regional AoI _____________________________________________________ 20 Table 4.12: Health facilities in the local AoI ________________________________________________________ 20 Table 4.13: Health workers in the local AoI ________________________________________________________ 21 Table 4.14: Provisioning services in the local AoI ___________________________________________________ 21
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Table 5.1: Magnitude criteria __________________________________________________________________ 24 Table 5.2: Sensitivity criteria ___________________________________________________________________ 26 Table 5.3: Affected landowners ________________________________________________________________ 26 Table 7.1: Monitoring plan on community health and safety aspects during construction ____________________ 30 Table 7.2: ISP target villages __________________________________________________________________ 35 Table 8.1: Residual impacts ___________________________________________________________________ 37 Table 9.1: Consultation activities for NIL-E1 Scope _________________________________________________ 43 Table 9.2: List of stakeholder concerns raised and corresponding action to address _______________________ 44 Table A.1: Landowners _______________________________________________________________________ 48
Figures
Figure 2.1: Project location in Sumatra ____________________________________________________________ 3 Figure 2.2: Well pad NIL-E1 location with respect to the existing Project __________________________________ 4 Figure 2.3: Project components (NIL area) with NIL-E1 Scope __________________________________________ 5 Figure 2.4: Works required at various sections of the proposed pipeline __________________________________ 7 Figure 2.5: NIL-E1 well pad and nearby receptors ___________________________________________________ 8 Figure 3.1: Tapanuli regency district map _________________________________________________________ 10 Figure 4.1: Population of Indonesia, 2014 _________________________________________________________ 12 Figure 4.2: Breakdown of six ethnic groups considered to be Batak ____________________________________ 14
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ACs Affected Communities
ADB Asian Development Bank
AMDAL Analisi0073 Mengenai Dampak Lingkungan (Indonesian ESIA process)
ANDAL Analisis Dampak Lingkungan Hidup (Indonesian ESIA report)
AoI Area of Influence
CHS Community health and safety
E&S Environmental and social
EHS Environmental, health and safety
EMMP Environmental Management and Monitoring Plan
EP Equator Principles
EPFI Equator Principles Financing Institution
ERM Environmental Resource Management (the ANDAL consultant)
ESIA Environmental and social impact assessment
ESMP Environmental and Social Management Plan
FC Financial Close
FPIC Free Prior and Informed Consent
H&S Health and safety
HSE Health, safety and environment
IAIA International Association for Impact Assessment
Acronyms and abbreviations
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IFC International Finance Corporation
ISP Integrated Social Program
JBIC Japanese Bank for International Cooperation
KA-ANDAL Kerangka Acuan Analisis Dampak Lingkungan Hidup (term of reference for environmental impact analysis)
LMP Labour Management Plan
NIL Namora I Langit
NTP Notice To Proceed
OECD Organisation for Economic Co-operation and Development
OHS Occupational health and safety
PLN Perusahaan Listrik Negara(translates as “State Electricity Company”, an Indonesian government-owned corporation)
PPE Personal protective equipment
PS (IFC) Performance Standards
RP Resettlement Plan
RPJMD Rencana Permbangunan Jangka Menengah Desa (village mid-term development plan )
SEP Stakeholder engagement plan
SIA Social Impact Assessment
SIL Silangkitang
SOL Sarulla Operations Limited
SPS (ADB) Safeguard Policy Statement
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SR (ADB) Safeguard Requirement
STIs Sexually Transmitted Infections
TB Tuberculosis
UNSG Unocal North Sumatera Geothermal
WBG World Bank Group
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1.1 Overview
Sarulla Operations Limited (SOL) is the operation company established by the consortium of Itochu Corporation, Kyushu Electric Power Co., Inc., Ormat International, Inc. and PT. Medco Energi International Tbk. SOL plans to develop a geothermal power plant with a combined capacity of 330 MW (herein known as the “Project”) in Sarulla, Pahae Jae and Pahae Julu districts, North Tapanuli Regency, North Sumatera Province.
SOL is committed to implementing the Project in compliance with Indonesian legislation and lenders’ requirements, including those of the Japanese Bank for International Cooperation (JBIC), Asian Development Bank (ADB) and Equator Principles Financing Institutions (EPFIs). Together, these standards and guidelines form the Applicable Standards of the Project.
An Indonesian Environmental and Social Impact Assessment (ESIA) report known as Analisis Dampak Lingkungan Hidup(ANDAL)was prepared for the Project and approved by the Governor of North Sumatra Province in August 2009. Subsequently, as there were substantial changes to well pads locations, an Addendum ANDAL was drafted by SOL in July 2013, and approved by the government in October 2013. In addition to the ANDAL (and its addendum), a five volume ESIA documentation package1 was drafted by Environmental Resources Management (ERM) for compliance with lenders’ requirements and was publicly disclosed on the ADB website in October 2013. The Project achieved Financial Close, obtaining project financing through JBIC, ADB and six EPFIs in May2014.
In 2015, additional well pads were determined to be required for the Project due to the insufficient capacity of the existing re-injection wells. This is attributed to a combination of unsatisfactory results from injectivity tests (i.e. gauge of a re-injection well’s viability) and well abandonment (i.e. due to high pressure gas zone at shallow depths). The additional well pads required for the northern and southern geothermal fields were NIL-3n and SIL-3n. The environmental assessments of these scope of works were as detailed in a separate supplementary ESIA2. With regard to local compliance, an ANDAL Addendum covering the scope of works of SIL-3n (and its associated pipeline) was approved by the Governor of North Sumatra in September 2016. No additional Addendum was undertaken for NIL-3n’s scope, as it was included in the July 2013 AMDAL Addendum.
Subsequently in 2016, despite the increase in number of wells at NIL-3n well pad in the northern geothermal field, additional re-injection wells (to be located in the new well pad NIL-E1) were determined to be required in the NIL area. SOL commissioned Mott MacDonald to undertake this supplementary ESIA in order to address the impacts from the additional NIL-E1 well pad, which has been prepared in accordance with the requirements of the Indonesian regulations and the Applicable Standards. The scope of this
1The five volume ESIA documentation (all issued in October 2013) are: Volume I - Environmental Compliance Audit Report, Volume II
– ESIA Addendum, Volume III – Indigenous People Plan, Volume IV – Resettlement Plan, and Volume V - Social Safeguards Compliance Audit Report.
2The five volume ESIA documentation (issued in October 2016) includes: Non-technical summary, Volume I - Introduction, Volume II – Environmental impact assessment, Volume III – Social impact assessment, Volume IV – Conclusion (including environmental monitoring and management plan). Please refer to documents: 351208/PWR/PHR/30 to 34.
1 Introduction
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supplementary ESIA covers the construction and operation of the additional well pad NIL-E1 access roads and reinjection pipelines (herein referred to as the “NIL-E1 Scope”).
1.2 Objectives
The ESIA outlined in this suite of documents aims to satisfy the following objectives:
comply with the requirements of the Indonesian legal and institutional framework, the Applicable Standards and International Finance Corporation (IFC)Performance Standards (PS) for undertaking an ESIA for Category A projects
identify and assess environmental and social (E&S) impacts, both adverse and beneficial in the Project’s Area of Influence (AoI)
avoid, or where avoidance is not possible, minimise, mitigate or compensate for likely adverse impacts on workers, affected communities and the environment
ensure that affected communities are appropriately engaged on issues that could potentially affect them
promote improved E&S performance through the effective use of natural resources, social networks and management systems
1.3 Overall ESIA structure
The supplementary ESIA is divided into the following volumes:
Non-technical summary
Volume I – Introduction
Volume II – Environmental impact assessment
Volume III (this volume) – Social impact assessment
Volume IV – Conclusion and environmental management and monitoring plan (EMMP)
Land Acquisition Plan (NIL-E1)
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1.4 Document structure
This document is structured as follows:
Section1 - Introduction
Section 2 - Project description
Section 3 - Social impact assessment
Section 4 - Socioeconomic baseline
Section 5 - Impact assessment
Section 6 - Project risks and opportunities
Section 7 - Mitigation and enhancement measures
Section 8 - Residual impacts
Section 9 - Information disclosure, consultation and participation
Section 10 - Summary
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2.1 Project overview
Upon obtaining project financing in May 2014, the Project formally issued Notice to Proceed (NTP) to the appointed contractors for commencement of construction. The overall Project comprised the development of two geothermal fields within the Sarulla valley which included the following activities:
development of Sarulla geothermal fields namely Silangkitang (SIL) field and Namora I Langit (NIL) field
construction and operation of a geothermal power plant with a combined capacity of 330 MW, consisting of one unit at SIL and two units at NIL, with each unit having a nominal capacity of 110 MW
construction of a 14km-long 150 kV (high voltage) overhead transmission line from: – SIL power plant to Perusahaan Listrik Negara (PLN) substation – NIL power plant to PLN substation.
Three 110MW Integrated Geothermal Combined Cycle Units (IGCCU), namely SIL-1, NIL-1 and NIL-2, are developed in three consecutive phases. Planned Commercial Operation Date (COD) of each unit is as follows:
first generating unit – SIL-1 – end of December 2016
second generating unit – NIL-1 - 23 September 2017
third generating unit – NIL-2 - 23 March 2018
The main activities to be conducted as part of the geothermal power generation project are as follows:
extraction of hot brine and steam from geothermal reservoirs through production wells, to be piped to the power plant
generation of electricity from the heat of the brine and steam through turbines and generators
condensate and waste brine streams from the power plant to be transferred to the reinjection well and reinjected into the underground reservoir.
As mentioned above, the reinjection wells at the Project’s current well pads in the NIL area were deemed insufficient to provide the required reinjection capacity. Hence, the new NIL-E1 well pad is required to be developed to meet the Project’s requirements.
2 Project description
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2.2 Project location
The Project is located in North Tapanuli Regency, North Sumatera Province, Indonesia (see Figure 2.1). The Project area is approximately 40 km south of Tarutung along the Trans-Sumatran Highway (TSH) (Tarutung – Sipirok). Administratively, NIL is located in Pahae Julu kecamatan (sub-district), and SIL is located in Pahae Jae sub-district. Both sub-districts sit within the North Tapanuli Regency in North Sumatera Province, Indonesia.
Figure 2.1: Project location in Sumatra
Source: ESIA Addendum, 2013
With respect to the existing Project, the NIL-E1 well pad is located in the NIL area adjacent to the TSH. It should be noted that it is the only well pad (within the NIL area) located to the east of the TSH and Batang Toru River (see Figure 2.2and Figure 2.3).
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Figure 2.2: Well pad NIL-E1 location with respect to the existing Project
Source: Mott MacDonald
2.3 Project components
The NIL-E1 Scope with respect to the components of the existing Project (NIL area) is shown in Figure 2.3.While the NIL-E1 Scope is the only well pad located east of the TSH and across from the existing Project, the reinjection pipeline will be laid along the existing Project road within the NIL area as it connects to the NIL power plant (see Figure 2.3)
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Figure 2.3: Project components (NIL area) with NIL-E1 Scope
Source: Mott MacDonald
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As mentioned in previous section, the scope of this SIA will only cover the assessment of NIL-E1 Scope, as described in Section2.4below. A comprehensive description of the project components and supporting infrastructure and facilities for NIL-E1 Scope is included in Volume I.
2.4 NIL-E1 Scope
As described in detail within Section 2.4.2 of Volume I, the NIL-E1 Scope is subject to assessment within this supplementary ESIA and comprises the following:
NIL-E1 well pad, located in Janjinatogu village, Pahae Julu sub-district with dimensions of 160 x 120m2 (19,200m2) whereby up to five reinjection wells will be drilled. It will occupy a total area of 30,000 m2 when the perimeter slope cutting is included
120m long new access road to the well pad, branching out from the TSH just south of Janjinatogu village
associated site run-off drainage for NIL-E1 well pad to be constructed, as well as diversion of any existing community channels/drainages affected by NIL-E1 works (i.e. both well pad and pipeline)
temporary 2 x 6” water pipeline to be constructed from the existing pumping station at the Batang Toru River to the NIL-E1 well pad, whereby between 330 to 500m3/day of water is expected to be abstracted from the Batang Toru River for drilling
4km of reinjection pipeline (from the well pad to NIL power plant) to be laid (see Figure 2.4 for full alignment of pipeline), whereby: – 550m of pipeline from the well pad to Hamilton Bridge (including 120m along the proposed new
access road and crossing TSH), to be laid in a new corridor which requires land acquisition, site clearing and earthworks
– 3,450m of pipeline from Hamilton Bridge to NIL power plant, to be laid in either along Project road or within existing pipeline corridor
The locations of receptors (i.e. residential housing) from potential impacts (e.g. dust, noise) of the NIL-E1 Scope are shown in Figure 2.5.
The pipeline corridor for the re-injection pipeline from Hamilton Bridge to the NIL power plant (i.e. 3.45km) lies within land already acquired by the Project. This is because the pipeline is to be laid alongside Project roads, which SOL already owns, including a road reserve buffer. The well pad, access road (from TSH), pumping station, drainage channel and a portion of the re-injection pipeline (i.e. length of 550m, from well pad to Hamilton Bridge) are to be located on land currently not owned by the Project. This land will need to be acquired from local land owners. A Land Acquisition Plan (LAP) has been drafted to summarise the land acquisition process that will be undertaken.
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Figure 2.4: Works required at various sections of the proposed pipeline
Source: Mott MacDonald
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Figure 2.5: NIL-E1 well pad and nearby receptors
Source: Mott MacDonald
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3.1 Overview
This volume describes how people and communities may be affected as a result of the Project in terms of the way they live, work and interacts with one another on a day-to-day basis. The broad objectives of this assessment are to ensure that key potential socio-economic and community impacts are identified, assessed, mitigated and managed in a consultative and constructive manner.
Social impacts identified as significant for the NIL-E1 Scope included employment generation, land acquisition and the beneficial impact of the expansion of the access road. Consideration has also been given to avoiding and mitigating occupational and community health, safety and security risks from construction activities.
3.2 Data sources
National, provincial, regency and district level information has been predominantly obtained from secondary sources, while local village level information was collected during the socioeconomic census to inform the land acquisition process. Specific types of primary data collected to inform this social impact assessment (SIA) include:
ESIA consultation activities and stakeholder comments
interviews with local government officials
visual observations and photographs from site visits
Specific sources of secondary data used include:
census data provided by the Central Bureau of Statistics, Indonesia
AMDAL (national EIA) documentation
websites and reports from International Financial Institutions, donor organisations, academics, NGOs and other bodies
3.2.1 Data limitations and assumptions
The key limitation is related to the consistency of secondary statistical data which is sometimes contradictory between district and regency level. Site visit observations and conclusions provided some insight into local information but were not able to compensate for the missing data in all cases.
3.3 Spatial scope of assessment
The Project’s AoI encompasses all areas directly and indirectly affected by Project components. The spatial scope of the social impact assessment has been defined by geographical and administrative boundaries which in the case of Indonesia are divided into: provinces (Provinsi), regencies (Kabupaten), sub-districts (Kecamatan), villages (Desa) and sub-villages. This SIA has used these administrative boundaries to define the Project’s AoI.
3 Social impact assessment
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The wider AoI can be considered to be Indonesia as a whole for impacts of national significance. The North Tapanuli Regency, which consists of 15 districts as shown in Figure 3.1below, is considered the regional AoI.
Figure 3.1: Tapanuli regency district map
Source: Badan Pusat Statistik, Kabupaten Tapanuli Utara dalam Angka, 2015
The NIL-E1 Scope components are located in the sub-district of Pahae Julu. The villages and sub-villages closest to each of the Project components, as identified in Table 3.1 below, are considered the local AoI.
Table 3.1: Overview of geographical and administrative areas included within each Projects local AoI
Project component
Sub-district Village Approximate distance (metres)3
Notes
NIL-E1 Well Pad
Access Road
Reinjection pipeline
Temporary intake station
Pahae Julu Janjinatgou Reinjection pipeline – 550m
Access Road – 120m
All elements within Janjinatogu are on land not currently owned by the project. This includes the 550m of land required for the reinjection pipeline between Hamilton Bridge and the well pad
Pipeline Pahae Julu Lumban Jaean 3.6km All land for these sections of the pipeline (i.e. from Hamilton Bridge to NIL power plant) are within corridors already owned by the Project and thus no land acquisition is required
Simataniari
More specifically, the local AoI comprises 34 households (HH) that will be directly impacted by land acquisition activities.
3 From component to sub-village settlement where most social receptors are clustered
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4.1 Overview
This section describes the socio-economic conditions of the assessment area prior to the construction of the NIL-E1 Scope and includes the following aspects:
demographic overview
ethnicity and religion
economy and employment
agricultural economy
education and skills
access to community services and infrastructure
ecosystem services
gender relations
culture heritage
poverty, deprivation and vulnerable groups
The potentially affected people are identified at the end of the social baseline and the methodology for determining sensitivity is presented below.
A basic socio-economic survey was undertaken as part of the development of this supplementary ESIA and the Land Acquisition Plan (LAP). The survey provided information for the development of the LAP, with interviews conducted with household heads to gather basic census data (house construction, vehicle ownership, number of residents, and age and education level of household head), determine land ownership and livelihoods, as well as general perceptions of the Project. The results from the survey have been used to supplement other sources of information, where appropriate, and guide impact assessment with regards to land acquisition and livelihoods.
4.2 Demographic overview
Indonesia is the fourth most populated country in the world, with a population of approximately 246.9 million people and an annual growth rate of approximately 1.2%. In 2013, 26.6% of the population was below 15 years of age, 66.9% were 15-65 years of age and 6.4% were over 65 years of age. However, the population is aging, and between 2000 and 2010 Indonesia experienced a 3.5% decrease in under 15 year olds. Figure 4.1 demonstrates the demographic breakdown by gender for the Indonesian population.
4 Socioeconomic baseline
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Figure 4.1: Population of Indonesia, 2014
Source: CIA World Factbook (2014)
Migration from rural to urban areas for economic reasons has become common in Indonesia in recent times, with people switching locations either on a day-to-day or on a more seasonal basis. Despite this, the province of North Sumatra and the affected Regency of North Tapanuli are largely rural. Table 4.1 provides a demographic overview of the local AoI.
Table 4.1: Demographic overview of local AoI
Sub-district / Village name
Population (people) Population Density
(people/km2) Gender Ratio* Male Female Total
Pahae Julu
Janjinatgou 342 339 681 80 100.88
Lumban Jaean 247 272 519 59 90.80
Simataniari 249 220 469 57 113.18
Total 838 831 1,669 100.84
Source: Pahae Julu Sub-district in Figure, 2016 *number of male to 100 females in the population
Simataniari has the lowest population density of the three villages in the local AoI, with Janjinatogu (the site of the most intensive project development and land acquisition) having both the highest population and density. Whilst both Lumban Jaean and Simataniari have skewed gender ratio’s, the even gender split within Janjinatogu brings the overall ratio to 100.84. Most of the population within the Project’s local AoI originate from the area, few are in-migrants and most have been settled in the area for more than 10 years. Overall population growth for Pahae Julu has been steady since 2011 as shown in Table 4.2.
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Table 4.2: Sub-district growth rates
Sub-district
Population (people)
2006 2010 2011 2013 2014 2015
Pahae Julu 12,132 11,801 11,902 12,078 12,236 12,343
Source: Pahae Jae and Pahae Julu Sub-district in Figures, 2015
4.3 Ethnicity and religion
Due to Indonesia’s historical importance as a centre for regional trade as well the relatively recent trend of trans-migration to reduce population density in over-crowded areas in Java and Sumatra, the country today is culturally, ethnically and linguistically diverse with a large variety of tribal groups and around 500 languages and dialects being spoken. The national language is Bahasa Indonesia (Bahasa). The largest ethnic group of Indonesians are the Javanese, making up 40.6% of the population. The Javanese are also politically dominant. Islam is the majority religion in Indonesia with approximately 86.1% of the population identifying as Muslim. The Government of Indonesia officially recognises five other religions: Protestantism, Catholicism, Hinduism, Buddhism and Confucianism.
In the northern-central part of Sumatra live the Batak peoples, who comprise six distinct ethnic groups - Pakpak, Karo, Simalungun, Toba, Angkola and Mandailing, who collectively account for around four million people. This makes the Batak one of the largest ethnic groups in Indonesia, a country which hosts over three hundred distinct ethnolinguistic minorities. The term ‘Batak’ is used for the distinct ethnic communities aforementioned who have maintained chiefly polities in northern Sumatra and have continuously inhabited the region around the Bukit Barisan mountain range and Lake Toba throughout modern history.
Belonging to the Austronesian language family, the Batak languages are divided into three main linguistic groups:4
Southern Batak, consisting of Mandailing, Angkola and Toba
Northern Batak, consisting of the Pakpak/Dairi and Karo
Central Batak, consisting of the Simalungun group in the northeast
Figure 4.2 shows a breakdown of the locations of the six ethnic groups referred to as ‘Batak’.
4University of Michigan, Who are the Batak?, 2009
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Figure 4.2: Breakdown of six ethnic groups considered to be Batak
Source: University of Michigan, Museum of Anthropology, 2009
The 2013 socioeconomic survey5 identified two main Batak sub-groups settled within the Project area, i.e. Batak Toba and Batak Karo. In addition to the Batak, other minority ethnic groups residing in the area are in-migrants (Javanese, Sundanese, and Nias). Batak Toba is the predominant group within the two sub-districts; almost 50% of the community in Pahae Jae and Pahae Julu are identified as Batak Toba. All households interviewed during the 2013 survey identified as Batak Toba. Mott MacDonald considers the Batak to be indigenous given that they fulfil all four of the criteria in IFC PS7, as discussed in the previous Indigenous Peoples Plan (IPP) prepared for the Project (November 2015)6 and previous Supplementary ESIAs prepared by Mott MacDonald (eg NIL-3n and SIL-3n ESIA7).
It is considered that the Batak people have been meaningfully engaged through an ongoing process of informed consultation and participation in previous consultation events. Company representatives capable of speaking in local dialects have been present for all public consultation events.
5 Original Project ESIA Volume III: Indigenous Peoples Plan, ERM, 2012.
6 SOL (November 2015). Sarulla Geothermal Power Development Project - Indigenous Peoples Plan. Available at https://www.adb.org/projects/documents/ino-sarulla-geothermal-power-generation-nov-2015-ipp
7 Mott MacDonald (January 2017). Sarulla Geothermal Power Project - Supplementary ESIA (NIL-3n and SIL-3n). Volume III – Social Impact Assessment. Revision C. Document reference: 351208/PWR/PHR/13/C 31 January 2017
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4.4 Economy and employment
Indonesia has been experiencing robust macroeconomic growth over the last five years. The country has a large informal sector - both in rural and urban areas – that still plays an important role in Indonesia's economy. From 55% to 65% of employment in Indonesia is informal, the majority of which is located in rural areas with particular focus on the construction and agricultural sectors.8
Indonesia has been experiencing a steady decrease in its unemployment from 10.3% in 2006 to 5.9% in 2014. Moreover, there has been a positive impact on female unemployment which has decreased more rapidly than male unemployment over the last few years,9 which is likely to be attributed to higher educational attainment by females as discussed in section 4.6. However, youth unemployment has experienced an increase with a large number of young graduates currently unemployed. Table 4.3 below provides an overview of unemployment statistics for Indonesia.
Table 4.3: Unemployment statistics for Indonesia
2012 2013
Unemployment (% of total labour force) 6.1 6.2
Unemployment female (% of total labour force) 6.8 6.4
Unemployment male (% of total labour force) 5.8 6.0
Unemployment of 15-24 year olds (% of total labour force) 19.3 31.3
Vulnerable employment10 (% of total employment) 50.0 33.0
Source: World Bank, Indonesia Economic Quarterly, ‘In times of global volatility’, October 2015
The services sector has replaced the agricultural sector as the main employer in Indonesia; however, this is not representative for the Project’s local AoI, as agriculture is still the main source of income. Table 4.4 below indicates the percentage of total workforce present in the top three sectors of employment in Indonesia between 2012 and 2014.
Table 4.4: Main employment sectors in Indonesia between 2012-2014
Sector 2012 2013 2014
Agriculture (% of total employment)
35 35 34
Industry (% of total employment)
22 20 21
Services (% of total employment)
43 45 45
Source: World Bank, Indonesia Economic Quarterly, ‘In times of global volatility’, October 2015
As indicated in Table 4.5 below, unemployment rates in the regional AoI are significantly lower than national levels, thus underlining the importance of sourcing workers from outside the immediate area with regard to direct and indirect Project employment opportunities.
8 Indonesia Investments, Van der Schaar Investments B.V, retrieved November 2015 from: http://www.indonesia-
investments.com/about-us/who-we-are/item113
9 World Bank Data, World Development Indicators, Indonesia, 2012-2013
10 Vulnerable employment is unpaid family workers and own-account workers
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Table 4.5: Percentage of population aged over 15 by employment status
Male Female Total
Workforce 87.51 87.62 87.57
Working 85.27 85.75 85.51
Unemployed 0.5 0.47 0.49
Never worked 1.71 1.39 1.55
Non workforce 12.49 12.38 12.44
School 5.62 3.92 4.77
Taking care of house 2.13 5.71 3.92
Other 4.74 2.75 3.75
Total (workforce and non-workforce) 100 100 100
Source: Strategic Data North Tapanuli Regency, 2014
Considering that the majority of people are employed in the agricultural sector as shown in Table 4.6, the existing local skills base for construction work is likely to be low. However, as this is an extension to the existing Project, the existing manpower in the Project area is likely to continue to work on the NIL-E1 Scope.
Table 4.6: Percentage of employment by industry sector in regional AoI
Industry Male Female Total
Agriculture, horticulture, forestry, hunting and fishing
75.49 73.42 74.41
Mining and Quarrying 0.26 0.00 0.13
Industry 1.43 4.4 2.97
Electricity, gas and water 0.09 0.00 0.04
Construction 4.38 0.00 2.11
Trading house dining and services accommodation
5.03 7.3 6.21
Transportation, warehousing and communications
2.97 0.35 1.61
Financial institutions, leasing building and services companies
0.80 0.17 0.47
Social service, social and individual 9.55 14.36 12.05
Total 100 100 100
Source: Strategic Data North Tapanuli Regency, 2014
As the land acquisition for the NIL-E1 Scope is taking place within a rural context, households that participated in the socioeconomic surveys for the land acquisition process reported that farming formed at least part of their livelihoods and household income. Additionally, only five households noted that income from agriculture was their only form on income. The remaining households reported income being derived from a range of other sources – including salaried labour with local contractors, small enterprises (such as road side stalls and restaurants), semi-skilled occupations such as a mechanic or tailor, or financial assistance being provided by family members who were working outside of the area. Additionally, whilst rice was the predominant crop, some households reported other assets such as fish ponds, livestock and rice mills. This diversity in livelihood source is often not reflected in official census data (collection templates often do not allow to note multiple or informal livelihood types) however it is increasingly
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common within agricultural communities. Those households pursuing a diversified livelihood strategy will generally have greater capacity to absorb change and react to external pressures such as poor harvests due to drought.
4.5 Agricultural economy
The agricultural sector (rice, plantations, fisheries and livestock) drives economic development in North Tapanuli; it is the highest contributor to the regions’ income. North Tapanuli is also famous for tourism due to the presence of Lake Toba, the largest lake in South East Asia; 6.6 km area of Danau Toba is part of this regency. The regency is also derived of forestry. Of the 268,281.24 ha of forestry area in the regency, 55,562.15 is protected forest, while 2,228.51 is conservation forest.11
As previously stated, even though under the broader national context of the service sector taking over as the largest employer, the main source of income in the regional AoI remains agriculture. Table 4.7 shows the main crops present in the regional AoI (based on harvest area) as being rice (primarily wet paddy) supplemented by maize, peanut, cassava and sweet potato. Whilst disaggregated data is not available for Pahae Julu sub-district, the overall figures shows a proportionally slightly heavier reliance upon rice as the main harvest than regional figures.
Table 4.7: Main crops in the regional and local AoI
Crop Harvest area (Ha) Annual production (T) Yield rate (kg/Ha)
Regional Sub-District Regional Sub-District Regional Sub-District
Wet Land Paddy 24,055 2,180 138,519.24 13,407.37 57.58 61.49
Dry Land Paddy 3,535 0 11,983.47 0 33.90 0
Maize 2,935 7 14,793.71 34.59 50.40 49.41
Peanut 1,382 20 2,459.90 39.26 17.80 19.63
Cassava 1,647 24 29,184.62 697.99 177.20 290.83
Sweet Potato 1,094 21 11,576.56 352.22 105.82 167.72
Sources: North Tapanuli Regency in Figures, 2015. Pahae Julu Sub-District in Figures 2016
4.6 Education and skills
With over 50 million students and 2.6 million teachers in more than 250,000 schools, Indonesia has the third largest education system in the Asian region and the fourth largest in the world. In Indonesia, primary school net enrolment rates are below 60% in the poor districts compared to more well-off districts that have universal enrolment. Net enrolment rates for secondary education have experienced a steady climb (currently 66% in middle school and 45% in high school) but are still low compared to other countries in the region.12 Table 4.8 shows total net enrolment rates with specific focus on female enrolment rates from primary to tertiary education.
Table 4.8: Indonesia net enrolment rates from primary to tertiary education
2012 2013 2014
Primary school net enrolment (%)
93 92 93
11 Original Project ESIA Volume III: Indigenous Peoples Plan, June 2015.
12 Asian Development Bank, Education Assessment – Indonesia, 2014
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2012 2013 2014
Female (% of total net primary school enrolment)
49 50 48
Secondary school net enrolment (%)
60 61 65
Female (% of total secondary school enrolment)
49 50 50
Tertiary net enrolment (%) 15 16 18
Female (% of total net tertiary enrolment)
54 54 55
Source: World Bank, Indonesia Economic Quarterly, ‘In times of global volatility’, October 2015
The average length of schooling in in the local AoI (as with the regional AoI) generally equates to middle school level. However, there are variations between sub-districts and villages primarily due to the close proximity of primary schools compared with the further distance required to travel and attend higher education institutions. For example, in Pahae Julu sub-district (population 12,343), there are only five junior high schools, two senior high schools and one vocational high school. Table 4.9 shows a breakdown of schools present in the local AoI.
Table 4.9: Schools in the local AoI
Village
Primary School Junior High School Senior High School Vocational High
School
State Private State Private State Private State Private
Pahae Julu
Janji Natogu
1 0 1 0 0 0 0 0
Lumban Jaean
2 0 0 0 0 0 0 0
Simataniari 1 0 0 0 0 0 0 0
Total 4 0 1 0 0 0 0 0
Source: Pahae Julu Sub-district in Figures, 2016
4.7 Access to community services and infrastructure
4.7.1 Access to electricity
Indonesia’s current energy generation is not sufficient to provide the whole country with access to electricity. Currently, 64% of the Indonesian population have access to electricity. The remaining 36% that still lack electrification mostly live in remote areas of the archipelago’s 18,000 islands.13Indonesia’s target electrification rate is 90% by 2020.14
The current electrification rate for North Sumatra is 69.68%. Population growth in the province of North Sumatra is estimated to grow at an average rate of 1.0% per year while economic growth for the same
13http://rewireworldwide.com/content/project-indonesia
14 Differ Group, The Indonesian electricity system – a brief overview, accessed November 2015 from: http://www.differgroup.com/Portals/53/images/Indonesia_overall_FINAL.pdf
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period is projected to increase by 6.7% per year. This will lead to an increase in energy demand by around 7.3% per year, which the province cannot currently meet.15
Table 4.10 shows the number of households in the local AoI with access to electricity as being approximately 96%, which is well above both the national and provincial averages.
15Energy Outlook, Sumatera Utara Province, Year 2005-2025, Institute for Research and Community/Services, University of
Sumatera Utara
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Table 4.10: Number of households with access to electricity in the local AoI
PLN
(with meter)
PLN
(without meter) No electricity
Total
Pahae Julu
Janji Natogu 133 7 2 142
Lumban Jaean 91 18 2 111
Simataniari 85 12 11 108
Total 309 37 15 361
Source: Pahae Jae and Pahae Julu Sub-district in Figures, 2016
4.7.2 Access to markets and quality of road networks
Weekly markets are considered an important trading opportunity for residents in the local AoI. The presence and quality of the road networks are important for local livelihoods as it has a bearing on farmers’ ability to get their produce to market.
The road networks around the Project area are generally poor. Table 4.11 shows a breakdown of roads by type and condition in the regional AoI, as well as the sub-district of Pahae-Julu.
Table 4.11: Road conditions in the regional AoI
Asphalt Gravel Soil Hot mix
Pahae Julu 27.95 11.5 1.86 1.4
North Tapanuli 628.58 145.14 316.76 131.52
Source: Pahae Jae and Pahae Julu Sub-district in Figures, 2015
4.7.3 Health
Indonesia's health service infrastructure comprises a mix of government health services, foreign aid, religious and non-profit funded facilities, and the private sector. In 2013, life expectancy at birth in Indonesia was 68.3 years for males and 72.7 years for females.16 Most hospitals are in urban areas and there is an absence of hospitals present in the local AoI. According to the World Bank data from 2012, there are 0.2 doctors per 1,000 people, with 1.2 nurses and midwives per 1,000 people throughout the archipelago. There are 9,718 government financed Puskesmas (health clinics) officially registered in Indonesia, which provide comprehensive healthcare and vaccination services at the district and village levels throughout the country.17A breakdown of health facilities in the local AoI is shown in Table 4.12.
Table 4.12: Health facilities in the local AoI
General hospital
Public health centre
Rural polyclinic Integrated health post
Pahae Julu
Janji Natogu 0 0 1 1
Lumban Jaean 0 0 1 1
Simataniari 0 0 1 1
16 Indonesia Ministry of Health
17 Indonesia Ministry of Health
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General hospital
Public health centre
Rural polyclinic Integrated health post
Total 0 0 3 3
Source: Pahae Jae and Pahae Julu Sub-district in Figures, 2015
In 2013, life expectancy for North Tapanuli Regency was 70.47 years, which is slightly higher than the North Sumatran average of 69.90 years. The largest percentage of hospitalisations in the regency is for dyspepsia, tuberculosis, chronic obstructive pulmonary disease and hypertension, Table 4.13 presents a breakdown of medical staff available in the local AoI.
Table 4.13: Health workers in the local AoI
Doctor Midwife Other
Pahae Julu
Janji Natogu 0 2 0
Lumban Jaean 0 1 0
Simataniari 0 0 0
Total 0 3 0
Source: Pahae Jae and Pahae Julu Sub-district in Figures, 2015
4.8 Ecosystem services
A targeted ecosystem services baseline or impact assessment has not been undertaken, however the site visit and consultation confirmed that local communities depend on some provisioning services (one type of ecosystem service) in the local AoI. Table 4.14 below provides the findings on the provisioning services.
Table 4.14: Provisioning services in the local AoI
Service Description
Plantations and crops The majority of the area is dominated by rice, with lesser numbers of rubber and palm oil trees.
Timber and fire wood From consultations with local community members the biodiversity specialists came to understand that the local population uses it for raw materials for house construction.
Irrigation and drinking water Rivers within the area are utilised for irrigation (Siburju River) or drinking (Rangit-git and Karsa Rivers) and are therefore an important ecosystem service
Source: Mott MacDonald, 2016
Of the provisioning services presented in Table 4.14 above, the rice paddies are considered to be a priority ecosystem service given that the local population is dependent on sale of the yields for their livelihoods. The water sources are closely linked with the rice paddies as they are the primary source of irrigation water. Compensation measures provided as part of the land acquisition process form the main mitigation strategy for this ecosystem service.
4.9 Gender relations
Indonesia has made some progress over the last 10 years toward gender equality and women’s empowerment, especially in closing the gender gaps in education, passing gender-responsive legislation, and improving women’s economic and political participation. The gains have resulted in improved incomes
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and access to basic services such as education, health, water supply, and sanitation. However, progress has been uneven, with maternal mortality remaining high at 228 per 100,000 live births, female unemployment rates higher than that of males, higher female dropout rates at junior secondary level and lower participation rates in the formal labour market. However, whilst women’s participation has improved, there is still limited representation in public office and local governance structures. While formal legislation promotes gender equity, in reality secular laws coexist with religious and customary practices that reinforce traditional and stereotyped views and attitudes of male and female roles.
As highlighted in section 4.3, Batak women are considered matriarchal leaders leading to the conclusion that among the Batak population women are not more vulnerable than men.
4.10 Cultural Heritage
Cultural heritage consists of three key elements:
tangible forms of cultural heritage, such as tangible moveable or immovable objects, property, sites, structures, or groups of structures, having archaeological (prehistoric), paleontological, historical, cultural, artistic, and religious value
unique natural features or tangible objects that embody cultural values, such as sacred trees, groves, rocks, lakes, and waterfalls
certain instances of intangible forms of culture that are proposed to be used for commercial purposes, such as cultural knowledge, innovations, and practices of communities embodying traditional lifestyles
During the scoping site visit conducted in May 2016 and further site investigations and stakeholder engagement in August 2016, no items of cultural heritage were identified by local stakeholders.
4.11 Poverty, deprivation and vulnerable groups
Indonesia has registered significant progress in poverty reduction over the last 30 years. Income poverty incidence fell from over 50% of the population in the mid-1970s to 11.5% of the population in 2013 (the national poverty line is determined to be IDR 330,776 per month in 2013). Data from the ADB18 indicates that as of 2014, approximately 11.2% of the population of the population was considered as falling below the poverty line. Progress in poverty reduction has been punctuated by periods of temporary setbacks caused by economic shocks and slowdowns. Poverty in Indonesia has been a predominantly rural phenomenon and by 2011, 63% of the total poor population was residing in rural Indonesia.19 In 2013, North Sumatra’s poverty rate was slightly lower than the national average, with a total of 10.3% of the total population (1,400,000 people) considered poor. The population in the local AoI appears to engage in semi-subsistence/pluri-active20 livelihoods, supplementing agricultural production with various forms of off-farm commercial and salaried activities. Whilst detailed census data for this is not readily available across the three villages, the proportion of the population engaging in non-land based livelihoods is very low – in the case of Janjinatogu, only 27 people out of a population of over 600 are involved in employment types such as construction, goods and services or hospitality21.
18Asian Development Bank, Basic 2016 Statistics
19 Asian Development Bank, Country Partnership Strategy: Indonesia 2012-2014, Poverty Analysis
20The engagement in agricultural production as a part-time activity, alongside holding a full-time job.
21Pahae Julu in Figures 2016 Table 6.2
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The socioeconomic census undertaken for the LAP showed that households were economically displaced by the Project all had land-based livelihoods with an average income of IDR 1,775,000, well above the national poverty line. It was also noted that many of these households are pluri-active. Observations from the site visit and data presented in reports by the BPS show that in the local AoI, although incomes are generally low, there is access to electricity and protected water supplies22, houses are predominately constructed of wood with a corrugated iron roof on concrete foundations, and there are a number of households which own cars and/or motorbikes. These are offset by other indicators such as limited access to education and health care facilities, and numerous houses not having private toilets.
22It was noted during site visits and interviews with villagers that potable water in the region is generally supplied to the villages from
rivers with good water quality through (community or government) piping projects. These intake locations are generally located in upstream areas of the community and commonly within forested, mountainous areas, which are less likely to be affected by domestic sewerage, runoff or pollution.
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5.1 Overview
The social impacts predicted to be major and moderate and hence significant are discussed in the following subsections; these relate to employment generation and land acquisition. In addition, risks and opportunities such as the wellbeing of workers and community health, safety and security are also discussed.
5.2 Determining significance of impacts
The process of determining the significance of impacts has been determined by consideration of the extent to which it results in social receptors gaining or losing access to or control over socio-economic resources resulting in a beneficial or adverse effect on their individual and collective wellbeing. Wellbeing is considered as the financial, physical and emotional conditions and quality of life of people and communities.
The assessment of magnitude has been undertaken in two steps. Firstly, key social impacts associated with NIL-E1 Scope and their related beneficial and adverse, direct and indirect, and cumulative effects have been identified. Secondly, the magnitude of impacts and effects have been categorised as either major, moderate, minor or negligible based on consideration of the parameters listed below along with professional judgement:
likelihood
duration
scale – number of people or groups affected
spatial extent
Adverse impacts will be avoided and wherever possible, management and mitigation measures have been identified to reduce their effects on the community. Where impacts are beneficial, measures will be designed to enhance the effects and share their benefits more widely, in particular amongst local people who may also be affected by the NIL-E1 Scope.
For beneficial impacts, the extent to which local wellbeing is likely to be enhanced has been considered. This is in accordance with the international movement in social impact assessment practice towards an increased focus on enhancing long-term development benefits for local communities’ sustainability, as opposed to only considering mitigation of adverse effects. As such, the magnitude criteria include consideration of the extent to which benefits are shared with and or realised by local people and communities.
Table 5.1 below summarises the typical varying degrees of impact magnitude.
Table 5.1: Magnitude criteria
Magnitude (beneficial or adverse)
Definition (considers likelihood, duration, number of people affected, spatial extent and local benefit sharing))
Major A highly likely impact that would have implications beyond NIL-E1 Scope’s life affecting the wellbeing of many people across a broad cross-section of the population and affecting various elements of the local communities’, or workers’, resilience.
5 Impact assessment
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Magnitude (beneficial or adverse)
Definition (considers likelihood, duration, number of people affected, spatial extent and local benefit sharing))
Moderate A likely impact that continues over a number of years throughout NIL-E1 Scope’s life and affects the wellbeing of specific groups of people and affecting specific elements of the local communities’, or workers’, resilience.
Minor A potential impact that occurs periodically or over the short term throughout the life of NIL-E1 Scope affecting the wellbeing of a small number of people and with little effect on the local communities’, or workers’, resilience.
Negligible A potential impact that is very short lived so that the socio-economic baseline remains largely consistent and there is no detectable effect on the wellbeing of people or the local communities’ or workers’, resilience.
Source: Mott MacDonald, 2016
5.3 Receptor sensitivity methodology
The significance of an impact has been determined by the interaction between its magnitude, and the sensitivity of receptors affected. Professional judgement has been used by appropriately qualified social scientists when assigning significance. The use of these two concepts for this assessment is outlined below.
The sensitivity of receptors has been estimated through consideration of their socio-economic vulnerability, measured by their capacity to cope with social impacts that affect their access to or control over additional or alternative social resources of a similar nature, ultimately affecting their wellbeing. Sensitive or vulnerable receptors are generally considered to have less means to absorb adverse changes, or to replicate beneficial changes to their resource base than non-sensitive or non-vulnerable receptors.
When considering sensitivity the type of resources in question varies between receptors. For example, a community’s vulnerability has generally been measured in terms of its resilience to loss of community facilities, whereas an individual’s vulnerability has generally been considered in relation to their resilience to deprivation and loss of livelihood assets or opportunities (such as jobs, productive land or natural resources). Impacts that increase impoverishment risks contribute to vulnerability. Impoverishment risks include landlessness, joblessness, homelessness, marginalisation, increased morbidity and mortality, food insecurity, loss of access to common property resources and social disarticulation. Table 5.2below presents the guideline criteria that have been used to categorise the sensitivity of receptors.
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Table 5.2: Sensitivity criteria
Sensitivity of receptors Definition
High An already vulnerable social receptor with very little capacity and means to absorb proposed changes or with very little access to alternative similar sites or services.
Medium An already vulnerable social receptor with limited capacity and means to absorb proposed changes or with little access to alternative similar sites or services.
Low A non-vulnerable social receptor with some capacity and means to absorb proposed changes and with some access to alternative similar sites or services.
Negligible A non-vulnerable social receptor with plentiful capacity and means to absorb proposed changes and with good access to alternative similar sites or services.
Source: Mott MacDonald, 2016
5.4 Livelihoods
Land acquisition for NIL-E1 Scope will cause economic displacement23 of the local population resulting from the acquisition of agricultural land for NIL-E1 well and associated pipeline. The estimated losses are summarised in Table 5.3 below and a full list of landowners is outlined in Appendix A.
Table 5.3: Affected landowners
Total landowners Total land area (Ha) Total land compensation paid (IDR)
Total crop compensation paid (IDR)
Total compensation paid (IDR)
34 50,163m2 1,732,780,000 1,742,456,600 3,475,236,600
Source: SOL, 2016
Land acquisition activities for theNIL-E1 Scope will have livelihood and well-being impacts on Affected Households and communities. All households rely on continued access to the agricultural land under their cultivation to some degree – whether for subsistence living, their primary source of income, or part of an overall livelihood strategy. When considered across all impacted households, their sensitivity is defined as medium. Considering the scale of economic displacement affects 34 landowners, the magnitude of impact is assessed as minor. The overall significance of land acquisition and land use change is determined to be an adverse impact of minor significance.
The measures to mitigate these impacts are detailed within Section 7.5 and 7.6.
5.5 Labour and working conditions
5.5.1 Construction
Construction of the components is expected to employ around 30 people. It is unknown at this stage the exact number of skilled and unskilled roles although it is likely that the majority will be unskilled construction labourers. The Project intends to mainly utilise labour already employed by existing contractors.
23Physical displacement can be considered as relocation or loss of shelter, and economic displacement as loss of assets or access to
assets that leads to loss of income sources or other means of livelihood, and/or restrictions on land use.
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Short–term employment generation in the construction phase has the potential to contribute to a reduction in local poverty levels, especially if vulnerable local people, particularly youths and women, are employed. Although the jobs created by the expansion of NIL-E1 Scope will be temporary, the skills and experience gained would benefit future job prospects.
The sensitivity of the affected population is considered to be medium as there are limited employment opportunities besides the agricultural sector. The magnitude of the impact is considered to be minor as the number of jobs (total 30 during construction phase) to be created is low when compared to typical large scale infrastructure projects. Employment generation is considered to be a beneficial impact of minor significance. Ongoing stakeholder engagement will be undertaken to manage the community’s expectations regarding Project work opportunities.
5.5.2 Operation
The operational phase is not expected to generate many employment opportunities, as the operational phase labour requirement is much smaller than the construction phase’s. Among the operational phase workforce, the number of locals (i.e. from Pahae Julu and Pahae Jae) are:
Directly under SOL (e.g. external relations, operators, health and safety): 30; including: – Operators in SIL power plant: 4 – Operators in NIL power plant: 1
Other supporting functions or third party (e.g. drivers, janitors, security, catering): 102
The impact of operational employment is categorised as a negligible impact, and therefore not significant.
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6.1 Overview
Whereas the previous section discussed social impacts that are considered highly likely to occur, this section discusses potential social risks that could occur, but are not necessarily probable. Despite this, the Project will take a precautionary approach to avoid and mitigate such impacts through appropriate social management measures.
6.1.1 Occupational health and safety
As the construction for the overall Project is already in progress, there are a number of health and safety procedures in place as part of the Environmental Social Management System. The plans that are in place, related to occupational health and safety (OHS) include:
Emergency Preparedness and Response Plan
Labour Management Plan
Security Management Plan
Traffic Management Plan
H2S Monitoring Plan
Health and Safety Monitoring Plan
Additionally, Volume II has assessed the OHS risks for the construction and operation phases of NIL-E1 Scope. The risks assessed are:
transportation of workers to and from the accommodation camps
emergency preparedness and response
site security
labour management, in relation to the new mini camp
health and safety management
H2S
Whilst workers on the Project (and NIL-E1 Scope) are vulnerable to risks to their health, safety and wellbeing on a daily basis, the Indonesian regulatory standards provide some protection. Appropriate planning and execution of health and safety management planning, workforce management measures and accommodation management in line with IFC PS2 and World Bank Group (WBG) Environmental, Health and Safety(EHS) Guidelines will be undertaken by SOL to mitigate identified risks.
6.1.2 Community Health and Safety
During the construction and operations phase, there are a number of risks to the health and safety of the community, particularly within the local AoI. These include:
increase in heavy construction activities during construction phase leading to an increased probability of traffic incidents, disturbance to existing local traffic and pedestrian patters, and changes in amenity due to noise and vibration caused by heavy vehicles
temporary access disturbance during construction, and long term access disturbance to houses and shops due to the pipelines being situated above the surface, which may result in increased community grievances, and safety impacts (if alternative access routes are not correctly used by the public), as
6 Project risks and opportunities
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outcomes of the physical impacts experienced by the community in terms of public access. The details of the (physical) impact on public access are described in Volume II, Section 4.8 (Traffic), under the sub-section ‘Community access’, which describes the impact posed by the reinjection pipes (i.e. 24” pipe elevated <1m above ground) in terms of obstructing access to residences and agricultural lands from current existing main access roads.
potential impacts to the health of nearby residents due to noise and vibration during construction (eg disturbance/nuisance effects, however noise and vibration impacts associated with the NIL E-1 scope are expected to be minimal at the locations of any community sensitive receptors and will be managed through the grievance mechanism)
change in air quality during both construction and operation impacting the health of nearby residents
public safety impacts associated with having an active construction site in close proximity to residential and farming areas (eg road traffic accidents, contact with harmful substances/materials through spills, leaks and poor housekeeping, injury).
public health and local social dynamics disruptions associated with the establishment of a small workers camp in close proximity to the site during construction
All of these impacts have been identified and assessed in the context of air, noise, traffic, OHS and public access in Volume II. Additional assessment within this volume is not considered necessary as the management, mitigation and monitoring measures developed are sufficient to reduce impacts to acceptable levels.
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7.1 Occupational health and safety management plan
An OHS Management Plan has been developed to manage the risks of the Project’s construction. The Chief Executive Officer for the Project is responsible for the OHS performance and, where required, will ensure the document is updated with relevant information. The Health, Safety and Environment (HSE) manager is responsible for monitoring, implementing and communicating the OHS plans to the workers, local communities and government agencies.
Mitigation measures included in the OHS Plan are as follows:
proper use of personal protective equipment (PPE) by all workers
contractor to have an appropriately equipped first aid room and staff to address workers’ health and manage community health interactions
site safety awareness training
monitoring and reporting of accidents, injuries, lost-time incidents, near misses and community interactions on health issues
worker accommodation monitoring
tool box talks on hygiene and sanitation at least every six months
good housekeeping on site
control and quality assurance of drinking water
pest and vector control activities
7.2 Community health and safety plan
The Project has a comprehensive Community Health and Safety Management Plan which will be implemented for the NIL E-1 scope. Community access impacts arising due to the installation of pipelines along the access road will be managed through the installation of ladders for households affected by the pipeline, and through conducting additional socialisation to specifically inform affected households and communities about access disturbance impacts. This socialisation will be conducted at least one month prior to construction works commencing and will include information on the expected impacts, the duration of the impact and activity, and the mitigation measures (eg ladders) that are proposed to be implemented.
A monitoring programme for aspects related to community health and safety was developed as part of the Indonesian environmental and social impact assessment (Analisis Mengenai Dampak Lingkungan, AMDAL) process. This is summarised in Table 7.1.
Table 7.1: Monitoring plan on community health and safety aspects during construction
Parameters Location Monitoring Frequency
Hydrogen sulphide
Well locations and villages around the well locations Once a week during well drilling and production testing
Noise Well locations and villages around the well locations Once a week during production testing
Traffic Roads accessed by Project vehicles in North Tapanuli Regency Once a year during construction stage
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Parameters Location Monitoring Frequency
Community unrest
Villages in the vicinity of the development of Sarulla geothermal field and power plant project area in Pahae Jae and Pahae Julu Districts, North Tapanuli Regency
SOL office at Project location
Once a year during construction period
Surface water quality
Domestic solid waste disposal area
Domestic wastewater treatment plant location
Well locations (sump pit and slurry disposal)
Community wells at SIL and NIL
Batang Toru River
Solid waste: each time solid waste is being disposed
Domestic wastewater treatment plant: once a month
River water quarterly
Community well/spring water quarterly
Source: RKL and RPL: January – June 2013, ERM, July 2013
The following additional parameters and revised frequencies during the construction, operation, and decommissioning phases will be undertaken, as summarised in the Community Health and Safety (CHS) Plan:
control measures in place for erosion management, solid waste and hazardous waste management, hazardous materials management, effluent disposal management, spoils and drill cuttings disposal management, brine management, and spill management
groundwater quality
quantity of water abstracted from local freshwater resources, timing of abstraction, river flow before and after abstraction, and monitoring of community wells
increase the monitoring frequency of traffic management to monthly basis
control measures in place for infectious diseases
restricted site access and an up-to-date visitor record
ladders will be installed for households affected by the pipeline
public complaints and incidence record with regard to security personnel
community emergency preparedness including an up-to-date contact list for emergency communication, public warning system, fire alarms, and other resources
an up-to-date EHS training record of the workforce
an up-to-date community awareness raising program on types of possible risks, emergencies, prevention measures, and treatment available for the public as part of the Environmental and Social Management Plans (ESMPs), the Emergency Preparedness and Response Plan, and Stakeholder Engagement and Consultation Plan
Throughout the life of the Project, SOL will build upon the channels of communication and engagement with the Affected Communities established during the ESIA process when communicating the potential Project impacts on local community health and safety. During the construction phase, communication with the Affected Communities will relate to all activities leading up to and during the physical construction and decommissioning of facilities, infrastructure, or buildings as well as the management of contractors and construction contracts.
SOL will provide Affected Communities with access to relevant health and safety (H&S) information regarding:
the purpose, nature, and scale of the Project
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the start date and duration of proposed Project activities
any risks to and potential H&S impacts on Affected Communities and mitigation measures including treatment available for the public
the envisaged stakeholder engagement process
the community grievance mechanism
In addition, throughout the construction phase for each relevant activity, SOL has committed to:
notifying the Affected Communities of construction and operation activities prior to the implementation of relevant activities and update them whenever there is a material change to the information provided. This will include: – transportation schedule of hazardous materials, solid and hazardous waste, goods, heavy vehicles
and equipment as required or refer to applicable regulations – risks, prevention measures, and available treatment for a release of hydrogen sulphide gases
above the acceptable standards – risks, prevention measures, and available treatment for vector-borne and communicable diseases – emergency Preparedness and Response Plan, including various actions that may need to be taken
by the community (i.e. evacuation) in the event of the plan being triggered
station a Batak-speaking community liaison staff member at the site
aim for rapid response times in resolving grievances, if any
Consultation will be inclusive of various segments of the Affected Communities including both men and women and accessible to the disadvantaged and vulnerable groups within the community.
7.3 Security management plan
The Project has an established Security Management Plan. The Plan states that security for the Project will be provided in accordance with the laws of Indonesia, the principles of international good practice, respect for human rights and proportionality.
SOL has undertaken a detailed assessment of risks to those within and outside its Project sites posed by its security arrangements and review the risk assessment on an annual basis or following security incidents. All contractors providing security at any facility related to the Project will wear a uniform and an identification card so that they may easily be identified.
The Plan also provides details of the following security related issues:
responsible hiring
security contractor – training
means of security and equipment – at worker’s accommodations – at vehicle entry/exit points – at entry/egress points – at H2S areas
equipment – use of Force and Weapons
treatment of Intruders / Trespassers
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– access Log – incident Log – grievance Mechanism – monitoring
use of Government Provided Security
7.4 Labour management plan
The Project has an established Labour Management Plan (LMP) which includes the following key sections:
general labour management requirements that are relevant to recruitment
preparation activities
candidate screening and selection
contracting and recruitment documentation
The LMP states that, prior to the start of a new phase of construction or operation works SOL and contractors will commit to:
upholding the Project’s commitment to labour rights
upholding labour laws at all times
providing a work environment free from any form of harassment, particularly sexual harassment, intimidation or bullying
promoting a workplace culture that recognises, values and respects diversity
ensuring all human resource department staff are familiar with the Plan
SOL conducts regular monitoring of contractors’ workers to ensure that there is no non-compliance against labour law. Complete documentation will be provided by contractors and reviewed by SOL. In particular, the following issues are detailed in the Plan and reviewed systematically as the Project progresses:
non-discrimination and equal opportunity
recruitment fees
use of employment agencies
prioritising local employment
commitment to not exploit child labour
commitment to not use forced labour
fair treatment in the recruitment of migrant labour
commitment to gender equality
address HIV/AIDS in the workplace
recruitment confidentiality
7.5 Resettlement plan
The Project has a Resettlement Plan (RP) which was first issued in October 2013. The RP was applicable to the well pads and associated infrastructure already under construction and contains the following key sections:
scope of land acquisition and resettlement
socio-economic information and profile
information disclosure, consultation and participation
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grievance redress mechanism
legal framework
entitlements, assistance and benefits
income restoration and rehabilitation
resettlement budget and financing plan
institutional arrangements
implementation schedule
monitoring and reporting
A Land Acquisition Plan has been developed separately to this supplementary ESIA to manage the acquisition of agricultural land for the development of NIL-E1. Land has been acquired from 34 households, with the total amount to be approximately 50,163m2. The LAP has been prepared based on the policies, procedures and practices already outlined in, and adopted by, the Project’s comprehensive Resettlement Plan. This will ensure that compensation is carried out consistently and in compliance with Indonesian law, ADB requirements, Equator Principles and the IFC Performance Standards.
It is intended that elements related to restoring livelihoods to pre impact levels or better will be undertaken through the Integrated Social Program (see 7.6 below). Compensation measures and eligibility criteria are as follows:
compensation to land owners who have lost access to land as a result of project land acquisitions, whether or not they have legal title to the land including those with heritage land claims to the affected land.
compensation to land owners who have lost plants and structures or any built assets on land lost as a result of project land acquisitions, including those with heritage land claims to the affected land.
income restoration to land owners whose incomes have been significantly affected by loss of access to land as a result of project land acquisition, whether or not they have legal title to the land, including with heritage land claims to the affected land
transition assistance to land owners who have special social categories which render them more vulnerable to social and economic displacement and also who has lost of access to land as a result of project land acquisition.
7.6 Integrated social program
SOL’s approach to mitigating impacts to the livelihoods of local communities is captured by the Project’s Integrated Social Program (ISP). The Program was developed through the following process:
villages' need assessment (August to October 2014) – initial meeting with key stakeholders at Pahae Julu and Pahae Jae – study the existing document on the Villages five years’ development plan (Rencana Permbangunan
Jangka Menengah Desa) (RJPMDs) – coordination with Local Government to synchronize the ISP with Government program for the
villages (health, education, agriculture) – meeting with Villages' stakeholders
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program detailed planning and design (November 2014) – program specific, target, budget, schedule – approval process from the management
program Socialization (December 2014 to January 2015) – local communities in the affected villages – local Government
implementation (2015 onwards) – coordination with Head of Villages, local communities’ groups, local government offices – program execution – monitoring – evaluation
The ISP includes activities in the following key areas:
education
agricultural/livelihood
health
infrastructure
culture, art and religion
The ISP specifically targets the villages (with those affected by the construction of the new components are highlighted in bold text) in Table 7.2.
Table 7.2: ISP target villages
Pahae Jae Sub District (SIL) Pahae Julu Sub District (NIL)
Silangkitang Simataniari
Sigurung-gurung Sibaganding
Pardamean Nainggolan Lumban Jaean
Pardomuan Nainggolan Onan Hasang
Siopat Bahal Janji Natogu
Sitolu Ompu
Source: SOL, 2016
Within these villages the targeted groups are as follows:
land owners
women
children
elderly people
poor families
Both the priority activities and target villages are subject to discussion and consultation with local communities and will be amended if deemed necessary. As noted above, target priorities should be those households which experience the highest level of livelihood impacts.
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Residual impacts are those that remain after mitigation and/or enhancement measures have been implemented. A summary of impacts after application of mitigation and/or enhancement measures is presented in Table 8.1.
8.1 Cumulative impacts
No cumulative impacts are expected for social aspects.
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Table 8.1: Residual impacts
Adverse/beneficial Magnitude Sensitivity Impact evaluation Residual impact
Activity Potential impact Following application of mitigation/enhancement measures
Construction
Employment generation
Unskilled employment opportunities for local communities, 30 construction jobs in total
Beneficial Minor Medium Moderate
Minor
Land acquisition and land use change
Economic displacement and livelihood impacts on 34 agricultural land owners –full extent and nature of economic displacement to be determined though RAP survey process required
Adverse Minor Medium Moderate Minor
Source: Mott MacDonald, 2016
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9.1 Overview
This chapter outlines the information disclosure, consultation and participation activities that have been undertaken as part of the ESIA process. The key objective of this chapter is to present a summary of the outcomes of the ESIA consultation activities, as well as an overview of the consultation activities planned for the construction and operational phases of NIL-E1 Scope.
The chapter consists of the following sub-sections:
principles of consultation
consultation requirements
stakeholder identification and analysis
ESIA consultation activities and outcomes
engagement planned throughout the lifetime of the Project
Project grievance redress mechanism
9.2 Principles of consultation
Early and ongoing consultation, disclosure and meaningful stakeholder engagement are key requirements for projects financed by international lenders. The consultation and disclosure activities used to inform affected communities about the Project and to inform the assessment in this ESIA have been underpinned by the principles that community engagement should be free from external manipulation, interference, coercion and intimidation and conducted on the basis of timely, relevant, understandable and accessible information. Furthermore, that consultation activities should always be well planned and based on principles of respectful and meaningful dialogue.
9.3 Consultation requirements
9.3.1 Overview
This sub-section provides an overview of the national requirements contained within the Indonesian EIA procedures, and the international disclosure, consultation and stakeholder engagement requirements of the IFC PS, EP, ADB safeguard policies and JBIC guidelines.
9.3.2 National regulations
Under Indonesian EIA legal requirements, consultation with the public is conducted throughout the project development process at the following stages:
pre-arrangement stage of the project (before AMDAL) documents are prepared) – public are informed of the project by the competent authority.
AMDAL Terms of Reference (Kerangka Acuan Analisis Dampak Lingkungan Hidup) (KA-ANDAL) preparation – public have 10 working days to provide opinions before the preparation of the KA-ANDAL, and can also comment on the draft KA-ANDAL.
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This process is undertaken through the public’s representative who sits on the AMDAL commission or makes written submissions to the AMDAL Commission. Ministerial Regulation 17 of 2012 regarding Guidelines for Community Involvement in the Process of Environmental Impact Analysis and Environmental Permit is also been considered throughout the AMDAL process.
Once all of the AMDAL documents have been prepared, the proponent presents those documents to the AMDAL Commission for further review. Ahead of the review process, members of the public have one further opportunity to express their views and offer comments and suggestions.
Both the application for an environmental license and the environmental permit decision are disclosed to the public through mass media and / or through a bulletin board at the project site. The public have ten working days to provide opinions to the relevant authority after the environmental permit application has been announced.
Public involvement was formally introduced into the AMDAL process through a decree by of the Head of the Environmental Impact Management Agency (EIMA or BAPEDAL - Badan Pengendalian Dampak Lingkungan) in 2000. This decree, Head of the Environmental Agency 8 of 2000, covers transparency of information and allows for governors to be flexible in arranging further implementation at the provincial level according to the context of the project. Four key objectives are addressed in the guidelines including: the protection of the community’s interests, community empowerment, transparency of the AMDAL process, and stakeholder partnership building.
The guidelines also embody four overarching principles related to public participation, namely: equal position of AMDAL stakeholders, transparency in decision-making, equality in problem resolution, and coordination, communication and cooperation among AMDAL stakeholders.
The term ‘public involvement’ in the AMDAL process is interpreted as public participation in the decision making process. The term ‘socialisation’ refers to consultation events, such as focus groups and meetings. In this document, the term ‘public consultation’ has been used to discuss consultation events, such as a public hearing or stakeholder meetings.
It is understood that an AMDAL Addendum is being prepared for NIL-E1 Scope. The process of public consultation and disclosure outlined above is applicable to the drafting of the Addendum. This is a process separate to this ESIA and is therefore not outlined in detail in this document.
9.3.3 Equator Principles II
The EP is a financial industry benchmark for determining, assessing and managing social and environmental risk in project financing. Signatories to the EP, known as EPFIs, use the principles to ensure that the projects they finance are developed in a manner that is socially responsible and reflect sound environmental management practices.
Although the current version of the EP is the EP III (2013), the Project will be assessed against and comply with EP II (2006). This is because within the Common Terms Agreement (CTA) between SOL and the lenders, it was explicitly defined that the Project’s obligation is to comply with the EP version dated July 2006 (i.e. EP II) which is the version in effect during the CTA’s signing date. Any amendments, renewals, replacements, extensions, modifications or supplements to the EP after the signing date have been excluded.
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The EP (2006) comprises ten principles24 presented below:
Principle 1 - Review and categorisation
Principle 2 - Environmental and social assessment
Principle 3 - Applicable environmental and social standards
Principle 4 - Action plan and management system
Principle 5 - Consultation and disclosure
Principle 6 - Grievance mechanism
Principle 7 - Independent review
Principle 8 - Covenants
Principle 9 - Independent monitoring and reporting
Principle 10 - EPFI reporting Principle 3 of the EP (II) includes that for projects located within non-OECD25,26 countries, and those located in OECD countries not designated as High-Income27, the project will need to establish, to the participating EPFI’s satisfaction, the overall compliance with, or justified deviation from, the respective IFC PS and the WBG EHS Guidelines.
As Indonesia is not an OECD country, proponents of projects in Indonesia that are seeking to comply with the EP (II) are required to demonstrate not only compliance with host country laws but also compliance with all applicable IFC Performance Standards and supporting EHS Guidelines.
For all projects that are classified as Category A such as this one, the government, borrower or third party experts should consult with project Affected Communities (ACs) in a structured and culturally appropriate manner. Affected Communities are communities within the project’s local area of influence who are likely to be adversely affected by the project.
Environmental and social assessment documentation, action plans or non-technical summaries, as appropriate, should be made available to the public by the borrower for a reasonable minimum period. These documents will be provided in a culturally appropriate manner in the local languages.
The process should be documented and the results of the consultation, including any actions agreed resulting from the consultation, should be taken up by the borrower. Disclosure of the relevant information, for projects with adverse social or environmental impacts, should be carried out as early in the project assessment process as possible and on an on-going basis thereafter and at least should occur before project construction commences.
9.3.4 IFC consultation requirements
Public consultation, disclosure and stakeholder engagement are key requirements of IFC’s Policy on Social and Environmental Sustainability embodied within the PS (2012). 24As a note, the ten principles of EP III (2013) have slightly different terminology for their version of the principles, but the principles
are materially the same.
25OECD = Organisation for Economic Co-operation and Development. The OECD's origins date back to 1960, when 18 European countries plus the United States and Canada joined forces to create an organisation dedicated to economic development.
26 As a note, reliance on OECD status was used only up till EP II. In the current version (i.e. EP III), a stand-alone Designated Countries list specific to the EP is used for similar purpose of determining if the additional requirement to comply with IFC PS and WBG EHS Guidelines applies.
27 As defined by the World Bank Development Indicators Database.
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The eight IFC PSs are applicable to private sector projects in emerging markets. Each PS has specific consultation requirements and these are embedded in the general requirements specified in PS1: Assessment and Management of Environmental and Social Risks and Impacts. These requirements specifically refer to the need for and means of achieving community engagement, disclosure of relevant project information, appropriate consultation processes and grievance mechanisms throughout the project lifecycle. The requirements for stakeholder engagement in projects are:
start as early as possible in the project cycle
continue throughout the life of the project
be free of external manipulation, interference, coercion, or intimidation
where applicable enable meaningful community participation
be conducted on the basis of timely, relevant, understandable, and accessible information in a culturally appropriate format.
IFC PS seek to provide accurate and timely information regarding project investment and advisory activities. IFC’s Access to Information Policy states that for Category A projects proposed for financing, a summary of review findings and recommendations must be disclosed and include as a minimum the following information:
reference to the PS and any applicable grievance mechanisms, including the compliance advisor/ombudsman
the rational for categorisation of the project
a description of the main social and environmental risks and impacts of the project
key measures identified to mitigate those risks and impacts, specifying any supplemental measures and actions that will need to be implemented to undertake the project in a manner consistent with the PSs
electronic copies or web-links to any relevant environmental and social impact assessment prepared by the developer
any additional documents such as the ESMP and related management plans, stakeholder engagement plan (SEP) and RP
9.3.5 ADB
The ADB SPS (2009) explains that the ADB is committed to working with borrowers/clients to put meaningful consultation processes into practice. ADB requires borrowers/clients to engage with communities, groups, or people affected by proposed projects, and with civil society through information disclosure, consultation and informed participation in a manner commensurate with the risks to and impacts on affected communities.
ADB’s Safeguard Requirement (SR) 1: Environment specifies that projects must:
carry out meaningful consultation with affected people and facilitate their informed participation
ensure women’s participation in consultation
involve stakeholders, including affected people and concerned nongovernmental organizations, early in the project preparation process and ensure that their views and concerns are made known to and understood by decision makers and taken into account
continue consultations with stakeholders throughout project implementation as necessary to address issues related to environmental assessment
establish a grievance redress mechanism to receive and facilitate resolution of the affected people’s concerns and grievances regarding the project’s environmental performance
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disclose a draft environmental assessment (including the ESMP) in a timely manner, before project appraisal, in an accessible place and in a form and language(s) understandable to affected people and other stakeholders
disclose the final environmental assessment, and its updates if any, to affected people and other stakeholders
implement the ESMP and monitor its effectiveness. Document monitoring results, including the development and implementation of corrective actions, and disclose monitoring reports
9.3.6 JBIC JBIC guidelines for environmental and social considerations (2012)28 stipulate that for “Projects must be adequately coordinated so that they are accepted in a manner that is socially appropriate to the country and locality in which the project is planned”. These guidelines also state that: stakeholders must be sufficiently involved in consultation activities in the early stages of the project and
that outcomes of consultations must be incorporated into the Project plan
appropriate consideration must be given to “vulnerable social groups” including women, children, ethnic minorities, the elderly and the poor.
9.4 Stakeholder engagement
The Supplementary Lenders Information Package (SLIP) contains a Social Errata document which updates and amends information related to stakeholder engagement activities for the Project. In parallel with the SLIP, the AMDAL documentation and Environmental and Social Impact Assessment (ESIA) provide a comprehensive approach to managing stakeholders. Detailed below is a summary of the process by which SOL has identified its stakeholders, determined its approach to manage key issues and developed a schedule for future consultation and disclosure.
9.4.1 Stakeholder identification and analysis
At the beginning of the Sarulla Geothermal Project, a stakeholder analysis exercise was undertaken during which stakeholders were categorised by identity, roles, interest in and/or influence on the Project. The key stakeholders were categorised into three groups: 1. directly impacted stakeholders including land owners, villagers in affected communities, village heads,
community and religious leaders and sub-district heads 2. indirectly impacted stakeholders including Non-Governmental Organisations (NGOs) and Civil Society
Organisations (CSOs) 3. interested parties defined as people or entities who are interested in the Project.
SOL maintains and updates the list of stakeholder groups and representatives as the Project progresses and as new stakeholders are identified.
There are eight affected villages for the Sarulla Geothermal Project, these are:
SIL area: Silangkitang, Sigurung-gurung, Pardamean Nainggolan
NIL area: Simataniari, Lumban Jaean, Sibaganding, Onan Hasang
28Similar to the EP II/EP III requirement mentioned in Section 9.3.3, the applicable JBIC standard for NIL-E1 Scope is
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There are 34 land holders directly impacted by NIL-E1 Scope. All of these are situated within Janjinatogu village, which was not included within the initial eight affected villages. Whilst not included within this initial stakeholder identification and analysis, consultation activities undertaken as part of this ESIA have demonstrated that consultation has been undertaken with the Village Head (Kepala Desa), with households to be impacted by land acquisition, and through monthly meetings that SOL has been holding as part of its regular stakeholder engagement programme.
9.5 Consultation activities and outcomes
9.5.1 Consultation for the Sarulla Geothermal Project
Consultation activities were also undertaken for the Sarulla Geothermal Project. These activities are detailed in Volume II of the ESIA Addendum (2013) and the AMDAL Addendum (2013). Key consultation activities that occurred include:
nine separate meetings in the Project area to discuss the Project (between 2008 and 2012) with stakeholders including affected community members, land owners, local government, sub-district government representatives, head of villages and community group representatives.
focus group discussions in eight affected villages (during 2013) with stakeholders including land owners, community members, heads of villages.
disclosure of local recruitment opportunities and ESMP monitoring activities (2014)
Consultation activities were conducted in Batak language in venues as close as possible to the local communities affected. As specified in the ESIA Addendum, both men and women attended and were given equal opportunities to voice their concerns and expectations during the question and answer sessions.
9.5.2 Consultation for NIL-E1 Scope
Table 9.1 outlines the consultation activities that have been conducted for NIL-E1 Scope. The socialisation meeting on 2 August 2016 was facilitated by SOL and was primarily concerned with the land acquisition process and negotiation of price. The remaining consultation activities described below were undertaken in collaboration between Mott MacDonald and SOL and were related specifically to gaining broader stakeholder perceptions.
Table 9.1: Consultation activities for NIL-E1 Scope
Date Activity Participants
22-23 July 2016 Socio-economic baseline survey of affected households, which included seeking
Land holders
2 August 2016 Socialisation meeting with landholders regarding the land acquisition process, price negotiation and to hold an open question and answer session
Land holders
9 August 2016 Interview/Discussion Mr Lambok Siagian (Kepala Desa Janjinatogu)
9 August 2016 Interview/Discussion Mr Reinward Pasaribu (Lurah Onanhasang)
Source: SOL, 2016
Further socialization and consultation with affected communities will be conducted before works commence, during village monthly meetings in the affected villages.
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9.6 Consultation outcomes
During the public meeting facilitated by SOL, on 2 August 2016, a range of matters were raised related specifically to the land acquisition process, namely determining land ownership, negotiation of price and the nature of acquisition. This process is being facilitated through the LAP.
The main positive aspects and expectations raised by participants in the community consultation activities undertaken for the Sarulla Geothermal Project to date include:
ability of the Project to improve the economy of local people through provision of employment opportunities, business opportunities and improvements to agricultural practices, with particular prioritisation for those people impacted by land acquisition
improvement in community welfare and service such as educational and health facilities
flow on business opportunities could be facilitated by SOL developing an area for impacted people to open small shops and businesses
general support for the implementation of the project and appreciate that engagement is being undertaken in an open manner
It is considered that the ISP, appropriately targeted, will allow for the expectations of the community to be substantially met. Throughout construction and operation, ongoing stakeholder engagement will be undertaken to manage the community’s expectations regarding Project work opportunities.
In addition to the expectations of benefits, stakeholders did note a number of concerns which have been addressed throughout this supplementary ESIA. The table below describes the concerns raised, and how they have been addressed.
Table 9.2: List of stakeholder concerns raised and corresponding action to address
Stakeholder Concern How Addressed
To date, engagement has only been undertaken with regards to the land acquisition process and therefore the community does not have any information regarding the construction schedule, activities involved and potential impacts
As the assessment of the project proceeds, targeted stakeholder engagement will be undertaken. This includes that required in the preparation of the KA-ANDAL and AMDAL for regulatory approvals.
Protection of key water sources to be a priority, these include:
Siburju River, where irrigation water is sourced from a point upstream of the proposed well pad
Rangit-git and Karsa Rivers to the north and north-east which are the primary drinking water sources for the villages of Janjinatogu and Onanhasang
An assessment of impacts to the various water resources in the vicinity has been undertaken and a variety of management, mitigation and monitoring measures developed – refer to Volume II
Noise disturbances during construction Matters related to noise (and associated community health and safety) has been incorporated into the assessment of noise and the development of associated management, mitigation and monitoring measures – refer to Volume II
The project planning to give due consideration to times within the village considered as sensitive. These are:
9am to 3pm on Fridays when the markets are held
9am to 1pm on Sundays in relation to services at the two churches in Janjinatogu
These requirements have been incorporated into the assessment of traffic impacts and the development of associated management, mitigation and monitoring measures – refer to Volume II
Source: Mott MacDonald
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9.7 Grievance mechanism
The Sarulla Geothermal Project has implemented an external community grievance mechanism, which is also implemented for NIL-E1 Scope. This external grievance mechanism is detailed in Volume II of the ESIA (ERM, 2013). In summary the external grievance mechanism allows for all stakeholders to lodge grievances with SOL either orally or in writing. Volume II of the ESIA also states that most of the consulted households were aware of the grievance mechanism process indicating that there is a good level of knowledge of this grievance mechanism within the local community.
Grievances are raised to the department by Affected Households through verbal and written channels; there are two main contact points for grievances; one for the SIL area, the other for the NIL area. SOL’s external relations department also receive grievances via the village head offices in the nine villages surrounding the SOL Project site.
In addition to the external grievance mechanism SOL has a procedure for managing external communications that aren’t grievances. The types of communications that may be received through this procedure include general inquiries, suggestions on improvements, feedback on customer interaction with SOL’s employees, comments or contributions from regulators, NGOs, communities or individuals regarding an organisation’s environmental and social performance, and request for community investment or social responsibility activities.
Additionally, the Project has a Workers Grievance Mechanism which is applicable to all Sarulla Operations Ltd employees and contractors engaged with the Project.
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This volume has assessed social impacts and risks associated with the construction of NIL-E1 well pad and associated infrastructure for the Sarulla Geothermal Project. The assessment considers the components outlined within Section 2.4. It has been prepared by Mott MacDonald with reference to the EP, IFC PS, ADB SPS and JBIC guidelines.
It predicts that minor residual impacts will occur as a result of the Project. There will be economic displacement of up to 34 households associated with the acquisition of 50,163m2. A Supplementary Land Acquisition Plan has been prepared to ensure that the land acquisition process is undertaken consistent with the aforementioned guidelines. Additionally, the Integrated Social Plan will be utilised to ensure that peoples livelihoods are able to be restored to pre-impact levels or better.
An Environmental Management and Monitoring Plan (EMMP) has been produced for the Project. The EMMP, which forms part of this ESIA, describes how environmental and social impacts identified in this SIA will be mitigated and managed through the construction and operation phases of the Project. The EMMP will consider the existing management and monitoring plans that are already implemented for the Project and will be adopted for NIL-E1 Scope.
10 Summary
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Appendices
Appendix A. Households affected by land acquisition _________________________________________________ 48
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Note that commercially sensitive details (ie the names of affected land owners) have been removed from this document for disclosure purposes. Instead, affected land owners’ names have been coded as ‘Affected People 1’ (AP-1) to ‘Affected People 34’ (AP-34) to preserve anonymity.
Table A.1: Landowners
No
Land Owner Estimated land planned to be acquired (m2) Type of land
Agreed Compensation rate for land (IDR)
Estimated total agreed land compensation to be received (IDR)
Estimated total agreed crop compensation to be received (IDR)
Estimated total agreed compensation to be received (IDR)
Date agreed Male Female
1 AP-1 1,323 Paddy field 70,000 92,610,000 79,380,000 171,990,000 6th September
2 AP-2 2,005 Paddy field 70,000 140,350,000 118,400,000 258,750,000 6th September
3 AP-3 557 Paddy field 70,000 38,990,000 33,420,000 72,410,000 6th September
4 AP-4 394 Paddy field 70,000 27,580,000 23,640,000 51,220,000 6th September
5 AP-5 238 Paddy field 70,000 16,660,000 14,280,000 30,940,000 6th September
6 AP-6 5,461 Paddy field 70,000 382,270,000 258,448,800 640,718,800 6th September
7 AP-7 499 Paddy field 70,000 34,930,000 29,940,000 64,870,000 6th September
8 AP-8 3,222 Paddy field 70,000 225,540,000 192,960,000 418,500,000 6th September
9 AP-9 820 Various trees & plants
70,000 57,400,000 4,249,000 61,649,000 6th September
10 AP-10 1,115 Paddy field 70,000 78,050,000 70,140,000 148,190,000 6th September
11 AP-11 602 Paddy field 70,000 42,140,000 57,910,000 100,050,000 6th September
Appendix A. Households affected by land acquisition
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No
Land Owner Estimated land planned to be acquired (m2) Type of land
Agreed Compensation rate for land (IDR)
Estimated total agreed land compensation to be received (IDR)
Estimated total agreed crop compensation to be received (IDR)
Estimated total agreed compensation to be received (IDR)
Date agreed Male Female
12 AP-12 1,017 Paddy field 70,000 71,190,000 61,020,000 132,210,000 6th September
13 AP-13 3,108 Paddy field 70,000 217,560,000 206,519,000 424,079,000 6th September
14 AP-14 2,094 Various trees & plants
70,000 146,580,000 128,140,000 274,720,000 6th September
15 AP-15 1,105 Paddy field 70,000 77,350,000 66,300,000 143,650,000 6th September
16 AP-16 3,926 Paddy field 70,000 274,820,000 238,115,000 512,935,000 6th September
17 AP-17 1,239 Paddy field 70,000 86,730,000 74,340,000 161,070,000 6th September
18 AP-18 3,316 Paddy field and various plants/trees
70,000 232,120,000 188,235,100 420,355,100 6th September
19 AP-19 982 Various trees & plants
70,000 68,740,000 137,747,000 206,487,000 6th September
20 Declined to respond
21 AP-21 4,372 Various trees & plants
70,000 306,040,000 331,385,000 637,425,000 6th September
22 AP-22 1,240 Various trees & plants
70,000 86,800,000 76,405,000 163,205,000 6th September
23 AP-23 309 Various trees & plants
70,000 21,630,000 34,150,500 55,780,500 6th September
24 AP-24 4,346 Various trees & plants
70,000 304,220,000 232,222,000 536,442,000 6th September
25 AP-25 1,761 Various trees & plants
70,000 123,270,000 45,329,500 168,599,500 6th September
26 AP-26 1,693 Various trees & plants
70,000 118,510,000 19,491,800 138,001,800 6th September
27 AP-27 1,044 Paddy field 70,000 73,080,000 64,400,000 137,480,000 6th September
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No
Land Owner Estimated land planned to be acquired (m2) Type of land
Agreed Compensation rate for land (IDR)
Estimated total agreed land compensation to be received (IDR)
Estimated total agreed crop compensation to be received (IDR)
Estimated total agreed compensation to be received (IDR)
Date agreed Male Female
28 Declined to respond
29 Declined to respond
30 Declined to respond
31 AP-31 177 Paddy field 70,000 12,390,000 11,381,200 23,771,200 6th September
32 AP-32 529 Paddy field 70,000 37,030,000 31,990,000 69,020,000 6th September
33 AP-33 764 Various trees & plants
70,000 53,480,000 7,110,000 60,590,000 6th September
34 AP-34 1,669 Various trees & plants
70,000 116,830,000 81,960,000 198,790,000 6th September
Source: SOL, 2016