Indigenous Peoples Plan September 2011

INO : Tangguh LNG Project

Integrated Social Program Phase 2 Prepared by BP Berau Ltd. / Tangguh LNG This indigenous peoples plan is a document of the borrower. The views expressed herein do not necessarily represent those of ADB's Board of Directors, Management, or staff, and may be preliminary in nature. In preparing any country program or strategy, financing any project, or by making any designation of or reference to a particular territory or geographic area in this document, the Asian Development Bank does not intend to make any judgments as to the legal or other status of any territory or area.

TTAANNGGGGUUHH IINNTTEEGGRRAATTEEDD SSOOCCIIAALL PPRROOGGRRAAMM ((IISSPP)) 22001111--22001155

Laying the Foundation of Sustainability

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Contents List of Figures 3 List of Tables 4 Acronyms and Indonesian Terms 5 Executive Summary 6

I Introduction 8 II External & Internal Context 13 Relevant External Standards & Best Practices 13 Project Context 13 Indigenous People 16 Area Setting 17 Progress & Achievement 19 Promotion of Development based on Community Assets 21

III Overall Goal 23 IV Components of Strategy 25 Key Assumptions 25 Influence of Local Issues on ISP-2 Strategy 26 Strategic Approaches 27 Key Characteristics 30 Basic Strategy 30 Strategy Architecture 32 Overview of Strategic Programs 33

V Strategy Implementation 43 Implementation Framework 43 Monitoring & Evaluation 46 Key Competencies and Organization 48 Budget Composition 50

Annexes 52

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List of Figures

1 Project Location 13 2 Tangguh Gas Reservoir 14 3 LNG Plant and its Supporting Facilities 15 4 Livelihood of RAVs in 2009 20 5 Central Government Transfer to Sub-National Governments

1997-2008 25

6 Community Action Plan (CAP) Framework 32 7 Strategy Architecture of ISP 32 8 Chain of Results for Programs 34 9 Process of Implementation 43

10 Organization Structure 50 11 Budget Composition for 2011-2015 51 12 Budget Composition in 2011 51

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List of Tables

1 Programs Objective 7 2 Raised Issues in DAVs 10 3 Summary of Consultation Process 11 4 Significant Impacts of the Operational Phase 15 5 Issues and Mitigation of Indigenous People 17 6 Human Development Index (HDI) of West Papua Province 18 7 Villages and Districts Where ISP is Implemented 18 8 The Growth of Households Income by Villages 20 9 Type of Development Intervention 27

10 ISP Implementation Framework 44 11 Monitoring and Evaluation of ISP 47 12 Competencies for ISP 49 13 Operation Activities and Their Impact as Stated in AMDAL 53 14 Description and Key Performance Indicator for Governance

Program 55

15 Description and Key Performance Indicator for Communication & External Affairs Program

57

16 Description and Key Performance Indicator for Community Health Program

59

17 Description and Key Performance Indicator for Education & Training Program

61

18 Description and Key Performance Indicator for Livelihood Program

62

19 Annual Plan Form 64 20 Annual Activities Budget 65 21 Monitoring Form 66 22 Governance Program in 2011 67 23 C&EA Program in 2011 70 24 Livelihood Program in 2011 72 25 Health Program in 2011 73 26 Education & Training Program in 2011 75

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Acronyms ABCD Asset Based Community Development ADB Asian Development Bank ADK Alokasi Dana Kampung, Village Fund Allocation AMDAL Analisa Mengenai Dampak Lingkungan, Social and Environmental

Impact Analysis CAP Community Action Planning CBO Community Based Organizations CEPPS Consultation, Empowerment, Partnership, Participation, and

Sustainability CLTS Community Led Total Sanitation CSO Civil Society Organization CTPS Cuci Tangan Pakai Sabun, soap hand washing DAK Dana Alokasi Khusus, Special Allocation Fund DAU Dana Alokasi Umum, General Allocation Fund DAV Directly Affected Villages DBH Dana Bagi Hasil, Revenue Sharing Fund DDUB Dana Daerah untuk Urusan Bersama, local fund for public affairs DGS Diversified Growth Strategy EMIS Education Management Information System GDP Group Defined Practices GRP Group Recommended Practices HIV/AIDS Human Immunodeficiency Virus/Acquired Immune Deficiency

Syndrome ICBS Integrated Community Based Security IPDP Indigenous People Development Plan ISP Integrated Social Program LARAP Land Acquisition and Resettlement Action Plan LNG Liquefied Natural Gas MDG Millennium Development Goals Musrenbang Musyawarah Perencanaan Pembangunan, Development Planning

Meeting NGO Non Governmental Organizations PEG Poverty, Environment, and Gender PEME Plan, Execute, Monitor, Evaluate PIC Person in Charge PNPM Program Nasional Pemberdayaan Masyarakat, National Program for

Community Empowerment Posbumil Pos Pelayanan Ibu Hamil, pregnant women service post Posyandu Pos Pelayanan Terpadu, children under five integrated service post Puskesmas Pusat Kesehatan Masyarakat, community health centre PRA Participatory Rural Appraisal RAV Resettlement Affected Villages Respek Rencana Strategis Pengembangan Kampung, Village Development

Strategic Plan SOP Standard Operating Procedure WP&B Working Program & Budget YPTB Yayasan Pengembangan Teluk Bintuni, Bintuni Bay Development

Foundation

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Executive Summary 1. As part of the Social and Environmental Impact Analysis (AMDAL) commitment, Tangguh LNG will continue its integrated social program (ISP) for the next five years, 2011-2015. The second period of ISP (ISP-2) shares several similar features with the first ISP (ISP-1) such as: using AMDAL as a reference document, emphasis on local participation, ensuring the benefits for local communities in which indigenous people constitute more than 70% of the local community. However, there are some differences:

o ISP-2 document is intended as a Guide for ISP implementation. o ISP-2 has general and shared overall goals across the programs. o ISP-2 programs will be streamlined, focussed, and regrouped into five main

programs. o ISP-2 is developed to mitigate the risks of the Tangguh LNG operational

phase. 2. Bintuni Bay Regency in West Papua Province in which Tangguh LNG operates has experienced several changes. Local government budgets increased significantly, villages and district divisions were implemented, and many investments and economic activities were conducted and facilitated by local government. Nevertheless, Tangguh LNG still contributes to local development especially through its local workforce and social programs. The beneficiaries of the social programs were the local communities especially the indigenous people and vulnerable groups namely women and children. 3. The approach for conducting the social program of ISP-2 consists of:

a) Development by the community encouraging local ownership and initiating development,

b) Capacity driven local governance that will strengthen the capacity of local actors to enhance development effectiveness,

c) Selected area development that will develop certain areas as best practice and can be replicated to other areas,

d) Key sectoral development that will focus on selected sectors to create wide multiplier effects thereby increasing the impact, and

e) Poverty-environment-gender mainstreaming that will ensure all the programs contribute to the basic strategic issue.

4. The overall goal of ISP-2 is to support local effort to enhance the quality of life of local communities through participative and accountable local development practices and to contribute to Tangguh LNG operational sustainability. The overall goal is formulated by acknowledging the role of Tangguh LNG as one among many local development stakeholders and its works will be influenced by the participation and cooperation of other parties. The focus area of ISP-2 is not only limited to Bintuni Bay Regency, but includes Fakfak Regency in West Papua Province as well. 5. The ISP-2 document is developed as a Guide that groups the programs into governance, communication & external affairs, community health, education and training, and livelihood. The document will be evaluated further annually and will be based on community participation. The objective is elaborated in programs

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objective, outcomes, and key outputs. The objective for each program is listed in the following table.

Table 1: Programs Objective

Programs Objective Formulation Governance Contribution to the improvement of governance of government and civil

society in accordance with transparency, accountability, and participation principles.

Communication & External Affairs

Promotion of mutual respect and constructive relationship between Tangguh LNG and its local stakeholders in Papua.

Community Health Supporting local government and local community to improve health quality and accessibility of health services.

Education & Training

Supporting local government and local community efforts to achieve an educated and skilled local population.

Livelihood Improving capacity of households in local community to create diversified and sustainable income sources, and empowerment of indigenous Papuan contractors to be competitive.

6. The implementation of ISP is based on the framework called PEME, which consists of four comp