ENVIRONMENTAL AND SOCIAL SAFEGUARD (ESS) … · ENVIRONMENTAL AND SOCIAL SAFEGUARD (ESS) GUIDELINE...

ENVIRONMENTAL AND SOCIAL

SAFEGUARD (ESS) GUIDELINE

FOR MULTILATERAL PROJECTS

FUND

PT. Sarana Multi Infrastruktur (Persero)

2016

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MULTILATERAL PROJECTS FUND

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TABLE OF CONTENTS

ESS Guidelinesfor Multilateral Projects Fund i

CHAPTER I - INTRODUCTION - ...................................................................................................... 1

1. Background ................................................................................................................... 1

2. Purposes and Objectives ............................................................................................... 1

3. Scopes………….. ......................................................................................................... 2

4. Legal Basis ……………………………………………………………………………2

5. Statement of the Company’s ESS Polices .................................................................... 4

6. Exceptions…………………….. ................................................................................... 5

7. Definition….…………. ................................................................................................ 5

CHAPTER II – OBJECTIVES AND ETHICS OF ESS MANAGEMENT ..................................... 8

1. Management Objectives ............................................................................................... 8

2. Management Ethics ...................................................................................................... 8

3. Risk of ESS Managementfor Multilateral Projects ...................................................... 8

CHAPTER III – ORGANIZATION AND RESPONSIBILITIES .................................................... 9

1. Board of Directors ........................................................................................................ 9

2. Risk Management Division .......................................................................................... 9

3. Business Divisions ...................................................................................................... 10

4. Financing Facility Control Division (DPFP) .............................................................. 10

5. Advisory and Project Development Support Division (DDPPA)............................... 10

1. ENVIRONMENTAL & SOCIAL IMPACT ASSESSMENT AND MANAGEMENT 11

2. LABOR AND WORKING CONDITIONS .................................................................................. 13

3. POLLUTION PREVENTION AND ABATEMENT ................................................................... 16

4. SAFETY, HEALTH AND SECURITY......................................................................................... 18

5. LAND ACQUISITION AND RESETTLEMENT ....................................................................... 21

6. BIODIVERSITY CONSERVATION AND NATURAL RESOURCES MANAGEMENT ..... 25

7. INDEGENOUS PEOPLES AND LOCAL COMMUNITIES ..................................................... 26

8. CULTURAL HERITAGE .............................................................................................................. 29

9. ENERGY CONSERVATION AND ENVIRONMENT FRIENDLY ENERGY ....................... 31

10.CONSULTATION AND GRIEVANCE MECHANISM ............................................................ 32

CHAPTER VII – CLOSING ........................................................................................... 33

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TABLE OF CONTENTS

ESS Guidelinesfor Multilateral Projects Fund ii

APPENDIX I – LIST OF THE REPUBLIC OF INDONESIA REGULATIONS

RELATED TO ENVIRONMENTAL, SOCIAL, OCCUPATIONAL

HEALTH & SAFETY ISSUES ............................................................... 35

APPENDIX II - ENVIRONMENTAL AND SOSCIAL DUE DILIGENCE OUTLINE

................................................................................................................. 39

APPENDIX III - EXCLUSION LIST ............................................................................ 41

Environmental and Social Assessment Checklist ............................................................ 41

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INTRODUCTION CHAPTER - I

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BAB I - PENDAHULUAN

1. Background

PT Sarana Multi Infrastruktur (Persero), here in after called “the Company" is a State-Owned

Enterprise (SOE) which was established to accelerate the national infrastructure financing through

partnerships with private sectors and/or multilateral financial institutions.

To achieve the above purposes, the Company is committed to managing its environmentally-and-

socially-friendly business activities.

In order for the financing and investment activities, project development, and consulting service

provision for infrastructure projects to comply with the environmental, occupational health and

safety and social stipulation and requirements in Indonesia, the Company needs to develop and

publish Environmental and Social Safeguard (ESS) Guideline for Multilateral ProjectsFund as

reference.

2. Purposes and Objectives

ESS Guideline for Multilateral Projects Fund is used as a reference for the Company in

implementing 1/ financing and investment activities, 2/ project development, and 3/ consulting

service provision for infrastructure projects which involve the multilateral funds and cooperation.

Below are the objectives of the Guideline:

a. To apply the Prudent Principle so that the environmental, social and occupational health and

safety risks may be evaluated, measured, monitored, controlled and mitigated adequately.

b. To provide clear authority and responsibilities as well as the role and functions of each related

working unit.

c. To maintain the consistency and level of performance in implementing and managing the

environmental, social and occupational health and safety risks as parts of 1/ financing and

investment activities, 2/ project development, and 3/ consulting service provision in order to

create an effective and efficient work process.

d. To serve as the guidelines for application of International Best Practice in running green and

sustainability infrastructure project in Indonesia.

e. To identify the hazards and risks as early as possible in the development of a facility or project

cycle, including mergers, considerations in the site selection process, the product design

process, the engineering planning process for capital application, the demand for engineering

work, facility modification authorization, or layout planning and process changes.

f. To hire the professional shaving experience, competence and training materials to assess and

manage the impacts and risks as well as to carry out the specific environmental management

functions including project preparation or specific activitiy planning and procedures integrated

in the technical recommendations presented in this document and relevant to the project.

g. To understand the risk possibility and scale based on:

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a. The nature of the project activities, whether the project will create the significant

amount of emissions or effluents, or involve the process of Hazardous and Toxic

Substances.

b. Potential consequences to workers, communities, or environment when the hazards

are not managed properly.

h. To give priority over risk management strategies having the objectives of reducing overall

health and environmental risks and focusing on the prevention of significant and/or

unchangeable impacts.

i. To create a strategy to eliminate the hazards from its source.

j. To combine engineering and management control to reduce or minimize the possibility and

scale of unexpected consequences when impacts are unavoidable. For example, the

implementation of pollution control to reduce the contaminant level emitted to workers or the

environment.

k. To educate workers and surrounding communities in anticipating any accident occurence,

including providing technical and financial resources for effective and safe control of every

accident, as well as return the workplace environment and community to safe and healthy

conditions.

l. To improve performance through a combination of ongoing facility performance monitoring

and effective accountability.

3. Scopes

a. ESS Guideline for Multilateral Projects Fund provides guidances in managing the

environmental, occupational health and safety and social risks related to 1/ financing and

investment activities, 2/ project development, and 3/ consulting service provision for

infrastructure projects which use multilateral funds and/or cooperation.

b. Risk category of environmental, occupational health and safety, and social management,

Environmental and Social Due Diligence (ESDD) implementation, administration and

monitoring refer to Guideline of Environmental and Social Management System for Projects.

4. Legal Basis

ESS Guideline for Multilateral ProjectsFund is developed based on below provisions:

a. Act No. 32 Year 2009 on the Environmental Protection and Management.

b. Act of the Republic of Indonesia No. 1 Year 1970 on Occupational Safety.

c. Act of the Republic of Indonesia No. 13 Year 2003 on Employment.

d. Act of the Republic of Indonesia No. 2 Year 2012 on Land Procurement for Public Interest

Development.

e. Act of the Republic of Indonesia No. 36 Year 2009 on Health Issue.

f. Act of the Republic of Indonesia No. 6 Year 1994 on the Ratification of the United

Nations Guideline Convention on Climate Change.

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g. Act of the Republic of Indonesia No. 17 of 2004 on Ratification of the Kyoto Protocol to the

United Nations Guideline Convention on Climate Change.

h. Act of the Republic of Indonesia No. 7 Year 2012 on Social Conflict Treatment.

i. Act of the Republic of Indonesia No. 11 Year 2009 on Social Well-being.

j. Act of the Republic of Indonesia No. 1 Year 2000 on the Ratification of ILO Convention No.

182 of 1999 concerning the Prohibition and Immediate Action for the Elimination of Child

Workers.

k. Act of the Republic of Indonesia No. 9 Year 1998 on the Freedom to Express Opinionin Public.

l. Act of the Republic of Indonesia No.10 Year 1992 on Demography and Family Welfare.

m. Act of the Republic of Indonesia No. 24 Year 1992 on Spatial Planning.

n. Act of the Republic of Indonesia No.5 Year 1994 on the Ratification of the International

Convention on Biological Diversity (United Nations Convention on Biological Diversity).

o. Act of the Republic of Indonesia No. 37 Year 2014 on Soil and Water Conservation.

p. Act of the Republic of Indonesia No. 41 Year 1999 on Forestry.

q. Act of the Republic of Indonesia No. 5 Year 1990 on Conservation of Natural Resources and

Ecosystems.

r. Act of the Republic of Indonesia No. 21 Year 2014 on Geothermal.

s. Act of the Republic of Indonesia No. 32 Year 2014 on Marine.

t. Act of the Republic of Indonesia No. 11 Year 2010 on Cultural Heritage.

u. Act of the Republic of Indonesia No. 7 Year 2004 on Ratification of Convention on the

Elimination of All Forms of Discrimination against Women.

v. Government Regulation No. 70 Year 2009 on Energy Conservation.

w. Government Regulation No. 101 Year 2014 on Management of Hazardous and Toxic Waste.

x. Government Regulation No. 74 Year 2001 on Hazardous and Toxic Substances.

y. Government Regulation No. 27 Year 2012 on Environmental Permit.

z. Government Regulation No. 50 Year 2012 on Occupational Health and Safety Management

System (SMK3).

aa. Regulation of the Minister of Environment No. 05 Year 2012 on Types of Business Plan and/or

Activities Obligatory to Have Environmental Impact Assessment (EIA).

bb. Regulation of the Minister of Environment No. 17 Year 2012 on Guidelines for Community

Involvement in the Process of Environmental Impact Assessment and Environmental Permit.

cc. Minister of Finance Regulation No. 100/PMK.010/2009 on the Company's Infrastructure

Financing.

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dd. Regulation of the Minister of Forestry No. P.16/Menhut-II /2014 on Guidelines for Borrow and

Use of Forest Area.

ee. Government Financial Services Authority (Otoritas Jasa Keuangan) guidance in Sustainable

Finance Roadmap issued by Government Financial Services Authority and Ministry of

Environment and Forestry on December 5th, 2014

ff. Regulations of the Republic of Indonesia related to the Environmental, Health, Social and

Safety Issues for specific sectors, as mentioned in Annex I.

gg. Articles of Association of PT. Sarana Multi Infrastruktur.

hh. Good Corporate Governance.

ii. Code of Conduct.

jj. Guidelines for Risk Management.

kk. Guidelines for Company Policy Preparation

ll. Board of Directors Regulation on Main Duties and Functions of the Company Divisions.

mm. Multilateral Donors/International Standards: IFC Performance Strandards, and/or other

international institution such as The World Bank Safeguard Policy, ADB Safeguard Policy

Statements (SPS).

5. Statement of the Company’s ESS Polices

PT. Sarana Multi Infrastruktur Public Company (Persero) as a State-Owned Enterprise engaged in 1/

financing and investment activities, 2/ project development, and 3/ consulting service provision for

infrastructure projects has below commitments:

1. To develop and implement environmental and social safeguard which refers to the applicable

regulations and standards.

2. To give priority over the construction financing having with minimal negative impact on the

environmental and social sectors.

3. To support the conservation of natural resources and energy optimally.

4. To possess, implement and comply with the provisions of environmental and social

documents in any operational activities.

5. To identify and manage the environmental and social risks andimpact.

6. To conduct an evaluation to improve the environmental and social performance.

To that end, the Company will conduct:

Assessment of the environmental and social aspects as well as acceleration of the

environmental friendly development and minimization of the social risk.

Regular control to ensure the effectiveness of the Company's policies.

Advocation of environmental protection and conservation of natural resources as well as

social and cultural protection in projects financed by the Company.

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6. Exceptions

If any exceptions to these guidelines and procedures are required in certain conditions, such

exceptions should accordingly be approved by the Board of Directors. If necessary, the Board of

Directors may request a review in advance from the Risk Management Division.

The above-mentioned exceptions should be based on the analysis result of transactions or business

activities, should pay attention to the risk factors which are possible to happen, and should consider

the managerial aspects closely related to the Company interests.

7. Definition

a. AMDAL/EIA :

Environmental Impact Assessment constitues a document required

under Act No. 32 Year 2009 and its implementation in accordance

with Government Regulation No. 27 Year 2012 on Environmental

Permit and Regulation of the Minister of Environment No. 05 Year

2012 on Types of Business Plan and/or Activities Obligatory to Have

Environmental Impact Assessment (EIA). EIA consists of 4 (four)

inseparable documents, namely:

• EIA Terms of Reference, containing the scope plan of

environmental impact assessment.

• Environmental Impact Assessment (AMDAL/EIA), the

significant identification of positive and negative impacts of a

project/activity.

• Environmental Management Plan (RKL), documenting the

efforts of significant impact management plan.

• Environmental Monitoring Plan (RPL), documenting the

monitoring plan efforts to complement the significant impact

monitoring.

b. Hazardous and

Toxic Substances

: Substances, energy, and/or other components due to the nature,

concentration, and/or amount, either directly or indirectly, can

pollute and/or damage the environment, and/or endanger the

environment, health as well as the human and other living creature

survival.

c. Business Division : An Activity-Executing Divison which makes and implements

decisions relating to the Company's business activities, namely

financing and investment activities or project development or

consulting services.

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d. Environmental and

Social Due Diligence

(ESDD)

e. Environmental and

Social Management

System (“ESMS”)

:

The process to investigate/audit the investment potential in details,

such as the management and operational process identification, field

data verification, particularly related to environmental and social

view point.This process is conducted by the Company.

A management system processes and procedures of protection for

any organization to analyze , control and reduce the environmental

and social impacts resulting from activities, products , and services.

f. Environmental and

Social Safeguard

(ESS)

: A management system for the protection processes and procedures

in which an organization analizes, controls and reduces the

environmental and social impacts from its activities, products and

services.

g. Exclusion List : A list of projects that are not allowed to receive services of the

Company, related to 1/ financing and investment activities, 2/ project

development, and 3/ consulting service provision.

h. Consulting Services : Service provision of professional expertise by the Company in the

infrastructure field for the service users based on the consulting-

service-provision agreement between the Company and service

users.

i. Financing

: Provision of funds or equivalent claims,based on a loandealor an

agreement between the Company and the debtor. The debtor is

required to repay the debt after a certain period of time with interest.

j. Project

Development

: The serviceprovision for preparation and development of

infrastructure projects by the Company.

k. Authorized Officers

to Make Decision

: Officers of the Company pursuant to the Board of Directors

Regulations having the authority to make any decisions on specific

activities.

l. Regulation : The condition or capability that must be met or possessed by all

activities, products and services related to the environmental, health,

social and worksafety.

m. Risk : The potential occurrence of an event, whether predictable or

unpredictable which may cause negative impact on the achievement

of the Company’s vision, mission, purposes/objectives.

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n. Letter of Ability to

Manage and

Monitor the

Environment

(SPPL)

: Commitment of the parties responsible for business and/or activity to

conduct the environmental management and monitoring of

environmental impact for the businesses and/or activities other than

the businessesand/or activites which are subject to having EIA or

UKL-UPL.

m. Environmental

Management

Efforts-

Environmental

Monitoring Efforts

(UKL –UPL)

: Mandatory documents under Act No. 32 Year 2009 and its

implementation in accordance with Government Regulation No. 27

Year 2012 on Environmental Permit, but not included in the project/

activity contained in the Regulation of the Minister of Environment

No. 05 Year 2012 on Types of Business Plan and/or Activities

Obligatory to have EIA.

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ORGANIZATION AND RESPONSIBILITY CHAPTER - III


BAB II –TUJUAN DAN ETIKA PENGELOLAAN ESMS PROYEK

1. Management Objectives

The Company is committed to managing its environmentally-and-socially-friendly business

activities with below objectives:

a. To ensure that the management and stakeholders of the financed company understand the

Guideline commitments made by PT SMI.

b. To guarantee that 1/ financing and investment activities, 2/ project development and 3/

consulting service provision performed by the Company using multilateral projects fund

will comply with ratified national and international regulations related to environmental,

occupational health and safety and social aspects.

c. To ensure that the process of reviewing, monitoring and surveillance related to the above point

b. is conducted periodically and meets national and local government regulation.

2. Management Ethics

The excutors and stakeholders involved in the ESS management for Multilateral Project should

obey the business ethics and code of conduct of the Company as set forth in this Guideline.

3. Risk of ESS Management for Multilateral Projects

To perform ESS management for Multilateral Projects, the involved parties should pay attention

and consider the potential risks that can occur and make an effort to conduct mitigation measures

to below risks:

a. Credit Risk

A risk arising from counterparty/debtor failure to meet their obligations in accordance with

theagreed terms, including theagreement on the implementation of Multilateral Project ESS

required by the Company.

The credit risk mitigation, among others is by performing identification, assessment,

monitoring and control over the ESS management for the funded projects.

b. Operational Risk

A risk due to the insufficiency and/or internal process failure, human error, system failure,

or external problems affecting the Company's business activities, such as the procedural

errors in managing Multilateral Project ESS for 1/ financing and investment activities, 2/

project development, and 3/ consulting service provision.

Operational risk mitigation is focused on the sufficiency of guidelines, procedures and

manuals/technical instructions governing the project ESS management, the existence of dual-

control culture and a clear segregation of duties.

c. Reputation Risk

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A risk that is partly due to a negative publicity associated with the Company's business

activity or a negative perception of the Company related to the inappropriateness of the

Multilateral Project ESS management and implementation that carried out by the Company.

Reputation of risk mitigation, among others, is by performing communication management,

both internally and externally with stakeholders through activities that can create a positive

corporate image, including establishing a good relationship with the media.

III – ORGANISASI DAN TANGGUNG JAWAB

1. Board of Directors

a. To establish policies and risk management of ESS implementation for multilateral projects

fundin the Company’s activities.

b. To establish the organizational structure including the clear authority and responsibility

related to ESS implementataion for multilateral projects funding the Company's activities.

c. To monitor compliance with ESS implementation for multilateral projects fund and provide

guidance on ESS management improvement of multilateral projects fund in the Company's

activities.

2. Risk Management Division

a. Below are the responsibilities of Head of Risk Management Division:

i. To ensure 1/ financing and investment activities, 2/ project development, and 3/

consulting service provision are in compliance with the provisions as set forth in the

regulations, in accordance with the scope of ESS Multilateral Projects.

ii. To establish risk categories of Multilateral Project ESS management.

iii. To approve the Environmental and Social Due Diligence (ESDD) result report and

review results of ESDD report prepared by ES Safeguard Specialist.

iv. To submit ESDD report to theFinancing & Investment Division (DPI) and the Credit

and Investment Committee (IMC/KKI) for the consideration of financing and investment

decisions.

v. To ensure adequacy of resources related to the implementation of the Multilateral Project

ESS in the Risk Management Division.

b. ES Safeguard Specialist performs the following responsibilities:

i. To evaluate whether the 1/ financing and investment activities, 2/ project development,

and 3/ consulting service provision are already compliance with the provisions stipulated

in the regulations as well as in accordance with the scope of ESS Multilateral Projects

Fund.

ii. To propose the Project ESS management report and risk categories.

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iii. To perform a project site visit, as well as the site visit report.

iv. To perform ESDD and prepare ESDD report including recommending Corrective Action

Plan (CAP).

v. To review ESDD report after being compiled by the Pool of Expert–Advisory and Project

Development Support Division (DDPPA) or Consultant.

vi. To coordinate with the Business Division for the fulfillment and management of ESS

during the project implementation.

vii. Conducting periodic monitoring of the project in accordance with a mutually agreed

between the Project and the Company

viii. To keep and maintain hardcopies or softcopies of Multilateral ProjectESS documents.

3. Business Divisions

a. To ensure that the project conducted is not included in the Exclusion List.

b. To coordinate with the counterpart/debtor for completing the necessary documents in the

Project ESS management.

c. To coordinate with the Division of Risk Management for the fulfillment and management of

ESS during the project implementation.

d. To monitor the financing and investment facilities or project development or consulting

services.

e. To keep and maintain hardcopies or softcopies of Multilateral Project ESS documents.

4. Financing Facility Control Division (DPFP)

a. To monitor the fulfillment of compliance obligations of the parties, including the fulfillment

of the Corrective Action Plan, in accordance with the financing and investment agreement.

b. To keep and manage the original Multilateral Project ESS documents as a part of financing

and investment documentation.

5. Advisory and Project Development Support Division (DDPPA)

a. To monitor the implementation of Multilateral Project ESS management by the Pool of

Expert-Advisory and Project Development Support Division (DDPPA)/Consultant.

b. To take care of physical storage and management of original ESSfor multilateral projects

fund documents as part of the activity documents of project development or consulting

service provision.

c. To coordinate with the Division of Risk Management for the fulfillment and management of

ESS during the project progresses

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SAFEGUARD POLICIES CHAPTER - IV


I. The Company applies Elements of Multilateral Project Environmental and Social Safeguards

in order to manage social and environmental risks and impacts as well as to obtain

development opportunities in the private sector financing for prospective borrowers and

appropriate projects to be financed. Here are the ten Elements of Multilateral Project

Environmental and Social Safeguards established as common standards to fulfill such

financing:

1. ASSESSSMENT AND MANAGEMENT OF ENVIRONMENTAL & SOCIAL

RISKS AND IMPACTS

This first element emphasizes the importance of managing environmental and social

aspects in the project implementation. The compliance with environmental and social

regulations is a dynamic and ongoing process that begins by the Company management,

Government and Community. The compliance with environmental and social regulations

is a must prior to the commencement of a project. This involves environmental permit,

location permit, land-use permits and other required permits in accordance with the

regulations of the Republic of Indonesia. This compliance nature includes the elements of

business process, namely planning, implementation, monitoring and improvement. Its

implementation has passed the environmental and social risk and impact studies and

assessments. The management and mitigation of any occurring risks have also been

prepared.

OBJECTIVES

a) To get necessary permits as part of the government's efforts to identify and assess

positive or adverse environmental and social impacts prior to the project

execution.

b) To prevent, or if prevention is impossible, to minimize, mitigate, or compensate

the negative impacts on the environment and local communities.

SCOPE OF APPLICATION

This first element is applied to a project having low, medium and high risks with a

necessity to obtain necessary permits prior to the project execution. Accordingly, the

environmental and social impacts can be managed in a sustainable manner.

STIPULATION

i. PT SMI requires environmental assessment (EA) of projects proposed for PT SMI

financing to help ensure that they are environmentally sound and sustainable, and

thus to improve decision making.

ii. EA is a process whose breadth, depth, and type of analysis depend on the nature,

scale, and potential environmental impact of the proposed project. EA evaluates a

project's potential environmental risks and impacts in its area of influence;

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examines project alternatives; identifies ways of improving project selection, siting,

planning, design, and implementation by preventing, minimizing, mitigating, or

compensating for adverse environmental impacts and enhancing positive impacts;

and includes the process of mitigating and managing adverse environmental

impacts throughout project implementation. PT SMI favors preventive measures

over mitigatory or compensatory measures, whenever feasible.

iii. EA takes into account the natural environment (air, water, and land); human health

and safety; social aspects (involuntary resettlement, indigenous peoples, and

physical cultural resources); and transboundary and global environmental aspects.

EA considers natural and social aspects in an integrated way. It also takes into

account the variations in project and country conditions; the findings of country

environmental studies; national environmental action plans; the country's overall

policy framework, national legislation, and institutional capabilities related to the

environment and social aspects; and obligations of the country, pertaining to project

activities, under relevant international environmental treaties and agreements.

iv. PT SMI does not finance project activities that would contravene such country

obligations, as identified during the EA. EA is initiated as early as possible in

project processing and is integrated closely with the economic, financial,

institutional, social, and technical analyses of a proposed project.

v. PT SMI undertakes environmental screening of each proposed project to determine

the appropriate extent and type of EA. PT SMI classifies the proposed project into

one of three categories, depending on the type, location, sensitivity, and scale of the

project and the nature and magnitude of its potential environmental impacts.

vi. Environment Categorization.

PT SMI uses a classification system to reflect the significance of a project’s

potential environmental impacts. A project’s category is determined by the category

of its most environmentally sensitive component, including direct, indirect,

cumulative, and induced impacts in the project’s area of influence. Each proposed

project is scrutinized as to its type, location, scale, and sensitivity and the

magnitude of its potential environmental impacts. Projects are assigned to one of

the following four categories:

(a) Category A.

A proposed project is classified as category A if it is likely to have significant

adverse environmental impacts that are irreversible, diverse, or

unprecedented. These impacts may affect an area larger than the sites or

facilities subject to physical works. An environmental impact assessment is

required.

(b) Category B.

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A proposed project is classified as category B if its potential adverse

environmental impacts are less adverse than those of category A rojects.

These impacts are site-specific, few if any of them are irreversible, and in

most cases mitigation measures can be designed more readily than for

category A projects. An initial environmental examination is required.

(c) Category C.

A proposed project is classified as category C if it is likely to have minimal

or no adverse environmental impacts. No environmental assessment is

required although environmental implications need to be reviewed.

vii. The project must have permits as stipulated by the regulations of the Republic of

Indonesia prior to the project execution and hand over regular reports to the

relevant authorities. It is also a must to extend the validity period if any of the

permits is expired.

viii. If the project is approved to operate, but it requires specific permits in accordance

with the regulations, the project shall obtain such permits.

ix. If the due diligence or monitoring process conducted by either the Environmental

and Social Safeguard Specialists or Pool of Experts is recommended to obtain

certain permits, the project shall obtain such permits.

x. If the project does not have the permits relating to the Environmental Permit and

Location Permit, the project is not appropriate to be financed by the Company

through multilateral fund and cooperation.

xi. Other than that , the project will be asked to consider the following matters , as part

of the Environmental and Social Compliance Rules:

• Organization Capacity and Competency

• Trainings

• Emergency situations Response and Preparadness

• Community Engagement

• Monitoring , reviewing , and reporting

2. LABOR AND WORKING CONDITIONS

This second element emphasizes the efforts of economic growth through fair employment

and income as the fundamental rights of workers. For all projects, the workforce is a

valuable asset and a good relationship between workers and management is one of the

keys to the Company’s progress and productivity. The failure to maintain good relations

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between workers and management can reduce the worker commitment and retention

which in turn can jeopardize the project. By having the constructive management and

worker relationship as well as by treating the workers fairly and providing safe and

healthy working conditions, the project can win benefits such as operational productivity

and efficiency.

OBJECTIVES

a) To create, improve, and maintain relationships between the management and

workers

b) To encourage the fair treatment without discrimination and equal opportunities

for workers and efforts to comply with Employment Act

c) To protect workers by preventing children labor and forced labor

d) To encourage the safe and healthy working conditions as well as to protect and

promote the worker health


This second element is one of the requirements stipulated by the Company in performing

the Environmental and Social assessment as a part of mitigating environmental and social

risks, both conducted when the project starts its construction, and during the project

operation. This implementation is as a compliance with Employment Act.

It is the obligation of the project management to treat workers fairly, either they

arePermanent Employees, Contract Employees or Outsourcing Employees. The

management should pay attention to the wage and minimum wage regulations set by the

government.

STIPULATION

i. Human Resource Policies

The project should adopt human resources policies in accordance with the

regulations by applying a humanist approach to well manage workers in line with

appropriate rights and obligations, including the rights to receive remuneration

and compensation in accordance with the applicable regulations.

ii. Working Conditions and Terms of Employment

The project is required to provide good working conditions in accordance with

the regulations both in terms of administration and rules of employment such as

working hours, overtime, permission to leave office because of illness, childbirth

as well as the protections, namely social insurance and health insurance.

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The project should provide a safe, healthy and secure work environment for

workers by considering the risks in certain sectors, including the hazards of

physics, chemistry, biology, and radiology. The project management should take

measures for the prevention of occupational accidents and diseases.

iii. Worker Organization

The project management is not allowed to prohibit the workers to join any

organizations and workers are entitled to voice their opinions in accordance with

the Act of freedom to join any association and to express their opinions in public;

however, workers must also comply with the limitations set forth in the

applicable regulations in the freedom to join any association and voice opinions

in public.

iv. Non-Discrimination and Fair Opportunity

The project may not make any employment decisions based on characteristics

beyond the inherent occupational requirements. The project management should

establish equal opportunity and justice according to the regulations of the

Republic of Indonesia in treating workers without discriminating to gender,

ethnic groups, religion, political views including in the hiring process,

compensation (salaries and allowance), working conditions and type of

employment, training, promotion, termination or pension and disciplinary actions.

v. Termination of Employment

The project management should develop a plan to mitigate the adverse impact of

termination on workers. Should due to any certain reason, the employment

termination has to be done, it should be executed in accordance with applicable

regulations and consulted with local employment agencies.

vi. Child Labor and Forced Labor

The project should not employ children in for economic interests or that may

harm or interfere with the education of these children or do violence to their

health or physical, mental, spiritual, moral, or social developments. All workers

must be at least 18 years old. The project may not employ forced labors or

someone under threat of coercion or punishment.

vii. Gender

The Gender Action Plan is to be implemented and monitored in the company

activities and draw down to project level in each stage. Indicators should be

applied in order to monitor the implementation process. To assure gender equity

applied for each proposed project, gender-sensitive framework and action plan,

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with indicators on mitigation and adaptation, are needed to be built for

monitoring process. It is necessary to underline that by including gender

sensitivity in its mandate and by taking steps to adopt a gender framework and

action plan from the onset of its activities, the projects will be viewed as adding

considerable value to climate change initiatives. More detail on gender policy is

described in Company Procedure.

3. POLLUTION PREVENTION AND ABATEMENT

The third element stresses the pollution prevention and reduction in industrial and project

activities, namely water, soil and air pollution including greenhouse gas emission that

may threaten people and the environment. This element underlines the eco-friendly

approach by integrating methods or technologies as far as their uses are technically and

financially feasible and effective in costs in the condition that the project relies on the

commercially available expertise and resources.

OBJECTIVES

a) To prevent or minimize negative impacts on human health and the environment

quality by avoiding or minimizing pollution from project activities

b) To encourage the reduction of greenhouse gas emissions that contribute to global

warming phenomenon.


The application of this element is performed in the Environmental and Social Assessment

before the project takes place and during periodic assessments. Ifany finding occurs, an

immediate improvement recommendationshould be made as an effort to fix the problem

and it should be managed underthe project Environmental and Social Management

System.

STIPULATION

i. General requirements

During the project design, construction, operation, and commissioning, the project

managementshould consider ambient conditions and apply both technically and

operationally prevention and control of pollution that is most appropriate to avoid or

if it is impossible to avoid, the effort to minimize or mitigate negative impacts on

human health and the environment should be carried out as long as it is technically

and financially feasible as well as cost-effective.

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ii.Pollution Prevention and Reduction

The project should avoid the release of contaminants or pollutants into soil, water and

air. If it is unavoidable, the project should minimize or control the intensity or the

amount of released pollutants. Risk assessments need to be carried out in routine and

non-routine activities, or in any activities having the potential negative impact on

people and the environment by performing the measurably internal steps in

operational activities in line with the principles of environmentally friendly

operations.

iii. Waste

Wherever possible, the project should minimize the Hazardous and Toxic

Substances and non-hazardous and toxicby using 1/ Reduce Method or reducing the

waste production, 2/ Recycle Method or recycling the waste and 3/ Reuse Method or

reusing the waste for a beneficial process. If these are impossible to do, the project

should process, destroy, and store up hazardous and toxic in such ways that are

environmentally friendly and in accordance with the regulations. If the generated

waste also includes hazardous and toxic, the project should process, utilize or dumpit,

according to the regulations of the Ministry of Environment and Forestry. If the waste

disposal is done by third party, the project should use a reputable contractor and

approved by the competent authority.

iv. Hazardous and ToxicMaterials

The project should do prevention, but if this is impossible to do, the project should

minimize the use or control the release of hazardous and toxic materials coming from

the production, transportation, handling, storage, and application for project activities.

The project should avoid the manufacture, trade and use of chemicals and hazardous

and toxic which is not allowed by the government or agreed to be reduced by the

government because of the high toxicity to living organisms, environmental

resistance, or depletion potential of ozone layer.

v. Pesticides Use and Management

In assisting the projects to manage pests that affect either agriculture or public health,

PT SMI supports a strategy that promotes the use of biological or environmental

control methods and reduces reliance on synthetic chemical pesticides. In PT SMI-

financed projects, the project addresses pest management issues in the context of the

project's environmental assessment.

In appraising a project that will involve pest management, PT SMI assesses the

capacity of the country's regulatory framework and institutions to promote and

support safe, effective, and environmentally sound pest management. As

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necessary, PT SMI and the project incorporate in the project components to

strengthen such capacity.

PT SMI requires that any pesticides it finances be manufactured, packaged,

labeled, handled, stored, disposed of, and applied according to standards

acceptable to PT SMI. PT SMI does not finance formulated products that fall in

WHO classes IA and IB, or formulations of products in Class II, if (a) the country

lacks restrictions on their distribution and use; or (b) they are likely to be used by,

or be accessible to, lay personnel, farmers, or others without training, equipment,

and facilities to handle, store, and apply these products properly.

vi. Ambient conditions

To overcome the adverse impact of the project on the ambient conditions, the project

should record Environmental Baseline Studyand compare the measurements of

ambient conditions on a regular basis. If there is any detected significant increase, the

project should find the causes and create any necessary action plans. To minimize or

reduce the release of pollutants is one of the recommended ways in maintaining the

ambient conditions and this is also as a means of reducing the risk of potential

changes in ambient conditions.

vii. Greenhouse Gas Emission

The project should encourage the reduction of greenhouse gas emission (GHG)

coming from the project activities. The project should apply greenhouse gas

mitigation actions and estimates potential GHG emission in different project cycles

from pre-construction, construction and post construction as well as operational

phase. GHG calculation and monitoring should be held each year referring to the

methodology set by the government. The emission reduction includes, but not limited

to, energy efficiency, use of renewable energy sources, design change process, and

the adoption of other financial and technical feasible GHG mitigation measures.

4. SAFETY, HEALTH AND SECURITY

This fourth element emphasizes not onlyonthe project activies and infrastructure

development that bring benefit to the community in economic development, but also the

minimalization of the project potential risk exposure and impact on society arising from

workplace accidents due to equipment failure, structure failure, hazardous and toxic and

hazardous and toxic waste spreading as well as security issues. This element is used as the

project obligation to prevent or minimize the risks and impacts on safety, health and security

arising from the project activities.

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OBJECTIVES

To prevent or minimize the risks and impacts on health, safety and security of workers

and surrounding community both in routine and non-routine activities.

To ensure protection of personnel and property is done properly so as to prevent or

minimize risks to the community’s safety and security.


The application of this element is done as part of the Social and Environmental Assessment

process. The project’s Environmental and Occupational Health and Safety Management

System includes procedures for the protection of environment, health and work safety to

avoid impacts on human health and project safety to anticipate security problems.

STIPULATION

Work Health and Safety

The project should evaluate the risks and the impact on the safety and health of workers

and the affected community during the design, construction, operation, and commissioning

of the project and develop preventive measures to overcome it in accordance with the

identified risks and impacts. Such measures can support the prevention of risks and

impacts through the hazard minimization and reduction.

Infrastructure and Equipment Safety

The structural elements or components of the project’s design, construction, operation and

commissioning should be in accordance with the applicable regulations and should

consider the potential risk to the hazards, especially if the structural elements are

accessible by the public or if the structural failures during the construction and

operational periods can cause people’s injury. Structural elements must be designed and

constructed by qualified and experienced professionals, and certified or approved by the

government agencies or in other words, by competent professionals. For the project that

operates moving equipment on public roads and other infrastructure forms, the project

management should seek to prevent incidents and accidents.

Environmental and Natural ResourcesIssues

The project should avoid or minimize the potential for natural disasters such as landslides

or floods that may occur due to changes in land use related to the project activities. The

project should also prevent or minimize negative impacts due to project activities related to

soil, water and other natural resources that are used by the surrounding community.

Adaptation on Climate Change Impact

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The project should promote different measures related to adaptation on climate change

impacts. Those measures aim at minimizing climate change impacts to communities and at

reducing vulnerabilities as well as increasing resilience of communities to face different

climate change related risks in different sectors.

Disease Exposure to Community

The projet should avoid or minimize the potential exposure to diseases caused by the

project activities. If the diseases in the affected community have endemic nature, the

project should monitor and encourage opportunities to improve the healthy environment

condition during the project activies so as to reduce the amount of exposure.

Emergency Response and Preparedness

The project should assess the potential risk and impact of the project activities and inform

the surrounding community aboutthe significant hazards in ways that are appropriate with

the local culture. The project can cooperate with the community leaders and local

government in the preparation of emergency response so that the emergency treatment can

be done effectively. The project should document the activies of emergency response

preparedness, tools and equipment, emergency response team and persons in charge in

emergency condition as well as convey pertinent information about other relevant action

plans or documents to the workers, surrounding community and local government

agencies.

Security Personnel

The project should hire employees or contractors for the provision of security personnel

for the workers and property. The project should also assess the risks within and outside

the project site proposed by the security company. In drawing up such arrangements, the

project is directed by the principles set out by the police of the Republic of Indonesia in

terms of recruitment, training and implementation of security patterns. The management

should not order the security officers to take any repressive action. Security Force is used

for prevention and security in accordance with the police regulatons appropriate with the

nature and scope of project security threats.

Dam Safety

When PT SMI finances a project that includes the construction of a new dam, it requires

that the dam be designed and its construction supervised by experienced and competent

professionals; (i) For dams construction larger than 15 meter in height, the project shall

appointed panel of expert consist of 3 or more, (ii) For dams less than 15 meters in height,

it should be design by competent experts.

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5. LAND ACQUISITION AND RESETTLEMENT

Population relocation includes physical displacement and economic displacement (loss of

assets or access that results in loss of income sources or livelihood activities) as a result of

land acquisition for the project. The population relocation becomes involuntary if the

affected individuals or communities do not have the right to refuse the land acquisition

and this will lead to the forced relocation.

Involuntary resettlementmay result in difficult conditions and long-term poverty on the

affected people and communities as well as environmental damage and social pressure on

their new area if this issue is not managed cautiously. The involuntary resettlement should

be avoided or at least minimized. If this is unavoidable, the steps must be mitigated to

reduce the negative impact on the relocated people. The steps should be planned and

implemented with caution.

This applies to all components of the project that result in involuntary resettlement,

regardless of the source of financing. It also applies to other activities resulting in

involuntary resettlement, that in the judgment of the PT SMI, are:

(a) directly and significantly related to the PT SMI-assisted project,

(b) necessary to achieve its objectives as set forth in the project documents; and

(c) carried out, or planned to be carried out, contemporaneously with the project.

OBJECTIVES

To avoid the negative impact or at least minimize the risk of involuntary resettlement.

To mitigate the social and economic impacts of harmful land acquisition on the

affected people due to the land use by: (i) providing compensation for loss of assets at

replacement cost; and (ii) ensuring the resettlement activities are carried out properly

by conducting information disclosure, consultation and participation to those affected.

To improve or at least restore the livelihoods and standards of living of relocated

people.


The application of this element is carried out in the process of environmental and social

assessment to meet the provisions of Environmental and Social Management System

stipulated in the National Regulations relating to land acquisition that adverse affects the

economic, social, or environmental aspects of project activities. Land acquisition creates

loss of access to assets or resources or restrictions on land use; thus, those impacts should

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be avoided, minimized, mitigated, or compensated through a fair process in accordance

with a mutual benefit principle.

This element does not apply for voluntary resettlement based on a profitable land

transaction.

STIPULATION

Project Design

The project should consider alternative technically and financially feasible project designs

to avoid or at least minimize the physical or economic displacement by force.

Compensation and Benefits for People Relocated by Force

If the forced displacement is unavoidable, the project should offer to the people or

communities who are forcibly relocated the land restitution and compensation for loss of

assets at land and building replacement cost, removal cost assistance and other assistance

to help them improved or at least restore their life dignity and livelihood.

Consultation

The project management should facilitate the grievance mechanism and open the

opportunity to participate in the project for the affected people due to the land acquisition.

This also requires the involvement of the local government in the decision-making

processes related to the resettlement including the monitoring and evaluation of restitution

and other compensation payment.

In relation to the resettlement and livelihood restoration processes, the project will apply a

decision-making process that includes options and alternatives, where applicable. Project

disclosure will continue during the implementation, monitoring, and evaluation of

compensation payment, livelihood restoration activities and resettlement to achieve

outcomes that are consistent with the objectives of this guideline.

Grievance Mechanism

The project should establish a mechanism of meetings to accommodate grievance and

discuss specific issues about compensation and relocation arising from forcibly displaced

people or members of the local community, including settlement mechanism to solve

problems.

Resettlement Planning and Implementation

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If involuntary resettlement is unavoidable, the project should conduct a census with

Environmental Baseline Study to identify those who should be relocated, to determine

those entitled to receive compensation and those who are not. The local government must

be included as a part of the land acquisition committee. Those relocated by force can be

classified as persons: (i) having formal legal rights to the occupied land; (ii) having no

formal legal rights, but claiming the land, but approved or can be approved by the State

Act or (iii) having no legal right or claim to the occupied land. In the absence of host

government procedures, the project will establish a cut-off date for eligibility.

Information regarding the cut-off date will be well documented and disseminated

throughout the project area.

Livelihood Restoration Planning and Implementation

Where affected persons do not accept the compensations offers that meet the requirement

of this guideline, and thus, expropriation or other legal procedures are initiated, the

project will explore opportunities to collaborate with the responsible governmental

agency and when permitted, will play active role in the resettlement planning,

implementation and monitoring.

Resettlement Action Plan and/or Livelihood Restoration Plan implementation is

completed when the adverse impacts of the resettlement have been addressed and

consistent with the relevant plan as well as the objectives of this guideline. The project

will document all transactions to acquire land rights, as well as compensation measures

and relocation activities. The project will also establish procedures to monitor and

evaluate the implementation of resettlement plans and take corrective action as necessary.

A resettlement will be considered complete when the adverse impacts of resettlement

have been addressed in a manner that is consistent with the objectives stated in the

resettlement plan or framework as well as the objectives of this guideline. The evaluation

will include, at a minimum, the following:

• Review of the totality of mitigation measures implemented by the project;

• Comparison of implementation outcomes against agreed objectives; and

• Conclusion as to whether the monitoring process can be concluded.

Physical Movement

If people living in the project area must be relocated to another location, the Project

should: (i) offer a choice among possible options to those relocated, including appropriate

residence substitution or suitable compensation (ii) provide relocation assistance

appropriate to the needs of each relocated group of people with special attention to the

needy ones.

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If indigenous peoples must be relocated physically from their indigenous land, the project

must comply with the provisions described in Elements of indigenous peoples and local

communities.

Economic Transfer

If the land acquisition for the project causes loss of income or livelihood, the project

should meet the following provisions:

- To provide economic compensation to those relocated over the loss of assets or

access to assets at a full replacement cost.

- If the land acquisition affects commercial structures, the compensation should be

given to the business owners over the cost of rebuilding commercial activities in other

place andcost of equipment removal, factory re-installation, machinery, or other

equipment.

- To provide land compensation by reference to the Land & Building Tax Imposition

Base (NJOP) or bigger or full replacement cost wherever possible to the people

entitled for the land by showing the legality proof of land which is approved or can be

approved by the National Law.

- To give economic compensation to the relocated people who do not have legal claim

to the land, such as agriculture, infrastructure and irrigation at a full replacement cost

according to the applicable national regulations.

- To provide additional assistance such as training or employment opportunities as well

as opportunities to improve or restore the ability to obtain a proper livelihood.

Vulnerable People and Gender Considerations

The project will be asked to pay particular attention to ensure that vulnerable people and

women are the recipients of compensation pertaining to and reflecting their full activities.

The project will ensure that women who are de-facto household heads are clearly listed as

beneficiaries of compensation and rehabilitation proceedings. In order to ensure the above

the following actions will be considered:

(i) impact assessment will disaggregate the Affected Pepople’s gender-wise (or by

vulnerable people if appropriate) and will clearly indicate the number of affected

women-headed households (or vulnerable people) and their pre-project

socioeconomic status;

(ii) women and vulnerable people will be encouraged to actively participate in all land

acquisition resettlement-related consultations and negotiations, to be facilitated by

womens’groups;

(iii) when required, special mitigation actions/measures for vulnerable people/ women

will be prepared and included in the resettlement plan;

(iv) all compensation due to woman-headed families will be given to only the women

family head, and;

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(v) resettlement plan monitoring and evaluation will pay special attention on the

impact of resettlement on women and other vulnerable people

6. BIODIVERSITY CONSERVATION AND NATURAL RESOURCES

MANAGEMENT

The protection and conservation of biodiversity, the variety of life in various forms,

including genetic, species and ecosystem diversity are critical to sustainable development.

Biodiversity components comprise of ecosystems and habitats, species and communities.

This element stresses on how the project can avoid or mitigate threats to biodiversity that

may arise from project operations as well as how to manage the natural resources that

aims to conserve biodiversity and to encourage the planned and directed use of natural

resources in a sustainable manner.

PT SMI will not finance projects that cause and involve the significant conversion or

degradation of critical natural habitats.

OBJECTIVES

To protect and conserve biodiversity.

To encourage sustainable development and natural resources utilization by applying

integrated conservation.


The application of this element is performed in the process of environmental and social


stipulated in State Regulations relating to biodiversity and natural resources conservation.

STIPULATION

Habitat

Habitat destruction constitutes the main threat to biodiversity. Habitat can be divided into

1/ natural habitat, namely land and water as the biological communities composed by

indigenous plant and animal environment without human interference and 2/modification

habitat, namely habitat having the transformation with the presence of non-indigenous

plant and animal species. Both types of habitat can support diversity at all levels,

including endemic or threatened species.

Critical Habitat

Critical habitat is a part of natural and modification habitat which requires special

attention. The critical habitat covers areas with high value of biodiversity including the

necessary habitat for the survival of endangered species and which gives impact on social,

economic, or cultural aspects of the local communities.

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In the area of critical habitat, the project should implement project activities considering:

- There is no measurable adverse impact on the ability of critical habitat to support

the species population.

- There is no decline in the population of endangered species.

- The impact has been mitigated.

Area Protected by Law

If the project is located in an area protected by law, the project management should meet

the following provisions:

- To act consistently related to the protected area management plan.

- To facilitate a forum for communication and consultation between stakeholders

and the community in the area.

- To implement additional programs to promote and achieve the objectives of

protected conservation area.

- Not to deliberately introduce newly non-indigenous species in the project area,

unless it gets permission from the authorities.

Natural Forest and Protected Forest

If the project is located in the area of natural forest or protected forest, the project must

obtain permits from the authorities and the project should not cause any conversion or

degradation of critical habitat. Additionally, the project must ensure that all natural and

protected forest ecosystems are not spoiled, except in the already permitted space.

Use of Surface Water and Groundwater

The project that requires the use of surface water and ground water should assess the

environmental and social issues and mitigate the risks that may arise. All use of surface

water and groundwater requires permission from the authorities before using.

7. INDIGENOUS PEOPLES AND LOCAL COMMUNITIES

Indigenous peoples and local communities are the social groups with identities that may

be different from the dominant groups in societies. Their economic, social and legal status

is limited to defending their interests and rights on land, natural resources and culture.

They also have the limitations to participate in and get benefit from development. They

are vulnerable, especially if their land and resources are used by outsiders and degraded

significantly. The language, culture, and natural resources as the main pillar of their

livelihood can be threatened and exposed to changes by the outer community.

The project can open opportunities for the indigenous peoples and local communities to

participate and get benefits from the project activities so as to help meet their aspirations

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for economic and social development. They can also play a role in sustainable

development by promoting and managing activities and business as co-development.

In projects with adverse impacts on affected communities of Indigenous Peoples, the

consultation process will ensure their Free, Prior, and Informed Consent (FPIC) and

facilitate their informed participation on matters that affect them directly, such as

proposed mitigation measures, the sharing of development benefits and opportunities, and

implementation issues.

FPIC applies to project design, implementation, and expected outcomes related to impacts

the communities of Indigenous Peoples. When any of these circumstances apply, the

client will engage external experts to assist in the identification of the project risks and

impacts. To achieve FPIC, unanimity is not necessarily required. FPIC can also be

achieved when individuals or groups within community explicitly disagree. The following

should be documented: (i) mutually accepted process between the project and Affected

Communities; and (ii) agreement evidence between parties as the outcome for the

negotiations

OBJECTIVES

To protect and assist indigenous peoples and local communities from the

development effects which are not in accordance with their educational, social and

cultural levels.

To encourage indigenous and local communities as co-development and get social

and economic benefit from the project.




stipulated in State Regulations relating to the indigenous peoples and local communities.

There is no standard definition of indigenous peoples. Indigenous peoples and local

communities can have different terms in various areas. The term of "indigenous peoples"

is used generally to refer to different social and culturalgroups with below characteristics:

Self-identification as a part of different cultural groups and the appointment of

this identity on others.

As a part of geographically diverse communities or ancestor territories in the

project area and natural resources in the area.

Cultural, economic, and social institution which is traditionally separated from

dominant society or culture.

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Different languages, often different from the official language of the country or

area.

Communities that have historically inhabited certain areas.

STIPULATION

Prevention of Adverse Impacts

Through the Social and Environmental Assessment process, the project shouldidentify all

indigenous peoples and local communities who may be affected within the project area,

as well as the nature and level of estimated social, cultural and environmental impact on

them and prevent negative impacts as best as possible.

If the prevention seems impossible, the project management should minimize, mitigate, or

compensate for these impacts in accordance with existing local culture wisdom.

Information, Consultation and Participation Notification

The project should build an ongoing relationship with the affected indigenous peoples or

local communities as early as possible during the project planning and operation. The

community engagement process must be in accordance with the culture as well as the

potential risks and impacts on indigenous peoples. The process includes the following

steps:

- To include the representative body of indigenous peoples, namely associations of

village elder, village groups, chief tain and village leaders.

- To provide necessary time for indigenous peoples to conduct the Consensus and

Democracy process in decision-making.

- To facilitate indigenous peoples to express their views in their own culture and

language, without any interference, coercion or intimidation.

Impact on the Used Traditional Land or Indigenous Land

Indigenous peoples and/or local communities are often associated with traditional or

indigenous land. Whenthe land is not legally owned based on the State Law, the land use

which includes the seasonal-basis use by indigenous communities for their lives or for

cultural, ceremonial or spiritual purposes by showing their identity and communities, can

be justified as a proof and documentation of the land.

If the project is located in an area where there are natural resources therein, the project

management should appreciate the use of traditional or indigenous land by indigenous

peoples and local communities, by performing below steps:

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- To make efforts to avoid or at least minimize the size of land proposed for the

project.

- To define the use of indigenous lands by involving the government and the

village leaders of the affected indigenous peoples.

- To inform the rights to land under the State Law to the affected indigenous

peoples and local communities, including the State Law that acknowledges the

right or use of indigenous land.

- To offer at least compensation in the form of land replacement or additional

benefits to the affected indigenous peoples and local communities, if possible.

Relocation of Indigenous Peoples from Traditional Landor Ancestor Land

The project should consider the feasibly alternative project designs to avoid the relocation

of indigenous peoples from their traditional or indigenous land. If the relocation is

unavoidable, the project may be carried out after obtaining permission from village

leaders.

8. CULTURAL HERITAGE

Culture is passed down for present and future generations. To be in consistent with the

Act on Cultural Preserve which aims to preserve the national cultural heritage, the

Company emphasizes social responsibility in its projects and business operations by

protecting the cultural heritage.

OBJECTIVES

To protect cultural heritage from negative impacts of project activities and support its

preservation.

To encourage the project management’s responsibility in its business activities by

protecting the cultural heritage around the project area.




stipulated in State Regulations relating to the Cultural Preserve.

The cultural heritage refers to the measured forms, such as the property and location

having the archaeological (prehistoric), paleontological, historical, cultural, artistic, and

religious values, as well as part of a unique natural environment containing cultural

values, such as sacred forest. It also includes traditional lifestyles practiced by indigenous

peoples and local communities around the project.

STIPULATION

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Protection of cultural site

If the location of the proposed project is estimated to havea cultural heritage site,

wherever possible, the project location should be moved to the technically and

financially appropriate place. If it is impossible, the project management should

implement the working procedures that will not harm and disturb the cultural site.

The assessment by competent experts or recommendation of the local government

should be obtained if there is still any doubt in doing these safeguards.

Regional Cultural Heritage

Most cultural heritage is best protected or preserved in its original location. The

project should not relocate or eliminate all forms of cultural heritage, unless there is

no other appropriate technical or financial alternative. This can be done after the

assessment of experts, consultation with cultural stakeholders of indigenous peoples

or local communities and local governments.

Critical Cultural Heritage

Critical cultural heritage consists of (i) cultural practices of indigenous people from

generation to generation (ii) legally protected cultural preserve.

The project should not significantly alter, damage, or remove various forms of

cultural heritage. The legally protected cultural heritage is an important part for the

protection and conservation of cultural heritage. If the project is built in an area

around the cultural heritage, additional measures are required, including the

permitsfrom the government, consultation with the indigenous peoples, also

protection measures based on recommendations from the competent experts and

implementation of additional appropriate programs to promote and achieve the

purpose of the protected area.

Commercial Use of Cultural Heritage

If the project uses the cultural resources, insight or practices of local communities

having the traditional lifestyles for commercial purposes, the project must inform the

communities about: (i) their legally protected rights; (ii) the proposed

commercialization scope and nature. The project should not process the

commercialization, unless (i) having a decentnegotiation with the affected local

communities. (ii) obtaining written approval from the indigenous peoples and local

government (iii) dividing the fair and equitable result from the commercialization of

insight, innovations, or practices of customs and cultural traditions.

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9. ENERGY CONSERVATION AND ENVIRONMENT FRIENDLY ENERGY

Energy conservation is one of important elements in the environment and social

safeguards. Efficient energy use will generate physically and financially profits. The

Company also strongly encourages the use of green or environmentally friendly and

promotes new and renewable energy projects as part of environmental and social

responsibility. Environmentally friendly energy is an important aspect of sustainable

development and also one of the important issues in the campaign of climate change

and carbon reduction in accordance with the government regulations.

The project should have energy saving policies by conducting the environmental and

social assessment that can be done alone or through a competent third party as an effort

to increase efficiency and profits by doing overall saving in the project activities. If the

energy conservation is impossible in the project activities, the use of energy-saving

equipment and an effort to minimize the use of energy are important to be done as a

part of reducing emission coming from the project activities. Saving activity is an

important part of preventing or mitigating climate change.

OBJECTIVES

To support energy conservation as a saving effort in the resources use in order to

safeguard natural resources and encourage the planned and directed resources usein

a sustainable manner.

To encourage the sustainable development and energy use through an integrated

application of conservation having the development priorities.

To promote the development of environmentally-friendly green energy facilities

which areas an effort to increase new and renewable energy.




stipulated in State Regulations relating to energy conservation and environmentally-

friendly green as well as new and renewable energy.

STIPULATION

Energy Conservation

Energy conservation (saving) is the act of reducing the amount of energy usage or optimal

use of energy as needed so that the incurred energy costs can be lower. The energy saving

can be achieved by efficient energy use of which same benefits can be obtained by using

less energy, or by reducing the consumption and project activities that use energy. The

energy saving can lead to reduced costs as well as increase environmental and social

values.

Environment Friendly Energy

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Energy saving also facilitates the replacement of non-renewable sources with renewable

ones. In facing the lack of energy, the energy saving is often the most economical way

and a more environment friendly way instead of increasing the energy production. In line

with the increasingly limited natural resources, energy crisis and the declining capacity of

the environmental support, the demand to develop an environment-friendly industry,

known as environment friendly green energy has become an important issue. In addition

to the policy efforts to address the increasingly serious energy shortage and the growth of

extremely high energy, the development of alternative new and renewable energy sources

which are environmentally friendly is also absolutely to be encouraged.

10. CONSULTATION AND GRIEVANCE MECHANISM

Consultation is a procedure of giving information to stakeholders of a project to (i) plan,

implement, and monitor steps to avoid negative impacts, or, if it is unavoidable, to

minimize, mitigate and compensate for such impacts; and (ii) inform the project benefits

to them in a way that is in accordance with the customs and culture of the community.

(iii) provide time-bound, understandable, easily accessible, relevant and adequate

information to the community; (iv) conduct all these in an atmosphere free from

intimidation or coercion; (v) to be inclusive and gender-sensitive and adjusted to the local

customs and traditions.

OBJECTIVES

To encourage the information transparency and encourage the participation of

community and other stakeholders as fair and profitable consulting efforts.

To encourage community participation in sustainable development in the affected

area.

As an effort to facilitate the culture of Consensus and Democracy in the project and

affected communities as a grievance mechanism.




stipulated in State Regulations relating to disclosure of information, Consensus and

Demography as well as the regulatios of freedom to express opinions.

STIPULATION

Consultation Mechanism

The project forms a consultation mechanism with local governments to respond the

grievance of the affected residents or local community. The consultation mechanism

should not hamper access to legal or administrative solution in an area. The affected

residents or local community will be given proper information about the mechanicsm. If

affected residents or local community have differences of opinion and disagreements

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about the project, the project management should well negotiate to resolve differences

and disagreements through consultation efforts which could be established and facilitated

by the local government.

Grievance Mechanism

The project should establish a mechanism to receive and facilitate solutions for problems

andgrievance of affected residents or local communities. Grievance mechanism should

have a scale comparable to the impact of the project and may address problems and

grievance quickly by using an understandable and transparent process in line with the

culture and gender sensitivity, and can directly be reached by the affected residents or

local communities without any cost. The mechanism should not hamper the access to

judicial or administrative solution in an area. The affected local residents or communities

will be given information about the proper mechanism.

Disclosure of Information

The project will provide relevant information, including information from the project

social and environmental management documents in accordance with regulations that

apply to the determined places. If the affected local residents or communities and other

stakeholders do not have the literacy ability, other proper communication methods can be

used.

Monitoring and Reporting

The project should compile periodic monitoring reports on environmental and social

management in accordance with applicable regulations as well as submit the compliance

issues and corrective actions in a transparent manner.

CHAPTER VII – CLOSING

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CLOSING CHAPTER - V


This guidance will be effective from the established date of the Regulations of the Board of

Directors. The points that have not been regulated in this guidance will be further described in

the executing/technical manual.

At the time of this guideline applies, the provisions that are contrary to the provisions of this

guideline are no longer valid.

Proposed By

Farida Zaituni

Risk Management Division

Approved by

Muhammad Oriza

Head of Risk Management Division

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APPENDIX I – LIST OF THE REPUBLIC

OF INDONESIA REGULATIONS

RELATED TO ENVIRONMENTAL,

SOCIAL, OCCUPATIONAL HEALTH &

SAFETY ISSUES

CHAPTER - VI


APPENDIX I – LIST OF THE REPUBLIC OF INDONESIA REGULATIONS RELATED TO ENVIRONMENTAL, SOCIAL,

OCCUPATIONAL HEALTH & SAFETY ISSUES

List of Regulations - Valid for all sectors

1. Act of the Republic of Indonesia No. 32 Year 2009 on the Environmental Protection and

Management.

2. Act of the Republic of Indonesia No. 1 Year 1970 on Occupational Safety.

3. Act of the Republic of Indonesia No. 13 Year 2003 on Labour.

4. Act of the Republic of Indonesia No. 41 Year 1999 on Forestry.

5. Actof the Republic of Indonesia No. 2 Year 2012 on Land Procurement for Public Interest

Development.

6. Government Regulation No. 27 Year 2012 on Environmental Permit.

7. Government Regulation No. 82 Year 2001 on Water Management and Water Pollution

Control.

8. Government Regulation No. 41 Year 1999 on Air Pollution Control.

9. Government Regulation No. 74 Year 2001 on Hazardous and Toxic Substances

Management.

10. Government Regulation No. 85 Year 1999 on Amendment of Government Regulation No. 18

Year 1999 on the management of Hazardous and Toxic waste.

11. Regulation of the Minister of Environment No. 05 Year 2012 on Types of Business Plan

and/or Activities Obligatory to Have Environmental Impact Assessment (EIA).

12. Regulation of the Minister of Environment Number 16 Year 2012 on Guidelines for

Environmental Document Preparation.

13. Regulation of the Minister of Environment Number 17 Year 2012 on Guidelines for

Community Involvement in the Process of Environmental Impact Assessment and

Environmental Permit.

14. Decree of the Minister of Environment No. 112 Year 2003 on Domestic Wastewater Quality

Standard.

15. Decree of the Minister of Environment No. KEP-48/MENLH/11/1996 on Noise Level

Standard.

16. Decree of the Minister of Environment No. KEP-49/MENLH/11/1996 on Vibration Level

Standard.

17. Decree of the Minister of Environment No. KEP-50/MENLH/11/1996 on Odor Level

Standard.

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SAFETY ISSUES

CHAPTER - VI


List of Regulations - Valid for all sectors

18. Regulation of the Minister of Environment No. 18 Year 2009 on Licensing Procedures for

Hazardous and Toxic Waste Management.

19. Decree of the Minister of Environment No. 45 Year 2005 on Guidelines for Preparation of

Implementation Reports of Environmental Management Plan (RKL) and Environmental

Monitoring Plan (RPL).

20. Regulation of the Minister of Manpower No. 2 Year 1992 on the Procedure for Appointment,

Duties and Authority of Occupational Safety and Health Expert.

21. Regulation of the Minister of Manpower No. 3 Year 1998 on Procedures for Accident

Reporting and Investigation.

22. Regulation of the Minister of Manpower No. 75 Year 2002 on Implementation of the

Indonesia National ELEMENT (SNI) SNI No. 04-0225-2000 regarding the General

Requirements for Electrical Installations 2000 (PUIL 2000) in the Workplace.

23. Regulation of the Minister of Manpower and Transmigration No. PER.13/MEN/X/2011 on

the Threshold Limit Value of Physical and Chemical Factors in the Workplace.

24. Joint Decree of the Minister of Labour and Minister of Public Works Decree No. 174 Year

1986 No 104/KPTS/1986 on Occupational Safety and Health in Construction Activity Sites.

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SAFETY ISSUES

CHAPTER - VI


List of Regulations - Exclusively Valid for Electrical sector

1. Regulation of the Minister of Environment No. 08 Year 2009 on Wastewater Quality

Standard for Thermal Power Plant Businesses and/or Activities.

2. Regulation of the Minister of Environment No. 21 Year 2008 on Quality Standard for

Stationary Source Emissions for Thermal Power Plant Businesses and/or Activities.

List of Regulations - Exclusively valid for Oil and Gas sector

1. Regulation of the Minister of Environment No. 19 Year 2010 on Wastewater Quality

Standard for Oil and Gas and Geothermal Businesses and/or Activities.

2. Regulation of the Minister of Environment No. 13 of 2009 on Quality Standard for Stationary

Source Emissions for Oil and Gas and Geothermal Businesses and/or Activities.

3. Decree of the Minister of Environment No. 45 Year 2005 on Guidelines for Preparation of

Implementation Reports of Environmental Management Plan (RKL) and Environmental

Monitoring Plan (RPL).

4. Regulation of the Minister of Environment No. 13 Year 2007 on the Terms and Procedures

for the Management of Wastewater for Upstream Businesses and/or Activities of Oil and Gas

and Geothermal by Injection Way.

5. Decree of the Minister of Environment No. 51 Year 2004 on Sea Water Quality Standard.

6. Regulation of the Minister of Energy and Mineral Resources No. 20 Year 2008 on the

Compulsory Application of ELEMENTS of the Indonesia National Competence in the Oil

and Gas Business Sector.

List of Regulations - Exclusively valid for Geothermal sector

1. Act of Republic of Indonesia No. 21 Year 2014 on Geothermal.

List of Regulations - Exclusively valid for Transportation sector

1. Regulation of the Minister of Environment No. 05 Year 2009 on the Management of Waste

in the Port.

2. Decree of the Minister of Environment No. 51 Year 2004 on Sea Water Quality Standard.

List of Regulations–Exclusively valid for Drinking Water sector

1. Regulation of the Minister of Health No. 492/Menkes/PER/IV/2010 on Drinking Water

Quality Requirements.

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SAFETY ISSUES

CHAPTER - VI


List of Regulations - Exclusively valid for Road sector

Referring to the list of regulations for all sectors.

List of Regulations - Exclusively valid for Telecommunications sector


List of Regulations - Exclusively valid for Irrigation sector


List of Regulations - Exclusively valid for Waste Water sector


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APPENDIX II

ENVIRONMENTAL AND SOSCIAL DUE

DILIGENCE OUTLINE

CHAPTER - VI


APPENDIX II - ENVIRONMENTAL AND SOSCIAL DUE DILIGENCE OUTLINE 1. Background

2. Objectives

3. Project Descriptions

4. Environmental and Social Licensing Status

5. Management of Environmental Issues:

a. Emission management

b. Water management

c. Hazardous and Toxic Substances management

d. Liquid Waste Management

e. Domestic Waste Management

f. Hazardous and Toxic Substances Waste management

g. Biodiversity Management

h. Energy Conservation Program

6. Potential Management of Natural Disasters:

a. Landslide

b. Flooding

c. Earthquake

d. Other Potential Natural Disasters

7. Health, Safety and SecurityManagement:

a. Occupational Health and Safety Policies and Procedures

b. Implementation of Health and Safety at Work

8. Social IssueManagement:

a. Consultation Program and Communication with the Community and Government

b. Handling and Grievance Mechanism

c. Indigenous Peoples/Local Communities Management

d. Cultural Heritage Management

e. Corporate Social Responsibility / Community Development Program

9. Employment Management:

a. Employment Handing

b. Work Environment Management

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APPENDIX II

ENVIRONMENTAL AND SOSCIAL DUE

DILIGENCE OUTLINE

CHAPTER - VI


10. Land AcquisitionManagement:

a. Land Acquisition Issue

b. Resettlement Issue

11. Conclusion of Social and Environmental SafeguardStatus

12. Corrective Action Plan

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APPENDIX III

EXCLUSION LIST CHAPTER - VI


APPENDIX III - EXCLUSION LIST

Below is the Exclusion List of 1/ Financing and Investment, 2/ Project Development and 3/

Consulting Service Provision:

a. The production or sale-and-purchase of any kinds of product or activities regarded illegal

under the State regulations or international conventions and agreements or items which are

internationally banned, such as illegal drugs, pesticides/herbicides, ozone-depleting

substances, polychlorinated biphenyls (PCBs), wildlife or products regulated under

Convention on International Trade in Endangered Species of Wild Fauna and Flora

(CITES).

b. The production or sale-and-purchase of arms and ammunition.

c. The production or sale-and-purchase of alcoholic beverages (excluding beer and wine).

d. The production or sale-and-purchase of tobacco.

e. Gambling, Casinos and similar companies.

f. The production or sale-and-purchase of radioactive materials. Excluding the production or

sale-and-purchase of medical devices, quality control (measurement) instrument and other

equipment in very small or proper quantities.

g. The production or sale-and-purchase of unbounded asbestos fibers. Excluding the purchase

or use of cement asbestos sheets bonded with asbestos concentrations of less than 20%.

h. Driftnet fishing in the marine environment which uses nets longer than 2.5 km.

i. Production or activities related to the exploitation and hazardous work by forced

workers/children workers.

j. The trading of deforestation result coming from tropical rainforest.

k. The production or sale-and-purchase of timber or other forest production apart from

sustainably managed forests.

l. Business activities related to pornography and prostitution.

m. The destruction of critical habitat.

n. Cross-border trade for the waste and its product, except it is in accordance with Bassel

Convention and applicable regulations.

o. The production and distribution of goods and media having the natures of racist, anti-

democratic and/or sentiments of certain groups.

p. The production and distribution of goods and media having the nature of religious

radicalism. Environmental and Social Assessment Checklist

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APPENDIX IV


ASSESSMENT CHECKLIST

CHAPTER - VI


ENVIRONMENTAL AND SOCIAL ASSESSMENT CHECKLIST

Name of Project/Counterpart :

Name of Local

Government/Counterpart

:

Project/Counterpart Description :

Project/Counterpart Location :

ENVIRONMENTAL ASSESSMENT CHECKLIST

PERMITS OF PROJECT

No. Permits Yes No N/A

Details

(Number, Date of

Issue, Validity Date

and Agency of Permit

Issuance)

1. EIA (AMDAL) / EMP (UKL – UPL / SPPL)

2. Location Permit

3. Hazardous and Toxic Waste Disposal Permit

4. Hazardous and Toxic Waste Temporary Storage Permit

5. Groundwater Use Permit

6. Other permits

ENVIRONMENTAL IMPACTS MITIGATION

No. Components Yes No N/A Details

1. Protected Forest Area

2. Water Catchment Area

3. Beach

4. River

5. Lake

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ENVIRONMENTAL IMPACTS MITIGATION

6. Natural Habitats

7. Nature Reserve

8. Mangrove Forested Coastal Area

9. National Park

10. Private/Community/Indigenous Forest

11. Germplasm Protection Area

12. Coral Reefs

13. Others

SOCIAL ASSESSMENT CHECKLIST

Land Use, Land Acquisition – Ressetlement

No. Components Yes No N/A Details

1. Does the project involve acquisition of private land?

2. Does the project involve acquisition of Government land?

3. Number of household and public facilities to be displaced?

4. Number of people to be displaced?

5. Will project result in loss of access to current livelihoods?

6. Is the project likely to provide local employment opportunities, including employment opportunities for women?

7. Is the project being planned with sufficient attention to local poverty alleviation objectives?

8. Number of families under the poverty line to be benefitted?

9. Are there socio-cultural groups present in the project area (ethnic communities, minorities, or indigenous communities)?

10. Do such groups self-identify as being part of a distinct social and cultural group?

11. Do such groups maintain cultural, economic, social, and political institutions distinct from the dominant society and culture?

12. Do such groups speak a distinct language or dialect?

13. Have such groups been historically, socially and economically marginalized, disempowered, excluded, and/or discriminated against?

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Land Use, Land Acquisition – Ressetlement

14. Will the project directly or indirectly benefit or target Indigenous Peoples?

15.

Will the project directly or indirectly affect Indigenous Peoples' traditional socio-cultural and belief practices? (E.g. child-rearing, health, education, arts, and governance)?

16.

Will the project affect the livelihood systems of Indigenous Peoples? (e.g., food production system, natural resource management, crafts and trade, employment status)?

17. Will the project be in an area (land or territory) occupied, owned, or used by Indigenous Peoples, and/or claimed as ancestral domain?

Water Supply

No. Process Description Yes No N/A Information

1. Water

Withdrawal

Have the potential adverse effects of

withdrawal of surface water on

downstream ecosystems been evaluated?

Has appropriate environmental flow

assessment been conducted to determine

acceptable withdrawal rates?

Does the raw water supply have a source

of pollution at the upstream like industries,

agriculture, and sewage and soil erosion?

Are adequate measures taken to treat

these?

Does the project pose a hazard of land

subsidence due to excessive ground water

pumping?

2. Water

Treatment

Does the treated water meet national

standards?

Have adequate measures been taken to

reduce the solid waste residual generated

through the treatment process?

Does the effluent from the treatment

process like filter backwash, reject streams

from membrane filtration processes, and

brine streams from ion exchange or

demineralization processes meet country

standards?

Are adequate measures taken to prevent

and control hazards during storage and use

of hazardous chemicals?

Is there emission generated from the

treatment process? Have measures been

taken to mitigate these impacts?

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Is the water treatment facility located in

designated protected areas? Will the

project activities cause any damage to

these?

Is the water treatment facility located in a

densely populated area or an area with

heavy developmental activities?

3. Water

Distribution

Does the design of the distribution system

include checks and measures to minimize

leaks and loss of pressure?

Is the water used for flushing the water

pipes disposed in accordance to country

requirements?

4. Supporting

facilities

Arewater supply facilities completed with

adequate transmission lines?

Are the impairments associated with

transmission lines and access roads

adequately addressed?

Is the increase in water supply supported

by adequate sewerage network and sewage

treatment facility?

5. Health and

safety

Are adequate measures taken to prevent,

minimize and mitigate occupational health

and safety hazards to workers in projects?

Sewerage and Sanitation


1. On-site

systems

Are suitable facilities for

storage, handling and

treatment of faecal sludge

from septic systems provided?

2. Sewerage

system

Does the design of the

sewerage system meet country

standards?

Are adequate measures taken

to prevent and minimize leaks

from the sewerage system into

the ground?

3. Sewage

Treatment

Is the sewage adequately

treated before release into

aquatic systems? Do they

meet country standards?

Is the sludge generated from

the treatment plant disposed as

per country specifications?


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to minimize odour from the

treatment facility?

Does the effluent from the

treatment facility meet country

and sponsors standards for

disposal into aquatic systems?


to prevent and control hazards

during storage and use of

hazardous chemicals?


to prevent overflows and

flooding of neighbouring

properties with raw sewage?

Is the water treatment facility

located in designated

protected areas? Will the

project activities cause any

damage to these?

Is the water treatment facility

located in a densely populated

area or an area with heavy

developmental activities?

4. Industrial

Waste Water

Is the wastewater adequately

treated before release into

sewerage system or aquatic

systems? Do the effluents

meet country standards?

5. Occupational

Health and

Safety


to prevent accidents and

injuries to workers while

working?


to prevent chemical hazards

during handling and storage of

hazardous chemicals?

Are protective equipment and

training provided to workers

against exposure to hazard?

Waste Management


1. Collection and

Transport

Are adequate Litter bins and refuse

collection services available to prevent

littering and clandestine dumping?

Are adequate measures taken to mitigate

air emission?

2. Waste Receipt, Are adequate measures taken to prevent

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Unloading,

Processing and

Storage

migration of leachate into soil, surface

water and groundwater?


minimize, and control waste from project?

3. Biological

Treatment

Are adequate measures taken to control

leachate and runoff from waste storage and

processing areas?


combustion of waste?

4. Landfilling

Is the landfill site located in accordance to

country specifications?

Are adequate measures taken for

collection, treatment and disposal of

leachate from landfill?

Is the quantity of leachate generated

regularly monitored?

Is a landfill gas collection system designed

and operated in accordance with applicable

national requirements standards?


minimize, and control dispersal of litter?

Is adequate buffer zone maintained around

the landfill to alleviate nuisances?

5. MSW

Incineration

Facilities

Does project own/operate incinerator for

MSW? If yes, does it have valid permit?

Number of permit:

Date of issue:

Date of validity:

Agency of Permit

Issuance:

Do emissions from incinerators meet

country and standards?

Are ash and other residuals disposed in

accordance to country specifications?

6. Health and

Safety

Are adequate measures taken to minimize

and mitigate health and safety hazards to

workers from toxic gases and hazardous

materials on site?

Are adequate measures taken to protect the

public and neighbourhood from odour,

smoke from fire, diseases transmitted by

flies, rodents, insects and birds etc.?

Hazardous and Toxic Waste


1. Collection and

Transport


spills and releases to environment?

Are national and sponsors standards

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followed for packaging, labelling, and

transport of hazardous materials and

wastes?

2.

Waste Receipt,

Unloading,

Processing, and

Storage

Is the incoming waste adequately

identified and classified for storage,

treatment and disposal?


spills and releases during waste storage

and handling?


and control releases releases of particulate

matter and VOCs from waste processing

equipment?

3.

Biological-

Physical-

Chemical

Treatment

Is the facility designed and operated in

accordance with applicable national

requirements?

Are adequate measures taken to control

leachate and runoff from waste storage and

processing areas?

4. Incineration

Facilities

Does project have/operate incinerator for

hazardous and toxic waste? If yes, does it

have valid permit?

Number of permit:

Date of issue:

Validity date:

Agency of Permit

Issuance:

Do emissions from incinerators meet

country standards?

Are ash and other residuals disposed in

accordance to country specifications?

Road Access

No. Environmental

Component Description Yes No N/A Information

1. Ecology

Does the project lie in proximity to or cut across any designated Protected Area?

Does the project or its activities cause disruption of terrestrial and aquatic habitats? If yes which of the following impacts does it cause

fragmentation of forested habitat;

loss of nesting sites of listed rare, threatened, or endangered species and / or high biodiversity / sensitive habitat; disruption of watercourses;

creation of barriers to wildlife movement;

visual and auditory disturbance due to the presence of machinery,

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No. Environmental


construction workers, and associated equipment

Does the project involve regular maintenance of vegetation within road right-of-way causing likelihood of the establishment of invasive species?

2. Hydrology

Would the alteration of topography and installation of project components like tunnels adversely affect surface and ground water flows?

3. Topography and Geology

Does the project involve activities that have a likelihood of causing slope failures and landslides?

4. Storm water Does the project or its activities cause increase in rate of surface water runoff?

5. Waste

Does the project or its activities lead to generation of the following types of waste

Solid waste may be generated during construction and maintenance

Vegetation waste

Sediment and sludge from storm water drainage system maintenance

Waste generated from road and bridge maintenance

6. Air Quality

Will the project cause increased local air pollution due to rock crushing, cutting and filling works and chemical vapor from asphalt processing?

7. Water Quality

Would the surface runoff from cut and fill areas cause degradation of water quality in the downstream water bodies?

Would the surface runoff from roads contaminate surrounding water sources and/or ground water?

8. Public Health

Will the project lead to creation of temporary breeding habitats for mosquito vectors of disease?

Arethere accident risks associated with increased vehicular traffic, leading to loss of life (communities around project area)?

9. Occupational Health and Safety

Are adequate measures taken to prevent physical hazards while operating machinery, from moving vehicles and working at elevation on bridges and overpasses?

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No. Environmental


Are adequate measures taken to prevent chemical hazards from construction and paving activities, exhaust emissions from heavy equipment and motor vehicles during all construction and maintenance activities?

Are adequate measures taken to prevent chemical hazards from construction and paving activities, exhaust emissions from heavy equipment and motor vehicles during all construction and maintenance activities?

Ambient Conditions


1. Ambient Air

Quality

Do emissions from project and supporting

activities (e.g. heavy equipment, loading-

unloading) have adverse impacts to

ambient air quality? Have measures been

taken to mitigate these impacts?

Are there any industries contribute air

pollution to around project area? Will the

project increase air pollution to the area?

Does ambient air quality around project

area meet national standards?

2. Noise and

Vibration

Is sufficient buffer maintained around

project area (pump, water and waste water

treatment plant, power generation and

other system and equipment) to reduce

noise and vibration?

Are adequate measures taken to mitigate

noise and vibration impacts generated from

vehicles and heavy equipment?

Are there any industries contribute noise

and vibration to around project area?

Do noise and vibration levels meet

national standards?

Occupational Health and Safety Management System (OHSMS)


1. Management

System

Have the project implemented OHSMS?

Have OHSMS of the project been audited

/evaluated periodically?

2. Personnel Does project hire personnel competent at

OHSMS and safety related to project field?

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3 Manhours

Does project record manhours? If yes,

what is the amount? If no, what is the

reason?

4.

Emergency

Response and

Preparedness

Does project have emergency response and

preparedness plan to manage and control

any emergency conditions?

Monitoring and Reporting


1.

AMDAL /

UKL-UPL /

SPPL

Does project manage and monitor

environment and social aspects on a

periodic basis in accordance with

EIA/EMP (AMDAL/UKL-UPL/SPPL)

requirements which has been approved by

the Government? Has project reported

EMP to the Government?

……………….,…………2016

Reported by: Approved by:

………………………………… …………………………………

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